Thread by @asitbaran

1 - An old dear friend of me called me last weekend and wanted my advice for starting his career in trading. He wanted to know the tricks of the trade without even knowing what preparation need to be done. Lost his job, and now wants to be full time trader.

2 - Spoke to him at length and persuaded him not to get in till he understands what’s in there. Thought of sharing it with you all, if any of you are contemplating!!

Here is a write-up for wishing all the new traders who have got into the market thinking, its easy out there.

3 - I too felt the same when I had started out.

In my opinion a new era in the market has started, with all the new rules and we have to figure out how best to adapt to it. But that's the thing just because something has worked and was successful in the past not necessary it

4 - will be in the future. Hence as a species, traders face the same situation: we must adapt, keep improving or just become extinct. This is how evolving the game is. And for the new entrant he will be left dazed to know what to follow and what not to.

5 - The penalty for being unprepared and taking it easy could be really harsh. One wouldn't know what has gone so wrong so quickly. And as the seduction process begins, in quest for easy-quick-big money, not only the chances are huge of losing it big but also losing it completely

6 - SO BE AWARE OF THE RULES OF THE GAMES, BEFORE YOU PLAY IT.

The search for the elusive edge will never cease; complacency is not allowed in this business. So many traders who experienced success pre-Corona market have found it difficult to even survive in the current

7 - marketplace, and most of them tend to blame the markets. And this is the time thanks to the lockdown new novice traders have joined in.

This is not uncommon; we traders are sometimes quick to point to outside sources for their lack of continued success.

8 - To advise those who are considering equities or futures trading as a source of income, two truisms come to mind First:
A large percentage of traders lose money. Second: Losing traders all lose for the same reasons

9 - It’s a good idea to study the habits of “successful losers” to learn how to avoid joining them. Don't repeat what's been done. When you look at losing traders, they seem to have certain habits in common, among which is that they enter the trading. arena ill-equipped

10 - Understand the DNA OF YOUR TRADING PERSONA. And act accordingly

A - Adequate confidence:

Trading without confidence is a fool proof way to lose money. If you find a method that is a proven winner, test it yourself. Don’t simply listen to your best friend, your broker, or

11 - anyone else. Prove to yourself that your method works and that it feels comfortable — that it suits your personal trading style.

Paper-trade your method for a while (you get to decide what “a while” means). See what it feels like to go through its mechanics.

12 - Establish a sense within yourself. of “I can do this!”. With these disciplines securely in place, fear is less likely to pollute your trading perspective. FEAR, or “False Evidence Appearing Real,” has no place in the successful trader’s psyche. And only decent amount of hard

13 - work can prepare you better

B - Adequate funds:

Underfunded traders experience a huge disadvantage in the markets. How much should you start with? There’s no easy answer, but in my opinion it should be at least 6-8 lacs to give yourself a fair chance (IF U R VERY SERIOUS)

14 -

C - Adequate planning:

Your trading plan is your blueprint for success; its absence or incompleteness, is your blueprint for failure. Your plan has to answer all the HOWs:

How do I decide when to enter, and at what price? How do I decide on trade size? How do I protect

15 - myself against unforeseen moves against me? How do I protect my profits? How do I determine the risk/reward of the trade?

As well as all the what-ifs: What if I was mistaken? What if I was right? What if my profts get huge quickly? What if my broker platform doesn't work

16 - I could go on, but I hope you get the point. This plan is your roadmap; it will deliver you safely to your intended goal. Without it, you’ll be wandering around lost, dazed, and confused. And, eventually, BROKE

D - Adequate understanding:

New traders sometimes ignore the

17 - fact that there are opportunity costs related to starting, and maintaining, a career in trading. Many simply assume they will enter the ring, make a killing, and live happily ever after.

The reality? There’s a price to be paid in learning the ropes. Especially in the

18 - beginning there is a strong likelihood that you’ll mess up, that you’ll make mistakes and take unwarranted losses. This is the price tag attached to your learning curve, and it should be factored into your expectations

19 - The other aspect that is widely misunderstood even by seasoned pros is that having no positions is a position. Many feel they have to be in the thick of the markets at all times. Otherwise, they ask themselves, “What am I doing here?” The answer? You are waiting for a trade

20 - that fits all the parameters of your trading plan and looks and feels right. Yes, waiting is the other part of trading. The temptation to “have a position” is always there; just remember, staying out is also a position.

21 - Compounding all this, of course, is the false GLAMORIZATION of Day-trading that you read and hear about. If you believe those successful ones, don't see the PnLs and think it's EASILY doable, rather get motivated to see their journey, what they have done to reach the place

22 - Learn from their mistakes and hv their learnings. And then all you have to do to succeed is show up with your money and the Trading Blueprint. You and I know that to be a successful trader for the long term, you must show up with more.

Hope it's is useful.