Trading Roadmap for Beginners - Trade with Purab

Summary

This video provides a step-by-step roadmap for becoming a successful full-time trader. The process involves securing a stable income through jobs like freelancing, then investing a percentage of earnings into trading while managing risks. A backtested trading strategy, live market testing, and seeking mentorship are essential to refine skills. Tracking progress with journals, correcting mistakes, and slowly scaling investments is key. The video emphasizes the importance of patience, hard work, and continuous learning to avoid failure in the competitive world of trading.

Takeaways

• 😀 Get a job to generate income before starting your trading journey. It could be any job like freelancing, video editing, or social media management.
• 😀 Be prepared for losses in the early stages of trading, especially in the first 90 days. Start with a small amount and be mentally ready for setbacks.
• 😀 Develop a backtested strategy. Test it on historical data to see how it would have performed in the past before applying it in live markets.
• 😀 Test your strategy in live markets using paper trading or demo accounts. Even if it's not the stock market, practice with other trading platforms to improve your skills.
• 😀 Find a mentor who has experience in trading. A mentor can guide you, point out your mistakes, and help you improve your trading strategy.
• 😀 Avoid buying courses. Invest your money directly in live trading instead, as real-world experience is a much better teacher than theoretical courses.
• 😀 Invest only 20% of your monthly income in trading during the first 6 months. Ensure you have a stable income for daily expenses and save for trading capital.
• 😀 Discuss your trading plans with your parents. Gaining their support or at least their awareness can reduce stress and help you stay grounded.
• 😀 Keep a trading journal. Track your wins, losses, and mistakes to understand patterns and improve your trading strategies over time.
• 😀 After 6 months, review your trading journal and make necessary adjustments. Spend a month analyzing and correcting mistakes before increasing your investment to 50% of your income.
• 😀 Take fewer, high-quality trades rather than multiple low-quality ones. Prioritize careful analysis and ensure you are confident before entering a trade.

Q & A

What is the first step to becoming a full-time trader according to the script?

The first step is to get a job that generates income. This job could be anything that allows you to earn money, such as freelancing, video editing, or working as a social media manager.

Why is it important to get a job before starting trading?

Getting a job ensures a steady income, which is necessary for supporting your trading journey. It helps you avoid financial dependency on others, especially if trading doesn't yield immediate profits.

What does backtesting mean in trading, and why is it important?

Backtesting involves applying your trading strategy to historical market data to see how it would have performed. It’s crucial because it helps assess whether your strategy is effective before using it in live markets.

What is the role of paper trading in becoming a successful trader?

Paper trading allows you to test your strategy in real market conditions without risking real money. It's a crucial step for gaining experience and confidence in your approach.

How important is having a mentor in the trading process?

Having a mentor is extremely important because a mentor can provide guidance, share their experiences, point out mistakes, and help refine your strategy. A mentor's advice can help avoid common pitfalls and speed up the learning process.

What should a trader do if they can’t afford trading courses?

Instead of buying expensive courses, the script advises investing the money in the live market. The live market experience offers more valuable lessons than a course and helps build practical skills.

How should a trader manage their investment in the first 6 months?

A trader should invest only 20% of their monthly income into trading during the first 6 months. This should be treated as a learning phase to gain experience while keeping other financial needs covered.

Why is it important to talk to your parents about trading?

Talking to your parents about trading is important to ensure they understand your decision and can support you during challenging times. It helps avoid unnecessary stress and ensures you have a backup system if things go wrong.

What should a trader do if they experience losses in the first 6 months?

If losses occur, the trader should document them in a journal, analyze what went wrong, and work on correcting the mistakes. It's important not to repeat the same errors and to refine the strategy based on real-market feedback.

How can a trader transition to full-time trading?

A trader should not quit their job until they are consistently profitable and have reduced losses. Only when trading profits exceed job income and losses become less frequent should they consider transitioning to full-time trading.