Guide on How To Become A Professional Trader in India

Step 1: Treat Trading as a Business, Not a Gamble

The first step toward success in day trading is understanding that it is not a get-rich-quick scheme. In fact, statistics show that 90% of day traders lose money, and only 10% succeed.

This is primarily because many traders enter the market with a gambling mindset, hoping for quick profits without a clear plan or strategy.

To succeed, you must treat trading as a business. In any business, revenue must exceed costs. Similarly, in day trading, your profits (revenue) should outweigh your losses (costs).

The good news is that unlike traditional businesses, you don’t have to worry about rent, raw materials, or employee salaries. Your primary costs are limited to your laptop and internet connection. When you incur a loss, treat it as a business expense and move on.

Having realistic expectations is key. Those who view trading as a profession and not as a hobby are more likely to succeed in the long term.

Step 2: Develop a Robust Trading Strategy

A successful professional trader relies heavily on a well-developed, back-tested trading strategy. A strategy doesn’t need to be complex, and sometimes simple methods like support and resistance can be effective.

When researching day trading strategies, you’ll find countless options—choose one, back-test it using at least 6 to 12 months of data, and stick to it.

For example, one of my favourite strategies revolves around pivot points & CPR and price action. It’s simple yet effective when executed correctly.

As a professional day trader, you should find a strategy that works for you and master it over time.

However, it’s important to note that a strategy alone doesn’t guarantee success. Risk management and trading psychology are just as important. Without proper risk management, even the best strategy can fail.

Step 3: Commit to Lifelong Learning and Market Research

Becoming a full-time professional trader requires continuous education and research.

Don’t rush into trading without first educating yourself. You need to approach your training the same way a student would prepare for a final exam—through extensive study, practice, and research.

Make learning a daily habit. Regularly back-test your strategies, read books on trading, watch videos, and engage in online trading communities.

Follow experienced traders on social platforms like Twitter, Facebook, and LinkedIn, and read their blogs to gain new insights.

The more you immerse yourself in the trading world, the better equipped you’ll be to navigate its challenges and seize opportunities.

Step 4: Implement Strict Risk Management

Risk management is the cornerstone of a successful day trading career.

If there’s one “holy grail” in trading, it’s learning how to protect your capital.

You’ll encounter both wins and losses in day trading. To survive in the long run, you need to minimize the damage when things don’t go as planned.

This is where risk management comes in. The first rule is to always set a stop loss (SL) before entering a trade. For example, never enter a trade without setting a SL, which typically represents 1% of total capital.

It’s important to set your stop loss at a reasonable level based on your strategy, not just at a level you “hope” the price won’t reach.

Never rely on a mental stop loss—always have it set in your system, so when the price hits that level, you automatically exit the trade.

The key to survival in day trading is preserving your capital. To do so, you must understand risk management principles and apply them consistently across all your trades.

Step 5: Master Trading Psychology

Trading psychology is often the most overlooked aspect of successful day trading, yet it’s perhaps the most important. Emotional control is what separates successful traders from unsuccessful ones.

Without proper psychological discipline, you’ll find it difficult to stick to your strategy and risk management rules.

The most common psychological pitfalls include overtrading, revenge trading, and acting impulsively out of fear of missing out (FOMO).

It’s essential to develop patience and avoid the urge to trade when no clear opportunities arise. Often, waiting for the right setup is the best decision you can make, even if it means skipping a trade for an entire day.

When you trade, focus on quality over quantity. It’s better to make fewer, high-quality trades than to overtrade and risk unnecessary losses.

Reading books on trading psychology, such as “Trading in the Zone” by Mark Douglas, can help you improve your mental discipline and sharpen your approach to trading.

Conclusion: Can You Succeed as a Trader?

Day trading is an exciting and potentially lucrative career, but it’s not for everyone, so success depends on one’s trading skills discipline to follow risk management and trading psychology.

Success in day trading requires a solid strategy, disciplined risk management, continuous learning, and emotional control.

If you want to learn how to be a professional Trader and you’re thinking about making day trading a full-time profession, be sure to spend adequate time preparing, studying, and testing your strategies.

You don’t need a financial background to enter in to trading. In fact, I come from a biology background and worked in sales before transitioning to full-time trading. What matters most is your passion for trading and your willingness to put in the hard work required.

If want to learn how to be a Trader and want to become a best trader, than these five steps can set you on the right path.

But remember, day trading isn’t a shortcut to riches. Treat it like a business, and you can increase your chances of making it in this competitive field.

If you’re still determined to become a professional day trader, follow these five essential steps to be a trader and put in the necessary time and effort.

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