Key prerequisites to know before kickstarting your trading career!
In the stock market, people with money gain experience while people with experience gain money.
Trading is undoubtedly one of the most lucrative careers for today’s generation. It guarantees you to become your own boss and lets you have a hassle-free life. In a world where a 9 to 6 job means extended working hours on almost a daily basis, people are in desperate need to find a work-life balance that they want to achieve. Trading offers a solution to this problem and is one of the best professions if done passionately.
However, we have a problem here. Have you ever heard of people being successful in trading? Apart from the popular ones like Rakesh Jhunjhunwala and RK Damani to name a few, there are quite a handful of people, who have made it big in the market. The reason is that 95 per cent of the traders lose their money at some point in their lives while the remaining 5 per cent make it big in such a ‘highly volatile’ career. So the question remains, what does it need to make it big in trading? Or to frame it in simpler words, what are the key factors that would help in pursuing trading as a career?
First of all, one needs to understand that trading is a lifelong process and short-sightedness is not an option here. Every big trader has lost money at some point but it is consistency and mindfulness that help people in achieving their goals.
No trading setup is ideal in this world. It is your experience and ability to read market conditions that allow you have to an edge over the game.
Understand the risk and rewards! Traders, who are engaged not only in options trading but also in the cash segment, must follow this rule. A proper understanding of risk-reward can make a losing trade profitable!
Remember, trading is a zero-sum game. Sometimes you win and on other occasions, you lose but it is the consistency and your mindfulness that helps you climb the ladder. In the stock market, people with money gain experience while people with experience gain money.
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