It is a very valid question that arises in the mind of any individual who is new in the field of stock markets. What is that particular method adapted by successful traders that helps them be in the top infield where 90% are continuously losing money?
During my initial days, I thought that there was this magic strategy in trading which is going to give me 90 % or 95% accuracy for my trades. I was jumping from one indicator to another, surfing through net and youtube just to find that holy grail that would make me a millionaire.
And the end result was that I ended up losing a lot of money only to realise that the markets are dynamic in nature meaning they change from time to time and the only way to get an edge in the markets is by controlling those factors that we ourself could manage ( for example the risk we take, the target we checkout for, the setups we follow as well as our emotional discipline)
Anything apart from the factors that are in our direct control would keep changing from time to time and hence we need to device a methodology so that we could adapt to varying market conditions with the same systems.
That is when I began giving importance to price action based trading systems and risk management and position sizing my first priority before anything else.
Each and every setup that I follow, I have figured out the most possible hit ratio based on prehistoric data and depending on the same setups, we check for entries only if the risk to reward is being satisfied in the right manner.
Besides his personal experience in trading, Mr.Hariprasad K CEO of Livelong Wealth has attained more professional and industrial knowledge through his work experience.
His learning and practice in trading started from the age of 18 where he spent more time in backtesting strategies during his college days at VIT Vellore.
Mr Hariprasad too attained more professional trading skills during his work at Futures First(European Proprietary trading firm). It has helped him to have a wider understanding of professional trading setups where he realised that each individual has a unique trading style and we need to get accustomed to the same with good practise and dedication.
Before setting up the Livelong Wealth prop trading firm, Mr. Hari has also collaborated with Hedge Equities, one of the best wealth management firm in Kerala. That has helped him to gain more experience in wealth management, portfolio management, financial planning, fundamental analysis and so. A good mix of personal learnings, practice, and professional work experience has helped Mr.Hari.
He also strongly believes that the stock market is a dynamic filed where scenarios change every day, therefore he backtests and updates his trading setup from time to time.
He recommends that someone getting started in the stock markets should definitely identify for themselves what is the most suitable strategy and risk-reward setup suiting them before jumping into it. He personally feels that at least a span of 6months would be taken for one to get comfortable in the stock markets and attain consistency.