To become a professional trader, you must learn trading basics and advanced stuff. Once these are mastered, you can learn proven strategies and gain experience in implementing them. Also, it’s important to be realistic about this profession. There is no perfect method of trading that consistently produces only winning results. However, if you practice learning to differentiate true information from that which is incorrect or misleading, you can spend most of your time focusing on information that will make you a more efficient and profitable trader.
A solid understanding of the basics provides the foundation that will support your entire career. I think the best way to learn basic in free is to visit ZERODHA VARSITY. In VARSITY all concepts are explained in simple manner which will be east to understand. The basics include all of the factual information about trading, such as:
What markets to trade
How prices move (bid and ask prices)
Order types and how to place them
Learning the Advanced stuff
When learning the basics, traders determine if they want to trade stocks, futures, options or Forex trading. Upon making this choice, they can then dive deeper into the trading basics specific to that market.
For example, a new options trader needs to learn about options Greeks, which help determine the price of an option. Those interested in futures trading need to learn about ticks, points, and the various specifications for each futures contract they may want to trade. Stock traders need to learn how to short sell and the differences between pre-market trading and trading during normal hours. Forex traders need to learn about pip values and daily rollover rates.
Trading Systems and Techniques
The next step is to learn strategies that will produce a profit in whatever market you want to trade. Such strategies are subjective, which means the source of the information matters. Free resources may provide generic strategies that worked at one time, but no longer work. Finding viable strategies requires much more research and verification than learning trading basics. When learning strategies, review charts and look for examples of the strategy at work. If it seems it could be profitable on your own small real-world test, then continue investing some time in the method. If not, leave the method alone.
Initially, when I started my journey as a trader, i did every possible mistake a rookie makes. So don,t get demotivated about failures in initial days. They are inevitable. Better to learn from the mistakes and excel. It took me 3 years to learn how to be consistent trader as there was no one to guide me and stop me from learning wrong things. I had to unlearn many junk thing which I learnt in the way to clear my mind and focus on things that actually works in market.
The best method of learning a trading process is to find a professional trader that will teach you and guide you in LIVE MARKET. They may also provide personal mentoring, which is the most direct approach to learning how to trade.
It is also possible to learn a discretionary trading technique without any form of instruction. Self-learning is fine, but it may take longer to come up with a profitable system when compared to learning a system that is already profitable.
Many professional traders develop their own trading methods by continually studying charts, noticing certain patterns or tendencies, and then developing a system that exploits those tendencies. This may take even years of testing before the trader finds a viable method that produces profits consistently.
Gain Some Trading Experience
Practice doesn’t make perfect, but in trading at least, perfect practice makes improvements. You’ll never achieve perfect results because not all trades wins, even by professional traders can face series of losses in some point in their trading career. And that is okay.
You don’t need to win every trade to produce a good living out of trading. What is required, though, is implementing your method nearly perfectly. This is within your control, while results are not. If you do the right thing, favorable results are more likely. Doing the right thing is following the methods you have learned and opted to use.
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
As a trader progresses and gains more experience, they will likely find ways to improve their strategies and slowly they will start getting desired results. A successful trader may also find that a strategy that once worked is no longer performing well. In this way, a trader is always learning from their experiences and trying to find better ways of performing their job. They are simply adapting to changes in the market that may make current strategies obsolete but provides an opportunity for a new strategy to be deployed. Its a never ending learning journey.
I hope got some idea on where to start if you a newbie.
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