How to earn a regular salary from Stock market?

 

Stock market ImageTrading in stock market and earning consistent salary or profits is difficult. However with continuous efforts and persistence one can earn regular profits from the Stock market. In this article we are going to see some key tips, which can help you earn consistent profits from the stock market. The first most important factor, which decides your success in Stock market is the strategy you have chosen.

It is always good to have a strategy, having good success rate. For example, a success ratio of 70 percent is good enough to achieve overall profitability. Secondly the strategy you have chosen must have good reward risk ratio. The Reward risk ratio should be greater than 2:1 to achieve good profitability. This will ensure that even if there are some fail trades, still you will end up in overall profitability. Hence a good reward risk ratio is key factor in achieving success out of your stock market venture.

The other important factors which attribute to the success in Stock market venture are Risk management and wealth management. It is always best to incorporate these two factors in your trading. These factors act as building blocks for achieving success in stock trading. In the risk management, the risks during the trades are tried to be minimized. The tools like stop-loss are used to limit or minimize the risks. The stop loss tool will also help you to decide your loss in each trade. It is recommended that one should always trade with strict sop loss. It is very risky to trade without a stop loss. One can lose his entire investment if he tries to trade without a stop loss. Hence, it is always recommended that trades should be placed only with stop losses in place.

In the wealth management, the lot size or the sizes of trades are managed. It is recommended that one should not risk more than 1 percent of complete investment in 1 trade. This will ensure overall profitability in multiple trades. Also, the diversification of portfolio is an important part of Wealth management. Diversification helps to maintain profits, even if one or more entities are not performing well. Hence the principles of wealth management are very important for the success in Stock market venture.

Finally, it is advised that you should do paper trading first, if you are a beginner. This will ensure that you are confident with your strategy and its application in the real market. Once you are confident that you are making good money with a particular strategy, then you can go for trading with real money. Thus, we have seen some important tips that can make your trading venture a success. You can also follow these tips and have great success in stock market trading.

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