Basic components of stock market trading



This article is part of basics of trading and later on more advanced topics would be discussed in other sections

Even though the actual actions involved in trading is simple, i.e buy or sell a stock, the processes involved in deciding these actions are not simple and especially the one related to the trader himself - psychology

The journey towards being successful trader is filled with complexities, but the aim should be to make your approach as simple as possible.

One of the mistakes which a novice trader does is focusing too much on the trading system itself, even though trading system is a critical piece of trading but there are other aspects which requires lot of attention

From my experience until now, I usually look into the following focus areas:

  • Individual Trading Style
  • Markets
  • Trading System
  • Trading Strategy
  • Money/Risk Management
  • Trading Psychology

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