Lets clear some mis-conceptions regarding trading.
1. One shouldnt trade if he doesnt have good capitalization.
>> I personally know traders who started out with as low as 10K in the markets about 8-10 years back. Now they are earning more then 10K a day. So its a myth.
2. One should have a good knowledge of Technical analysis.
>> Its true at some extent. But a good knowledge of TA isnt mandatory, in my trading career of more then 15 years I have met people who know nothing about Fancy charts and indicators and all, All they do is watch the tape for a while, find their sweet spot and enter trade accordingly. And yes they r profitable.
Above two r the biggest myths while trading into the markets. If u have both of the things then its an ADDON to u (or say an extra edge). A serious trader MUST need to be efficient with his money management (no matter how big or small his account is). They know when to book loss atleast. They book loss quickly and let their profits run for very very long.
The hardest part is trading psychology, we being human , tend to flow in emotions. Each bar (whatever the timeframe ur looking at ) is filled with a lot of emotions, we see ticks .. we see our green bar turning red and it hurts our sentiments. A good psyche will ignore this ups and downs and will stick to his trading system. An average trader will try to fulfill his own ego in such conditions (i cant be wrong!!!!).
Traders who learn to live with stoploss hits and accepting whatever market offer to them, generally lasts long in the markets.
Trading is 10% of knowledge ( be it technical or fundamental or anything) while 90% is risk management.
Remember one fine thing, One can not manage the rewards but can only manage the risk. thats in ur hand.
Have a good trading time...