The Tale of Two Hunters
There were two hunters in a dense jungle. One was new, who came to the jungle for the first time. And the old one, who had been in the jungle for a long time, had become very experienced. In a way, he had become the king of the jungle. The new hunter was scared of every sound. Sometimes he would be confused by the sound of a bird in flight. Sometimes he would run away when he saw a shadow. Every arrow of his would go in the air without hunting.
But the second hunter was very calm and fast. He was quiet and shot very few arrows. And whatever he shot, he hit on a precise target. And he would hunt. He understood every pattern of the jungle. From where the wind will change direction. What is hidden in which grass? He used to make an exact guess. He was very well aware of the darkness of that jungle.
The Reality of the Stock Market
Now you may be wondering: why am I telling this story? This story is also related to our share market. There are two types of retailers here. One experienced, one new. New in the sense that the trader is either completely new. Or even after spending 1-2 years, he is still confused about the market. And is making a loss on the loss.
When a new trader enters the market, they know nothing. And after entering, he has suffered a lot of loss. Then he finds out. There is a lot to learn in the market. And when he goes to learn. Then he sees many things in the market. In which he gets confused. Sometimes he learns projection. Sometimes he learns support resistance. Sometimes he learns candlestick. Sometimes he learns SMC. ICT. He is confused about many things. And keeps trading in it. And one day, he quits the market.
The 1-Year Roadmap to Success
Even if he has given 2 years. Even if he has given 1 year. So how, within 1 year? He changes himself through such a road map. In such a journey. So that in 1 year, he can become an extraordinary trader. Suppose you think that you can become a remarkable trader only through charts and indicators. Then I will break this illusion of yours right now.
Step 1: The Beginner Mindset
You have given 1 year. You have given 1.5 years. It doesn’t matter. Or you are a beginner. You accept that you are a beginner. After that, you will be able to learn. Otherwise, you will become knowledgeable. And you will start ignoring people. First, accept that you are a beginner. Otherwise, some people come to the market after learning chart patterns and indicators. They feel that they have become a pro trader. But the reality is. Until you don’t side with your ego, you can’t learn anything. The first step is to think of yourself as a beginner.
Step 2: Building a Long-Term Vision
Build a long-term mindset. Create a roadmap for at least 1 year. 1 year means 12 months. 52 weeks. 250 trading sessions. Now you think. If one day you start becoming 1% better. Then, how much will you be earning in a year? You will be 37x better. In today’s context, this is a significant amount. This compounding is not of money. It is of your mindset. Start working on this.
Step 3: Discipline Over Intelligence
Discipline vs Intelligence. If your skill is 20% important. 80% psychology is essential. Trading is not a game of intelligence. Trading is a game of mindset. Trading is a game of psychology. Trading is a like a game of risk and reward. Trading is a game of money management. Skill is 20%. You can learn 20% anywhere.
If it were so easy. Then why did 99% traders fail today? If you are an academic. You will then receive a book. If you read “Then,” 40% and 50% numbers come. But there are books here. But why are people failing? Failing because of those books. That knowledge accounts for only 20% of psychology’s role. No one can tell. You have to develop it yourself now, as soon as you become disciplined. Now, what happens in trading? Overtrading is reduced. Revenge trading stops. All these habits make you exceptional.
Step 4: Mastering Price Action
You must master price action. The basis of trading in the stock market is price action. First, understand the language of the stock market. Like, what is a candlestick? What is a chart pattern? What is a supply-demand zone? And what do most people do? They start running behind indicators. Indicators are tools. Price will only help you in the end. Indicators are not going to help.
Step 5: Understanding Market Phases
You have to understand the market’s phases. The market moves in 4 phases.
- Accumulation.
- Expansion.
- Distribution.
- Reversion.
Suppose you have understood these 4 phases. Then you will stop wandering here and there. You will stop making the wrong move. You will start walking in the right direction.
Step 6: Advanced Concepts (SMC or ICT)
SMC or ICT. Learn one of the two. Because if you want to become a pro trader, or want to become an extraordinary trader. Then you will need SMC because it makes you stand out from a typical trader. People wander in price action and candlesticks as soon as you learn SMC. You go from here to here. It gives a direction.
Step 7: Psychological Mastery
Psychology. Trade what you see. Not what you feel. New traders often predict the market. What do they expect? They don’t predict price action, SMC, or ICT. They predict greed and fear. But a pro trader or a winning trader, where does he react? He reacts in the market language. What is the market language saying? Where is the market going? What are the operators doing in the market? He looks at all these things.
Step 8: The Power of Journaling
Journaling and self-audit. Very few people write their trade. Maintaining a trading journal is a kind of critical step in trading. Write after every trade. Where did you take the entry? Where did you take the exit? Why did you do it? Why did you take it? What was the reason? All these things should be noted. Because in the evening or the next day, or after a few days, you go back and read to understand where I made a mistake. What will happen with that? You will learn from that mistake.
