Traders on their journey of trading must have realized that it is difficult to make money. Trader deal with many issues like understanding the market structure, developing the required skill, psychological barriers, and time constraints. Adding to the list, which is highly overlooked, is the problem of the undivided attention demanded by this career. In this article, we will talk about the problems of beginners and how to deal with them while you are starting trading.

Market Universe
Many of us operate in the market in an unstructured way. The market is very wide, and there are lots of moving factors that are difficult to harmonize. We try to chase the entire market, and as a result, we get lost without realizing much.

To get water, we need to dig in the same direction. Trading is all about judgments on the back of some theories or methods, but the fact of judgments is that it improves when we practice in a concentrated way. In the context of a market, we need to fix our universe and need to practice that. For example, We took Nifty100 as Universe, so only 100 stocks become an entire market for us, and we have to practice these stocks in a concentrated way. Once we practice on the same set of stocks over some time,  it helps to improve judgments. Of course, with time, one can expand the universe, but it has to be finite.

Selection of tools
The problem of many lies over here as well. We have many theories, tools, data points, oscillators, and many more things to do analysis, but less is more. Trying to know too many theories and ways of analysis can dilute effectiveness. As a stepping stone, one can focus on price action because it is based on many other theories, or with an understanding of price action, other tools can be used in a better way. Many practitioners restricted themselves only to price action. Here, price action means dissecting the charts and understanding the structure of price movement.

Feedback Mechanism

One of the unrealized demerits of unstructured analysis is that we do not have feedback on our studies. When we operate in a fixed market universe, it gives us an edge to keep reconciling earlier studies or views in the current context of the market. Feedback is important to enhance the learning curve.

Homework
Imagine a hunter running after prey. How funny it sounds, but this is what we are doing in the market. Market and stock price movements are major decision-driving factors for trading, it is the same as we are running behind prey. Ideally, the hunter sets their traps and waits for prey to fall into them. In the market also, we need to be prepared with our homework, like understanding the strength, sector, and stock-specific movement. The strength and quality of homework improve when we have practiced and analyzed the same stocks for a good period. After the homework, we need to see whether price movement validates our view or not, and based on that, we take or avoid the trade idea.

Conclusion

So these are four formats within the framework to enhance the quality of our research and trading. The last point to share is… to operate effectively in the trading environment, we need rules and boundaries to guide our behavior and the aforementioned pointer helps to draw the boundary around you.