Trading is not gambling:
Look at trading as a profession and not a Casino where you can mint money. It is a risky business but nevertheless, it is a business. Every Business is founded on principles, rules, and discipline. Therefore, unless you learn the systems and processes of this business, you cannot taste success here. Like the old adage, “The more you sweat in the practice, the less you will bleed in the battle.”
Safeguard your capital :
Trading is the quickest and easiest way possible to lose a big chunk of money. You cannot succeed as a Trader without digesting a few losses. But you must be well aware of how much money you can afford to lose. Your Trading Capital is like the Fort you have to defend. So if you can protect that without much damage on a loss-making day, you can live to fight for another day. To protect the capital, always be aware of your Risk Reward Ratio and deploy a Stop loss.
Book Profits and take them out of the Market:
You cannot resist the temptation to trade with your profits. One bad day will deplete your profits and in the process demoralize you also. Controlled Trading is the key to success in a trading career. But you cannot master the skill in one day. Therefore I always advise to take out the profits from the market.
Do not try to time the market :
You are not the Boss of the market. Per Contra Market is always the Boss. The market is like a dragon that cannot be predicted, controlled, or overpowered. So do not try to time the market by fixing such kinds of targets. Just go with the flow and make profits. Like they say in the Market, Trend is your Friend. Go in the direction of the Trend and reap profits.
Keep a balanced mind:
IF you want to succeed as a Trader, you need to have a Zen Mindset. Do not overly rejoice in success and do not brood over the losses. Have a middle path. Like Rudyard Kipling says in his poem “If”,
then you will sustain the market for a long time and make profits eventually.
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