Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post
Market Place

Add an ad

View all ads

Latest topics

» AEL going up short term for gota coming is only chance for trading
by sanjulanka Yesterday at 11:32 pm

» ගෝඨාභය නෙමෙයි පුටින් ආවත් market එක ගොඩ ගන්ඩ බෑ
by Eng Krishantha Yesterday at 11:11 pm

» NEST going to run?
by player Yesterday at 8:32 pm

by rukshan1234 Yesterday at 8:19 pm

» Central Bank Reduces Its Policy Interest Rates
by Trader321 Yesterday at 3:54 pm

» Market gonn hit with the CB rate cut :
by Trader321 Yesterday at 3:09 pm

» Positive News
by Promoney Yesterday at 2:38 pm

» Chevron will go down further in fundamentals
by player Sat Aug 24, 2019 9:18 pm

» Questionnaire on the stock market investor behavior in the Sri Lankan share market
by gayani2018 Sat Aug 24, 2019 9:41 am

» Capital trust recommended to buy AEL ..Target Price Rs.24.50
by Eng Krishantha Sat Aug 24, 2019 1:45 am

» when you invest in a company call that company and ask some thing
by ThilinaM Fri Aug 23, 2019 3:47 pm

» read this carefully - thease dumb investment advisors will advise when gsp received teejay operation would be better
by ThilinaM Fri Aug 23, 2019 1:21 pm

» Rocell undervalued
by ThilinaM Fri Aug 23, 2019 12:36 pm

» Friends I read a book traders are loosers
by ThilinaM Fri Aug 23, 2019 12:34 pm

» Scared of silence of MS and next 2 Fridays
by samaritan Fri Aug 23, 2019 9:11 am

» The Central Bank of Sri Lanka Reduces its Policy Interest Rates
by TraderCSE Fri Aug 23, 2019 7:50 am

» AAIC - Profit over one billion!!!!!
by wisdom79 Fri Aug 23, 2019 7:44 am

» Why AAIC Should trade above RS.50/-
by wisdom79 Fri Aug 23, 2019 7:43 am

» CIND බලාගෙනයි
by ThilinaM Thu Aug 22, 2019 3:50 pm

» PAP (Pan Asia Power PLC) Dealings Directors
by Capton KIng Cool Thu Aug 22, 2019 8:54 am

» JKH will touch 175 very soon
by soileconomy Thu Aug 22, 2019 7:27 am

» EMER...?????
by roshan1039 Thu Aug 22, 2019 12:16 am

» What is your trading preference?
by biglivetrade Wed Aug 21, 2019 4:24 pm

» RENUKA HOLDINGS Target 50.00
by ThilinaM Wed Aug 21, 2019 1:34 pm

» CIND , 10% guaranteed return
by Bakka1988 Wed Aug 21, 2019 12:51 pm

» lOFC definitely will hit 6/-
by Winner123 Wed Aug 21, 2019 11:18 am

» ASHO අර්ජුන් මහේන්ද්‍රගේ බෑන විකුණනවද කොහෙද
by Bakka1988 Wed Aug 21, 2019 11:11 am

» PAP (Pan Asia Power PLC) Apointiment of Director Mr.Sangith Senaka Kakiriwargodage.
by samaritan Wed Aug 21, 2019 10:03 am

» SEC charges four stockbrokers over market manipulation
by player Wed Aug 21, 2019 9:40 am

» Sri Lankan Billionaire Dhammika Perera may Spend Rs. 10 Billion for a Presidential Campaign without any Risk! His Daily Casino Profits said to be over Rs. 50 Million
by nuwanmja Wed Aug 21, 2019 9:39 am

» MGT - Collect n keep
by samaritan Wed Aug 21, 2019 8:05 am

» Browns investments
by Winner123 Tue Aug 20, 2019 9:35 pm

» ASHO will hit moon. Deal with SLTB
by Bakka1988 Tue Aug 20, 2019 9:11 pm

» GLASS (piramal glass ceylon plc) from
by MarketWch Tue Aug 20, 2019 10:20 am

» Elcection Commisioner( MACO)
by Capton KIng Cool Tue Aug 20, 2019 8:59 am

» Presidential election will be held on 16 th of November to 7th of December
by rukshan1234 Mon Aug 19, 2019 11:30 pm

