Trade is like a journey and to make it enjoyable , what you will do. You will first decide in which direction you want to go—North or South, then you will plan on below basis HOW, WHEN and WHY.
HOW you will go—by train, bus or airplane etc. This is also depend on your budget constraint also.
WHEN mean, based on your constraint of timing, you need to decide when -mean intraday, Swing or positional. You cant sleep on local journey and you can sleep if you have long distance journey.
WHY mean-Returns, money constraint and risk control, you would buy the quantity based on your budget constraint and risk assessment.
Well plan journey will always give you happiness, but without plan it will be messy and not at all enjoyable. Same with trading- if your friend will tell you to take a particular bus for particular destination. You wont take or should not take without checking its signboard (direction), stoppages, entry and exit conditions etc. Most of trader do trading without trade plan which should be based on your trading style. It must be based on your own process and system. The process and system should be consistent, tested and more importantly repeatable. If it works one day and not working other day, that can not be part of your system for successful trading.
Just go through below points which are basic to market trading.
- Keep waiting for entry and at last they realized they missed the opportunity-How, When, Why-Answer/No answer.
- Taken Entry, but the stock not moving in desired direction- How, When, Why – Answer/No answer.
- Late entry and finding answer on what basis trade have been taken- How, When, Why – Answer/No answer.
- Taken entry, it was in profit and now in loss. How, When, Why – Answer/No answer.
- Taken entry and exit with small profit, later realised the stock moved fast in desired direction after exit- How, When, Why – Answer/No answer.
- Taken entry- holding the position in loss in hope to turn into profit, but loss keep on increases. – How, When, Why – Answer/No answer.
- Averaging out the position which is in loss but later realised it turns out more losses- How, When, Why – Answer/No answer.
- Trading based on news /friend tips/ telegram channel or YouTube strategies and in losses- cursing self as losses are part of self not others. How, When, Why – Answer/No answer.
- Most of traders feel why his buy position is having less profit or in loss even if Market or other stock are moving at decent pace. How, When, Why – Answer/No answer.
- Why I exited early. How, When, Why – Answer/No answer.
You need to have answer for above questions logically to improve and justify the actions. If you don’t have answer for above questions mean there is skill and knowledge gap which need to be worked and filled.
Believe me market is very practical and only practical way of understanding is required to understand every aspect of market movement. No indicator will help you as these are formula based and will give value as price changes. There are numerous material available at social media, so many books available. just think, can anyone become doctor ,engineer, CA etc by going thru these mediums. No. Even companies hire person based on ones degree and experience after interview. Then how can one become successful trader by going these invalidated material. Broker never ask qualification as they earn on brokerages. Best way to have proper study and knowledge to trade with trade plan. You need to have proper justification for Buy and sell actions, if you don’t have mean there is no plan based trading.