Trading There are no shortcuts — but there are a ton of resources. You can start with “The Complete Penny Stock Course” by my student Jamil. I wrote the forward. I’m amazed more people haven’t read it. It answers so many common trading questions.
No matter who you choose to learn from, always vet your resources. I see so many fakes and newbies on social media trying to be ‘gurus’. They lure in new traders with false promises of big profits.
How well are you adapting to the market? Are you sticking to your trading plan and process? Are you giving into FOMO or greed when you’re in a trade?
#1: Focus on the Process
Profit.ly … Not just one or two. You can’t learn everything about the market from one lesson, one DVD, or one trade.
I teach my Trading Challenge students to be self-sufficient. I don’t want anyone following someone else’s trades, including mine. I teach the trading process, not how to get rich quick.
Looking for a no-cost resource? Access my FREE penny stock guide here.
Don’t fall for fake newbies who promise huge profits but don’t share the details of every trade. Anyone can get lucky and profit from a random, risky trade. But you gotta keep your risk in perspective.
#2: Trade Small
I trade with a small account to show my students the process. Again, trading isn’t just about the profits. Especially in the beginning. Build your knowledge account first.
You need to learn how to make a plan for every trade. Know exactly what your risk is and where you’ll cut losses.
You should also have a goal for the trade — that’s where you’ll take profits if everything goes well. But don’t base that goal on how much money you want to make. Look at the resistance level or risk/reward from your entry to set your profit target. My goal is usually 10%.
#3: Analyze Your Trades
If you analyze your trades, it’s easier to see what’s working in your trading and what’s not. You don’t have to wait for a big loss to show you what you’re doing wrong. You can see when you’re making mistakes.
Trades can move fast and your emotions can skew your mindset. That’s why it’s so important to track every aspect of the trade and then go back and review it all with a clear head.
Record what you did right and what you did wrong. What was your mindset — did it affect your execution?
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#4: Adapt to the Market
If you plan to trade long term, you’ll eventually have to adapt to the market. It’s always changing. Hot sectors come and go, patterns change, and the market evolves.
You might find a pattern you love and that fits your strategy. Then one day you realize it’s not working like it used to…
Here’s the thing, the market is always right. Don’t waste your time and money trying to force trades and prove you’re right. If you want to stay in the game, you have to adapt.
#5: Remember Your Goals
Some of my students come to me because they’re sick of working for someone else. They’re tired of the daily grind. They want more freedom to travel or spend time with their families…
Trading can offer the freedom to work from nearly anywhere. But if you think it’s gonna be quick, easy money — you’re wrong.
Trading is one of the hardest things you can do. It takes hard work and dedication. You’ll make mistakes. That’s OK. What’s key is that you learn from them.