In stock market many retail investors invest with a misconception that this stock market is a gambling, every one who enter in this stock market have only one thing in his/her mind that they want to earn huge returns on their investment like any how or by any tremendous way.
Now, if any one thinks the same way then they are treating this stock market like a gambling which is a very big mistake by them.
Money is to earn profits along with partial losses but when a person bears losses more than a profit of their money then they are not consuming a worth of that money, Money needs strategy to wealthen itself and the strategy can only be implemented by those who have that money.
1460 the year in which the World’s first stock exchange was established in Antwerp,Belgium.
Trade Like a Thief
Trading as you all know is a sale and purchase of securities when it comes to stock market, you trade to earn profits on your investments but some may face more losses than their profits Why so? Do you trade like a Gambler?
To earn profits by trading in stock market one may have a skill of a thief rather than of a gambler, like a thief plans his place, time and makes a full strategy for what to be theft, a trader (investor) also have to plan and make strategies about which stock they are going to pick, if you are trading like a gambler then you may lose the worth of your money.
We will discuss step by step guide to plan and make a trading strategy like a thief:
Picking a Stock: The very first step to make a trading strategy like a thief is to pick your stock, you have to select a stock in which you will be investing same like a thief selects the place where he plans to do his theft.
Stock Analysis: After selecting your stock you have to analyse that stock thoroughly by it’s technical terms along with it’s fundamental terms, analyses at both the aspects can make your trading strategy a better and worth strategy.
Movement of a Stock: Movement of stock is kindly related to the technical analysis of stock in which you see it’s past performances that how that particular stock has worked in the past and how it is expected to work in future.
What to do? After analyzing the movement of stock by which you have got to know the expected future movement of your stock, you can select your position at that particular stock like if stock is expected to be bullish you can buy and if bearish then sell that stock.
When to Do? After deciding your position you can select a time phase in which you have to enter your stock position and at which price.
Risk Reward: This is the very important step in which you have to decide your risk and reward for your particular stock.
Stop-loss: After entering your stock position you must strict to your stop loss, this is the most important as it act like an important soldier to secure your losses which may cause due to failure of your trading strategy.
So, from above step you can see that how we have related our trading strategy to a strategy of a thief, like how he follows step by step to earn profits where as a gambler doesn’t makes any trading strategy he just enters his trade with only risk and chance ratio which leads to more losses rather than profits, we would only suggest you to trade like a thief and make a proper trading strategy before executing your trade and never mislead this stock market as a gamble.
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