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How To Be a Successful Derivatives Trader?

Today’s article is for those who are looking for success in derivatives trading. It is for those who are willing to make the right moves day in and day out. If you are one of them, read on.



Magic of Compounding


The power of compounding is magical. Here is the truth, we think a lot about compounding our returns, by trading. How many times have you focused on compounding your knowledge about the process? This is the first step. Usually, traders start off aiming for the profits first, but the truth is, they are better off learning the process first and then start building on their mastery. It’s all about knowledge and practice. Have A Good Trading System


A good trading system is a game-changer. The most successful traders believe in their trading systems almost to the point of delusion. Once you have solid knowledge in the field of derivatives, you will start believing in yourself and avoid predicting the market. It’s easier to execute trades when we know that our systems are in line with the derivatives market. The idea is to have a leading edge in the market, in other words, you must be able to see now, what others will come to know post-market. Avoid Predictions, Trade the Live Price


Trading can be very rewarding if you understand the live price and what the institutions are doing between 9:15 am and 3:30 pm rather than predicting the future based on the past. This is the most important phase for a trader. Successful traders avoid all predictions. They cultivate the act of live interactions with the market. Embrace Calculated Risks


Most traders are afraid of risk. This happens because they cannot see the opportunity that hides behind risk during live market hours. Taking calculated risk between 9:15 am and 3:30 pm is the key because it naturally gives you an additional edge. Successful traders manage their positions during live trading hours and adapt quickly to shifts in demand and supply. Are You Hard to Compete With?


The best way to become a successful trader is to be difficult to compete with. Build a solid trading discipline by combining knowledge of derivatives and a good trading system. Avoid predictions and take calculated risks along with strong institutional positions during live trading hours. For example, enter the market only when the market maker is present. Book your profits before the intuitions start wrapping up their positions. Square off your position early, if the institutions move out. The biggest misunderstanding is, successful traders, focus only on their system. They track the live changes in the market more than profits. The best way to become a successful trader is to work on these disciplines every day.

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