6 habits of a successful trader in the #stockmarkets
successful people do not attain success by a stroke of luck alone. They have consciously imbibed some good habits which has made them successful. The same logic applies to a trader too..
yes, this is the golden rule of successful trading. You need to observe strict rules and discipline with respect to stop losses, profit booking targets, protecting your capital.
In long run, it is the disciplined trader who wins and not the person who is incredibly intelligent or lucky. Discipline helps you preserve capital and that is at the core of being a successful trader. If you take care of your capital then your Capital will take care of profits.
Life is unpredictable. So, you can experience a temporary money crunch once in a while for various reasons. For instance, it could be due to a home renovation, a wedding in the family, or a medical emergency.
In such cash-strapped situations, the first idea that occurs is to use your savings and liquidate your investments even at a loss. And if that is still not enough, you look for a loan.
This, however, is not your best plan of action. Instead of selling your mutual fund investments, you can get a loan against them. Yes, just as you can pledge other assets such as gold and real-estate for loan, you can get loan against your MutualFund holdings from banks and NBFCs
• Dow Theory is a trading approach developed by Charles Dow who is also known as the father of Technical Analysis. It is still the basis of technical analysis of financial markets.
• The basic idea of Dow Theory is that market price action reflects all available information and the market price movement is comprised of three main trends.
• Most of technical analysis theory today has an origin from ideas proposed by Dow & Edward Jones back in 19th century
Those ideas were published in the Wall Street Journal and are still assimilated by most of the technicians.
• Dow Theory still dominates the far more sophisticated and equipped modern study of technical analysis.