Can a person constantly beat stock market?
TRADINGFEATURED
"Don’t trade with emotion"
Trading seems so simple.
After all, a price can only go up or down so all traders have to do is pick the right direction and sit back and wait for the money to roll in, right?
Well, not quite.
The trading world can be full of surprises for those who have big ideas but little in the way of preparation.
When ill-prepared traders won’t recognize that mistakes in trading are all a part of the learning process and can shape a person into becoming a successful trader. Making trading mistakes is a part of every trader’s journey. Whether someone is completely new to trading or has been trading the markets for decades, chances are they will make some common mistakes and that’s why people fail in the stock market.
Some of these mistakes are more costly than others and the fact is that some mistakes are very hard to accept.
For some traders, ignoring a mistake and repeating it over and over again can spell the difference between becoming a successful trader and a losing one. To beat the stock market :
Don’t focus on money, focus on the skill set: 95% of traders fail simply because they want to get rich quickly. But trading only rewards those who are in it for the long run and understand that wealth is built slowly. Everyone wants to win but no one wants to lose. How do you learn to win? It would be best if you learned where to lose.
Don’t trade with emotion: Emotional trading is an aspiring trade’s biggest downfall. Using emotions to dictate your trades instead of logic will inevitably lead to failure. If you can conquer your mind, you will conquer your life.
Don’t trade without a plan: If you fail to plan, you plan to fail. Building a strict risk management and trade management plan is one of the most important steps in becoming a successful trader. Consistently following and not deviating from these plans will separate you from the 95%.
Trust yourself: Trust your intuition to make the right decisions. Having a high level of confidence in your ability to conduct proper market analysis is the quickest way for you to develop market IQ and intuition. Regardless of your strategy, a high level of confidence, trust in your analysis, and flawless plan execution will make you a successful trader.
Credit: Quora