Consistency, and Understanding market psychology are the two important key features to keep in mind.
Is it a tool for really earning money?
Yes, sometimes with strict discipline. Practice and Patience are the two must follow characteristics to be followed for a profitable trader.
How can you practice?
Practice by paper trading, mark the entry and exit with strict Stop loss and target.
Be Patient.
Entering into a trade by the time of 09:30 AM in the morning, and fixing up a target for 50 points, having a strong analysis and confirmation that the trade will hit the target for sure, be patient till the target is reached. And please do not fall prey for FOMO - Fear Of Missing Out.
Apart from the above mentioned ideologies, to become a profitable trader, just understand the power of Compounding. This might be simple to hear or to read, let me explain the power of it.
Consider market will be from 09:15 - 15:30, and in a month we are provided with 20 days to trade. Starting with a capital of ₹10,000. Let us do the math now for 5% of returns.
By the end of first month:
Opening balance: ₹10,000.
Per day returns: ₹500.00
Total number of trading days: 20. Let us consider 18.
The Closing balance, by the end of current month will be 18(days)x₹500.00 per day = ₹9,000 + Premium(₹10,000) = ₹19,000.
Consider the opening balance of Second month as ₹15,000, reward yourself with ₹4,000.
By End of Second month,
₹750 x 18 days = ₹13,500 + 15,000 = ₹28,500. Reward yourself with the required amount. Try to round it off.
Without rewarding yourself and 20 days per month with 5% of returns, let me provide you with a calculation.
First month 20 days x 5% of ₹10,000 = ₹10,000. Total balance - ₹20,000
Second month 20 days x 5% of ₹20,000 = ₹20,000. Total balance - ₹40,000
Third next month - ₹40,000 + ₹40,000 = ₹80,000.
Fourth month ₹80,000 will be doubled and so on.
In a year you can have a portfolio of ₹40,960,000. Can you believe it?
It's No joke. But don't get too eager and desired. To achieve this, needs a lot of practicing and patience. This thing cannot be achieved overnight.
No one cannot be a perfectionist. We cannot achieve 100% of anything anytime. We can try to achieve the most in course of time.
Trading can be profitable, but it also carries significant risks. The profitability of trading depends on various factors, such as the trader's skill level, trading strategy, market conditions, and risk management.
There are many successful traders who have made significant profits over the years. However, there are also many traders who have lost money in the markets. Trading requires a significant amount of knowledge, discipline, and emotional control, and not everyone is able to succeed in this field.
Moreover, it's important to understand that trading is not a guaranteed source of income, and there is no magic formula that can ensure profitability. Traders must be prepared to accept losses as part of the trading process and must manage their risk accordingly.
In summary, trading can be profitable, but it is not a get-rich-quick scheme, and it requires a lot of hard work, discipline, and risk management to succeed.
About the Creator
Rohith RA
Hi there! My name is Rohith and I am into Blogs nowadays. I have a passion for wide fields. Thanks for stopping by and I hope you enjoy reading my blog as much as I enjoy writing it.
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