There are multiple factors that are considered as the base to become a confident trader but the most which are of utmost significance are listed below. To be a confident trader you not just get to settle the trade smoothly but you can be sure about the decisions you opt for trading in the stock market.
Your Mood Matters. Each and Every time! Your mood always has a powerful impact on the way you trade in the equity markets. When you are feeling a little low or in a bad mood, it’s better to stand aside until you regain your normal composure. The expert traders do take a day off whenever they feel that they are not 100% in the right frame of mind to execute trades.
Trading profitably is often dependent on how accurately one perceives the equity markets. If your mood is not up to mark, you tend to misread the markets and thereby commit mistakes and incur losses. Our Emotional frame of mind plays a big role in the way we execute our trades. It’s always seen that the winning traders cultivate a mindset that helps them to maximize gains in equity markets. The more you can cultivate such a mindset, the more you will end up having winning trades in the equity markets. So having a Calm, Disciplined, Focused, and Decisive (CDFD) mindset is critical to be successful in the equity markets.
The Images we have with us on the trading day can have a critical impact on the results of that day’s trading. Many times it’s seen that how we think about trading results in how we react to situations in the equity markets. Different people have different images that influence or motivate them. Some people get motivated by the challenge of getting the trades right most of the time; some are motivated by the returns generated in each trade.
Whereas some others are happy that their thought process was ultimately right as far as the markets that day were concerned. Different people get motivated by different emotions like challenges, competition, profits, etc. It is seen that thinking of only profits many times gets you distracted when executing the trades in the markets.
To be a Winning Trader, It’s always better to focus on the process rather than the result of each trade. When you only think of Profits, you feel the pressure of making a profitable trade result. This often results in a trader making unnecessary mistakes and losing out in the process. It’s always better to focus and enjoy the process of trading, the joy of self-mastery. This automatically leads to you becoming a winner in the equity markets over a period of time. The more motivated you are, the more focused you will be in achieving success in the equity market.
Everyone needs some sort of assurance when it comes to equity markets. This is true and very important especially for those who are new to equity trading. Trading is by its nature risky. And many times you have to deal with many unknown factors when you execute a trade.
The more calm and assured you are, the better you will be in placing and deciding on the correct trades. It helps when you have a professional expert guiding you and helping you especially in the initial stages of your trading journey.
You will be able to trade more calmly if you are guided by a professional expert who can handhold you to execute your trades. You have to match your risk appetite with your trading style on which the expert will guide you and help you out. It is seen that most winning traders are able to match their trading style with their levels of risk appetite. The closer the match, the more calmly the traders are able to trade and higher are their probability of winning trades.
Discipline and Self Control are some of the most important skills for a successful trader in equity markets. Just like you will have to do physical training and exercise if you have to run a marathon, the same applies to trading in equity markets.
In trading, there is tremendous pressure since the probability of your trades going wrong is always there. Some people often panic and abandon their trading plan or make unnecessary errors. So having enormous self-control and discipline to stick to your trading strategy and execute it till the end is very important to succeed in equity markets.
Learning to take setbacks in your trades and bounce back is an important ability to be a successful trader in equity markets. All traders have to take risks of varying degrees when they execute a trade in the equity markets. No one can escape this reality.
So it becomes very crucial to learn to take risks and live with the results. Whether it turns out to be positive or negative. It’s a fact of equity trading that it’s impossible to make profits without taking risks.
The biggest learning is to readily accept that every trade you place will have a possibility of going wrong and take the risks and losses in your stride. You have to learn to bounce back from any losses so that it doesn’t impact your next trade.
One of the tricks for especially someone new to trading is to keep the risk so insignificant that it doesn’t affect you too much if the outcome is not favorable to you.
Hope you benefit from the above 5 Tips for being successful in equity markets. Alpa’s Funda/ Gyan will be back next weekend with more learnings to conquer Equities Markets. Till then have a profitable trading week.
