First principle of success in any endeavour and more specifically in trading - मन के हारे हार है मन के जीते जीत

•When you enter any trade, it has twin possibilities – either it would be a failure or success with outcome having equal probabilities (50:50). (1/n)

Then, why does only 5-10% of the people make a mark in trading. Rationale of divergence of individual trade success and longer term results is the skill.
•The motive of the following thread is to dwell building a robust work ethic so that path to profitability is achieved (2/n)

and is smooth. I have never heard of any overnight success stories in trading. Path of trading is mostly entrenched with agony, sufferings and to some extent loneliness (particularly in an Indian society where even your support system (family & friends); (3/n)

somewhere feels trading is gambling).
•I would not blame them for their belief towards trading. In other professional fields for example doctors, lawyers or engineers, people spend 5-6years before getting the degree and being called competent enough to work in the field. (4/n)

Trading on the other hand has limited entry barrier anyone with even Rs1000 in broking account, a person can call herself a trader. Thus, majority of traders with limited understanding jumps in market and fails. (5/n)

This creates a decent sample size for the world at large to conclude that trading equates gambling/luck.
•Multiple skill sets and traits needs to be developed for becoming a successful trader, but the foundation stone of the same is Belief system and work ethic. (6/n)

It is the belief system along with work ethics that helps a trader overcome tough times and the period of uncertainty.
•It is the belief system which makes an individual believes in own potential and drive herself towards the desired goals, (7/n)

while the work ethics is the way to achieve the same.
•This bring us to the question, what is the work ethics. Oxford dictionary defines ethic as – “moral principles that control or influence a person's behaviour”. (8/n)

In a simple terms, one say says ethics are the standards or minimum benchmarks below which you will not work.
• Good trader’s belief system are as follows – (a) Market is not obliged to act according to our belief, despite best of our efforts. (9/n)

This belief resets our expectations from yourself and keeps us pushing more to achieve higher goals (b) Don’t focus on outcome, just try to keep improving the process. As Francis of Assisi quote – “Start by doing what's necessary; then do what's possible; (10/n)

and suddenly you are doing the impossible”..(c) In trading, I want to not only compete others but own mind-set limitations.
• Successful trader’s work ethics will include - (a) Overnight study of set-ups- I know a pro trader, if he does not give 4 hours overnight (11/n)

to market study, he does not trade in the market next day. I follow the same hence i stress on my Homework which my Mentees know it already whom i have trained This work ethic is basics an outcome of the belief system that hard work + dedications (12/n)

will compensate for market uncertainties. Similarly, use Saturday and Sunday to learn something incremental to improve trading. (b) Increase predictability – Everyday multiple trading opportunity crops-up, thus key work ethic of trader is to segregate & grade the set ups. (13/n)

To increase the predictability of the outcome always trade the most reliable set up (A+ setup).(c) Increase patience - Trading is very similar to hunting as was done by primitive humans.Primitive humans knew they lack the speed to catch the prey, (14/n)

thus they always waited patiently for the prey to come closer to them rather than chasing it. Similarly, patience is key for traders. Momentum traders need to wait for breakout/breakdown to trade, mean reversal trader will wait for deviations (15/n)

to get significant to trade for reversal. Contra-traders will look for trend reversal points to trade. The common thread between them is doing the trade at ideal time, which in nothing but a function of patience. (16/n)

(d) Power of compounding – Power of compounding can be understood from the fact that if improve 1% every day on work ethics at end of the year, you will be 38x better than start of the year (1.01^365). (17/n)

Similarly, if you slip 1% on work every day at the end of year, you will be finished (0.99^365). Thus, keep looking for small incremental improvement possibilities in all aspects of trading and approach towards market.This change is most beneficial for the beginners. (18/n)

(e) Stop repetitive trading errors – Michael Jordon once said - "I've missed more than 9,000 shots in my career. I've lost almost 300 games. Twenty-six times, I've been trusted to take the game winning shot and missed.I've failed over and over and over again in my life”. (19/n)

In the trading parlance, attitude of the trader towards the failure determine his/her future. If a trader takes failure in its stride and learns from the same, the doors of future success opens up on her. (20/n)

• Changes to implement – (a) Over-night study of set ups (b) Trade A+ set ups only. (c) Journal your trade and mistakes in detail to work on improving. (d) Keep improving on all aspects of trading daily. (21/n)

Write down the factors which will make you good trader and keep on working on the same.(e) Never settle for mediocre inputs – fix your quarterly targets (not profit target but input targets), what you expect to do better going ahead. (22/n)

Finally i seeks your views/inputs from all the reads, what incremental can be done to build and improve trading belief system and trading work ethics. I hope you all will hit the Like button for the effort taken and a RT so that it catches max eyeballs Thank you