Generally tarding consist of 3 concepts – The strategy , risk management and pyschology , we shall discuss each one in detaol below –
1.Trading strategy –
This constitutes all the trading methods , use of charts , candlesticks , use of indicators for analysis of stock on the charts , this is one of the most integral part of trading as it gives us ideas of where to enter market , where to exit , when to book profit , when to take a loss ,chart analysis and formation of strategy along with any edge is one of the most important parts of Trading.
2.Risk Management/ Money Management –
Just like technical charts are an integral part of trading , managing your risk is also one of the most important parts of trading , if one has devised a very sound strategy but lacks risk management he/she might still book overall loss over longer period as he might loose all his profits in one bad trade , so risk management should be done in a sound manner in order to succeed in trading , we will discuss risk management in upcoming articles so stay tuned.
3. Trading Psychology –
Apart from managing risk and having a wonderful startegy one must also manage his own psychology , trading requires one to maintain a state of no emotion , since traders can have both winning and losing streaks , one must learn to keep his/her psychology in tune.