So, what are the 5 skills to become a profitable trader?
Yesterday I was discussing with my school friend about becoming a profitable trader and I thought it will be helpful for more traders if I discuss it here.
First things first, before we get into profitability, let we discuss about the trading in the first place.
I feel that trading is the most underrated skill-wise and over-hyped in making money wise.
First, we have to solve why there is a big gap between skill and making money and I’ll also tell how I raised above all these pitfalls and made a good amount of money.
But after that how I went bankrupt and how I came back to the neutral position. I’ll also share my biggest blunders which had put me almost on road. (Upcoming blog😉)
After going through all this roller-coaster and mixed emotions ( Going to the top and falling from there to the bottom and again trying to climb and reaching a decent position) in the last 4 odd years.
I learned these 5 skills over a period of 4 years.
I feel everyone out there who wants to become a profitable trader should also learn these 5 skills to become a profitable trader.
Let’s discuss one by one here:
1. Always know how much you can lose on trade
This is one of the less talked about, probably the most ignored topic. But as a trader, we have to pretty sure about how much we can lose in a trade even before we’re going to start the trade.
2. Risk for reward not for emotions
We should always look into the Risk-Reward Ratio (RRR) before taking any trade.
For example, If I’m ready to lose Rs. 100 then I should be aiming to gain at least Rs. 200 to stay profitable for a long period of time.
3. Welcome small losses
We should always be happy to take small losses by cutting losses. I used to make small profits 10-15 days and make one big loss which eats up all my profits.
But over a period I learned this but this is very important I say.
4. Ego should not be allowed in your trading room
I should say this accounts to substantial weightage in making you vulnerable while taking trading decisions.
Almost 80% of my losses account for this one psychological skill. This egoistic mindset helped me to get what I want in other aspects of my life but as far as trading is considered it had hit me hard, in fact very hard.
5. Learning from your trades and fellow traders
Last but not the least, the easiest way and the smartest way to develop your trading skills is analyzing and learning from your own trades and fellow traders like your friends or people like me. ( You can Email me – email@example.com )
Bonus skill – Treat it as a business rather than a hobby!
In addition to this, for more sure trades and consistent returns, you can read this. Happy Trading!
Almost most of the people have trading account these days, if you don’t have one and thinking to open, you can use this.
Let me know if have any queries. You can Email me – firstname.lastname@example.org.
Thank you, will meet in the next blog. I would like to conclude it here by signing off (Above all, you can also learn different strategies here.)