Yes but that point comes at least after a few years of experience. And if a person wants to be a professional trader, as with any other profession, he has to learn, like he learns for any other academic course, then practice, have discipline too to overcome the psychological part of trading, have an income stream, however small it is to meet the needs. All of these take time.
So even if capital can be scaled up quickly, without a proper perspective, seriousness, some experience, some acceptance, a plan, it is hard to become a professional trader.
Of course, each person is different, so some may achieve all of this in less time compared to others.
You should be, this is not a game. Of course you can think of this as a game, but if you think so, don’t expect much. If we consider something to be our profession, then we have to be professional, there are no two ways about it.
If I want to be a software engineer, I should be willing to be awake for long hours, work on holidays, learn new things etc, if I cant do that, I cannot expect a good salary at the end of the month, I cannot expect a good hike at the end of the year, I cannot expect a chance to work in a foreign country.
So if I want to be a professional trader, I have to be immersed in the market, learning new things which help my strategies to get better, read the same again to strengthen my conviction, thankful when profits come, agree when make losses, be disciplined, be robotic if I can etc.
Got to respect the market, and cannot show my middle fingers to the market, unless I am leaving the market for good, and will never come back
I have only one lakh which is expendable to study the market. I have transferred only 10k right now learning bit by bit.
My dream is to trade Nifty or Banknifty one day professionally.
Sure. We all start at some point. I was just pointing out to the fact that, to become a professional trader takes a lot of effort, time, experience etc.
The majority of day traders typically begin with a small account. After that, they gradually increase both their bankroll and their skill set. A great way to reduce your losses and gain the knowledge you need to be confident is to start small. You’ve come to the right place if you’re one of these traders!
Investment size is extremely important in stock trading.
Day job offers 10% to 20% hike every year.
Can a retail trader invest around one month salary and be satisfied with 10% to 20% profit in a year of trading?
Stock trading is not like day job. It is business. Either invest big and make atleast 10% to 20% profit per anum OR invest as small as one month salary and earn atleast 10% to 20% per month. Infact in options trading there is more profit making potential.
Retail traders MUST NOT INCREASE their investment but instead MULTIPLY their investment through trading because the REAL INVESTMENT in retail trading is TRADING SKILLS, not money.
For big investors HEDGING is there to almost double their investment every year. Retail traders are not yet there.
I am sharing my insights on trading options with small capital in my thread:
Okay everyone says start small but how small is okay when you’re starting out ( given you’ve good time backtested) given the liquidity of the markets and index f&o how small is this start small size of capital. @viswaram@Gnome@ANKIT_T@jashjacob
@Chetan_Nahata I seriously dont have the answer to that question. One way to approach will be to set the ROI you have in mind and work backwards to derive the initial capital.
For eg: You aim for Rs20000/month ~ 2,40,000 per year which is 25% ROI. Then the capital you require is 9,60,000 ~9.6 lakhs.
We can only work on CAUSE. A good student studies well (cause) and the exam results (effect) simply reflect the efforts.
Good traders work on developing their trading skills (cause) and the ROI (effect) reflects the hardwork.
PSYCHOLOGY/PHILOSOPHY OF RETAIL TRADING
REAL INVESTMENT for retail traders is their TRADING SKILLS, not money.
Price actions are good start for developing the Art of reading plain chart, without any indicators.
Yes, trading is an art! Any business in general s an art. Academic education is good is science, not art. That’s why they fail to create businessmen in classrooms.
Intraday equity. It’s been 8 years no f&o till date. Have moved to Equity delivery and plan to stick to it forever as it gives peace of mind even if less ROI
