RULES YOU SHOULD FOLLOW IF YOU WANT TO BE A SUCCESSFUL TRADER-PART I

Making regular profits in stock market is harder than it looks at first glance. You will be surprised to know that more than 80 percent of all participants finally wash out and take up safer carrier options. Only 10 percent of the traders are able to earn money and reached the break even and only 3 percent of all traders actually make handsome profits.

Long-term profitability requires two interrelated skill sets. First, we need strategies that make more money than they lose. Second, those strategies must perform well while the market shape shifts through bull and bear impulses, with plenty of choppy periods in between. While many traders know how to make money in specific market conditions, like a strong uptrend, they fail in the long run because their strategies don't adapt to inevitable changes.
These are the some rules which are remembered by the winners of the game.

1) DISCIPLINE -  You cannot learn discipline in seminars or from expensive trading softwares. Traders spend lakhs of rupees trying to compensate for their lack of self-control but few realize that a long look in the mirror  accomplishes the same task at a much cheaper price. You have to follow your own set of rules and have control over your emotions.

2) CROWD-  Long term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from media noises, stock boards and chat rooms. This is serious business and everyone in those places has an ulterior motive.

3) TRADING PLAN- You should have a trading plan. It should be properly documented and not a mental note. Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.

4) DON'T CUT CORNERS- Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit. It’s even worse if you cut corners in the rest of your life because that bad habit is much tougher to break.

5) AVOID THE OBVIOUS- Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.

6) FOLLOW YOUR TRADING RULES- You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.

7) AVOID MARKET GURUS- It’s your money at stake, not theirs. Keep in mind that they're probably talking up their positions, hoping the excited chatter will increase their profits, not yours. If you want to successful you should have belief in yourself, your trading plans and skills.

8) INTUITION- Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run. Once you're comfortable with math, you can enhance results with meditation, a few yoga postures or a quiet walk in the park. Learn to develop your intuition and follow it too.

To be continued..