HOW CAN I IMPROVE MY TRADING?

Based on my 12+yrs of experience in trading, I can say one thing there comes a stage in a trader's life where he comes across with this question " How can I improve my trading?" So, let's first understand why a trader comes at this stage. Certain points I could highlight here like - 1. Facing losses in trading regularly. 2. Taking random trades, not having a proper trading system. 3. Not maintaining any trade records/journals. 4. No/Poor risk management. 5. Emotions come into my trades. 6. Overtrading. 7. Considering one can make easy money by gambling. Not considering trading as a serious profession. 8. Half knowledge. 9. Lack of experience/ not seen many market cycles, and so on. I believe the majority of the people reading this blog have been experiencing this in their trading journey. So, let me share my views on this subject. • Understanding the basics. Check yourself where you stand, at what level you are. Are you thorough with the basics? In trading, the very first thing a person should learn is about Price Action. How to read the charts? Understanding the structure of the market. What is the trend of the market? In other words, technical analysis is the backbone for any trader. Spend some time reading the charts. Try to understand the supply-demand areas. Try to find out the answers to why it is taking support / facing resistance at this point. What is momentum? How does a trend develop? In fact, in our mentorship program, we teach our students the very basics of technical analysis so that in the early stage of his trading he gets all the basic knowledge required that will enhance his understanding of the markets. • Develop a trading system. Firstly, try to figure out which trading style suits you? Whether it is Scalping/ Intraday trading/ Swing trading. Then develop a simple strategy. You can try different combinations here like price action with indicators. The simplest one is trying price action with the supply-demand area. Here always go with the broader market trend. If the market is bullish and your trading system is giving you a bullish setup, the probability of the trade going in your direction increases. • Back test and improve. See, markets keep changing their structure. Sometimes you will see markets can be in a strong uptrend/downtrend. Whereas sometimes markets will be consolidating/sideways. Sometimes it can be extremely volatile, whereas sometimes it will be a dull market. Now I need to check whether my trading system is working in different market cycles? What kind of accuracy am I achieving? The best way to find is to back test your system in the last 5yrs' historical data. By doing so, you will come to know whether your strategy is showing good results or not. Fine-tune your strategy to achieve the best results. Here, in Trading Cafe India, we have been using those strategies that have been back tested in more than 10yrs' historical data. We teach Intraday trading momentum setups, Swing trading, and Options trading strategies. • Start with small capital. Initially, our goal should be to get consistency in the trading. When I started trading, I used to make only 100-200 per trade. One might wonder what have I achieved in making such small profits. Try to understand, when I had started, I was not having that experience/confidence in executing the trades. I was just developing and implementing my trading strategy in the live market. Even if I made some mistakes in my early stages, I can digest them since I was trading with a small capital, so my losses were very small. And that is one of the reasons I was able to survive in the markets where the mass people exit by this stage by losing all their trading capital. Priority should be to get the best trades, to get consistency in my trading. Once I have achieved this, I will be confident enough to take trades on a larger fund. • Maintain a Trade Book. Always note down all the trades you have taken, maintain a trading journal. Mention the reason behind taking the trades irrespective of whether it went in your direction or not. By this, you'll come to know whether you are following your trading system or taking any random trades. Utilize your weekend, by going through your trading journal. Believe me, it will help you to not repeat any mistakes again and to stick to your trading setup. By taking these steps, you will get success in Trading. In our mentorship program, we teach everything from the basics to the advanced level so that our students understand the markets in a better way, with proper guidance and support. So, when are you planning to join our trading community at TCI? Follow us on Instagram to get more updates.

Based on my 12+yrs of experience in trading, I can say one thing there comes a stage in a trader’s life where he comes across this question ” How can I improve my trading?”

So, let’s first understand why a trader comes at this stage. Certain points I could highlight here like –

  1. Facing losses in trading regularly.
  2. Taking random trades, not having a proper trading system.
  3. Not maintaining any trade records/journals.
  4. No/Poor risk management. 
  5. Emotions come into my trades. 
  6. Overtrading.
  7. Considering one can make easy money by gambling. Not consider trading as a serious profession.
  8. Half knowledge.
  9. Lack of experience/ not seen many market cycles, and so on. 

I believe the majority of the people reading this blog have been experiencing this in their trading journey. 

So, let me share my views on this subject.

  • Understanding the basics.

Check yourself where you stand, at what level you are. Are you thorough with the basics?

In trading, the very first thing a person should learn is about Price Action. How to read the charts? Understanding the structure of the market.

What is the trend of the market?

In other words, technical analysis is the backbone for any trader.

Spend some time reading the charts. Try to understand the supply-demand areas. 

Try to find out the answers to why it is taking support / facing resistance at this point.

What is momentum? How does a trend develop?

In fact, in our mentorship program, we teach our students the very basics of technical analysis so that in the early stage of their trading he gets all the basic knowledge required that will enhance their understanding of the markets.

  • Develop a trading system.

Firstly, try to figure out which trading style suits you? Whether it is Scalping/ Intraday trading/ Swing trading.

Then develop a simple strategy. You can try different combinations here like price action with indicators. The simplest one is trying price action with the supply-demand area. 

Here always go with the broader market trend. If the market is bullish and your trading system is giving you a bullish setup, the probability of the trade going in your direction increases. 

  • Backtest and improve.

See, markets keep changing their structure. Sometimes you will see markets can be in a strong uptrend/downtrend. Whereas sometimes markets will be consolidating/sideways. Sometimes it can be extremely volatile, whereas sometimes it will be a dull market.

Now I need to check whether my trading system is working in different market cycles? What kind of accuracy am I achieving?

The best way to find is to back-test your system in the last 5yrs’ historical data. By doing so, you will come to know whether your strategy is showing good results or not.

Fine-tune your strategy to achieve the best results.

Here, in Trading Cafe India, we have been using those strategies that have been back-tested in more than 10yrs’ historical data. We teach Intraday trading momentum setups, Swing trading, and Options trading strategies.

  • Start with small capital.

Initially, our goal should be to get consistency in the trading. When I started trading, I used to make only 100-200 per trade. One might wonder what have I achieved in making such small profits.

Try to understand, that when I had started, I was not having that experience/confidence in executing the trades. I was just developing and implementing my trading strategy in the live market.

Even if I made some mistakes in my early stages, I can digest them since I was trading with a small capital, so my losses were very small. And that is one of the reasons I was able to survive in the markets where the mass people exit by this stage by losing all their trading capital.

Priority should be to get the best trades, to get consistency in my trading. Once I have achieved this, I will be confident enough to take trades on a larger fund.

  • Maintain a Trade Book.

Always note down all the trades you have taken, and maintain a trading journal. Mention the reason behind taking the trades irrespective of whether it went in your direction or not. 

By this, you’ll come to know whether you are following your trading system or taking any random trades.

Utilize your weekend, by going through your trading journal. Believe me, it will help you to not repeat any mistakes again and to stick to your trading setup.

By taking these steps, you will get success in Trading.

In our mentorship program, we teach everything from the basics to the advanced level so that our students understand the markets in a better way, with proper guidance and support.

In the end, one should not regret that they didn’t try learning trading in the right direction.