Stock Matters

1:Stock market

Stock market is a marketplace of organized exchange where the buyers and sellers of the securities operate through auction process.
The price at which the exchange of the securities takes place is more of a psychological factor of fear and greed than of the fundamental value behind it. That's the reason why the stock price movement is hard to predict even though it has a recognizable repetitive pattern.
Due to it the only CONSTANT in the market is UNCERTAINITY where the prices are going to move next.

2: Why you want to trade or invest in market

The decision to trade or invest in stock market must be conscious decision of your own ,it must not be of your friends, relatives or colleagues .
Decide on why to trade or invest in market before you enter the remaining steps. Because if you get the why right you will get the how right not easily but definitely.

3: Trading goals

Have a reasonable expectations form the market.
Your trading goals helps you determine the market, time-frame you like to trade.
If your expectations from the market are right you automatically get the discipline and psychology to win the market in the long-term.

4: Market to trade

Choose the market you like to trade depending upon your need, capital, time and the knowledge you have whether you like to trade.
1. Securities
2. Commodities
3. Currencies

5: Time frame to trade

Choose the time-frame you like to trade .whether you like to be
1.short-term
2. med-term
3. long term trader.

The greatest number of losing traders is found in the short-term and intraday ran This has less to do with the time frame and more to do with the fact that many of these traders lack proper preparation and a well thought-out game plan. By trading in the time frame most unforgiving of even minute error and most vulnerable to floor manipulation and general costs of trading, losses due to lack of knowledge and lack of preparedness are exponential. These traders are often undercapitalized as well. Winning traders often trade in mid-term to long-term time frames. Often they carry greater initial levels of equity as well.

Trading in mid-term and long-term time frames offers greater probability of success from a statistical point of view. The same can be said for level of capitalization. The greater the initial equity, the greater the probability of survival.

6: Trading methodology

Trading methodology differs from person to person .it is better to have a trading methodology which is simple takes into account the following price characteristics.

Trend
Volatility
Momentum and
Cyclical nature of prices

7:Money management

1. Capitalize yourself sufficiently to meet your trading goals.
2. Dont over leverage yourself then your ought to be.
3. dont withdraw profits often, since profits should serve as a buffer to your future losses.

8:Trading psychology

1. Don't come to the markets with quick rich attitude, expect only reasonable profits from the market.
2. Don't expect certainty in the markets, market is full of uncertainty .try to manage the uncertainty with probability in your favor with proper home work.
3. accept the losses quickly and gracefully. let the profitable position running with trailing stop losses.
4. Don't avoid trade due to past losses. Loss is part of the game.
5. Don't hurry for trades for fear of losing a opportunity.

9: Trade preparation

1. Have a game plan for your trade. Decide in advance the entry, exit & stop loss for the trade before getting in to the trade.
2. Follow the game plan with discipline on every trade you take. This can only give you a long-term success in the market.

10:Trade execution

Execution can be the weakest link in an otherwise great market strategy. After all, it's a lot easier to find good stocks than to trade them for a profit. So how do we enter the market at just the right time and capture the big moves we see on our charts?
1 . Decide how long you want to be in the market before you execute. Don't day trade an investment or invest in a swing trade.
2. Seek favorable conditions for trade entry, or stay out of the market until they appear. Bad execution ruins a perfect setup. Staying out of the market is an aggressive way to trade.
3. As and when the favorable conditions for the trade entry are met don't try to avoid the trade with your personal emotions.
4. as the same way for exit when the conditions for exit are met don't delay the exit with your personal emotions.
5. Use market orders to get in fast when you can watch the market. Place limit orders when you have a life outside of the markets.

11: Trade management

Managing open positions is the most difficult task the swing trader faces. Danger can rear its ugly head at any time and turn a healthy profit into a nasty loss. Too often, we jump into a good setup, only to watch it fail because of poor trade management. This is especially true with newer traders who think the markets are little more than a pick-and-play game.
• Decide in advance how actively you should manage open positions. The pros watch every tick and act on short-term swings. Part-timers read the morning paper and learn everything they need to know. Your own efforts need to fall somewhere in between.
• use trailing stop-loss to lock in profits.
• Recognize when you're wrong and need to get out. Find the price that ruins the trade, and don't outthink the market when it gets hit. The move could be a fake-out or the start of something big.

12:Trading success

Trading is business
Consider trading as a business not a gambling place. so every trader need to pass these three stages.
1. Intial stages will be filled with only net losses. you need to take complete responsibility of this and accept the losses try to learn lessons from each trade so you don't make the same mistake again.
2. In second stage if you have learnt lessons right in the first stage you will at least in a position to be on No loss/Nonprofit zone.
3. you enter the net-profit zone only if get all the above 1