How to become a Successful Stock Trader?

A trader takes a short-term view of the market. He is a market participant. He trades for a day to few days. They are more interested in volatility and take advantage of volatility in the market. They are neither value investors nor growth investors.

Successful Stock Trader

A good trader knows the importance of discipline, patience, and persistence. It is not only about taking a risk and moving suddenly from one trade to another.

Here are some habits that successful traders should possess
  1.  Managing risk optimally

Each trader has a limited capital to trade with. Within that capital, he has to buy, sell, hold and earn the profit. He has to rotate his capital in such a way that he should not miss any opportunity which it comes for purchase, and at the same time, some of his capital is stuck up in the shares that he is holding. He should know, how much from his capital, he can afford to lose in the worst case scenario.

Must Read: Top Ten steps you need to know to become a day trader

  1. Be confident and practical

The trader should be confident and optimistic about his trade. Though not overconfident, of course, realistic and reasonable. He should believe in the dictum “There is always the other day to trade profitably”.  Successful traders do not attach emotions to any stock. They always go for logic and calculations. They have a strategy for all their trades. They know how many maximum returns they will get in each trade. They have realistic targets.

  1. Cost matter a lot when you are a trader

Traders should have cost consciousness. That is while trading they should count each any every cost that they incur at each and every step.  Like brokerage charges, holding charges, demat account charges, margin (loan) money interest charge etc. A trader ruffles (put into use) his money as often as possible in search of opportunities. Since trading is a continuous process even little increase in cost adds up quite a bit in long run. And after taking all the trouble and tension, if he is not able to generate income more than the bank FD, then there is no use trading.

Must Read: Top ten day trading secrets for beginners

  1. Steadfast and resolute should be your pillars

Great traders are steadfast and resolute to a high degree of their trade. They have to train his mind towards attaining one’s goal. One cannot gain from all trades and conversely one cannot lose in all trades. Winning some and losing some. And this should not shake up the trader. Once the trader has created a plan,  he should have due diligence to stand by it.

  1. Learn from market trends

Everyday market offers new and new things. Hence a trader should be a constant learner. He has to tweak his strategy according to market needs. They try to be in sync with the market trends as far as possible. Though there are traders who take high risk. But they are few in number. It is better to learn from the market instead of blindly doing guesswork.

  1. Read, learn and research

The successful stock trader use their maximum time for reading and analysis. Reading annual reports of the company, business newspaper, change in government policies, new schemes launched by the government, world news, etc. Learning from past experience, noting down success and failures. Doing their own research and analysis of trends, the effect of news on prevailing market condition.

Must Read: How to pick a good stock for intraday trading?

  1. Executing trading plan

A trader focuses closely on how he executes his trades. Because a lot of things are involved like using candlestick chart effectively to identify entry and exit points. Purchasing shares in bulk, at one go or purchasing in small amount of pieces at a time. Is the trader over selling/buying because of the direction of the market.

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How to deal with the stock market’s ups and downs?

A stock exchange is a place where shares/stocks are bought or sold. Few people wish to sell shares and there are few who wish to buy. They both meet at a specified place. This place is called stock exchange. In short, it is a transaction point for sellers and buyers. An overview of Indian stock market.

Well, suppose buyers outnumber sellers. That is to say, buyers wish to buy 1000 shares, and sellers have only 800 shares. What happens in this situation? Seller jacks up the price. More people (buyers) think they will get better returns on the shares. This is the basic how share market rises.

Well, suppose sellers outnumber buyers. That is to say, buyers wish to buy 1000 shares, and sellers have 1200 shares. What happens in this situation? Buyers down the price. More people (sellers) think they will not get better returns on the shares. This is the basic how share market falls.

How to deal with the stock markets ups and downs

If the frequency of sharp fall or rise of the market is high than it is called volatile market. It is measured by standard deviation of the return on an investment. It is a statistical concept. It denotes the range within which deviation can be expected, usually plus-minus 15 percent. There are benefits of intraday trading. Stable investments like bonds have zero standard deviation because returns are fixed.

Volatility in the stock market has existed in the past, they exist in present and they will continue to exist in future. Yet investor has to develop ways to deal with it. Here are following ways an investor can deal.

Staying invested

The best way to deal in the volatile market is to avoid it altogether. That is by staying invested no matter what short time fluctuations are. Easy said than done. It is hard to practice. Because if your investments are taking a beating by a huge amount it can unnerve anyone.

Investors often think that buying and holding the stock for a long time say 20 years or so will make a lot of money for you. Even long-term investments need frequent “peep into” their investments from time to time.

If the company fundamentals are strong and earning consistent. Then no need to worry about these short-term fluctuations. If you feel that company is strong than these periods of volatility can be a great time to buy.

Many people will say that you missed the bull rally by your buy and hold strategy. And your returns will be reduced significantly. But in the bear rally, you can cut your losses significantly too.

Must Read: How Does Stock Market Work?

Delay in execution of order

During volatile prices and high volume, shares are handled in different ways. That is what you see is not what you get.

Because of the high volume of trading, there can be a delay in execution of your order. Let’s say you wished to sell the share when they were at 152.63. You placed an order to buy/sell. By the time your order is executed the actual price can be 153.82 or 151.15, in that case, you do gain or lose by a small margin.

