“The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.” – Victor Sperandeo
To make quick and fast decisions, darting in and out of stocks on short notice, traders have to accomplish a certain presence of mind.
They also need to plan their trades and then trade their plans to know when to book profits and losses. Emotions simply can’t get in the way.
Today in our Trader’s Point series, we talked with Arvind- an Options Seller.
Arvind is an entrepreneur with an engineering background. He started his trading journey during the 1st COVID-19 induced lockdown by consuming Youtube videos, but later on realized the importance of structured education, learning, and practising to trade the market efficiently.
He identified his trading style and strategy that suited him the best and built a trading system around it- one of the most important rules to become a successful trader.
In his opinion, staying organized with a proper trading plan and approach, even if you lose money in the market, is vital to ensure you stay in the market for the long haul.
He also believes that overconfidence often works out to our advantage, but when it comes to trading, being overconfident can lead to trading too often and eventually hurt our returns. To become a skilful trader, you need to identify your abilities and plan your capital allocation accordingly.
Conclusively, his suggestion for the beginner options trader is to understand the psychology of the market first, have an in-depth understanding of the concepts applied in Options Trading, and rigorously follow per-trade risks.
Here are the following other key takeaways from his interview:
Stock Identification and Selection:
Focus on charts more than anything else, take the inference of support and resistance lines to identify the strength of the trade.
If you are a beginner, start with 10% of your total capital and increase your capital gradually, month-on-month basis, instead of on a per-trade basis.
Check out the complete interview to know more about his journey from being a beginner to becoming a professional Options Seller.
And as they say “Life’s too short to experiment with everything on your own, and one must keep on learning from others’ experiences”, we at Finlearn Academy will be bringing you such inspiring stories every week to encourage you.
Check out the link to watch the full video. //youtu.be/Y_JaXeRxZ4A