As a trader always keep following three 3 Ms in mind and these are namely Mind, Method and Money. if you can conquer these aspects and all riches of the stock market will be laid out for you.
Mind
The key to winning is inside the Mind. As master of your mind, you have to manage and understand your emotions very well. It is extremely important to understand not just the individual’s psychology, but also the crowd psychology of the markets. To become a good investor or trader, you must have perseverance and discipline.
Method of Day Trading
Plan your Trade and Trade your Plan. A good trading plan should cover your entry, exit and position sizing requirements. Use different methods for different market conditions.
Money
Overall profit/loss depends on money management. The first goal of money management is capital preservation. If you lose 10% of your capital, you have to make 11% just to break even. If you lose 40%, you need to make 67%, and if you lose 50%, guess what? You have to make 100% just to recover. So before you think about making big money, first you got to think about not risking your capital unnecessarily.
Thus make it as an endeavour to learn all these aspects and you will be on the way of the becoming the perfect trader in the stock market as share market is a game of emotions. When a person is selling a stock he feels that stock will fall and when another person buying stock s the same stock, he feels that stock will rise. Thus it is a perception management which needs to be undertaken dexterously. It has been aptly said that master your mind and you can rule the whole world.
