“I am a Trader, Should I Trade?” Such misconceptions we have heard many times during trading. Well, this is may be the biggest mistake made by traders. The trader’s job is not only to trade but trade in a right way based on trading tips or strategies. Trading is just like business. It is a business of making profitable trades. In order to achieve this - trader needs to understand that how he/she can do his job well. Let us discuss on some essential points a trader needs to achieve.
People use to condemn that market is not going well, the market is always right. Never go against the market. The price on your computer screen should be the guide. Always have respect for the market and do not keep your eyes away from the goal.
Market prices are volatiles at times and the only self defense a trader can employ is Develop Discipline. It is the discipline and passion for the markets that keeps a trader in the market for a long time.
The trader has to wait for an opportunity patiently. Therefore, this is a business where you need to keep patience (wait and choose a good opportunity). With the help of few good trades you can earn big bucks. Going to trade each small move (read overtrading) only leads to under performance, stress and frustration. The goal is not only to trade but trade well with beneficial opportunity.
In trading you can see and observe that you get the highs and lows very quickly. In these highs and lows, traders usually make silly mistakes like getting overcautious in lows and throwing all caution to wind in the highs. A professional trader must never get carried away or bogged down whether success and failure. Remember, trading is a journey and one wrong decision or mistake can get you out of business. That’s why, as a rule, traders should never get carried away and keeps an eye on trading capital all the time.
While trading, it is better to miss an opportunity than loses capital sometimes. The focus should be on to gain money while preserving capital.