Hellow fellow traders and investor fellow the world...in this time I want to share about Five (5)Step to get consistents profits in the stock market.As we know in The World of Stock not a few people are vying for profit,but many also end up running aground in the middle of the road.Finally,the decided to stop trading and Investing because of Difficulty to making Profit.The difficulty of making consistent Profit from stocks trading cause some people to often have Negative mindsets regarding the stocks world.to able to achieve consistent Profits in stocks,several strategis step are needed,including.
- psychology management;
- create trading rules;
- good money management
- determine realistic profit
- manage risk wel
Have Psychological Management
When Trading Stocks Trading is an activity that has the potential for profit in proportion to the risk to be borne. When you get a big profit in a short time, you also have the potential for a commensurate loss. Don't be discouraged to see someone else's profit is bigger. Believe in yourself buddy. It's better to make a small but consistent profit, than a big profit but a few moments later your trading account is forfeited just because of the ambition to achieve a big profit that is not adjusted to the capital you have. When a trader puts forward the ambition to achieve big profits, at that time his psychological condition becomes unstable and often causes losses.
Making Trading Rules
for Consistent Profits When we are still in school, we are faced with various rules that aim to discipline ourselves. Likewise with trading, without having clear rules or regulations it can be likened to someone who is driving a vehicle but does not pay attention to traffic lights. It can be safe to the destination, but it can also not be safe. It's just that the percentage of safely getting to the destination is smaller. By having trading rules, you have guidelines for when to open a transaction that is profitable with a minimum return of 1:2 risk and reward or close a losing transaction. Never break the rules that have been made. Maybe a few days of running the trading rules feels very heavy, but if you continue to consistently carry out the rules that you have made, it is possible, you will become a professional trader. Good Money Management Professional traders generally use a maximum of 20% of their capital to make stock trading transactions. Ellen May, an expert on Indonesian stocks, recommends novice traders to allocate only 0.5% - 1% of the total amount of funds they have. For example, for a fund of IDR 100,000,000, a novice trader can only use a maximum of 100,000,000 x 1% = IDR 1,000,000. While a professional will use a maximum of 100,000,000 x 20% = Rp 20,000,000. This is very important, when a trader experiences a loss on an ongoing transaction, his psychological condition will remain stable so that it is possible to make better decisions. Imagine when you use all the capital you have to buy a stock that suddenly loses 10% how much money is lost?
Setting Realistic Profit Targets
The stock market is not only promising but also full of uncertainty. Many rumors are growing about how to get rich in an instant from stocks. Stock transactions are not a get-rich-quick scheme. If you have the mindset to get rich quick from stocks without sufficient capital, it's better to undo your intention to become a trader. The possibility exists, but only if we continue to earn consistently. For beginners, a 2% profit from a stock is quite good. Do not expect from a transaction that is executed in a short time, my friend can get double the profit from the capital. Indeed, there is several times the potential for some fried stocks, but we don't recommend buying fried stocks, because they tend to give a greater percentage of losses than the profits to be gained.
Manage Risk Well
The stock market is like a very dangerous wilderness. Without proper preparation and knowledge it is impossible for a person to survive. Likewise with the stock world, without an understanding of managing risk properly it is difficult for a trader to survive in the midst of the harsh world of the stock. Do not hold losing transactions unless you are a Value Investor, close or cut-loss transactions that are not in accordance with the analysis. Even a professional trader must have experienced losses. But they can survive by controlling risk as well as possible to protect their capital. So that's it, my friend, the strategies that can be taken if you want to achieve consistent profits. Keep in mind that nothing is certain in stocks, getting consistent profits depends on how you make decisions. Hopefully, the article that we convey can be a reference for friends who are just starting to work in the world of stocks and those who are seniors. Greetings profit!