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Do you have plan to select the best winning stock market picks for yourself? The reason that 80% of people in the stock market are losing money because they do not have a stock market trading plan to guide them how to select the best stock market picks.

To be an effective trader in the stock market, you must have a trading plan. That’s the habit of first thing first of 7 habit of highly effective trader.

Let’s explore the 5 simple steps to help you selecting the the best stock market picks now.

Finally, having knowing the 6 habits, the 7th habit is the simplest.The 7th habit of highly effective trader is “Sharpen the Saw”.

We just need to master the 6 habits we shared earlier. We must also constantly engage on a renewal process to practice what we learned and reflect our results and actions.

Very fast we have discussed 6 habits of highly effective trader so far, we will now look at 6th habit, “Synergize”.

After picking up the trading or investment skills and knowledge, it is important that we discuss with friends or like minded people about the experience we have gone through.

Why is it important?

Before we take a deep dive into trading in the stock market, it is important we understand the environment and the people in the stock market. Hence, 5th habit of Highly Effective Trader is First Seek to Understand.

In order to be effective in the stock market, we must know how stock market mechanics and the market psychology of the traders and investors. There is a saying, the stock market is filled with none other than greed, hope and fear. We must be able to master and understand how greed, hope and fear affect fellow trader’s buying or selling decision.

“Think win-win” reminds me to strieve for a mutual benefit for both party, “He wins then I win too”. Now, “Think win win” is the 4th habit of a highly effective trader.

However, how can I apply this habit in money investment or trading in the stock market. Who are the 2 parties to strieve for a mutual benefit? I have been thinking about this question for a few days.

Finally, I found an explanation on how I can practise this “Think Win-Win” habit in stock market.

We have discussed 2 habits of highly effective trader, we shall discuss about 3rd habit, “First Thing First”.

Let me ask you another question here, what is the first thing you do when you decided you want to start trading or investing in the stock market? Oh, my friend told me, “What a simple and stupid question, the first thing to do is definitely to open a trading account and trade”.

Do you agree with that? But is that the right first thing to do?

We discuss about first habit of 7 habits of Highly Effective Trader, “Be Proactive”, yesterday. We will look into the 2nd habit of highly effective trader, “Begin with End in Mind”.

Many retail investor enters the market without knowing where the profit target is. This is a big mistake people make because you will not be profitable if you do not know where and when to take profit.

It is very important that you have a target or goal in your trading journey.

I like Dr Stephen Covey’s book “7 Habits of Highly Effective People ” and I was discussing with some friends about this book today. My friend said that he likes the first 2 habits of “Be Proactive” and “Begin with End in Mind”. I could not agree more, it would be extremely are very powerful and we will achieve a lots more in our life if we can practice just these 2 habits alone.

As I am recently trying to learn about trading and investment in stock market. It makes me wonder if we can practice Stephen’s principle in our stock market investment or not.

Finally, I think we can definitely apply Dr Covey teaching in the stock market and here’s what I am thinking. Let’s look at this together!