» Which Trading System Or Strategy Is The Most Profitable?
by Teller Mon Aug 19, 2019 8:13 pm

» NEST will touch Rs2000 soon
by Bakka1988 Mon Aug 19, 2019 5:41 pm

» Gotabaya Rajapaksha will named after 10th August. Aspi will move above 6500
by samaritan Mon Aug 19, 2019 11:59 am

» CFVF.N0000 - Target price Rs.60- Donnt sell
by Trader321 Mon Aug 19, 2019 10:06 am

» CFVF.N0000 - Really started Again ..........
by Trader321 Mon Aug 19, 2019 9:59 am

» LOLC Holding( LOLC N.0000)
by Capton KIng Cool Mon Aug 19, 2019 8:45 am

» LOLC Holding( LOLC N.0000) MICRO FINACE In Cambodia
by Capton KIng Cool Mon Aug 19, 2019 8:43 am

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market Talk » 5 Methods of Profit Maximization in Trading

5 Methods of Profit Maximization in Trading

Go down  Message [Page 1 of 1]

15 Methods of Profit Maximization in Trading Empty 5 Methods of Profit Maximization in Trading on Sun Oct 11, 2015 11:08 am


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
The stock market is not a child’s playground. The moment you step foot into the world of stock trading, you need to set your sight on one single goal i.e. making a profit. Earning profits from trades is the bread and butter of every stock trader. In stock trading, there is no time to fool around and incur losses.
Trading is all about the numbers. Professional stock traders tend to have a success rate of 80 to 95%. Retail traders on the other hand have a much lower rate at 50% or less. With such a pedestrian success rate, retail traders are unable to hold on to their profits for too long.
For retail traders who want to break free from mediocre profitability, here are 5 all important steps to maximize profits.
1) Develop your skill
Like any other profession, stock trading requires you to hone your craft. Start with the basics such as studying charts and reading indicators. The amount of profit you make depends on you well you trade the stocks in hand. Strive to improve your skill set and go the extra mile to amplify your expertise.

2) Be patient
Do not check the stock charts immediately after market close. Wait for a minimum of half an hour to ensure that you have all the data in your charts. This is because stock trading is growing in complexity with each year with numerous Electronic Communication Networks, stock exchanges, Dark Pool Alternative Trading System venues and several other Over-the-Counter platforms. Every trade must pass through the National Clearinghouses for documentation. In short, it’s a very lengthy and time consuming process.

3) Assess the Market Condition
Being able to read the market conditions well is a key characteristic of every successful stock trader. Once you assess the market conditions, it’s time for you to act. Things will not always go your way.  Don’t wait for the conditions to be conducive for trading. You need adapt in accordance to the changing market conditions. If you fight the flow of the market you will end up with inconsistent results that lead to frequent losses.

4) Put your faith in charts 
In stock trading, understanding the situation in the market can be quite difficult. It’s hard to get a clear picture at all times. You need to put your faith in charts. Use them to steer your way through a trade. When your stock indicators are weak, your trade is most likely to be feeble as well. Also, the price action weakens when the candlestick is shrinking as the run moves up. Be sure to not miss out on the intermediate term trend analysis. It will help you to attain a better picture of support and resistance patterns which will impact all trading styles.

5) Watch out for Market Participant Groups
The days of Main Street versus Wall Street have long passed us by. In modern day stock trading, there are 9 different Market Participant Groups. They all have their own order processing system and venue. Not to mention, each trades at particular times of the day or under market conditions that suits its style. They also have access to essential information at discrete times. They have differing capital bases and different motivations for trade. It is thus imperative for you to know whom you are trading to give yourself a better chance of earning handsome profits.

With these tips in mind, retail traders can have a better opportunity of growing their profits, improving their ROI (return on investment) and raising their capital bases.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum