No amount of back-test, studies or indicators can substitute training your mind with screen time
As a beginner, In live trading, you will make losses almost everyday
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How to get rich trading (without getting lucky)
Complete beginner’s guide to wealth of Rs 10 Cr in 10 years
Step 1: start trading live
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No amount of back-test, studies or indicators can substitute training your mind with screen time
As a beginner, In live trading, you will make losses almost everyday
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If you can’t follow these rules, this document is not for you
Start with trading capital of Rs 1 lakhs
Max loss per trade 0.25%, i.e. 250 Rs
Max loss for the day, 1%, i.e. Rs 1000
Max 6 trades in a day
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But just like any start up, trading is also about making it through initial gruelling constraints of life
You will also learn, how to turn these adverse rules to your advantage
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Think about it, you will be do all kinds of instruments, just that PNL will not be roller coaster ride or exciting like a casino
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Do any kind of trade, your mind takes you to, except blind tips from tv of TG
Trend-following, option selling or buying, all kinds.
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But above conditions of capital 1 lakhs, max loss per trade 250 Rs, can't emphasise enough
Its non-negotiable, IRON clad
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how market behaved, what was new that you learned, you have to write everyday for 1 hr.
Again cant emphasis enough how non-negotiable this is.
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You should not blindly trust anyone in your journey, but here I am asking you to take a leap of faith
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In one year, you will be ready with one
system/method/algo or discretionary method like price action or indicator, which will be steady,
will suit your temperament and your inner voice will ask you to focus on this one set up
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Everyone who tries 1000 trades with limited loss will discover one good system.
No seminar or software or anything paid needed.
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In your 1 year, 1000 trades, your accuracy will be around 25% and you will almost always be under drawdown
that’s expected from a beginner.
You will get very good psychological conditioning on drawdown
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You might have winning streak and you might be profitable as well,
but here we are talking about trading with-out extraordinary talent or luck
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Trading Capital:
As 10 yrs, 10 Cr is audacious goal, so you have to give everything you have got
It helps if you have another job. Much needed psychological comfort
If you don’t have another job, you have to have “multiple sources of income”
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Goal, Rs 10 lakhs of trading capital you have to earn in one year.
Looks difficult, but if you plan and execute, from youtube content to affiliate marketing, so many ways to side business
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But you cant trade with borrowed capital,
so you have to earn your initial kitty
Again, cant emphasise enough,
this entire plan cant work on borrowed capital. Entire psychology changes and plan doesn’t work
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After one year, you have 1 solid method /system /algo or discretionary method and Rs 10 lakhs of your hard earned money
Now, new rules
You have to stick to this one set up/algo method for next 4 years which you have discovered
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Now the discipline is to stick to your initial chosen set up for next 4 yrs without trying anything new or exciting
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Reason,
mastering one set up, ironing out all exceptional cases, making super money on easy cases takes lot of experience on single set up.
Focus at this stage is paramount
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1-2 yrs are so easy that one makes
unbelievable money, market just favours that set up.
e.g. 2020, it was set up for trend following.
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in next 4 years, one year, you will make unbelievable money
and that will be the story in your moneycontrol interview
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You have to increase risk to this level, unless you bet big, u don’t win big
In this phase, on simple set ups, 100% returns are very common
50-60% returns are average
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As you are on winning streak, you cant take out money from your trading account
That SUV you wanted to buy, has to wait. Higher the capital, better for psychology and compounding
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That’s why I emphasised on many sources of income earlier
Assuming an average returns of 70-80% per years for 4 years, you will grow account from 10 lakhs to 1 Cr in 4 years.
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Now you have traded for 5 years total and have a trading capital of 1 Cr.
Actually, path is easier from here.
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As you are handling this kind of money for the first time, any double digit DD will destabilize you
So non correlated strategies will help
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Only thing you have to consciously decide here is, press the risk accelerator to 2%, don’t be intimidated by big PNL swings and no less than 2% on a trade
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That 50% per annum compounded will take you from 1 Cr to 10 Cr
Now you are free to take out money from your trading account.
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