Achieving success in Share market trading depends on both having the right tools and right attitude. Choosing the right tools is the easy part and it involves choosing the right broker. A broker who is trusted, transparent and technology oriented is the best thing you can ask for.
The second part, of having the right attitude is more difficult because it involves conditioning yourself in the right way, something that takes time and deliberate effort. Rule one is to refrain from taking their investment forays casually and in an indisciplined manner. Discipline is probably the key determinant of success along with hunger and willingness to learn the ropes. Most people often venture into the stock market with a view towards piling up some quick and easy cash, but it is not as easy as it looks or sounds. You need to be in it for the long haul if you are to actually make any profits at all.
You should certainly be clear about your financial position and circumstances before getting into full-time share market trading. Do not compromise on your own emergency savings for venturing into the market. Always use surplus money that can be put to better use without denting your own safety net and thereby increasing your overall risk percentage. Risk appetite is another factor that works as a differentiator amongst investors. Your risk appetite should be decided by a balance of factors including your current financial position, future earnings potential, provision for contingencies, financial aspirations etc.
Focus on the basics is also important. Share market trading necessitates learning about the basics of investing and many other core principles. For instance, you should certainly venture to learn more about swing and intra-day trade principles which deal with stock holding positions for specific periods of time. Risk management is another thing that you can only learn with proper experience as a market investor. Always look to plump up a minimum of INR 2 lakh rupees in case you are looking at serious returns. Anything less and you will gain only in minimal amounts. You should also learn about reading average stock trading volumes properly and garnering benefits out of the same.
