Before starting our discussion I believe we both should have a fair understanding of the following question
Why you should follow the steps mentioned here?
Are the steps guaranteed your success?
Are there any other steps or it is only one?
The steps we will discuss here is time tested and accumulated from studying the trade behaviour of verious successfull trader and using the same over a long period of time, your decision to agree with the steps and follow the steps will eliminate the chance of making mistake. it will shorten the learning curve, reduce time, and help you to accomplish the goal with less effort.
But humanly its sometimes become tough to agree with other viewpoint or methodology. Afterall we have also our own bias, viewpoint, and understanding.
Having said that, we recommend you to understand steps with an open mind. Try to follow it without having any expectation. And then if it fits with you if it helps you to build confidence and faith in it.Then make it your own with bit twist or its raw form as you think better.
Following is the steps we have to follow to get success
Step 1: Set goal and expectation right
Step 2: Set your mindset right
Step 3: Eliminate risk of failure
Step 4: Create trading plan
Step 5: Ensure to follow each step
Most of the would-be trader fail because of too much pressure. And the root cause of too much pressure originates from setting wrong expectation. They simply fail to set right goal and expectation.
For example, if you want to entirely depend on the profit earned from trading for living then setting a goal to earn a profit equal to the monthly expenses is a sure way to fail.
Trading is not a business where you can expect income regularly at a specific time interval.Like you use to if you in any employment. There is no monthly slary here. Anybody try to do the same will unduly put himself under pressure and this will lead to wrong practice in trade management.
Followed by the ruin of the trading capital.
We recommend to set a trading goal to meet the lifestyle expenses. Say you set the goal to earn income to buy a new car or buy a new house. Or to buy a tour during your vacation.
By setting your goal to earn income for your lifestyle you dramatically alter your mental state. You will fill more energetic, focus and motivate to do everything right in your trading. It will not put any pressure on you to achieve anything in short term. You will fill calm and compose.
As soon as you will put a single trade with your real money you will find something unusual to start happening in your mental state. In fact, trading demands some contrary mind state than our daily life.
A constant and quick switch from one state of mind to another is what required to be successful in trading. You have to stay relax and alert. You have to practice patience and quickly shift to impatience mental state when it will require.
For example you have to practice patience with your profitable trade but need to extremly impatence if the trade goes against you and your exit plan already triggers. And to make the situation more complex probably you will have multiple trades where some will be in positive and other incurring losses.
In that situation, you have to be simultaneously be patience and impatience and need to quickly shift from one state to another.
Humanly it is very challenging and soon you will fill exhausted and that the time market took control over your emotion and you become a slave to your position and market. As you soon lost the control over your position you will lose the game.
This is one aspect you need to be master through staying aware and practicing mindfulness.
It is possible to eliminate the risk of failure completely with a model we called "safety net". Saftey Nate is a step by step process to eliminate the chance of failure completely. Its a combination of two thing Mind and Money management.
Plenty of information available around the globe on the importance of the trading plan. But one thing we found is missing and we want to you to think on this. See it is very easy to say what should be in your trading plan and to tell you that it is essential to follow the trade plan for your success. In fact, you can find a freely available trading plan on the web. Plenty of them is there but why not one can get success with that?
The issue here is not about the trading plan that will ensure success. The point is you should build a plan with steps and all steps then need to conver into a small task. And with every accomplishment of a small task, you will enjoy the small victory. Over a period of time, all small victory will help you to follow the trading plan.
This is the real challenge you have to win over to be successful. And you can not expect that you will start following the steps if you are not a person who is very disciplined and sincere in your other part of the life. The key here to practice and following your goal and steps in another part of your life first. Being disciplined in everything you do in life is the only way to become discipline when it comes to trading.