The common mistakes every new comer does . is without any knowledge they enter in market . but apart from that they have to be take knowledge which they can get from reading books, learn technical and fundamentals of market know the basic formation and the working processor of the market , how the stocks move and on which parameters.
the basic and most common factors they should learn ad remember for the life is.
1. Technical and fundamental knowledge of market.
2. learn making own system and do backtesting for that at least for 5-10 years of previous market data , this will help you to know that in previous any scenario how your system perform
3. Risk management. risk should be predefined for any kind of trade and investment. it can be maximum 5% for your investment in intraday trades of in positional according to your risk bearing capacity . after loosing this amount you can sleep peacefully without any panic.
4. Risk reward. the risk reward always should be 1:2 or 1:3 this will help to get maximum gain in the market and will generate the confidence level .
5. Conviction - conviction will only comes when you trust your system and let do work on your trusty systems. do not invest and trade in feelings.
6. learn to book small loss if any positions goes against your trade.
the basic and most common factors they should learn ad remember for the life is.
1. Technical and fundamental knowledge of market.
2. learn making own system and do backtesting for that at least for 5-10 years of previous market data , this will help you to know that in previous any scenario how your system perform
3. Risk management. risk should be predefined for any kind of trade and investment. it can be maximum 5% for your investment in intraday trades of in positional according to your risk bearing capacity . after loosing this amount you can sleep peacefully without any panic.
4. Risk reward. the risk reward always should be 1:2 or 1:3 this will help to get maximum gain in the market and will generate the confidence level .
5. Conviction - conviction will only comes when you trust your system and let do work on your trusty systems. do not invest and trade in feelings.
6. learn to book small loss if any positions goes against your trade.