During online trading, chances are that many people will be buying or selling at the same time. This high increases internet traffic and computer system’s processing capacity being low. You may not be able to access your account, or your placed order will take a lot of time for execution.

There are chances that your trade will not be executed at all. You placed the order for buy, along with thousands of investors, and what if no one is selling? Your order does not get executed. And vice versa is also true.

For Free Trading Tips Visit: https://goo.gl/2nhRwT

How to pick a good stock for intraday trading?

An intraday trader is a stock trader who buys and sells shares on the same trading day (or sometimes T+2). He capitalizes on the probable rise of share value. He may also short to minimize loss when the shares are on the downturn. They keep eye on short moves of the market. They mostly play on margin money offered as a loan by the broking houses. For more details, you should take an overview of Indian stock market.

How to pick a good stock for intraday trading

Day traders and intraday traders are the highest risk takers and hence are rewarded/doomed accordingly. They look for making quick bucks in a rapidly changing market conditions. Most of these traders keep a keen eye on charts, mostly candlestick charts which gives them information on the just future condition of the market. They use technical analysis as one of their major tools, to determine right conditions when to enter and exit and hopefully make a profit.

How can stock tips for trading be helpful at this juncture? How can trader benefits from intraday trading? What should trader be looking for before he selects the shares for intraday trading?

1.Liquidity

It is the most important aspect intraday traders should look for. Liquid stocks have a massive volume that is a high number of sellers and buyers. Because of high volume, buying and selling do not affect the prices considerably that is price alterations are not much.

2. Stock tips for intraday trading

Here are some things that intraday traders should look for like percentage of liquid stocks should be more in his portfolio. He should avoid volatile stocks as much as possible. Trade in better-correlated stocks. Should evaluate the trends before investments, should choose and buy the stocks after doing the technical and fundamental analysis.

3. Avoid volatile stocks

When company results or important announcement is made the concerned stock usually displays high volatility.  When this happens then the trend is one way, either most people will be selling or buying. And these stocks become illiquid.

Must Read: How can you learn stock trading?

4. Correlated stocks

Stock picking should have better correlation with key sectors and important indices (currency, commodity, oil etc).  That is when an overall index or a sector sees an increasing movement, it boosts the stock price. Like if the currency is strong then those sectors dealing in exports take a beating and vice versa.

5. Latest trends

One of the intraday stock tips is to stay ahead of the latest trend which will provide a better rate of return on your investments. Traders should have a quick realization of those stocks that are rising swiftly. They should opt for quality research to identify the trend, but sadly most of the traders do not invest time and effort into the research.

Above given stock market investments tips – do and dont’s will be helpful in your day to day trading. If you are looking for intraday tips which will give you maximum gain with the minimum risk you can register for a free two-day trial. For two-day free trial please fill the form with all the required details and submit. There are hosts of services being provided depending on your risk taking tolerance and amount of investment you can afford.

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How Do You Invest in Stocks for the First Time?

You finished your academics, and now having a comfortable but struggling job, and have little extra funds and are planning to save for your car or a home or started building for an adequate retirement fund.

How Do You Invest in Stocks for the First Time

When looking for investments for your dream car or house or anything, one has too many options and young people often get confused, where to begin and how to begin, because some investments are often too complex and difficult to understand.

If you have decided to invest in stock market, there are certain things that you should keep in mind

 

  1. Learn about investing

To learn more and more about investing best friend is reading and knowledge gaining. There are numerous books, magazines, periodicals which are focused on the share market. There are books available written by distinguished authors. Articles also appear in business newspapers and magazines.

You can also ask for advice from successful traders. Their view, opinion, their calculations, and observations. Gaining knowledge is the best form of protecting your hard earned money. There are benefits of intraday trading.

 

  1. Opening account with established brokerage firm

Open trading and demat account with brokerage firms which have vast experience. They offer trading tools like candlestick analysis, stock screeners etc. so that you can filter out good stocks form not well-performing stocks. The fundamental and technical analysis also helps you in segregating good, better and best stocks. Brokers get company news much before it spreads inthe market, which gives you an added advantage. Better take an overview of Indian stock market before opening an account.

 

  1. Control your emotions

One should think of gain/loss in stocks from a logical point of view and not from an emotional point. It is your business and should be respected and treated as one, emotions should be kept on the backburner. There are many traders who cannot control greed. They expect that the share prices, which they hold, to keep on rising forever which in reality is impossible. One should not stick unnecessarily to shares which are non or underperforming. You can make money in Indian stock market provided you “play” with brain and not the heart.

 

  1. Certified financial planner

Do not take your investments decisions from any Tom Dick and Harry. They can be anyone who has the least knowledge about share market dynamics. They can be your friends, family member or anyone. Remember it is your hard earned money and you cannot afford it to jeopardize your investment plan. And later tell you “I told you . . . . “  and wash his hands off. Better take help of a certified financial planner, who knows when to enter and exit the market. Which shares to hold, which to buy, which to sell depending on market conditions? You can also join best share market training institute and gain knowledge.

 

  1. Investment amount

This is one of the most important decisions to take. How much amount one is having as surplus and how much to invest? You should keep a certain amount for unforeseen future needs. If you don’t plan properly then when some funds are needed for the emergency purpose, you may have to sell shares, for a loss, if the market is in correction mode at that time, and you intended to hold it for a longer period. Stock market investment tips can be had from reputed and registered firms with SEBI on the official website.