Investment Basics for All
For Investors
For Traders
For Mutual Fund Investors
Nine Things Every Trader Must Know Before Trading:
Trading is not about forecasting the market’s next move; it is about managing risk, discipline, and probabilities. Whether you trade intraday, swing trade, or invest long term, understanding these core principles is vital for consistent performance and long-term survival.
1. Risk Management
Protecting capital is the foundation of trading. No single trade should risk a large portion of your account. Keeping risk limited to a defined percentage of the trade prevents a series of losses from causing major damage. Stop-losses are essential, they serve as protection against unexpected market moves.
2. A Defined Trading Plan
Every trade should be planned before execution. This includes the entry point, stop-loss level, target, and position size. Trading without a plan often leads to emotional decisions and inconsistency. A well-defined plan provides clarity and structure.
3. Discipline
Without discipline, even the strongest strategy will fail. Consistently following rules, avoiding impulsive behaviour, and executing stop-losses separates professional traders from gamblers. Discipline is what makes results repeatable.
4. Trade in the Direction of the Trend
Markets generally move in trends. Trading alongside the dominant trend increases the odds of success. While counter-trend trades may work occasionally, they tend to be costly over time. Following the trend improves consistency and reduces stress.
5. Accept Losses as Part of the Process
Losses are unavoidable in trading. Successful traders focus on controlling losses rather than eliminating them. One losing trade does not define performance; long-term results are shaped by many trades. Always think in terms of probabilities, not predictions.
6. Position Sizing
Proper position sizing ensures that no single trade can significantly impact your account. Since even high-quality setups can fail, sizing trades correctly helps preserve capital and maintain emotional balance.
7. Emotional Control
Fear, greed, revenge trading, and overconfidence are major obstacles to success. Emotional decisions often lead to overtrading and poor execution. Remaining calm, patient, and objective is essential for long-term profitability.
8. Keep a Trading Journal
Maintaining a trading journal allows traders to track performance, identify patterns, and recognize mistakes. Regular review improves discipline and helps refine strategies. Growth comes from consistent self-evaluation.
9. Adapt to Changing Market Conditions
Markets are constantly evolving. A strategy that performs well in trending environments may struggle in range-bound markets. Successful traders adjust their approach based on volatility, liquidity, and overall market behaviour.
10 May, 2025 to 17 May, 2025
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Lorem ipsum dolor sit amet consectetur. Pharetra pretium elit libero senectus. Sapien sollicitudin condimentum nisl cras.
10 May, 2025 to 17 May, 2025
Lorem ipsum dolor sit amet consectetur
Lorem ipsum dolor sit amet consectetur. Pharetra pretium elit libero senectus.
Sapien sollicitudin condimentum nisl cras.
10 May, 2025 to 17 May, 2025
Lorem ipsum dolor sit amet consectetur
Lorem ipsum dolor sit amet consectetur. Pharetra pretium elit libero senectus. Sapien sollicitudin condimentum nisl cras.
10 May, 2025 to 17 May, 2025
Lorem ipsum dolor sit amet consectetur
Lorem ipsum dolor sit amet consectetur. Pharetra pretium elit libero senectus. Sapien sollicitudin condimentum nisl cras.
