Many people have misconceptions about trading and its risks.Trading is a business,and just like any other business,you need to put together a good set of tools to be successful.But you understand that you should never trade with the money you can't risk losing.That means if you want to trade,set aside a portion of your savings that isn't earmarked for any specific use and that you believe you can put at risk without ruining your lifestyle.
To succeed in trading,you have to be hard on yourself and,work against your natural tendencies,fighting the urge to prove yourself right and accepting the fact that you are going to make mistakes.As a trader,you must develop strategies for when you want to trade,i.e when to enter and when to exit,and not allowing emotional conditions to affect the decisions you make on the basis of the successful trading strategy you developed.
In this blog, I am only going to discuss about stock trading and not about future trading,bond trading or options trading.
First of all,you have to understand the terms 'trading' and 'investing'. Well,investors buy stocks and hold them for a longer time,and riding a stock all the way,and possibly even buying more along the way,While the traders hold stocks for as little as a few minutes or as long as several months,and sometimes possibly even a year or more.The specific amount of time depends on the type of trader you want to become.
Yes,there are three types of traders
1.Position Trader
Using technical analysis,finding the most promising stock trends,and enter and exit points based on the trends.They can hold positions as long as they want
2.Short-term Trader
Trading within much shorter time frames than position traders rarely holding stocks for more than a few days and looking for sharp moves.
3.Day Trader
Never leave their money in stocks overnight.This is more like playing video game.They can trade into and out of a stock position in matter of hours,minutes or even seconds.But you need to be careful while engaging in this risky trading.
There are billions of shares of stocks trading in united states every day and you need to know what stocks to buy and hold for a while.
We will see about some basic terms,types of orders,economic factors that affect everyday market and how to read stock charts in forthcoming posts....
To succeed in trading,you have to be hard on yourself and,work against your natural tendencies,fighting the urge to prove yourself right and accepting the fact that you are going to make mistakes.As a trader,you must develop strategies for when you want to trade,i.e when to enter and when to exit,and not allowing emotional conditions to affect the decisions you make on the basis of the successful trading strategy you developed.
In this blog, I am only going to discuss about stock trading and not about future trading,bond trading or options trading.
First of all,you have to understand the terms 'trading' and 'investing'. Well,investors buy stocks and hold them for a longer time,and riding a stock all the way,and possibly even buying more along the way,While the traders hold stocks for as little as a few minutes or as long as several months,and sometimes possibly even a year or more.The specific amount of time depends on the type of trader you want to become.
Yes,there are three types of traders
1.Position Trader
Using technical analysis,finding the most promising stock trends,and enter and exit points based on the trends.They can hold positions as long as they want
2.Short-term Trader
Trading within much shorter time frames than position traders rarely holding stocks for more than a few days and looking for sharp moves.
3.Day Trader
Never leave their money in stocks overnight.This is more like playing video game.They can trade into and out of a stock position in matter of hours,minutes or even seconds.But you need to be careful while engaging in this risky trading.
There are billions of shares of stocks trading in united states every day and you need to know what stocks to buy and hold for a while.
We will see about some basic terms,types of orders,economic factors that affect everyday market and how to read stock charts in forthcoming posts....
Good one...definitely a good resource for traders....
ReplyDeletevery nicely staarted.keep it up
ReplyDeleteThanks chital and aunty for your support!
ReplyDelete