TRADING PROCESS

9 ESSENTIAL STEPS IN TRADING – by TRADING SIKSHA

Trading is a repetitive process of doing the same thing, following the same process again and again on repeat mode. It is a process where a trader regularly follows a defined set of rules and various analysis methods to identify potential opportunities, execute trades, and manages risk, often relying on repeating patterns observed in market data.

– by VINEET JAIN

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TRADING PROCESS IS A JOURNEY OF A TRADER, IN WHICH A TRADER

• IDENTIFIES OPPORTUNITIES,
• PLANS A TRADE,
• DOES RISK MANAGEMENT,
• EXECUTES A TRADE &
• FINALLY COMPLETES A TRADE.

HE MUST FIRST TRY TO GAIN SUFFICIENT KNOWLEDGE OF RULES AND CLEARLY SPECIFY THEM IN THIS MINDSET. HE MUST TRY TO DEVELOP HIS OWN SYSTEM ON THE BASIS OF THE RULES HE HAS LEARNT.

A SYSTEM – A SYSTEM IS A SET OF INSTRUCTIONS A TRADER CREATES FOR HIMSELF.. BUT WHY?? WHEN A TRADER IS IN A TRADE THERE ARE LOT OF EMOTIONS BUT THE SYSTEM IS EMOTIONLESS. THE SYSTEM HAS ALREADY SPECIFIED THE SPECIFIC COURSE OF ACTIONS WHICH A TRADER MUST INCORPORATE IN A GIVEN SITUATION.

LET US UNDERSTAND THE PROCESS…

ENJOY THE PROCESS… RESULT WILL COME.. IT WILL HAVE TO COME…!!