Successful Trader believes the main key is being consistent not just in trading also in everything in life. In spite of profit, they focus on process of achieving the goal.Nothing in life or in trading comes easily.
Putting much effort you can and being patient for the work to complete is the only way to achieve goals.
Being dedicated to the work, learning about the process of trading and implementing. It into their work rather than being desperate to make money they believe in the performance towards their goal.
Discipline is one of the main fundamental characteristic in trading a millionaire trader sticks to the fixed plan they make.
Find Own Trading Strategy:
To become a successful trader one has to find their own strategies, without losing a trader can implement his techniques to test this process is called backtesting. The trader has to find their comfort zone as there are so many markets available in trading. They have to know in which path they want to continue either fundamental or technical, long term or short term, low risk or maximum risk.
Risk management helps to prevent traders from higher losses, it is the most important quality in a good trader. Trader finds a way to minimize the risk of losing money, they make more profit in trading from the others. A successful trader doesn’t afford to lose their game in trading allowing very few mistakes. Risk occurs during a loss on proper check it can be minimized and allows the trader to get profit.
Admit the Mistake, Learn From Failure :
There is no strategy that is proven to be profitable always. It’s common for a trader to make minor mistakes, it is important for the trader to admit the mistake rather than dwelling on it and move past, analyze what went wrong, and make a process to rectify it. When trader experience bad time they tend to give up but a good trader deals with loss, believes in them takes time, and bounce back.
The capital amount is the amount a trader has to buy and sell. To protect your capital there are many different choices available like diversifying, stop loss, on-correlation. There will be ups and downs but by Managing the capital you can handle the loss
A protected capital along with good performance gives more profit to the traders. There are totally 4 types of capital investments in trading they are working capital, debt capital, equity capital, trading capital.
Use Stop Loss or Limit Order
Stop-loss is a method to minimize the loss when you fear trade might go downt o. It ccurs with a limited amount of loss with each order. Even if your trade value is rising it is advisable to practice stop loss. For Eg, if you are buying a stock for 1000 Rs and fear there is no raise in the market so you make a stop loss for 900Rs so you won’t lose all the money only lose a small amount that has a no bigger effect on your trade.
A limit order is to minimize the buy price and maximize the selling price; the order will only be executed when the limit is reached. For example, if you want to buy a stock that is 100Rs but you have only 900Rs so you put a limit order to buy the stock at 900Rs, once the stock becomes 900Rs the limit order will buy the stock.
Edge is simply a trait that helps traders achieve more profit than the loss that separates successful traders from unsuccessful traders. It can be anything like advanced technology, persistence in trading, strategy, risk management, personality simply anything that brings more profit than loss. Having an edge allows the trader to constantly attain a profit.