InvestorQ : Is it practically possible for traders and investors to earn consistently higher returns in stock trading?
Bhavik Nehru made post

Is it practically possible for traders and investors to earn consistently higher returns in stock trading?

Answer
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Niraj Mehta answered.
1 year ago


Most of us look at stock trading as the assumption of risk. That is wrong. In fact, it is not the assumption of risk but the avoidance of risk. A good stock trader cannot shoot from the hip like a cowboy. On the contrary, the trader has to be a very smart and savvy risk manager. In trading, if the risks are managed then the returns can take care of themselves. Secondly, trading is not as random as it is made out to be. You can actually take very calibrated and thought through positions while trading and make consistent profits. Of course, you don’t make profits on every trade (that is not practical), but you are profitable more often than not.

While trading is by default a risky game, there are ways to enhance your returns on share trading. It calls for a more systematic and disciplined approach. Success in trading is all about discipline rather than about getting your calls right. Most investors lose money in trading because they take decisions in a random manner. Traders can be a lot more successful in the equity trading by following some basic trading tips.