The first thing that comes into every beginner’s mind when it comes to becoming a successful trader is “Get Rich Quickly” and “Become a Millionaire in the short term“. But the case is just the opposite for those who enter in share market with these type of mindset. They lose all the capital they invested in the market in a few months and then they are frustrated and leave the share market that Intraday traders only loose money.
Well, the fact is that only 10 percent of the intraday traders make money from the market, and the remaining 90 percent loose there hard-earned money which they have invested initially in the market to start there trading.
To be a successful trader one has to follow a few very important rules which are really very easy but very hard to implement when it comes to doing it practically.
Rules for Becoming a successful trader are:
- Keep your Greed and EGO aside: While trading intraday one has to keep their Greed and Ego aside while trading as it will lead you to eventually into the losses. Suppose you have made Rs 8000 profit in the first two hours of the market. But what human psychology is it will tell our brain to make more money from the market and do some more trades. Eventually, as a result, you end up with a loss or making less profit at the end of the day.
- Follow the money management strategy or Risk Reward Management: Following Risk Reward Ration according to your initial capital will really help you to keep trading for more trades rather than losing all the capital in one single trade.
- Start with a small capital: As a beginner, one should start with small capital as even if you lose the money in the market it will not affect you so much that you will never trader in the future afterward.
- Follow the trend and your technical analysis: Following the trend in the intraday market will give you money. If you trade against the trend then the chances are you will lose your capital very fast. Putting the stop loss in the trade is a very important and crucial point one professional trader follows through life.