Trading is also one of those things where you must learn from others’ mistakes & smart approaches. So that you can minimize your Loss and Increase your profit margins to the maximum. Intraday trading, F&O, automated options trading, algo trading software, and a lot more types of trading are at your fingertips.
But here are Ten trading secrets that come out after Listening from Multiple traders with years of experience. Add this secret to your Knowledge and level up your trading game :
Consider Data & AI Inputs over Gut Feelings:
Smart technologies have evolved so much over the last 20 years. Sometimes while trading, you might feel Oh this is the stock I should buy. It will make huge profits in a few days or weeks. That’s the red flag. It is purely your Gut feeling and has no backing of Data or analysis.
Investing your money through such gut feelings can destroy your capital and bring about Huge losses. Instead, use Various data and Artificial intelligence-generated inputs while making trading decisions. That will help you make much more Robust decision & Increases your chances of making Good profits.
Stay along with Marks Ups & Downs:
Markets are always moving. Sometimes it can be too stable and there are very few movements. At times the volatility is really high and the Pendulum is swinging big. To become a successful trader, you must embrace both market conditions and Practice to stay Focused.
Keep your mid-term or long-term target in mind. Don’t press the panic button immediately as the market goes down. Also, don’t put too much money in as the market moves upward. This will help you keep protecting your capital & also make stable profits that accumulate over Months and Years.
Options Trading Has Huge Profit Potential:
If you are looking for a Sensible and genuine way of trading to make something out of the market, You must invest a portion with Options trading. It does require a good amount of market research and stock analysis to book some profit. But If done well, Options trading can give you good returns.
Why? Because there are multiple methods available. You can trade on the price of the Asset going up or going down in a few days. Options contract has a Fixed expiry date, so you very well know beforehand about the Timeline you are dealing with. Pick a Good-quality Options trading app and Grow your portfolio with this method of trading.
Always put a Stoploss & Never be Too Greedy:
Not using stop-loss will be like Driving a car with No breaks. Chances are very high that you end up making Huge losses if you are not using Stoploss in your Trades. You can do the best of your research, and analysis and build a proper time-based option trading strategy – But always maintain a Safety mechanism with Stoploss.
In the case of the majority of the market or maybe just a few stocks (including yours) can turn bearish and Start plunging down. The scenario might turn 360 degrees in Minutes or hours. So you might lose some of your Capital. But having a Stoploss in place can Limit the Loss to 5-10%. So always keep that box checked.
Choose Automated Options Trading for Better Results:
We are living in 2023. Technology is enhancing leaps & bounds every day. Automated options trading is one such development in the trading world that we can benefit from. This is about Trading being done EXACTLY the way you want, Without you having to do every transaction by yourself.
The AI-based (Artificial Intelligence) trading bots inside the Options trading app will Execute the entire trading EXACTLY the way you want. It will even enhance the result if the opportunity arises. This way you will be able to Save a lot of time that you can spend on More research and develop more opportunities for Profit.
Trading is a Marathon and not a Short Sprint:
This might sound too cliche and boring, but is one of the ultimate secrets of successful trading. If you look to make too much out of trading in a very short amount of time, 99% of the time you will End up losing. Do not chase High returns in a Short time based on listening to random success stories.
They are mostly fake built-up or One-in-a-Billion lucky people. Instead have mid-term and Long term targets. That will help you not only protect from Losses But also Gain benefits from Multiple Positive market movements over the Period of time. So look to Run a Long race & not a 100-meter Sprint.
Always have a Trading Strategy In-Place:
Do you ever go on a Trip to an unknown place without any maps or Guide book? No, Right? So do not do that with your Money as well. A strategic approach is not only recommended but also one of the Key secrets of Successful traders All around the World. It has helped traders achieve humongous results.
Some of the Best options trading apps, for example, SpeedBot, Thoroughly help you Build a strategy as well as thoroughly test it Inside out to rectify All the Errors and suggest performance improvements. So Always build a strategy first, then Test it, Rectify it, and put it into Implementation.
Do not make decisions only based on Past Performances:
Past performance and behavior of a particular asset, stock, Category of the market, or whole market, in general, is important. But you must realize this it is only one of the dozen Elements that are Important for Successful trading.
Because of the market itself, the interests of mass traders are always changing and a lot of change could be happening Inside the stock you are investing in. So relying heavily on Past performance data can most of the Time lead to Negative Results & damage your Trading portfolio.
Use Technology to Simplify & Enhance Your Trading:
No matter which category of trading you are investing in, There is Huge performance Help and Time-saving support you can Get from the Technology. From avoiding Non-productive, repetitive Trading steps to developing a time-based option trading strategy builder, Technology can help you Big time.
So look out for and Use smart trading platforms that can amplify your Trading with Technology. For example, you are trading Reliance Energy stocks and want to Exit the trade when the price reaches ₹1,500. You don’t need to waste time looking at Charts all the Time and press the Exit trade button when it hits ₹1,500 mark. You can just command it to your Trading app and it will do it for you.
Most Importantly, Respect the market:
This trading market’s way of saying “Be successful, But always be Humble”. Irrespective of whether the Trades are Going your way or not. Whether you are making 5%,50%, or 90% Successful or Lossing trades – Always stay just as Grounded as Ever. That helps you attain the clearest picture of the Market.
Try to make sense of the Current market scenario, Individual stock performances, and all other factors. That way you will end up making the best decision possible for a Profitable trade. Some of the most successful options traders also Emphasized the same thing while developing a Time-based option trading strategy and other forms of Trading in General as well.