What is that first and foremost thing or discipline, trader have to adopt?

I am new and want to be a successful trader in equity and commodity markets. to learn and to know what is that the 5% of people know instead of 95% people who lose in markets?

Important points for a successful trader should be

1.Select a broker who offer less brokerage.

2.Dont be greedy, when you see a sizeable profit( after brokerage) take it with both hands or you can put trailing stop loss and at certain point it will get triggered.

3.Never trade both sides of the stock / index ( buy and sell).

4.Dont listen to tips given on tv or newspapers.

5.Study some technical indicators like RSI, Bolinger bands etc.The material will be available on net (www.nseindia.com , tame on home page).

If you follow the above , percentage of success will improve drastically.

I believe that the first and foremost thing that a trader should do is to chart out their RISK CAPITAL. Risk Capital is that amount of money losing which does not affect their life. So, chart out the risk capital for short term(1year), medium term(3years) and long term(>5years). Based on that move forward.

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First and foremost as per me

  1. Prevent losses, as much as you can. (prepare to go for no loss, which is difficult but can be perfected)

  2. Use money management techniques, as per your risk profile. (eg. if you have 1,00,000/- rupees, trade with only 5,000/- or 10,000/- in any particular trade)

  3. Just be mechanical, don’t bring in emotions (greed and fear)

  4. Be consistent with your home work, on daily basis see O,H,L,C rates and charts of your favorite scrip/index.

  5. Maintain a trade journal.

  6. And above all enjoy what you are doing.