IMPORTANT DON’Ts BEFORE BEGINNING STOCK MARKETING BUSINESS! : Nature, tools and lot more!
You have known the psyche of trader, now it’s time to learn some initial precautionary lesson by knowing what’s the business. You know what psychology one need to adopt; now it’s you learn how to act as a stock marketer.To learn this, you need to know what’s the scenario? What’s the situation you need to deal with? What’s the business?
Every business has its nature and has tool to create it (nature being the com position of element and tools being devices to work in sync with these elements). Thus, in this chapter we’ll understand the major concept of this business: the nature and the tools of stock marketing businessHow to use the used? Which tool to use? What’s best tool to use?You’ll also get little insight of the tool that I prefer the most and why I prefer that tool?What you can expect in upcoming chapters?So, let’s get ahead, let us satisfy your hunger for knowledge.
Don’ts associated with nature of the stock marketing business
What is nature? Nature is a composition of something; like our mother nature is composed of element: air , water, wind, fire and space; every concept is also consisting of its own element. Sometimes people make a bigger by misinterpreting nature of business, which makes them land into depth; many startups in India which didn’t became ground breaker ran on same misinterpretation.
Don’t take online information at face-value
tock trader is a self-taught human that, analyses his shortcoming and work on it; he strives perfection by practicing and nourishing himself; without help of external support and criticism. A trader is self-critic and self-analyzer; In order to be a trader, you need to practice self-analysis— learn from your own mistake, work on them, re-study the market, know your strength, make your strength your advantage and execute your plan.
There may be some incident in your life, wherein you were exposed to knowledge of certain sector. Everyone is exposed to different sector and can understand one better than another; if we attain success in this sector, let us note in the diary and treat ourselves with little reward for this discovery. This self-discovery co-relates it with our second element in many ways.
Today, technology is sufficient to supply you information ( journal, whitepaper, trends of share market, website of company is enough to provide you crucial and essential information) you don’t need a group discussion to come to any conclusion; forming trading WhatsApp or telegram, where a person impart his knowledge or analysis of the market, or wherein a group discusses about market, is a place of numerous confusions.
Don’t choose tools opposite to your personality.
Stock market business tool are indicator-based setup, price action theories, news based on trading, tape reading etc.You must choose tool which suits your personality. Choosing news when it doesn’t interest you to just learn trough, but explore why and how, will prove chaotic and frustrating, and reading tape reading, if you’re just a skimmer will also affect you.
Don’t practice HOPE TRADING
What is hope trading? I say sleeping the whole time and get active only being active at emergence, consequential being on mercy of fortune; which never favors the idle ands cowards.
How sarcastic, I am being is actually, how ironic the situation is; Many people enter into trade and act without a proper plan, or incomplete plan. Such attitude doesn’t even lead to losses or failure which even teach you something. Sometimes even people gaining continuous profit become arrogant , and arrogantly deny the discretionary power that had brought them at that stage; denying even action discretionary, how foolish!
You should have a single motto “ Plan your trade first then trade your plan”, As we’re done with our tools, let us understand our main tool.
Price action tool, the price action tool refers to price fluctuations in the market; these fluctuations may be because of the nature, demand, supply or peer and so on.To study price fluctuation is a complex task, but is s most effective method, to have grip over the trends of the market,
Price action has its theories— these theories try to explain you price behavior, leading to price fluctuation of any particular object. As scholar our work is to read, study, practice and detect factor affecting price, derive price fluctuation, and come close to upcoming trends of the object pricing.
After attain trader’s mindset we need to understand the major don’t of the business and understand how trader view or operates in the market.A trader, independently analyses the market and delve in self-evaluation of his analysis; Moreover, he operates alone, run his business single-handedly.
He allows no external influence to affect his confidence or even his analysis on the market, while deciding his tool he chooses a tool of his personality.He avoids joining trading group that impart their point of view of the market, as it hinders him to come up- with his own analysis.
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