Trading Journey: Beginner to Learner

NSE:NIFTY   Nifty 50 Index
I think almost 95% of the traders fall in these four categories. More than 50% trades could not even step up to learning stage. The problem with most beginners is either their get rich quick approach or inability to adapt to the market environment which is highly volatile in nature.

Many traders enter the market with investment approach and then they become traders and blow up their accounts. Many others would enter the market as a trader but they become investors and end up losing all their capital due to bad investment.

A person first needs to understand himself, whether he has a trader's attitude or an investor's attitude. As an investor he has to look for good businesses at reasonable valuations and then keep the stock for years to build wealth for him. As a trader one just needs to look for momentum or swings to make quick small profits and thus generate income for him.

A traders job is much more sophisticated than an investor as he has to cope with the daily whipsaws, news etc. which drive the market crazy all the time. This leads to early entries/exits, hitting stop losses very often and capital erosion at a much faster pace.

In order to specialize one needs to put efforts, a lot of effort, to become a successful profitable trader. There would be many failures in this path which very few of us will be able to survive. But those who survive will reap the benefits. Learning is the key part. Learning and improving your trading. Learning from your failures or failures of others.

Both trading and investment needs patience. None of them is without their own advantages and disadvantages. But the means as well as ends would remain the same. One has to put enormous amount of effort to be successful in any of them.

If one wants to be in the top 5%, that is the expert/specialist, one needs to have capital, time, experience, patience and discipline.

If you are in trading, give this 'career' some time. Be patient and be happy.

JJ Singh