Ten Winning Habits of Stock Market Trader

Winning Habit #1

Take action! When you know what you need to do, do it today. The most important part of investing is to start. After you get started, you can develop the habits of consistent action that will build your capital and net worth. Over analysing is helpful for knowledge but delay action.

Winning Habit #2

Create and follow a plan. Get the plan validated with experienced financial advisor and investors. Invest in the stock market on a consistent basis by buying stock investments that meet your personal investing criteria, time frame, and goals. Join stock trading for beginners course to know steps to making a stock market plan.

Winning Habit #3

Negotiate with your company for stock options. If you work for a great company that’s growing earnings and sales each year, then don’t just be an employee, be an investor. Profit from your company’s financial success.

Winning Habit #4

Put yourself first. Pay yourself before you pay taxes. Contribute to a tax deferred retirement plan. You can avoid paying taxes short term and allow your money to grow tax free, long term. There are multiple tax saving stock options, do research according to your income bracket.

Winning Habit #5

You must develop a habit to leave your money alone so it can grow over time. Compounding works best if you start young and get strong returns early. It takes planning, but setting up an emergency fund to protect your long term capital from being pillaged when life happens, is one of the most important things you can do for your financial future.

Winning Habit #6

Find out what percentage of your contribution your employer will match or partially match in your retirement account. Set up an automatic payroll deduction for the full match amount. You may have to make adjustments in your household budget so you can afford this new deduction.

Winning Habit #7

Stop investing in managed mutual funds and start investing in Index Mutual Funds or Index Exchange Traded Funds. Top 5 index funds in India showed 16% return on Y-O-Y basis.

Winning Habit #8

Have an exit strategy for your investments before you enter and get awestruck what is trading futures!. Don’t hold your investments when the reason you got in to them is no longer valid. If the storyline changes, so should your investment holdings. The simplest exit strategy is to sell if your investment drops below its 200-day simple moving average of price.

Winning Habit #9

Invest in strong companies that have a history of paying consistent and growing dividends. This is called income investing and can add to your overall annual returns. Hold some stocks or exchange traded funds that will pay you for holding them. Diversify any bonds you hold by using bond ETFs or bond mutual funds.

Winning Habit #10

When you want to build a position in an investment you can manage your risk by spreading out your purchases over a longer period of time. If you use a set amount of money for purchases, you will buy less shares when it’s expensive and more shares when the price is cheaper. You will average out you cost basis and only need to be right in the long term. You will spread out your risk by being able to buy multiple times with best mobile trading app india.