Write after every trade. What was my emotional state at that time? Did you follow all the rules? Because when you have written all this. When you come back in a day or two, what will happen? You will get clarity. Where did I make a mistake? You will learn from that mistake. Next time, you will avoid making that mistake. Only then will you become 1% better. Otherwise, the mistake you made today will happen again tomorrow. Then you will not become better. Where you were yesterday, it is still there. It is said that journaling is like a mirror. Where can you see your flaws?
Step 9: Overcoming FOMO
Overcome FOMO and Impulse. It is very easy to take a trade from FOMO. Because the market is running, you also think we should earn some money from this. It is very easy. Because there is a breakout or breakdown, and the market is moving very fast. FOMO is common. However, you have to change this. You have to be patient. If you don’t get the trade, your capital remains. This is the game.
Step 10: Creating a Trading Plan
Trading is like shooting an arrow in the dark without a strategy. That’s why you have to make a personalized strategy. Create your trading plan. The market will open tomorrow. Before tomorrow, you should have a trading plan ready for today or for tomorrow morning. How much trade do you have to take? Where do you have to take the entry? Exit. Entry logic. Exit logic. Stop loss. Target. Risk per trade. Market conditions for your setup. You should have all these things planned.
And you should be clear about your mastery. Do you trade on SMC? Or do you trade on a breakout? Or do you trade in a range-bound market? Or do you read the price action? Do you trade on reversals? What is your mastery? This should be clear. If you jump everywhere, then you will get trapped. Your risk-reward should be fixed. Whether it is 1 is to 2 or 1 is to 3. There will be a loss. But if I want profit, it will come on my target; then only I will book. This should be fixed.
Step 11: The Importance of Back Testing
Backrest. See at least 100 charts daily. In the evening. Now your setup. Test it at least 100 times. Backrest on the chart. That’s my setup. Where is the flaw in it? Where is its exit? How did it happen? When will we do the entry? So, what will happen? Your setup will be very errorless. If you do an entry in it, then the probability of error will be very low.
Step 12: Position Sizing for Learners
Trade with a small size—at least 3 to 6 months. You should trade in a minimal quantity because you are learning now. You don’t need much money. What do you need? 1 lakh or 2 lakhs. Because you are learning, there will be both losses and profits. If you start with less capital, your habit will be excellent because you will be able to manage the risk-reward very well. Once the amount is large, the risk-reward ratio becomes unfavourable. That’s why it should start with a minimal amount.
Step 13: Morning Routine for Mental Strength
Morning routine for mental strength. Wake up in the morning. Do meditation for 15 minutes. Read the market general for at least 15 minutes. No phone till 9 o’clock. This routine will make you calm and focused. You will be relaxed and target-oriented. It is not very easy to become a pro trader. This is very tough. This is tougher than becoming an IAS. If you learn this, then you will not have a shortage of money. Where there is no shortage of money, there will be a lot of hard work. Think about it. Today, you must change it entirely and become a new person. Then a person becomes a trader. Otherwise, you can do this too. Additionally, enjoy doing fun things and become a trader. This is not possible.
Step 14: Physical Health and Trading
Physical health. Now, physical health will be fine. Only then will your trading health be in good shape. When you have a fit body, you become more energetic. Mind is sharp. Workout, meditation, and all of this should be done daily. What is this? All these control dopamine. This is a workout and meditation. And dopamine is our real threat in trading. You must be watching Dopamine hits. Then you start working upside down.
Step 15: Learning from the Greats
Learn from great traders. There is no shame in learning from good people. Watch videos of good people. Watch their content. Read books. Like Trading in the Zone. The Daily Trading Coach. Trading Senses app. Stock Operator. There are many good YouTubers. Go and watch them. Listen and learn.
Step 16: System Adherence
Now you have knowledge, Mindset, and routine, all three things. Now comes the real test and execution. Follow your system. No exceptions. Now that you have established a rule, you must follow it. And with discipline. Understand this: The people who break their rules also get random results. When you make a rule, follow it consistently.
Step 17: Quality Over Quantity
Trade less, earn more. Overtrading is not a success. You do less trading, but earn more. It matters. You took one trade in a day, but the risk-reward is 1:20. What to do? You took one trade. You didn’t panic. Your mental health is fine. What else do you need? An extraordinary trader takes the best trade. Not that whatever trade comes, enter it. Now, take an example: 5 trades per week. So, think about how many trades you took in a year. 240. If your system has a 60%-win rate and a 1:2 risk-to-reward ratio, you are a high-performing trader.
Step 18: End of Day Review
End of the day review. At the end of every day, you have to do 3 things: what you did well, what you could have avoided. And what did we learn today? These 3 simple questions will teach you extraordinary discipline.
Conclusion
If you have watched this video so far, you are in the top 1% of people taking their trading careers seriously. Just one last step. Comment “One year challenge accepted” And write your name. To ensure you feel accountable, your trading mission has begun. Now don’t stop. Every day, every candle, every discipline is taking you to an extraordinary trader.
