The one of the biggest and most common mistake made by the traders are they don’t take trading as a business but take it as a ride to a casino while some people take it as an addiction and just start trading without any reasons and logic.
But in business you can’t afford to take decision under such impractical situations, for getting success you need to keep your mind completely alert and in total control of your sense.
In business the main goal is to make more and more money by keeping the cost of products under control and focusing on profit.
In the same way when it comes to trading you need to keep your cost of trading under control i.e. the money that you risk should be controlled in order to earn profit from the market.
The cost of doing trading business
In every business you need to pay a cost for doing business , it applies same as well in the business of trading because you need to pay cost in the terms of getting equipments for trading such as laptops or computers.
Another biggest cost you pay is in the terms of the money that you lose in your trades when you lose it. Many of the people think that they are not going to lose trade in their trading lifetime.
But that’s really wrong attitude towards trading we can’t aim and think totally of not losing even a single trade, trading is a business of probabilities where you need to have more winning trades and less losing trades.
So some of the compulsory cost that you need to spend on trading are as follows
losing a trade
spending on equipments
commission of brokers
spending on softwares
At last the goal in trading is making that much amount of profit or money in order to overcome your invested cost in trading.
Make a trading business profitable.
To make a trading business profitable means only one thing that you need to increase your amount of profits in your account slowly with a gradual increase with each trade.
So to make profit you need to fit two points very clearly in your mind while trading and need to focus with most of your concentration on it.
Trade in those trades which have high percentages of winning chances
To maintain the More number of winning trades compared to losing trades
If you are a beginner and you don’t trade with a large account but have a small trading account then the second option is best to maintain a perfect growth in the profits of trading account.
Try to maintain a risk to reward ration always 1:2 instead of risking more and taking the burden of losing the trades at the end.
Trading business is different from other business.
I would say it’s completely different from the other business because it will constantly check your patience and hard work.
To develop your trading business you need to study the markets movements every day because in the trading business you have to be completely dependent on yourself and not anybody else.
To develop your trading strategy you need to keep your mind under your control. You need to do hard work, have to be focused and also need to be disciplined in the market.
Even once you have developed your own strategy you need to continue doing hard work in observing the markets, accordingly you have to decide your accurate move in the market.
Like other business after setting your business you can relax but in trading you need to constantly work in order to improve your strategies each day.
Ways to develop a trading business.
You need to develop trading skills instead of depending and believing some of the superstitious beliefs. For developing a skill you have to go under some stress, anger but there will be a time when you will start enjoying and loving it.
But you’ll enjoy only when you will generate your own trading rule and get a complete faith on it for trading.
Once you develop a good strategy plan then don’t go for the hunt of other strategies as that’s really wrong type of behavior with regards to trading.
I would like to suggest sticking to only that strategy and trying to identify the trades which satisfy your strategy.
So once when you become a genuine disciplined trader , you will start enjoying the trading and feel very relaxed in trading.
Happy Trading.
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