What are the dark secrets of stock markets that are unknown to ordinary traders

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I am delighted to share some stock market hacks which can help investors and traders to earn their profit. 

This Untold secret which trader can easily catch up in a very short span of time because I had seen so many investors and traders who do not have time to read in their busy schedule, so 

I thought to give them some points over which they can look up before entering in the share market field or are already in this field.

There is no shortcut to success in share trading. So, what is the secret success formula that we are looking for? The secret to your trading & investment success is not in the stock or your online stockbroker. It is entirely with you.

If we were to summarize trading secrets, we can put them five key points.

 

Always Listen To The Markets

Every time the stock market has a story to tell. As a trader, it is your first job to interpret the market hints and trade accordingly. 

The trader has to base his performance on facts and not on opinions. As a trader, you must avoid the impulse of trying to be a contrarian in the market. 

If you are bullish and the market is bearish, it is giving you a message that you have missed out on key factors. Pay attention to the message and modify the stance accordingly.

 

Thorough In Your Research

We often think that traders do not have to research stocks and it is only for the investors. That is not true. Even a trader needs to understand the many facets of the stock like company performance, balance sheet strength, the impact of news flows, technical charts, among others. 

That is the only way you can understand signals and project how the stock will react to news and earning flows. One of the basic secrets here is to start small and then build positions as you build your conviction. 

Remember that profits are never made in all trades but a handful of trades. Make them count. 

Run your profits long enough and cut your losses fast. That is only possible through in-depth research into stocks and markets.

 

Spread Your Trades Adequately

Don’t put all your capital on just a few trades. While it is necessary to keep your universe of stocks limited since that is the only way you can trade with insights, don’t try and focus all your capital on just one or two stocks. 

For example, if all your trades are based on banks, NBFCs, autos, and realty, then your trades are sensitive to interest rates. If the RBI announces a hike in the repo rates then all your trading positions will be effected and losses could be larger than you anticipated. 

The idea of diversification in trading is to make sure that your trading book is not dependent on just one or two events.

 

Taking Emotion Out Of The Trading

Traders often have different psychological games that they play to block their emotions, but it takes hundreds of real trades to fully numb those decisions. 

However, there is one shortcut that makes this process much easier is the use of computer software to perform the analysis and indicate key buy and sell points.

Over the last years, some programs have come on the market that performs real-time analysis of the market and provides the trader with alerts when a stock follows a certain pattern that signals it to be a good trade. 

For example, some stock analysis software uses Elliott Waves, Fibonacci, and Gann tools to find over 20 predictive indicators. 

This lets the trader easily find entry and exit points without worrying about their emotions clouding their judgment.

 

Discipline Period

You cannot make a success of your stock trading activity unless you instill discipline at every level. Firstly, you need discipline on capital protection. 

Work out the various levels of losses that you are willing to take on an intraday, weekly, and overall basis. 

The moment these levels are hit, have the discipline to shut down your terminal and revisit your strategy. Secondly, stop loss and profit targets are an absolute necessity. 

You can never be a successful trader unless these two disciplines are instilled. Thirdly, have the discipline of separating capital money and profit money. The levels of risk you can afford to take on both these differ.

The first goal should be getting these basic rules right for attaining the best trader version of yourself. Trading is not about adding on risks but a lot more about managing risks.

 

 

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