In this amazing forum of great traders, I want to understand how to become the best, it’s been 9 months I have started trading and learnt the following.
Please add the other things I can improve which is not in the below list:
Please add
Believe and you shall become…
What kind of trader you are ?
day or swing ?
BOth trading requires different skill and passion …Though discipline and all are same but skill is different …
Swing
Try to focus on longevity and scalability
Some book i could suggest is thinking in bets by annie duke and you can try physology of money as well.
Trading is one of most difficult profession. Asking to become best trader is like asking to become best golfer or cricketer in the world. You have to develop your own path eventually.
I understand Prakhar, my goal is to have that mindset and not leave any efforts in becoming that, but yes I will focus on longevity and scalability. Thankyou for sharing your inputs really appreciated
Trading psychology .
Managing emotions .
Accepting loss and moving on .
Quick to change our opinion based on what market is telling us
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,
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Noted,
Third point is something I really need to master
Thankyou
I would say , in beginning master in one system but in long term you have to built multiple uncorrelated systems. eg, Intraday, positional ,Swing, Stocks, Options, Fut. Make sure one system is highly uncorrelated than other system , target to master alteast 5 such systems in long run , diversification will act as risk management
yes i would agree to it is point …
Another thing i will would to add from my personal experience is there is no need of paper trading …
Real money is what matters to learn trading ,Now real money for beginners should be only those amount which 1 can afford to loose …
Got it, Definitely will work on it, thankyou for sharing it
Understood, I paper trade only in options to really understand how the market behaves and how to manage the risk and which spread or strategies to use. But I understand your point real experience comes when you trade with real money
Someone said 10,000 hours.
Divide your risk per day.
E.g If your Risk per day is 3,000, then make sure you divide your risk in two half. i e 1500/1500.
When you take your first trade, then risk only 1500, because if your SL is hit you have second chance to enter.
By practicing this you will increase your probability of winning at the end of the day.
Make sure your setup has ability to deliver minimum 1:2. Ditch your setup if it is unable to deliver minimum 1:2. This is what will keep you profitable in the long run. If your losses and gains are same, then your will either remain at breakeven or in loss.
Have multiple good setups.
It took me some time to figure out that you cannot trade only on one setup. You need multiple setups for different market conditions. Some setups work in Trending market while fail in Sideways, while some work in sideways but fail in Trending. So make sure you have different setups for different market conditions.
Trade only on your setup.
Don’t trade randomly. I had this bad habit of trading randomly. It killls profits like nothing. Only trade when your setup is formed. If your setup hasn’t been formed for even a month, then don’t trade. Leave it. Remember: TRADE WHAT YOU SEE, NOT WHAT YOU THINK.
Keep Journal (Most important)
You will never win if you don’t remember why you lost in the past.
Keep a proper journal, and write down the reason as “Why I took the trade”, “Did my setup form? or I traded randomly”. You can search on YouTube how to maintain a journal.
Keep a seperate journal for your setup.
You should keep a seperate journal for your setups. Let’s say you trade on “Inside candle setup”, then create a different excel sheet only for Inside candle setup. Then whenever you trade on that particular setup, record it in Excel sheet
In 6 months or 1 year you will see the accuracy of that setup and in what market conditions it works and in what market condition it doesn’t work. By this you will know in and out of that setup and you will know when to trade that particular setup. You will create a intuition. You will become master of that setup.
In the end remember Stock market was there before our birth and it will remain even after our death, so don’t hurry and try to play like test match rather than 20-20.
Wow, Thankyou so much @Ash2.
This is so helpful and so important, definitely will take note of this and apply in everyday trading,
Thankyou for explaining it so clearly and so detailed, Really appreciate it.
I have one question on point number 3. Have multiple good setup and would really want your help on this:
I am currently having different system that I follow for positional, swing trading and at times intraday
But as I have started practicing Options, it is something I struggle with in sideways market conditions, So would like to know how did you go about having different setup, did you take up a course to learn it or read some books or online or if you can share some insights would be really helpful
I learned it in a course. And it is called “Demand and Supply” strategy. By learning this you will get an edge in market. You will be able to trade in sideways market as well, if you struggle in sideways market.
Apart from that, if you combine it with some other strategy you can get very precise with your targets and SL’s.
That’s Great, I will definitely check that @Ash2, Once again Thankyou for answering and sharing your knowledge.
you cannot be swing trader and day trader both…
iF you read books of all successful traders either they are day trader or swing …
both trades have different setup ,
at first choose what is comfort for you
Focus on the one trading style that suits oneself (Once it is found of course). You are likely to be more successful following it rather than scattered thoughts and energy around different trading styles.
Understood Hitesh, Thankyou
I find swing trading more confortable and will stick to it