Important Traits Required To Become A Successful Retail Trader

It is a known truth that most retail traders do not possess the required knowledge about the financial instruments they invest in. To make easy gains from the stock market, they tend to invest solely based on the advice of other investors.  As a result of this, during difficult situations such as a market crash, retail traders are the ones who suffer maximum losses leading to either Fear of missing out (FOMO) or panic selling. To protect the retail traders community a stock market training institute named Traders Gurukul is actively involved in spreading the required knowledge about the risks involved in the stock markets and is also helping retail traders gain expertise in this field through their share market training.

To be a successful retail trader, one has to have the following traits:

1. Discipline:  One of the most critical requirements to be a successful retail trader is to stick to your trading strategy. It is required to not give in to emotions such as greed or fear. Another aspect of having a disciplined approach to trading is by putting a strict stop-loss in place. According to many successful retail traders around the world, discipline is said to be one of the most important factors in maintaining consistency in returns.

2. Knowledge about stock market: A retail trader needs to have a detailed understanding of the financial instruments he trades in, be it stocks, shares or any other commodities. The study of the financial markets is a very wide subject.  For better understanding of the subject, it is divided into 2 distinct categories. The first one is Fundamental Analysis and the other is Technical Analysis.

Fundamental Analysis is the study of a wide range of factors which affect the value of the securities. It also includes having a deep knowledge on how to analyze financial records such as the balance sheet, cash flow statements and others. It is a study mainly done by long term investors/traders. The main idea of this analysis is to find the intrinsic value of a stock.

Technical Analysis on the other hand is a much different approach from Fundamental Analysis. It is a study which mainly focuses on identifying the opportunities by looking at the historic trends in the movement of the security’s price and volume. It is an analysis which is used by short term traders. Technical analysis usually does not include the search for the intrinsic value of stocks or shares.

3. Developing a unique strategy: Just having theoretical knowledge on any subject is not enough to become a successful trader. One needs to develop a trading strategy which is very unique and highly profitable. Having a better strategy than others is something which is very important. So to learn a trading strategy which has been practiced over the years proves to be beneficial.

To develop all the above traits it is required to take up share market training conducted by Traders Gurukul. This will help you in becoming a successful retail trader.

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Created on Jun 24th 2021 00:01. Viewed 204 times.

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