How to get consistent Trading Profitability.

on Friday, December 19, 2014
Trading is a war and there may be few battles which may get lost, losing a battle do not means you have lost the war. Trading is not about one day, one week, or even one year. Trading is about taking money out of the markets over and over again, consistently.

When I have bad days and series of losing streak in trading one thing which has helped me time and time again is  I look at my long term track record of my trading curve , and that gives me confidence in myself as a trader, and my trading methodology.

So if you want to make long term profitability as stock trader, and option trader, here are principles that will help you to be profitable in the long term as a trader.

·        Trade with the trend, Market is a irrational beast and it can keep going in a single direction so always try to be with the trend. As Humans emotions overpower you, as a trader you need to control your emotions in making your trading decisions.

·        Have a trading plan and trade as per your plan. Do your Homework before you begin trading.

·        Trade based on quantifiable facts, not your own emotions. Trader should react based on price action, not based on my feelings.

·        Trader should learn from other people’s experiences, instead of losing his own money and learning the hard way.

·        Trader should study historical charts of stocks/Index in different time frames, to know short, medium and long term trend. Always back tested your trading strategy before entering market.

·        Trader should develop a trading plan to give him rules to follow to instill discipline in trading.

·        Trader should have passion for trading and “Never give up” attitude.

·        Trader should develop a trading methodology that fits my own personality and risk tolerance parameters.


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