By

Satish Rathod

TradersGuide Presents

How to be a Pro table

Trader Within the
Next 180 Days (Even if
You're New to
Trading)
How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
Let me guess.

You’re into trading because you want nancial freedom, to make lots of money, and to re your boss.

You learn everything you can get your hands on. Trading books, courses, forums etc.

1 year has passed…

2 years have passed…

3 years have passed…

And you’re still not pro table.

The bad news is this:

Chances are, you don’t know what it takes, to succeed in this business.

And the good news?

I’m going to show you how to be pro table, step by step, within the next 180 days.

Let’s begin.

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)

The law of large number and how it impacts your

trading
First, you need to understand something called “the law of large number”.

So, what is the law of larger number?

The law of large numbers is a theorem that describes the result of performing the same experiment a large number of
times. According to the law, the average of the results obtained from a large number of trials should be close to the
expected value and will tend to become closer as more trials are performed. – Probability Theory

And what does it mean?

This means you need a large number of trades (at least a 100) for your “edge” to play out.

It’s impossible to be consistently pro table every week, taking 7 trades a month.

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
Because your trading results are random in the short run and will be closer to its expected value, in the long run.

If you want to learn more, watch this video below:

What is consistency?
Now…

For your “edge” to play out, you need a minimum of 100 trades, for the law of large number to work in your favor.

This means:

If you want to be pro table every day, you need 100 trades a day.

If you want to be pro table every week, you need 100 trades a week.

If you want to be pro table every month, you need 100 trades a month.

So…

Let’s break down some of the trading approaches you can employ.

High-frequency trading  – Trading at 10,000 times  a day, you can expect to be pro table every day, like  Virtu
Financial.

Day trading – Trading an average of 3 – 5 times a day, you can expect to be pro table in most quarters.

Swing/position trading – Trading an average of 5 – 15 times a month, you can expect to be pro table in most years.

The more trades you put on during a shorter period of time, the faster your “edge” will play out.

But without an “edge” in the markets, the more trades you put on will lead you to blow up your account faster.

Understand this, and you’re ahead of 90% of traders out there.

Next…
www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
I will share with you the exact steps on how to be consistently pro table.

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)

Find a trading style that suits you

The best way to nd out is, to read Market Wizards, by Jack Schwager.

You’ll be exposed to different trading styles by successful traders, and learn the essentials of what it takes to be a,
consistently pro table trader.

Once you nd a trading style that resonates with you, go all out and learn everything you can about it. (Let’s assume
you want to be a successful swing trader).

Here’s how…

Books – Go to Amazon, and read books on “Swing trading”. I would suggest sticking to trading books with 4 stars or
higher

YouTube – Watch videos on swing trading, and look for channels to subscribe to

Google  – You can always nd hidden gems here. Search for topics on “swing trading” and you’ll be amazed at the
wealth of information available

Social Media – A gold mine here to learn from experienced traders

As you acquire trading knowledge, I would encourage you to write it down, or save it in a word document. This is to
track what you’ve learned and to nd out “the stuff” that resonates with you.

This should take you no more than 28 days.

Now…

You’re going to use this new-found knowledge and develop your own trading plan.

Are you ready?

How to develop your trading plan

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
A trading plan is a set of guidelines that de ne your trading.

The bene ts of a trading plan:

  emoves subjectivity in your trading

R
 Reduce “roller coaster” experiences
 Keeps you focus on your trading goals
 Allows you to identify “problems” to work on
 Prepares you for the “worst” possible scenario
Now you’re probably wondering:

How do I develop a trading plan?

By answering these 7 questions…

What is your time frame?

You must de ne the time frames you’re trading. If you’re a swing trader, then you’ll probably be trading the 4 hour or
daily time frames.

What markets are you trading?

You need to state which markets you’ll be trading. It could be equities, forex, futures etc.

How much are you risking on each trade?

This boils down to  risk management. You must know how much you’re prepared to lose on a single trade. For
starters, I would suggest no more than 1%. This means if you have a $10,000 account, you cannot lose more than
$100 on each trade.

What are the conditions of your trading setup?

You need to know the requirements of your trading setup. Whether you’ll trade with the trend, within a range, or
both (For starters I would suggest trading with the trend).

How will you enter your trade?

You could enter on a pullback or breakout. Will it be a limit, stop or market order?

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
Where is your stop loss?
No professional trader would enter a trade without a  stop loss. The rst thing you need to ask yourself is, “where
will I get out if I’m wrong?”

Where is your pro t target?

And if the price moves in your favor, you need to know where to take your pro ts.

Disclaimer: Below is a sample trading plan that I came up with randomly, please do your own due diligence.

Sample trading plan

I’ll be using the IF-THEN syntax in my trading plan.

Example:

If I’m a boy, then I’ll wear pants.

If I’m a girl, then I’ll wear a skirt.

If I’m not a boy or a girl, then I’ll be naked.

You get my point.

