How to Become a Successful Trader

Read Books and articles
Read base on technical analysis, phycological impact during trading, fundamental analysis, risk management and money management. Articles are a fantastic resource for education.

Follow the market news and factor that impact on the instrument
News sites such as Reuters, MarketWatch and Bloomberg. Monitor the markets each day and read headline stories and analysis impact on the market by these stories. Watch CNBC news channel for live real-time news and expert advice. Beware about, as time pass you may find that a lot of the financial shows on TV are more of a distraction and mostly full of dump recommendations. This is a for all one; you are not alone.

Study the all-time great Traders
You can learn lots of thing from great traders of all time. Learning about the greatest speculators of years past will provide perspective and inspiration for the game which is the stock market. Greats speculator include Peter Lynch, John Templeton, Jesse Livermore, George Soros, Benjamin Graham and Paul Tudor Jones, among others.

Go to seminars and take classes
Seminars can give you important insight into the overall market and specific investment types. Most of the seminars will focus on one specific segment of the market and how the expert has found success utilizing their own strategies over the years. Not all seminars have to be paid for either.

Find a mentor
A mentor could be a professor, boss, co-worker, a family member, a friend that has a good understanding of the stock market. A wise mentor is willing to answer questions, provide support, recommend valuable resources. All successful speculator of the past and present have had mentors during their early days. Just be careful of who you listen to.

Set aside funds and start small

Set aside a surplus amount of fund and trade with only the amount you are willing to risk. Here even if you lose money, it wouldn’t hurt your savings. As a beginner, focus on a maximum of one to two stocks only during a session to make tracking and finding opportunities easier.

Have a plan for trading

When you start it’s important to have a plan and stick to it. Impulsive behaviour and emotional moves can be a beginner’s worst enemy. Don’t let anything, including the market volatility to set you off this plan unless you are extremely sure about it and Always use a stop-loss. Never go in future and option segment of trading in the early phase of trading days.

Be realistic about profits

No, any strategy gives you guarantees profits all the time. Most of the traders make sure their wins outperform their losses. As a speculator, you need to practice patience and discipline and learn from mistakes to earn better returns.