Ten Tenets to Trade as a Successful Entrepreneur (Part 2) – Guarding your Capital

In our previous article, we covered all the ways in which you can aquire or increase your trading capital. The next step towards becoming a full time trader is to understand how you can guard your money. Fundamentally, you should refine your strategy enough to limit its loss making days. Once that is covered, you might be tempted to go all out on your strategy and use up all your capital. We suggest that you refrain from doing that because a significant loss in capital can reduce your profit percentage for successful trades…Read more »

Ten Tenets to Trade as a Successful Entrepreneur (Part 1) – Adequate Capital

The first requirement to start trading is an adequate amount of capital. When you have realistic expectations from your strategy and the market, you can expect to make around 1-2% return on your capital every month. Some months, you might also need to brace yourself for negative returns or losses. Every year, you can expect your capital to grow by roughly 15% which beats the average interest benchmark for returns from your savings bank account or fixed deposit accounts. With these numbers in mind, the capital you require to make a living out…Read more »

Ten Tenets to Trade as a Successful Entrepreneur

Trading for your living means you can be your own boss and make money by your own rules. But that kind of freedom comes with utmost dedication towards the art of trading. In this article, we will be covering what it takes to become a successful entrepreneur who trades for a living. Ten Tenets to become a successful trader Adequate Capital When you have realistic expectations from the market, you can strategize intelligently to make around 2-3% return on your capital every month. For you to live off that return, you will require…Read more »

Is Equity Trading Right for me? (Part 5)

In our previous articles, we focussed on how you can use time, technology and knowledge to maximise your profitability. But is that all it takes to succeed in trading? The answer is a big NO!  We’ve all heard that practice makes a man perfect and that is the last piece of the trading puzzle. There are no traders from anywhere around the world who were profitable from the word go. It takes repeated loses and several years of practice before anyone can become consistently profitable. The ability to patiently practice and hone your…Read more »

Is Equity Trading Right for me? (Part 4)

In our previous article ‘Is equity trading right for me?’, we went over how time is crucial for an intraday trader. In this article, we will elaborate on how technology has transformed trading and how you can benefit from it. A few decades ago, trading in India was a complicated affair. Traders would have to analyse the open and close prices of the stocks in the newspaper first thing in the morning and call their brokers present on the floor of the stock exchange to place their orders. By the time the brokers…Read more »

Is Equity Trading Right For Me? (Part 3)

Time and tide wait for no man. Neither does your window of opportunity to place that winning buy order. The time you put into trading might well make the difference to make you successful trader. A profitable trader’s day does not begin at 9:15 AM and end at 3:30 PM. Eminent traders around the world attribute their success to the time they spend on analysing their trades pre and post market hours. In the start of your trading career, it is imperative that you hone your analytical skills. You need to spend time…Read more »

Is Equity Trading Right for Me? (Part 2)

You may have read our previous article "Is Equity Trading Right for Me?” where we outlined the different factors you should consider before taking the plunge as a trader. In this article we will delve a little deeper into the subject, focussing on the role of knowledge in trading. Knowledge plays a vital role in the life of an equity trader. Trading becomes a profitable proposition when you are in a position to make accurate predictions on market behaviour and act accordingly by keeping a tab on trading patterns and trends. Gathering information…Read more »

Should you choose Equity over Mutual Funds?

Investing in mutual funds, investing in equity shares and trading in stocks - all three practices share the common goal of earning a higher return from your savings. However, the manner in which this end is achieved differs greatly in all three cases. A lot depends on your end goal, level of experience and risk appetite. Below, you will find some broadly outlined differences between the three that would help you decide which one is best suited for you. Risk Each individual has a certain disposable income that determines their appetite for taking…Read more »

Is Equity Trading Right For Me?

Deciding on whether equity trading is the right choice for you depends on a lot of factors, some that are external and others that have more to do with your specific circumstances and what you hope to gain as an equity trader. Having said that, here are some pointers that would give you clarity on whether your profile would suit the challenges of equity trading or not. Time It is a well known fact that only a small percentage of all equity traders make money. Typically, the traders who do earn themselves a…Read more »