10 Rules to be followed if you want to be a Successful Trader⚡️🧵
1.TRADING PLAN
A trading plan can be as simple as deciding to buy above these levels and sell below these levels. Usually trading plan also called as homework, has to be done one day prior to your trading day. For FNO, it might be a daily task. For cash players, it can be weekly.2.TREAT IT AS A BUSINESS
Trading is one of the most flexible businesses out there. It’s you who decide to run the shop or close it for a day. Always treat it like a business. Calculate your loss, sunk cost, depreciation, bad debts, etc too. Yes, trading had these terms too.3.BACKUP
Now here backup should be in 2 terms. One should be that your trading income shouldn’t be a decisive income. Always rely on other sources, too. The other back-up which is least talked about is technology back-up. Having an additional back-up like an additional Internet connection or additional system like an extra phone or laptop is necessary too. Technology is meant to have hiccups and that shouldn’t act as a source of hindrance to your business.4.TRADING CAPITAL
The no. 1 rule of trading is it shouldn’t be done with borrowed money/capital. Usually such hindrances create performance pressure and ultimately wiping out your capital as certain extent. Unless and until you are not comfortable, you won’t be profitable. Period.5.STUDY TREND
The golden rule of trading is to be with the trend. You might get stopped out 8/10 times but those 2 times if you follow religiously can give you enough money to come out net net green by YTD. Not staying with a trend is like going uphill river side. Ain’t a good idea.6.RISK CALCULATION
Risk first reward later. The mantra of trading. Always remember you should know and calculate the amount of money you are about to risk. Your emotions will definately play as we are humans lol. But those emotions should not affect your trading decision. Read our Article on [ 5 Chrome Extensions for Zerodha customers ]. It has a position sizing tool for easy calculations.7.TRADING SYSTEM
Here trading system doesn’t mean how many screens you have 😂 Trading system can be as simple as sell below VWAP and buy above VWAP with some additional tweaks. Follow these 2 steps religiously and see the discipline building in. Don’t hop onto 10 systems in a week.8.STOPLOSS
BHAI ISKO CAPS MAI PADHLO. ALWAYS USE STOPLOSS. STOPLOSS NAI LAGAOGE TOH MARKET TUMHAARI LAGA DEGA. I HOPE THIS STATEMENT IS ENOUGH TO MAKE YOU UNDERSTAND THE IMPORTANCE OF STOPLOSS9.DRAW A LINE
As a discretionary Trader, just like we are, you should always know when to draw the line. It by any means does not mean that you got to stop trading. Remember one thing. Never lose touch with the market. Never ever. Trade with 1 lot or go with 1/5th of your usual qty.10.PERSPECTIVE
Trust the process. You as a trader will be defined during the drawdown period. Trust your system. Trust the process. Focus on losing small and winning big. Focus on the big game. Don’t try to outrun the market. Focus on surviving for the next 2 decade. PERIOD.These are the 10 rules of a successful trader. If you start following this you will see the change happening yourself! If you like this post press the “Heart” button and share it along with your Trader friends. Read our other posts like [ Top 5 Mutual Funds of India ]
