I started trading in equity markets earlier this past week, been learning a lot every single day. Everyday is pretty much a new lesson. Although I’ve been reading books, listening to podcasts and everything for a while now, just wanted some advice from the experienced traders about the things they wished they knew when they started cause I always believe that I can learn better from others’ mistakes. So any advice in general, any books/videos/podcast suggestions?
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- Don’t put money in intraday trade that you cannot afford to loose.
- There is no one single intraday trading strategy that will give you consistent profit.
- The more you blindly follow tips, the sooner you will blow your account.
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Many people on internet will tell you it will take 1 to 2 years to become proper profitable professional trader. This is true, it took 2 years for me.
You can put 10k and try to see how market works get a feel of it. A very high chance how much ever good your trading is you will empty your account in beginning.
I have a list of youtubers, if you want I can share with you.
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May not be the exact answer you are looking for . But this is what I ll have told myself when it started.
Trade the support resistance, trade the trend, trade the order flow, trade the smart money. If trading is so simple, why is everyone not a multimillionaire like me?
1-2 months of profit, and you think of scaling up. Measure in terms of a quarter, 6 months, or yearly progress. And scale up accordingly to the money you made, and not the money you want to bring into. The maths do not always check out . Many times, you’ll never be ready to trade with a sudden jump with bigger money.
Trading is a wager/gamble no matter the insane amount of backtesting, the next trade is always an uncertain outcome. Hence, a stop loss and your job is to make more money when you win .
If everything goes your way, how I will I make money? A win rate of 80% etc, might exists, well , for a short period of time.
You need more live trades not backtests to build consistency and skill. Live trades = TIME.
And YOU matter a lot.
You= the mind = the habits–the gym, the family, the dog.
Make trading an obession but don’t let it consume you.
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As always,
Wisdom.
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One question. If you may in one word.
What really prevents us from being profitable?
DISTRACTION.
say, if I post a big fat profit, people will go bananas. They forget every logic, and the profit plays in their brain for a long time.
Distraction prevents you from understanding yourself. The most essential element here.
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One word. Indeed true.
We had those peeps here posting big pnl’s. Most of them aren’t active anymore.
Seems they perished or became billionaires.
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they became billionaires.
Only small timers like me, chip in here,now and then, to give gyaan.
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Why don’t you teach out your strategy then?
And what? Earn some bucks.
As you might know, my strategy contains some discretion element. This can be teach out, but one ll need intensive interaction. It’s like teaching someone your craft, say, making wooden statues, artistic ones.
You can catch a glimpse online. But the real deal, is when you sit with the master. Trading is not just execution. It’s your behaviour and thought patterns.
Well, if it’s just execution and close at this level and this target. That’s pure systematic. And I don’t think one can get good returns doing systematic trading.
I mean the returns that can make trading a source of income. Everyone will rather have a job, just to stay on the safer side.
If you want big returns, you have to have discretionary element. You can’t just jump in every time your system says go, just because it’s backtested.
And that discretion I can’t just teach someone online. Not that it is not teachable. It ll be half baked.
And I don’t want to teach and get money. Maybe PR sundar does. It’s their own choice. Maybe they got decent money in teaching rather than trading.
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But systematic trading cuts emotions. But I got your point, you are a master of your emotions.
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Let’s say, I got better, having a gut feel.
I mean all these years, being a monkey in front of the screen, the monkey just got better in recognising a narrative in the bars.
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I have around 15k and I already have the mindset that if I do end up losing it all, I’ll assume it is for my education.
And yes it’d really help if you did.
I’d be really grateful.
- Backtest and come up with a strategy that gives positive expectancy. Come up with strategies for bull, bear, and sideways markets.
- Have well-defined entry and exit and plan your trade, trade your plan.
- Just because we made 1k on a few trades in a day does not mean we drag the profit in excel and think we can make the same for the rest of the days.
- Do not risk more than 1% of capital in one trade. If the trading account is smaller in size work in a job to acquire decent capital.
- At least move some money to grow for the long term and build a cash cushion to weather storms.
- Process is more important than the result. Just because a single trade made a loss doesn’t mean the trade is a failure. Consider a trade success if you followed the plan, and detach the result from the process.
- Give enough time for at least 25 trades on a backtested strategy that gave positive results before ruling it out if you made losses even 10 trades in a row.
- There will be months of continuous losses but what sets you from others apart is patience and perseverance. Hang in there good things will happen just before you reached the pain threshold. you may start observing ice at -10 C and give up at -1 C but Ice melts only after 0 C.
- Plan for the long term(make a 5-year plan) and do not waste money unnecessarily on things that do not add up.
- There is no magic strategy that works 100% of the time and it is not necessary to make all the money in the market there are far better avenues sometime if you are open.
Good Luck mate!
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Trading is a game where many times you ll feel this is it,
then crap! you need to start all over again. XP gained +1
then another aha moment. then scrap XP gained +2
so goes on, till you gained enough XP.
You all smart to guess building XP as in a game requires going through maps, and building character.
XP 500 = TIME
You start trading with ,say,15k. It ll blow for sure, cuz you don’t know shit. But you need some feel good soothing balm. So goes the quotes,
i ll trade with money I can afford to lose, this is tuition money , market lessons,
Oh boy! you ll lose that money for sure. Even if you risk 1%, it ll blow by 90 losing trades. Throw in commissions.
Still don’t get it. If you don’t know much, risk in such a way that it ll take 400-500 trades to blow your capital. You ll learn much in 400 trades. If not, leave it.
Man, I hate to say this out, but it’s okay if people don’t get it. We need fresh blood. Market doesn’t need equilibrium.
But scrap the quotes, and these are pov from ground zero.
And atleast if I want to know how to tame fire, I ll talk with a fireman. A mentor can shorten your learning curve.
Else, cut your risk drastically. And don’t talk about, I am playing with money I can afford to lose. It’s so irritating, careless , pointless words ever.
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And don’t paper trade or keep backtesting forever and build a virtual curve.
It’s like watching porn. It’s all good until you face the real one. You ll not last long cuz you don’t know how to react.
<< Sensitive people who can’t handle the truth but are okay with losing money may flagged me. I have been flagged before, so I am all good>>
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Meanwhile, many people here
I always love your direct no bs words.
Keep ranting. You have a fan.
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It’s better to familiarise yourself with the terms before you enter. Read, ‘Trading Ki Pehchan’ by Ankit Gala and Jitendra Gala. This is a great book to brush up knowledge and understand the stock market on a deeper level.