Welcome to my blog! on Top 10 Rules To Become A Profitable Trader. I’m so glad you’re here. My name is Sumit Raut, I’m passionate about stock market trading, and I love to share my knowledge and experiences with others. This blog is a place where I can share my thoughts on Top 10 Rules To Become A Profitable Trader. I’ll be writing about Top 10 Rules To Become A Profitable Trader, and I hope you’ll find my insights helpful and informative. I’ll also be sharing my personal experiences, and I hope you’ll find them relatable and inspiring. I’m always learning and growing, and I hope you’ll join me on this journey.
I’m so glad you’re here! Let’s get started.
Today I am here to tell you the reason why traders fails and if you are a beginner in trading there are top 10 rules which will make you a profitable trader.
What is Trading?
Trading is the buying and selling of assets, such as stocks, bonds, currencies, and commodities. It is a way to make money by buying assets at a low price and selling them at a higher price. Trading can be done on a short-term or long-term basis. Short-term trading involves buying and selling assets within a short period of time, such as a day or a week. Long-term trading involves buying and holding assets for a longer period of time, such as months or years.
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There are many different types of trading, including:
- Stock trading: This is the most common type of trading. It involves buying and selling shares of companies.
- Bond trading: This involves buying and selling bonds, which are loans that companies or governments make to investors.
- Currency trading: This involves buying and selling currencies, such as the US dollar, the euro, and the Japanese yen.
- Commodity trading: This involves buying and selling commodities, such as oil, gold, and wheat.
Trading can be a risky activity, but it can also be very rewarding. It is important to do your research before you start trading and to understand the risks involved.
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Top 10 Rules To Become A Profitable Trader.
- Risk Management: Risk Management is the key of the stock market , How? Because it helps you to manage you risk according to yours capital, it is also help you to save your capital from blowwing out, Every profitable trader use the risk management, as a beginner you should always use proper risk management, Note: Don’t loss more than 2% of overall capital in one trade.
- Money Management: Always split the capital intoi multiple marks so you will have the backup funds because sometimes your month will end in red closing/loss on that time your backup fund will help you to recover losses, Every pro traders do this for safe trading, as a beginner if you follow this you will be the profitable traders soon.
- Position Sizing: In every trade, you should have a perfect postion sizing , so that you an take a exact stop loss or target if you position sizing is more greater than you lossing capacity it will blow your capital in just seconds or you can’t handle the volatality of the market.
- Discipline: Discipline is the second key of stock market, if you are a discipline trader, You can’t loss in trading stock market because if you stick to your plans and started doing right things as per the plans you will be a profitable trader.
My Personal Rules For Trading.
- Single Trade Per Day: This single trade per day will help you to stop overtrading and also helpful for you to reduce brokerages.
- Don’t Trade Without Reason: Dont’t trade without any reason because if you trade without any you will not learn what you are doing and you will loss maximum times, as a beginner or pro trader you should always have a logic behind your every single trade
- Make Trading Journal: Whenever you make a trading journal you always note what you trade today, what’s your mistake in that trade , every trade will tell you that what are the mistakes you are doing during trading. So, this will help you to make a descision and reduce the mistake you have done previously,by trading journal you will be the profitable trader.
Rules I Follow For Trading.
- Don’t exit without any reason.
- Trade only when there is a familier setup.
- Either take target or stoploss dont exit in the middle of the trade.
- Don’t loss more than your average profit.
- Risk reward should be in your favour.
- Think long term survival in trading.
- Your risk per trade should be fixed.
- Control the emotions during trade.
- Don’t break the rules.
- Stick to your trading plan.
Trading can be a profitable way to make money, but it is important to understand the risks involved and to develop a sound trading strategy. By following the top 10 rules listed above, you can increase your chances of success in trading. and you can become a profitable trader.