Before you start trading you should make sure that you have a trading plan as well as a reliable trading strategy in place. This would allow you to progress in your journey confidently. Even when there are some glitches, some unpredicted fall you would know how to handle the situation and come out of it while also minimizing your losses.
If you are trading for the first time there are several online trading bots like Qprofit System that are designed to help beginners.But even to trade with such bots or automated tools you would need a trading plan as the foundation. What should you trading plan contain?
Framing your exit rules matter more than framing the entry rules themselves. A wise trader is one who focuses more on reducing the losses as much as possible. Not every downtrend should be chosen as a sell call. But at the same time, you do not always have to wait for the price to bounce back to avoid losses. Know when to exit and how long to wait before you exit. The same also applies to entry rules. You cannot simply invest in every stock that turns out to be a gainer in the recent past. Have some preset conditions to check and verify whether the stocks are really good for investing.
Are you looking for short-term options or long-term options? Should you look at volatile stocks for day trading or multi-baggers to simply find a safe place to invest? Answering these questions would require you to know your trading goals clearly. This should also be part of your trading plan.
Whether you are trading part-time while juggling with your full-time job or whether you are a full-time trader you would need to set your time limits. Too much focus on stocks can fog your mind and lead to bad decisions. So schedule your trading time and include this in your trading plan.
You cannot trade with zero risks. The key is to identify and stick with your allowed risk levels. Most traders have risk levels of 1-5 % set in their portfolio. So what is yours?
In addition to adding all of the above to your trading plan, assign a place for bankroll management and for regular breaks as well. You definitely need periodic breaks to clear out your mind and to come back with fresh ideas.