After spending almost a decade in financial markets and interviewing several super-successful traders, our chief technologist Mr. Prateek Jain has come up with a 30 days formula to become a trader of your dreams. These are non-complicated, do-it-yourself stuff that you can start executing right away. Please read on to know more.
The 30 days formula has been divided into 3 buckets. There are things that you should repeat every day, every week, and every month respectively.
Things to do every Day (30 Days):
- Pick 5 stocks that closed atleast 2% above/below the previous day. Pull out their respective charts and analyze what could have caused this move.
- Log your trades in a journal every day. Note the reasons for both profitable and loss-making trades
- Learn one chart pattern or technical indicator. Understand the science behind it!
- Wake up early and sleep early. Meditate and exercise to keep your mind and body fit.
Things to do every Week (4 Weeks):
- Build a trading system. Use tools like Amibroker to backtest the strategy, drop it if performance is not up to the mark.
- Learn various aspects of risk management and position sizing.
- Document your learning from the week so that it is referenceable in the future.
Things to do every Month (1 Month):
- Read a trading book. Stick to bestselling books from Amazon. Suggestions here.
- Create profit/loss metrics for the whole month.
The 30 Days formula to become a trader of your dreams is simple but if followed consistently it can make you a super successful trader. Don’t get impatient to become rich overnight, learning is a slow process.
There is a high possibility that you may have to repeat these steps for more than 1 month, but that is expected. Practically, it is impossible to gain the required expertise in just 30 days.
In case you want to accelerate your learning, look out for structured courses from the experts. But whatever you do, your discipline will determine the probability of success in the long term.
Feel free to put your thoughts in the comments section if you have any specific queries regarding these steps.