Be your own boss.’
The statement is actually very tempting.
Those who have been in a 9-5 job know how appealing it seems to quit everything and take up trading as your business.
‘But what if I lose? What if I fail? What will happen to my family? How will I pay my bills?’ These questions often stop people from going out there and making it big.
So, if you are thinking about making trading your business but the risks associated with it are giving you cold feet then let me tell you few tricks of the trade. These will surely help you overcome your fear and set up a successful trading business.
So, read on . . .
1. Get a decluttered space.
Well, this is the most basic tip of all, but I wanted to keep it on top. I am the sort of person who has his gym gear all set for days ahead so that I get my motivation to work out, I don’t have to waste time getting things ready. Same goes for trading. I can’t emphasise enough on having a space that is clean. And here I am not just refering to the physical space. Your mind should be decluttered as well. What I do is that I don’t take my phone along to my trading space and when I am trading, I do it with hundred percent concentration. That is one of the main reasons for all that I have achieved till now.
2. Have a trading edge.
Trading is all about the mind. In my previous post I have mentioned how trading is just like chess. It’s the game of the mind. If you don’t have a trading edge then you probably don’t know how to be a successful trader. The quick way to do it is to find the technique that works and then adapt it. Try to learn as much as you can about the aspects in tradings. And find your own trading style.
3. Increase your capital.
In this sector, the more money you have, the more money you will make. Low investment will lead to low profits that might not be sufficient for you to take up trading as your business. If your investment is low, I would suggest you to start saving up till you have enough. Some people also take loans to trade but I personally don’t suggest that as it increases unnecessary pressure while trading, often leading to wrong decisions.
4. Have some savings to secure your life otherwise.
I strongly suggest everyone who want to take up trading as a business to save some money aside beforehand. It might not come easy to earn every month through trading, sometimes the time just isn’t right. So, the money you have saved would come handy to cover your lifestyle expenses meanwhile. Also, it will help you trade with a calmer mind when you know that you have everything else in check, your focus can be solely on trading then.
5. Never stop learning.
Well, trading is one of those businesses in which you get to learn something new every day. And to succeed in trading, this should be your mantra: NEVER STOP LEARNING. So, make sure that you learn from other traders, reading books, watch the market. Make sure that you never put a full stop to learning as, in the world of trading, no amount of knowledge is ever enough.
Thus, trading can surely be turned into a lucrative business. All you need to do is to keep various points in mind. Making a profit, managing your cash flow, diversifying your risk, and adapting to the different market conditions.
6. Treat your setups as your products and services.
In each business, there are certain physical/virtual products or services that one needs to sell to reap great gains. One needs to know all about their products and be an expert in their services, same goes for trading. One needs to be a pro in their field. And whenever you get into any kind of doubt just think as what an expert would have thought had he/ she been in your situation. Also, the mistake that most traders commit is that they change their strategy every single day. Be consistent.
7. Always have a business plan.
Well, not just trading, this rule applies to pretty much everything in life. You must always have a plan. Make sure to have a plan in your trading journey as well as in life. Try having a plan for every single day as in how you want to take that day forward in terms of trading. Keep short term as well as long term goals in sight. Do the analysis of costs as well as opportunities. This will help you master your mind so that you don’t end up taking stupid steps being reactive to what the market might hint at. If you don’t have a plan, you wouldn’t know anything about your expenses and income and that is certainly not a favourable spot to be in.
8. Why you want to make it big in trading?
When I ask this question, most people answer that they want this for a lot of money but that is the smaller picture. To make it big, you need to focus on the bigger picture. They say, ‘discipline is choosing between what you want the most and want you want now.’ So, when you think about why you want to make it big in trading, don’t just think about money, think about why you want that money. Probably to take your kids for their first international trip, or prepare them for IIT/ JEE or buy the dream house for your parents. Whatever it is make sure to remind that to yourself every moment. This will certainly keep you motivated.
Thus, these are some of the tricks that will help you master the art of trading. These tricks will help you take up trading as your business. So, I hope you achieve the best of heights while you climb the ladder of success as you take up trading as a business.