Qualities professional trade needs to develop

Trading is not an easiest job to do,as it requires year of practice with control over emotions over a period of time to be profitable on consistent basis.  Let me share my experience what qualities a trader require to be a professional day trader


Never Buy Auto Buy and Sell  Software

Most of traders are interested in Buying AFL for Amibroker , Program from Metastock   which gives automatic Buy and Sell signal. What looks so easy is the most difficult thing to follow.  Think logically if it was so simple buying a software program and to trade why 90% of trader lose money doing day trading ?

The biggest problem with such software is they cannot adapt for changing market conditions, as they cannot be tweaked once you have purchased and which lead to huge losses to traders. Some program can perform great when Volatility is high but fails miserably  when volatility comes down .  So avoid buying exhortation claims that XYZ AFL can double your money in 5 months etc.

Buy any educational program that you think is worth it as you will learn something which might take your trading to next level But please, please, NEVER buy anything with software in the title.

The best performers in any field are guided by coaches, mentors, and specialized training. The structured guidance affords opportunities to learn skills and overcome mental challenges. Most traders do not have structured guidance. They are left on their own.


BE In Your Comfort Zone

Trade the quantity you are comfortable with , For example If you are comfortable in trading 11 lots that be with it. Do not compare yourself with your friend / colleagues who  regularly trades 10 or 20 or more  lots per trade. Its possible you,  didn’t possess the emotional or psychological skill set necessary to trade such big size. Thats OK.

Traders should know their comfort zone Typically, if trader goes above his comfort zone that trade mostly end up in loss as Emotionally trader could not handle that size. The trade would inevitably turn into a loser.
Learn to accept your comfort zone as it relates to trade size. You are who you are.


Understand the market

Many traders apply new and fancy indicators without having proper knowledge and understanding what that indicator does. RSI above 80 is overbought and below 20 is oversold, its not so easy how it looks.  Whats important is when to use and when not to use the indicator. So develop a a true understanding of the market.

Never trade Without A Plan

In order to make money in the stock market we have to think from deliberative  mind. It is harder to think analytically when money is involved. Decisions under conditions of risk and uncertainty, they have a strong tendency to abandon careful rational analysis, so you need to train your mind to make a plan and  follow a plan.

If you are ready you know how to react, if you know how to react you know you will lose only a minimal amount of money. If you are know you are only going to lose a minimal amount of money you will only lose a fraction of what you could when day trading.

Be prepared for anything, don’t react to the market.


  1. Bramesh said:

    Do you think retail traders can afford automated trading system ?


    May 3, 2016
  2. T V RAMANA RAO said:

    this is contrary to what i read / heard about many professional traders like rob booker , hoosain haneker regarding whom an entire chapter is devoted. These traders have automated their trading. Remember, your own article where you mentioned Richard Dennis is not a gunslinger any more. He is just following a computerized system.

    May 3, 2016
  3. ashutosh verma said:

    excellent knowledge

    May 3, 2016
  4. jamwalr said:

    Well said sir..thats what i was thinking also..if everybody cud make money thru some high end software, then all these vendors wud be the richest lot on planet….I use plain zerodha PI software which is enough for me for my dailystcokss and nifty trading

    May 2, 2016
  5. Haresh said:


    May 2, 2016

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