During the year 2017, the U.S. was accounted for almost more than 50% of the share of total global stock market. About 52% among the Americans are regularly investing their money in stocks.
In case you too have a great passion for numbers as well as financial analysis, then you too must consider to work as stock trader. This will certainly be a very rewarding career path particularly for those people who are not too scared to take little risks.
Taking decision about becoming an active stock trader must be made with lots of care and consideration after fully analysing your skills, discipline, dedication, and interest for trading.
Trading either for your living or as an active trader, it can be a very rewarding career, particularly it can provide you financial independence and also instant gratification. However, you must assess yourself well before taking decision otherwise, this can prove to be detrimental to both your personal and professional life.
Here are few tips to become a successful international share trader and also few rules that any amateurs/beginners must know to be successful in this profession:
- Always go with the trend
You must follow the rule that when the market is regularly going up, then don’t sell and when it is going down, avoid buying. Only any expert traders must ideally consider counter-trend trades because enough skills are needed to do such trades.
- Learn technical analysis
Best ways to begin trading will be by learning to perform technical analysis and how to look at various charts. Most strategies of technical analysis will never give signal for buying/selling against the trend, so look for ways to overcome this situation.
- Avoid following tips given by others
Never follow any tips offered by others blindly. To be a successful trader you need to understand various logics behind every trade, try to document it and note what you learnt from every trade transaction you handled.
- Risk/money management
Managing the risk is perhaps the most important trading skill needed to become a successful trader. It will be very important to allocate first the correct amount of capital for trading and losing that capital will not greatly hurt you.
Also, the amount of money to use for every trade must not be greater than 10 – 15% of total capital allocated.
- Book your loss
It is very essential as a beginner to have stop loss on each trading that you do – basically a fixed point to book your loss in case you are not right. With this action, you will exit all the wrong trades quickly and have your mental balance and look at your other profitable trades.
A big mistake that made by traders will be to add more size for reducing the cost of your acquisition when they go wrong.
Also, as a trader you must slow down if things are not going right, rather than being consistent in increasing your trading capital.
Stock market trading actively can be an amazing career and everyone may not succeed like any kind of business. However, following all the above simple rules can help you become a winner.