On the sidelines of carrying out daily trading activities, I often get questions from colleagues:
Mr. Heze, how do you succeed in playing stocks?
We can be said to be successful in playing stocks if we can get a profit of what percentage per month?
Maybe those of you who have just read the Sakurajima Stock blogweb or have been a silent reader actually have the same question. Honestly, this question is actually difficult for me to answer. Why is that?
The measure of success in playing stock, the answer is very relative. Success in playing stocks depends on your capital, experience, and trading goals. Can the profit be used to meet daily needs (for those who are trading for a living), can the money from trading be used to help parents, can the money from trading be used for other things?
It will not be the same size for everyone. For example, you trade only with a capital of Rp. 1 million. In one month you can get a 50% return, which is Rp. 500 thousand. Return of 50% per month is quite large. Even for beginners, 50% per month is already great.
On the one hand, if you trade with a capital of Rp. 10 million and get a return of Rp. 500 thousand per month, can that be said to be successful in achieving profit? Only you can answer it. From the example that I have described, I would like to convey a message that the measure of success in playing stocks cannot be equated between one person and another.
But to give you a little enlightenment (based on my experience playing stocks), there are actually several measures that you can say you are successful in playing stocks. Actually there are only 2 measures that can say you are successful in playing the stock.
1. You can profit CONSISTENTLY and experience CONSISTENT INCREASE
Big profits do not mean you are successful, if it turns out that in the next month you lose even more. The measure of success in playing stocks is if you can make consistent profits. For example, every month you can profit 10% per month. That means you have found the right rhythm of the game, can control emotions, can manage psychologically.
In this case you can be said to be successful, because not many stock players can manage trading emotions correctly despite having a myriad of sophisticated technical analysis.
In addition to consistent profits, you are said to be successful in playing stocks if your profits can increase consistently along with the increase in your capital and skills. For example, you can make a consistent profit of 10% every month with a capital of IDR 100 million.
So, when your capital increases to IDR 180 million, your profit should also increase. This indicates that you already have good capital management and trading psychology.
2. Your trading goals are achieved
The purpose of trading is to make a profit. But there are even more specific goals: you want to trade for a living, trade to finance your doctoral studies, trade for extra income per month, trade so you can travel abroad, and other goals.
You are said to be successful in playing stocks if you can achieve your trading goals. I will give an example, for example, you are trading with the aim of trading for a living. So when your trading results are used enough to support you and your family, then you can be said to be successful in playing stocks.
So, those are the two main measures to determine whether you are successful in playing the stock or not. So, now you try to answer my question: Have you managed to reach both points? If you have, it means you are successful in playing stocks.
