Introduction

Hello Readers, this article will go through 10 things that you are supposed to check before taking any trades. Please make sure to be consistent and discipline in your trading formate for this complete year 2022.

About Siddharth Bhanushail

Siddharth Bhanushali is one among countless millions who strived to accomplish big in the stock market. He and his team are now on a mission to impact the financial lives of more than 1Cr families by 2025 and transform their financial future.

The objective of the Trading

Before taking any trade you must know why you are taking that particular trade. You must know What is your target for the trade and the exit of the trade.

Are you taking that trade for intraday purposes or a long trade or a swing trade!

Please Don’t consider News Channel focuses stocks or telegram channel recommended stocks. Make sure you will learn by yourself, analyze the stock with one good strategy and take trade for yourself this will be the ultimate goal in 2020.

Also Read: How many mutual funds to have in Portfolio?

Do I have a stock selection method?

Before taking any trade, you must have one selection method to choose a particular stock. It shouldn’t be a random method. The selection method must have some plans or guidance and the same you are using for the entire year in 2022.

Please don’t change your selection method accordingly, disciple and consistency is the key to success.

Fixed Entry Method

You must have a Fixed Entry Method based on the selection criteria. You must have to enter in a certain price on calculation and it’s better if you place the GTT order for-profit and stop loss.

Don’t enter into any trade without a logical explanation for yourself. FOMO is real but you can always avoid it. Please dont take a trade on other calls.

Stoploss

Never avoid stop-loss. You must have a place a stop loss in every trade so that you can cut off your losses and use that particular amount to purchase some other good stock.

Without stop loss trade will eat your capital gradually, all the new traders will be facing this issue. We don’t want to lose any money so we won’t place stop-loss thinking the market will make a bullish move.

Your analysis won’t be 100% right all the time. Only Risk to Reward plays a good role in profit-making.

Quantity

You must have a particular formula to calculate the quantity. The quantity should always depend on your risk management and you must decide based on your risk to reward ratio.

In case of hitting a stop loss, you should not feel guilty about taking a large quantity. Please manage a quantity according to your risk appetite

Pyramiding

Pyramiding is adding more quantity to the trader position. If the stock price is going higher the value then we are adding more quantity at a certain level.

Please don’t average your position when the prices are crashing or showing bearishness.

Plan accordingly, at what level you want to do Pyramiding and book profits as well.

Challenges in Following this plan

You have to note down the challenges you are facing while following certain strategies or trades. This will help you to overcome the fear and boost your confidence.

Learn from the mistake while following any of the strategies you will come across multiple losses and this is part of the game.

Trade for Bigger Purpose

Why do you want to trade?

I want to purchase a car I want to purchase an iPad, iPhone and to make luxuries life etc. When it comes to a bigger purpose you must think about giving back to society. It can be 1% or 2% of your profit but please have a bigger purpose.

Example: Feed the ones who are needy, Donate for the needy or for someone’s education etc.

Come to the market to trade with a positive approach that you are going to help someone when you are getting profits.

Write down your plan on paper

Write down your plan, your entry-exit everything on paper or in a word file. Use it for reference to your plan in this whole year.

Please maintain a journey where you write about your trade and psychological emotion attached to it like fear or happiness or excitement anything. It is important to control the mind.

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Conclusion

Wow, you have reached the end. Now it’s time to apply the learning for the coming months and years. In this article, we have seen 10 things to check before Trading by Siddharth Bhanushail.

You can check out his Youtube Channel: Siddharth Bhanushali

Thank you. Happy Trading.

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