Hello
readers, I hope you have started incorporating the concepts explained in
previous articles in your trading values. Lets continue further.
·
Do not getting addicted to trading
This is very important from the point of view of a
successful trader. Trading just for the sake of trading is one of the worst
qualities many traders possess. In short, they get addicted to trading. Such people
are desperate to trade. The major cause of such desperation is the urge to “get
rich quick”. But if you involve such addiction in your emotional setup you are
bound to make losses. Why because such qualities do not allow you to take
rational trading decisions. You will enter a trade even before your technical
setup allows. In this process you will find yourself whipsawed in maximum of
your trades. If you actually want to get addicted, get addicted to research and
analysis, that will foster your path of success in the stock markets.
·
Try to learn from past mistakes and implement them to prevent
future mishaps.
It is rightly said, “Failure
is instructive. The person who really thinks learns quite as much from his
failures as from his successes.” Know what you are never defeated till
you are learning from your mistakes. Every time you make a loss, don’t upset, don’t
panic just take out a pen and your diary and jot down the loss. Analyse the
reasons for the loss again and again. And when you have found out the reason
write that too. Practice this from today itself. And you will be able to convert your losses
into stepping stones of success.
·
Don’t fall for the numbers.
Many traders are passionate about numbers in some or the
other way. Like a stock of Rs.2 with poor fundamentals may appear good to them
as compared to a stock of Rs.100 with better outlook. Some people develop favouritism
to profit numbers. Like earnings of 2980 will not please them but a profit of
3010 will satisfy them. In both the cases the attitude is completely wrong. In
the first case the investor / trader will always remain away from quality
stocks. And in the second case in order to earn that extra 30 the trader with
lose what he has earned. So basically you should not fall in for the numbers.
Profits and stock prices? Do not go for the numbers look at values instead.
Stay tuned for Part-3
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