I started 7 years back. I started with 2 lakhs and I almost make 10000–20000 every month. I follow a very simple strategy. I am generally a short term trader holding my positions from 5 to 30 days. I buy stocks mainly in mid and large caps that makes new 52 week high.
Suppose a company makes a new 52 week high of Rs.300 from earlier high of Rs.295. So I enter around Rs.290–295. Buy 50% quantity here. If it goes down 10% then again I invest remaining 50% to average my cost. But mostly they dont fall. This stocks can easily and very quickly can give you 5–10% returns in just few days after making new high.
Trading is a sport. Think like a cricketer. There may be times when you will be out of form but with consistent practice and learning you can always make a comeback.
You need to be emotionally very strong. Practise yoga or exercise.
No need to read 1000s of book. 1–2 will work. (Technical analysis module by NSE or The Warren buffet way) Or Read The economic times daily
Learn just 4–5 simple technical indicators ( Moving averages,MACD,RSI,ADX,Pivot points)
Keep a trading log or journal for the trades you make
Have a good broker or mentor to help you in the initial stage. This will save your 2–3 years and lots of money
Above all the most important thing is to keep making small losses. These small losses will help you learn alot and develop yourself as a better trader.
Now Can you earn livelihood from stock market? Yes you certainly can if you treat it the same way you treat other business and job, not as a lottery ticket or gambling.
Dont have unrealistic expectations. Expect 5–10% return on your invested capital. This returns are enough to make you earn a stable and sustainable income on monthly basis.
If you want free personalised advisory or trading related support please contact us at Facebook.com/tradersonlyindia or WhatsApp us at +91 9508956536e
Mohid baid , co founder tradersonly
I have got it from quora
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