The 5 keys to making money on the stock market

Today you can learn the 5 keys to making money on the stock market, either on Wall Street or in any other stock market. Winning traders are rare to find. The reason is that few people have the perseverance and dedication to become a successful and profitable independent trader in the stock market. Few people are willing to completely reinvent themselves and develop the traits necessary to become a successful trading trader. After reading thousands of bag books, I have found 5 common traits that all winning traders have. If you lack any of these traits, I can guarantee that you will not become a profitable trader in the long run.

keys make money on the stock market

1. Focus internal control

In the stock market, it's easy to blame any factor for your poor decisions, hedge funds, and every other entity on Wall Street for your poor trading results. I'm sure you've heard people tell you that the market is rigged. Losing traders will say they don't have enough monitors or the internet isn't fast enough. They say they would be profitable if their brokers' commissions weren't so high. These are just a few of the thousands of excuses losing traders give why they can't make money. Many losing traders have a place of external control, and it is a major reason they are not profitable. So they should assume their mistakes internally and focus internal control, so they can improve.   

Every great trader knows that he is responsible for all his trading results. At the end of the day, it's your trading system, risk management, and psychology that hold you accountable for becoming a winning trader. While retail traders are at a disadvantage, there are still plenty of profitable retail traders who find a way to consistently make money.

A big reason they are profitable is because they take responsibility for all their mistakes. They realize what they did wrong, and then find a solution to combat this problem in the future. They are in a continuous process of refinement because they have an internal place of control. Developing focusing your internal control will allow you to be successful in all other areas of your life as well.

2. automation of your trading system

Winning traders don't let emotions affect their trading decisions. They know the market is random, but their trading strategy has an advantage. This means that they will earn money in the long term, as long as they follow their trading system automatically, without shocks or sudden changes, respect your system!

They don't get excited when they're in a trade, and they make a profit just because they're green. They don't get stubborn and fight loss of trades because they believe their opinion is more important than the market's. They always have a trading plan before placing a trade and they always stick to it no matter what happens. All planning is done before the market opens.

Management of trading strategies, risk control, psychology ... are some of the important points to take into account before making a trade.

The 5 keys to making money on the stock market

3. Capital management

We cannot stress this point enough. The best traders understand that losing days, sometimes losing weeks and months, can happen even in the trading systems more profitable. But winning traders think like a casino, and they know they will win in the long run. Even if your win rate is very good, let's say from the 80%, you will have 3 losing trades for every 10 trades you make on average.

These 3 losing trades could happen 3 times in a row. It is their duty to get a large enough sample size, which means that they take all the trade signals that their system indicates, no matter what happened on the last trade. They focus on their weekly and monthly system, not what happens on an individual trading day.

You can read about the capital management on our blog.

4. Discipline

It's one thing to know what you should be doing, it's another thing to actually do it. Every stock trader knows that he must obey his stop loss to preserve his trading capital. Yet few actually do. Discipline is what separates winning traders from traders who do not have the discipline to follow the trading rules of a profitable system. You can give a trader a perfect and profitable system, and they may not be able to make money yet.

Since you don't have a boss as a trader, there is no one to force you to follow your trading system rules. Each stockbroker is the CEO of his own company. Since you are the CEO, it is your duty to follow their trading rules to keep your business alive and profitable. The only thing that will keep your trading business alive once you've set the rules is your discipline to follow the rules.   

5. Control adapted to the markets

All winning traders I know never enter the trading day expecting to win a certain amount of money. Losing traders enter the trading day expecting to make a certain amount of money, because they want to be paid for the time they put in. Being a trader is not a profession where you get an hourly wage. The trading elite focus on their trading process, not on the money they will make or lose.

There will be some days where you can earn $ 1000 in 5 minutes. There will be some days where you will trade for 6 hours and you will end up losing money. You cannot trade with the expectation that the market owes you something. Successful stock traders know that the only way to make money in the markets is to develop a profitable trading system and then maintain it no matter what. They know that if they focus on their process and system, the money will come.

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