Technical Analysis of the Stock Market is a very fascinating subject. Many a time, people who have been learning Technical Analysis of the Stock Market for a few months, start feeling restless and want to start trading in the market. This is almost similar to a child learning to walk, wants to participate in Olympics!!
In our 'simple and happy' approach to start trading, we will be slow and steady. The following simple steps will be in order:
- Do book trading for at least three months. This means that you will buy and sell for record purposes but not in reality. You will adopt the same safeguards as if you are actually buying and selling the shares including stop loss points. In fact, there are two advantages in this method viz., you can keep fine-tuning buying and selling points and you can keep fine-tuning your buying and selling points and you can do large book transactions and thereby you can improve your ‘Prosperity Consciousness’.
- When you are ready, start with only 10 % of the money you have allocated for trading in the market. If you do this for six months with focus, your ability in Technical Analysis will improve substantially.
- When you are following book trade as well as limited trade, make notes of your approaches that have given you the best results. For example, you may observe that Average Directional Index with a combination of ‘Harami’ pattern improves your probability of success. You can learn a variety of things like this and those will become a part of your Propriety system.
No doubt, this may involve a bit of patience and discipline, but the rewards are indeed great!!
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