| Stock trading is a profitable but risky practice. Stock | | | | a chance of unexpected developments. |
| traders can make profits amounting to millions of | | | | 3. Traders calculate and bet on the greatest |
| dollars from the market and also lose the same in a | | | | possibility of a certain development, with respect to |
| very short time. Stock trading is not for everyone, it | | | | the market/trading knowledge and market |
| is ideal for those with high risk tolerance, for | | | | information they have. |
| individuals who can analyze the happenings correctly | | | | 4. You do not have to beat all others to be |
| and make quick decisions. | | | | successful; you just have to beat some of them. |
| You can find hundreds of pages on the internet | | | | Both successful and other stock traders often make |
| detailing how to become a successful stock trader, | | | | the right trading decisions with respect to the |
| offering tips such as diversification/specification, good | | | | greatest possibility. Successful traders then hedge |
| stock screening/technical and fundamental analysis, | | | | against all other prominent possibilities, but |
| position sizing, finding a suitable broker and system, | | | | inexperienced traders often forget to do so. |
| minimizing risks, taking calculated risks, being patient, | | | | Good stock traders are always careful to monitor |
| proper money management and trading discipline, | | | | the market trends and possibilities, to recalculate the |
| avoiding greed, and so on. Here are some basic | | | | possibilities and to make trading decisions with |
| factors which make a successful stock trader | | | | respect to a new scenario. But inexperienced traders |
| recognizable from an inexperienced/amateur stock | | | | make decisions which they think are right and stick |
| trader. | | | | with those, no matter what happens in market. They |
| Success in stock trading depends on learning some | | | | are very confident regarding the decisions they make |
| market basics, including: | | | | until they suffer loss. |
| | | | Market timing is another major factor contributing to |
| 1. No trader can accurately predict the market, | | | | trader success. Good traders make the right |
| because no one can analyze all the forces and | | | | decisions at the right time. They enter and exit |
| factors at one time. | | | | trades whenever the market possibility changes to |
| 2. The major force existing in the market is | | | | against their favor. But inexperienced traders make |
| uncertainty; there is always a chance of some | | | | early or delayed decisions; and many of them want |
| eventuality happening or not happening. There is also | | | | to follow the flow rather than make a flow. |