Here we discuss some important steps for your trading journey in share market. How you can become a successful trader.
What factors are important to take a best trade
- Focus on quality trades not on quantity.
- Select stocks and make a watchlist.
- Identify which type of trader are you.
- Always deal on those stock in which FII & DII holding greater than 25% and big market cap.
- Always keep your chart clean and clear.
- Clear about your entry and exit price.
- Not to trade when there is a news about any stocks in market.
Focus on quality trades not on quantity trades
Focus on quality trades not on quantities trades. Quantities trades increase your brokerage not your profit. If you take 5-6 quality trades per month you can easily earn 20-30 percent return on your investment. That is very good return in comparison to other business. This is not mandatory to take daily trade in market. Quality trades not meet daily as you think.Here is a formula “Buy in wholesale and sale in retail” quality trades.
Select stocks and make a watchlist.
Always do work before taking a trade in market. Make a watchlist of selected stocks. Choose those stocks which have FII (foreign Institutional Investors) and also DII(Domestic Institutional Investors) holding greater than 25% and company market cap should be greater than 50 thousands crores.For making money in market your watchlist should meet above two rules. Don’t trade penny stocks which have low market cap and low price and no have FII and DII holding.
Identify which type of trader you are ?
It should be always clear in your mind that which type of trader are you. Are you a intraday trader, swing trader or positional trader. And in which market you are interested in equity market, in commodity market or in cryptocurrency market, where are you become make a successful trader.
Follow FII & DII holding stocks
Always trade on those stocks in which FII and DII holding greater than 25%. To become a successful trader follow the FII strategies where they buy and sell stocks.
If you trade in penny stocks for quick earning money you will trapped and lose all your money. Don’t trade those stocks where promoters holding is greater than 40%.Keep a distance from news and tips. Who give you advices for higher return.
Keep Your Chart Clean & Clear
keep your chart simple and clean no more indicator is required for a successful trading. Master in one or two strategies, if you want to become a master in every strategy and more indicator you will fail in trading. Become a master in one field by practice. Alone Your chart is enough to describe you a best trade when take entry or exit.
Clear about your Entry & Exit point
Before taking any trade these three points should be clear in your mind
.1. Your stock entry price.
2. Your stock target price.
3. Your stock stop loss price.
A retail trader doesn’t know where to buy and when to sell and what will be the target of stock price. He Doesn’t know where to buy so he buys shares at any price, he doesn’t know what my target is and stoploss. Follow FII & DII rules to take entry, as you know big investor does not change the stock buy price and sell price. They take entry at only and only at demand zone and supply zone. Because they buy stocks in millions of quantities at one price that is known as Demand zone and sell the stock at supply zone. They buy stocks in wholesale and sale in retail. You have to follow that rule for become a successful trader. There is one difference in retail traders and professional traders of quantities of buying and selling by them. If a retail trader thinks like a professional trader then they can earn good money from market.