Let’s begin…

If I am trading, then I will only trade EURUSD and AUDUSD. (The markets you are trading)

If I’m trading currencies, then I’ll focus on the daily charts (Timeframe traded)

If I place a trade, then I will not lose more than 1% of my account. (Your risk management)

If the price is above 200 EMA on daily, then the trend is bullish. (Conditions before entering a trade and time frame
you are trading)

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
If the trend is bullish, then identify an area of support where price could retrace to. (Conditions before entering a
trade)

If price retrace to your area of support, then wait for a higher close. (Conditions before entering a trade)

If price closes higher, then enter long at next candle open. (Entry)

If you’re long, then place your stop loss below the low of the candle, and take pro t at  swing high. (Exit when
you’re wrong, and when you’re right)

Developing your trading plan should take you not more than 2 days.

Execute your trading plan to be a consistent trader

Once you’ve completed your trading plan, it’s time to take it to the markets.

I would suggest starting really small on a live account because you’re going to suck, really bad.

And if that’s the case, why not pay lesser in “tuition fees”, to Mr. Market?

Now…

When you execute your trades, 1 of 5 things can happen.

1. Break even
2. A small win
3. A big win
4. A small loss
5. A big loss

If you eliminate #5, you are much closer to being a pro table trader.

Now…

You must execute your trades consistently according to your trading plan.

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
Because if you’re entering trades based on how you feel, instead of following your plan, then it would be impossible
to tell whether your trading has an “edge” in the markets.

Secondly…

You cannot change your trading plan after a few losing trades. Even though I know you’re tempted to do so.

Why?

Because in the short run, your trading results are random. And in the long run, it’ll be closer towards its expected
value.

This means you need a minimum of 100 trades, before coming up with a conclusion whether your trading plan
works, or not. Recall the law of large number?

You should be able to execute 100 trades within the next 150 days.

Record your trades and improve your trading

performance
Simply executing your trades isn’t enough.

Because the only metric you get is your P&L. This doesn’t help improve your trading, except knowing whether you’re
making money, or not.

Here are the metrics you should record:

Date – Date you entered your trade

Time Frame – Time frame you entered on

Setup – Trading setup that triggers your entry

Market – Markets you’re trading

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
Lot size – Size of your position

Long/Short – Direction of your trade

Tick value – Value per tick

Price in – Price you entered

Price out – Price you exited

Stop loss – Price where you’ll exit when you’re wrong

Pro t & Loss in $ – Pro t or loss from this trade

Initial risk in $ – Nominal amount you’re risking

R – Your initial risk on the trade, in terms of R. If you made two times your risk, you made 2R.

An example below:

If you want my trading spreadsheet template, click on the link below and I’ll send it to you.

Screen capture your charts

After recording down your metrics, you’d want to save your charts for future reference.

Here’s how you can do it:

1. Save the chart of the higher time frame

2. Save the chart that you entered on
3. Save the chart after the trade is completed

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)

1. Chart of the higher time frame

This chart will give you the big picture of what’s happening. Depending on your trading style, this chart is usually
one-time frame above your entry timeframe.

E.g. If you’re entering off daily charts, then the higher time frame would be weekly.

In this section, write down your thoughts on the higher time frame like:

  hat’s the trend

W
 Support & resistance
 Structure of the markets
Here’s an example:

2. Chart of the entry time frame

This chart is the time frame you entered on. You’ll mark out the entry and stop loss of your trade.

In this section, write down your thoughts like:

  hat’s the setup

W
 Where’s your entry
 Where is your stop loss
Here’s an example:

3. Chart after the trade is completed

After completing a trade, you’ll save the chart with your thoughts on it.

In this section, write down your thoughts like:

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
  id you follow your plan
D
 What’s your pro t/loss in R
 How did you exit your trade
 How could you improve on it
Here’s what I mean:

After recording and capturing your charts, you’re now ready to move onto the next section…

Review your trades and nd your “edge”

Once you’ve executed 100 trades consistently, you can review whether your trading strategy has an “edge” in the
markets.

To do so, you need to use the expectancy formula below:

Expectancy = (Winning % * Average win) – (Losing % * Average loss) – (Commission + Slippage)

If you have a positive expectancy, congratulations! It is likely that your trading strategy has an “edge” in the markets.

www.tradersguide.in
 How to be a Pro table Trader Within the
Next 180 Days (Even if You're New to
Trading)
But what if it’s a negative expectancy?

Here’re a few things you can look at to  x your trading strategy…

Trade with the trend

By trading with the trend, you’ll trade along the path of least resistance which will improve your performance.

Set a proper stop loss

You want to set your stop loss based on the structure of the markets and not the dollar amount you’re willing to risk.

Remove large losses

You can do this by risking no more than 1% on each trade.

Conclusion
Now it’s time to put these techniques into practice.

The rst step?

Click on the link below to download my free trading tools (It’s going to help you a lot).

https://tradersguide.in/strategies/

www.tradersguide.in