How to improve my trading

I always try to summarize the trading day and see what adjustments I need to make.
This is a very good idea. Memory tends to be selective. Registering ALL trades will let you see the whole picture of your trading, not only what you 'remember'.
Trading is the process of buying and selling financial instruments such as shares, derivatives, bonds, etc. Trading is not what you can master in a day or two. It comes with experience and knowledge as the stock markets are highly volatile. However, there are some key rules that can help you to improve trading and increase the probability of getting better returns. These can be of great help to a newbie.

  • Avoid herd mentality- The decision to buy or sell any particular stock should not be influenced by where your family and friends are investing. Focus on your own plan and don’t change your decisions based on people, TV, news, etc.
  • Concentrate on probability and not profits: There is nothing like full proof trading and every trade has a chance of yielding you profit or drive you to loss. Thus, we should focus on those trades where chances of being right are high even though they return a lesser profit. We should avoid investing in a risky trade just because it can yield high profits.
  • Follow a disciplined approach: Decide on your stop-loss order. This means deciding on how much loss you are willing to accept. For example, if I buy a stock of Rs 200 and set its stop loss to Rs190, this means I have limited my loss to Rs 10 and when the price falls to Rs 190, the stock will be automatically sold. Similarly, when you are making a profit, don’t be greedy and wait for more. The stock market is highly volatile and gains can turn into losses in no time.
  • Stop overtrading to recover losses made: Do not overtrade in the market to recover losses as they are part of trading. Be smart enough to make a quick exit and transfer your investment to stocks having a high probability of giving a profit.
  • Diversify your investment: The main purpose of diversifying is to reduce risk and improve your trading experience. The better you are able to manage risk, the better would be your trading experience. Diversify your investments within stocks and across various sectors.
  • Use technology: To improve your trading, you can use software that helps to identify better stocks. The trading platforms you are using also offer tools to help you make better decisions while trading.
  • Invest your extra funds: If you are a beginner, always prefer investing your extra funds in shares. Even if you start making a profit, reuse the same profit made to invest.

  • Always have a backup plan: You should try to have an alternate plan for what should be done by you if a particular situation arises. One of the scenarios could be what should be done if there is a governance issue pertaining to your stock. You can have n number of circumstances and then accordingly develop backup plans for them.
Here i would like to give you some tips as a new investor
  • Assess your financial situation.

  • Think in terms of risk vs return

  • Diversify.

  • Don't get emotional.

  • Assess a stocks volatility.

  • Buy low, sell high.

  • Understand how market expectations work.

  • Invest in well-managed companies.

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