Trading Roadmap 0 to 1 cr

Step 1 – Secure a Stable Income

Goal: Generate a reliable cash flow before risking capital in the market.

Recommended activities:

• Video editing, freelance work, social-media management, subtitle creation, content writing, etc.
• Aim for a minimum of 8,000-12,000 per month; any steady amount is sufficient.

Rationale: Trading requires capital and a safety net; you must not become a financial burden for your family.

Step 2 – Develop a Back-Tested Strategy

1. Design a simple setup
   e. g., breakout with candle confirmation + price-action + indicator.
2. Back-test on historic data:
   • Load 3-4 months of charts.
   • Move the window back 1 month, 4 days, 1 week, etc., and apply the setup.
   • Record how often the breakout actually occurred and the resulting profit/loss.
3. Calculate risk-to-reward:

   RR={Average Reward}/{Average Risk}

4. Assess win rate:

   Win%=({WinningTrades}/{TotalTrades})×times100$

• Key point: A back-tested strategy is not a guarantee for live markets, but it filters out obviously weak ideas.

Definition – Back-Testing: Applying a trading rule to past price data to evaluate its historical performance.

Step 3 – Test in Live Paper Market

• Use paper-trading or demo accounts
  e.g., TradingView’s paper-trade tool, PocketOption demo.
• Follow the exact entry/exit rules from your back-test; record every trade.
• Compare live results with back-test statistics to spot discrepancies.

• Outcome: If performance degrades significantly, refine the strategy before committing real money.

Step 4 – Find a Mentor

• Why a mentor matters:
  • They have already made and learned from mistakes.
  • Provide real-time feedback on your journal and trade ideas.
  • Offer guidance on risk management, psychology, and market nuances.
• How to locate one:
  1. Join trading Discords, Telegram groups, or local meet-ups.
  2. Offer to share your back-tested results and paper-trade logs.
  3. Ask for a free critique – avoid paid “miracle” courses.

• If you can’t find a mentor: You can message me on Instagram or Telegram; I’m available to review strategies and journals.

Step 5 – Capital Allocation & Risk Management

1. Allocate 20% of monthly income to trading capital.
   • Example: Earn ₹10,000 allocate 2,000.
   • Continue until you have at least 10,000 reserved for trading the starter fund!!
2. Never risk more than 1-2% of your trading capital on a single trade.

   Risk per Trade = Capital × 0.01-0.02

3. Re-invest profits: As your account grows, keep the 20% rule for new income, but do not exceed the 1-2% per-trade risk.
4. Stop-loss discipline: If a trade hits the stop, accept the loss and move on.

• Important: If a losing streak wipes out part of the capital, pause trading until you rebuild the safety buffer.

Step 6 – Record Keeping & Performance Review

Maintain a trading journal with the following fields:

Review weekly:

1. Identify which setups produced losses.
2. Spot assets that consistently under-perform.
3. Re-calculate overall win rate and average RR.

• Adjust the strategy based on journal insights; keep the process iterative.

Common Pitfalls & How to Avoid Them

• Relying on “YouTube” strategies without back-testing. Always validate on historic data.
• Buying expensive courses. Real-world paper trading teaches more than any paid module.
• Investing more than 20% of income. Protects you from financial stress and family pressure.
• Skipping a mentor. Missed opportunity for rapid learning and error correction.
• Neglecting risk-per-trade limits. Leads to large drawdowns and emotional trading.

Trading Journal Fundamentals

• Purpose: Record every trade detail to spot patterns, mistakes, and improvements.
• Frequency: Write daily; treat it like a habit e. g., eating meals.
• Review Cycle: After 6 months, read the entire journal in the 7th month – no live trading during that review month.

Trade Execution Checklist

1. Stop-loss placement – Did I set it correctly?
2. Target price – Was it defined and realistic?
3. Trailing stop – Applied if needed?
4. Mentor discussion – Did I discuss the trade with my mentor?

• If any of the above is “No”, note the reason and plan a fix.

6-Month Improvement Plan

• The timeline is subjective: some may finish in 15 days, others in 6 months.

Capital Allocation Strategy

Initial trading capital: ₹500 minimum to start.

• When 100% confident mistakes are fixed, allocate 50% of monthly income to trading.
• If a known mistake repeats, revert to 20% of capital.
• Goal: Grow from ₹500 to 1 Lakh with high safety low drawdown.

Performance Tracking & Metrics

Example:

• Month 1: 100 trades, 50 wrong – 50% error.
• Month 2: 100 trades, 40 wrong – 40% error.
• Month 3: 150 trades, 45 wrong – 30% error improvement.

Continuous Improvement & Tweaking

• Treat trading like any other life problem: identify, analyze, tweak, re-test.
• Spend time each day finding the “session” of the mistake – whether in relationships, work, or markets.
• Iterate until the error no longer appears; then move to the next issue.

Risk Management Principles

• Stop-loss: Must be set before entering a trade; never move it arbitrarily.
• Trailing stop: Use when the trade moves in your favor to lock profits.
• Position size: Never risk more than a small % of total capital e. g., $1.

When to Scale or Reduce Trading Activity

• Scale up only after:
  • Consistent profit for 3-6 months.
  • Error rate consistently dropping below 30%.
• Reduce or pause if:
  • Losses increase or error rate climbs.
  • You cannot maintain 50% of income allocation confidently.

Quality vs. Quantity

• Quality over quantity:
  • 1 well-analyzed trade > 50 random trades.
  • Spend 3-6 hours analyzing a single trade if needed.
• Avoid over-trading: more trades higher chance of repeated mistakes.

Mentor Interaction

• Daily: Bring every trade to your mentor for feedback.
• Key questions for mentor:
  • “Was my stop-loss appropriate?”
  • “Is my target realistic?”
  • “Should I have used a trailing stop?”
• Record mentor’s suggestions in the journal and act on them.

Practical Action Steps – Start Immediately

1. Grab a pen & paper or open a digital notebook (Phone, iPad, etc.).
2. Create a template with fields: Date, Symbol, Entry, Stop-loss, Target, Trailing?, Mentor feedback, Outcome.
3. Log every trade today – no exceptions.
4. Review the log at the end of the day; mark any “No” answers from the checklist.
5. Plan the first month’s focus: fix identified mistakes through paper-trading.

Remember: Consistency, honest self-review, and disciplined capital management are the three pillars that separate the 5% who succeed from the 95% who fail.