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What Is The First Step To Become A Pro-Trader?

What Is The First Step To Become A Pro-Trader?

To become a professional trader, you must study both the fundamentals and advanced aspects of trading. Once you’ve mastered these, you can learn and practise adopting proven tactics. It’s also critical to be realistic about this field. There is no perfect trading strategy that constantly yields positive outcomes. You can spend most of your time focused on information that will make you a more effective and lucrative trader if you practise learning to distinguish real information from that which is wrong or misleading.

Trading Basics

A good mastery of the fundamentals serves as the foundation for your whole career. I believe that visiting ZERODHA VARSITY is the best approach to learn basic skills for free. All topics in VARSITY are described in a straightforward and easy-to-understand manner. The fundamentals cover all you need to know about trading, such as:

  • What markets to trade
  • How prices move (bid and ask prices)
  • Order types and how to place them
  • Risk management
  • Trading hours

Learning the Advanced stuff

Traders decide whether to trade stocks, futures, options, or forex after knowing the fundamentals. They can then go deeper into the trading essentials for that market once they’ve made their decision.

A beginner option trader, for example, should learn about options Greeks, which are used to calculate an option’s price. Futures traders should understand ticks, points, and the numerous specifications for each futures contract they intend to trade. Stock traders must understand how to short sell as well as the distinctions between pre-market and regular trading hours. Pip values and daily rollover rates are important concepts for forex traders to understand.

Trading Systems and Techniques

The next stage is to discover profitable trading tactics for whatever market you wish to trade. Because such tactics are subjective, the source of information is critical. Free resources may offer generic tactics that formerly worked but no longer do. Finding viable techniques necessitates far more investigation and verification than studying the fundamentals of trading. Review charts and search for examples of the technique at work when learning strategies. Continue to invest time in the strategy if it appears to be profitable in your own modest real-world test. If not, disregard the approach.

When I first began my career as a trader, I made every beginner’s error imaginable. So don’t let failures demotivate you in the beginning. They can’t be avoided. It is preferable to learn from your mistakes and improve. Because there was no one to assist me and prevent me from learning the wrong things, it took me three years to learn how to be a consistent trader. I had to unlearn a lot of useless information in order to cleanse my head and focus on what genuinely works in the market.

The best way to learn a trading procedure is to find a professional trader who will teach and advise you in a LIVE MARKET. Personal mentoring, which is the most direct technique to learning how to trade, may also be provided.

A discretionary trading approach can also be learned without any formal training. Self-learning is excellent, but it may take longer to develop a profitable system than it would to learn an already profitable system.

Many expert traders construct their own trading methods by examining charts on a regular basis, noting particular patterns or tendencies, and then devising a strategy to take advantage of those tendencies. It could take months or even years of experimentation before the trader discovers a reliable approach that consistently generates money.

Gain Some Trading Experience

Although perfect practise does not make perfect, it does produce ideal progress in trading. You’ll never have flawless outcomes because not all deals succeed, and even skilled traders can lose money at some point in their trading careers. And that’s fine.

You don’t have to win every trade to make a living from trading. What is required, though, is a near-perfect implementation of your approach. You have power over this, but not over the outcome. Positive outcomes are more likely if you do the right thing. Following the methods you’ve learnt and chosen to utilise is doing the correct thing.

Points to take care of in initial days of trading:
  • Don’t neglect risk in initial day. Learn first how not to lose money.
  • Don’t trade with big quantities in initial days
  • Focus on one strategy and back test thoroughly before discarding it.
  • Don’t apply random strategy on random stocks, have a proper stock selection mechanism.
  • Only take planned trades, avoid Live market trades in initial days.

Improve and excel

Although perfect practise does not make perfect, it does produce ideal progress in trading. You’ll never have flawless outcomes because not all deals succeed, and even skilled traders can lose money at some point in their trading careers. And that’s fine.

You don’t have to win every trade to make a living from trading. What is required, though, is a near-perfect implementation of your approach. You have power over this, but not over the outcome. Positive outcomes are more likely if you do the right thing. Following the methods you’ve learnt and chosen to utilise is doing the correct thing.

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