Skip to main content

What is stock market trading and how to master it

What is trading

Trading is an art of profiting from short term price movements which exists due to temporary inefficiencies in market.
Trading time frames can range from a day to few months. Traders take huge risk in expectation of higher returns and will also be active in market unlike buy and hold passive investors.
Bases on duration of a trade, it can be devided into various categories like scalping, intraday trading, swing trading or positional trading etc. We will discuss those things in another post.

Why traders lose money

  • Emotional trading
  • Lack of discipline
  • No trading edge
  • No proper risk management
  • No proper position sizing based on risk
  • Greed and fear
  • Wrong leverage
  • Lack of patience





Emotional trading

Emotional control is one of the most important skill a trader should develop for success in trading. But it is also the most difficult step in becoming a good trader. Emotions are part of human behavior. you cant completely avoid it. But once you have a trading system with an edge, proper risk management and position sizing you can overcome it. Trading in the zone by Mark Douglas is one of the best book a trader must read. It will definitely help you to overcome these problems and become a better trader. You might have experience of entering trades early or exiting before reaching support ar resistance.

Lack of discipline

Discipline is one of the most important thing in trading. Once you set your stop loss and target, let the price move. You can always trail your stop loss to lock your profits once it starts moving in your direction. Never trade without stop loss. Once risk in that trade is defined with stop loss and you know how much it can affect your capital you should not fear about that part. Your aim then should be to ride profit to maximum when stock starts to move in your direction.

No trading edge

To be a successful trader you must develop a trading strategy with an edge. In a series of trade, you must be profitable. You can adjust position sizing to an extend to be successful. But for that you first need an edge.

No proper risk management

You must define risk in each trade. Never trade without a stop loss. It will help you to stay in the game. Some times stop loss may hit. But consider it as a happy loss. Most people blowout their account by not keeping stop loss and making huge loss in single trades. Trading with proper stop loss and position size and a trading setup with and edge will make a you a profitable trader in long run. There are many ways to keep a stop loss. But always keep technical stoploss, not rupee based one. We will discuss more about stop loss in other posts.


Popular posts from this blog

Upstox Pro discount broker All you want to know

Upstox Pro Upstox is a leading discount broker in India and one of the fastest growing discount broker. Ratan Tata invested in this company a few years ago. Recently Tiger global invested 25 million in upstox. It is growing fast with cutting edge technology and low brokerage and gaining market share. Upstox added 1 lakh clients in December month 2020 only. They are providing some of the best trading platforms for traders and investors and making it better with frequent updates. Upstox pro is upstox web trading platform.
How to open demat account in upstox or upstox account opening process To trade in share market or commodity or currency market, you need a trading account. To buy and hold a share in share market you need a demat account also. You can easily open your trading and demat account with upstox by filling their account opening form. Link is given below. 
Upstox account opening process is completely online and you can open trading and demat account in a few minutes by going t…

Fyers Account opening to trading platform review

FYERS All you want to know Fyers is one of the youngest discount broker in India found by 3 brothers. FYERS word is acronym for Focus Your Energy and Reform Yourself.
Fyers is a Bangalore based company. Their aim is to provide best technology platforms to traders in India. I think they succeeded in it to a point. They have one of the best platforms for web, desktop and mobile. We will discuss about fyers trading platforms in detail later.
Here we discuss few things about this discount broker, ranging from account opening process, trading platform, brokerage and thematic investing.
Fyers account opening process Fyers account opening process is completely online. You can open trading and demat account online by filling online account opening form in this link : Fyers

Form filling is a simple process. You can refer this video to fill fyers account opening form.


Documents needed for account openingPAN Card (Mandatory)ID Proof - Voter ID, Aadhar card.Address Proof - Passpo…

Commodity trading in India

COMMODITY TRADING IN INDIA WITH MALAYALAM VIDEO You can find commodity trading malayalam videos below this post from our youtube channel  Share Market Malayalam.  Commodity trading in India may not be as popular as stock market trading in India. Its gaining popularity in India now and a lot  people started trading in mcx commodities now. Here we discuss some basic things related to commodity trading and commodity market in India.  Forward contracts of commodities are traded in commodity exchanges. Future and options segment is highly leveraged trading intruments and a beginner should first learn and then only trade in commodities. A lot of beginners in trading gamble in commodities like crude oil and lose money. Some go for tips. But that is not a permanent solution. Learning to trade is always better than going behind tips for commodity trading. To be successful in trading, you need to learn technical analysis and develop other skills also which are needed for a trader to be successf…