Unlike investors who need markets to move up in order to profit from their investment, traders don't depend only on bull markets. They can profit even in down trends.
This is a crucial advantage traders enjoy over investors -- the ability to make money whether the market is moving up or down. This fact should not, however, lead you to believe that trading is easy; it requires both a skill-set and rigorous discipline.
Many people take to trading in the mistaken belief that it is the simplest way of making money. Far from it, I believe it is the easiest way of losing money. There is an old Wall Street adage, that 'the easiest way of making a small fortune in the markets is having a large fortune'.
This game is by no means for the faint hearted. And, this battle is not won or lost during trading hours but before the markets open but through a disciplined approach to trading.
- Always have a trading plan
- Avoid Overtrading
- Don't get Unnerved by losses
- Try to capture large market moves
- Always Keep on Learning
- Always be alert to making some of money with less risky strategies as well
- Treat Trading as a business and keep a positive attitude
- Never blame the market for your reserves
- Keep a cushion
- Understand there is no holy grail in the market
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