Trader's Query - What capital I need to trade better ?
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Query: I am new to trading. How much capital I need to trade? What I need to trade better?
Trading account: Anybody can open trading account and it needs a small process.
Trading capital: Capital depends on how you trade. If you are completely new, start with small capital as per your financial strength. Because at the early stage you will explore the order types and you will be learning how to use each order type. And also at the initial stage taking trade with confidence is a challenge. For example in this chart lets say your planned entry was 1830 and you missed to enter at the first chance. Then price fall down and again the same level comes. At that point unless you know the trend strength, taking entry is risky as price may be reversed. And by experience you understand about trend in a better way.
Trading Knowledge: Technical knowledge is important to trade better. And when you practice the knowledge with discipline, then you can be profitable.
Chart : Chart is needed to analyse & trade in live market.
Trading Strategy: You need trading strategy which gives you entry, stop and targets. Your trading strategy should be back tested at least for 6 months. Most traders back test their strategy for minimum 4 yrs. I have shared a link, refer it to get an example strategy.
Trading plan: You should be ready with trading plan before market opens as it will reduce the confusion, tension during trading.
What other things help you to trade better?
There are lot of indicators available. You can use any indicator if you understand and back test it. Also updating your knowledge continuously by learning daily will help you to trade better. I have shared a link below, refer it to know about indicator. Dont use too many indicators. Too many indicators will confuse you. 2 or 3 indicators are more than enough.
And lost but the most important thing in trading is, you need proper mind set to trade better.
Review your trades : Daily or weekly review how you traded. It will help you to find your strength and weakness as a trader.
What not to do ?
Dont trade during important news announcement as that time movement will be volatile.
Trading is simple if your strategy is simple with good accuracy and your mind is simple without fear or greed. All the best...
Trading account: Anybody can open trading account and it needs a small process.
Trading capital: Capital depends on how you trade. If you are completely new, start with small capital as per your financial strength. Because at the early stage you will explore the order types and you will be learning how to use each order type. And also at the initial stage taking trade with confidence is a challenge. For example in this chart lets say your planned entry was 1830 and you missed to enter at the first chance. Then price fall down and again the same level comes. At that point unless you know the trend strength, taking entry is risky as price may be reversed. And by experience you understand about trend in a better way.
Trading Knowledge: Technical knowledge is important to trade better. And when you practice the knowledge with discipline, then you can be profitable.
Chart : Chart is needed to analyse & trade in live market.
Trading Strategy: You need trading strategy which gives you entry, stop and targets. Your trading strategy should be back tested at least for 6 months. Most traders back test their strategy for minimum 4 yrs. I have shared a link, refer it to get an example strategy.
Trading plan: You should be ready with trading plan before market opens as it will reduce the confusion, tension during trading.
What other things help you to trade better?
There are lot of indicators available. You can use any indicator if you understand and back test it. Also updating your knowledge continuously by learning daily will help you to trade better. I have shared a link below, refer it to know about indicator. Dont use too many indicators. Too many indicators will confuse you. 2 or 3 indicators are more than enough.
And lost but the most important thing in trading is, you need proper mind set to trade better.
Review your trades : Daily or weekly review how you traded. It will help you to find your strength and weakness as a trader.
What not to do ?
Dont trade during important news announcement as that time movement will be volatile.
Trading is simple if your strategy is simple with good accuracy and your mind is simple without fear or greed. All the best...
Nota
Once you start making consistent profit, for example you made one Lakh from one Lakh capital, you can add 2 Lakhs to the initial capital. In the learning stage itself dont use all your savings for your trading capital.Nota
The money which you dont need for your needs, which is an extra amount, use it for the capital. Dont borrow money and trade.
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