ROADMAP TO TRADING SUCCESS                                      

* GUIDE TO SUCCESS IN THE GAME  OF TRADING

DISCLAIMER

This Short Experience is dedicated to all the Traders out

there, young and old. The information contained

in this book is for educational purpose only. This

document contains my personal ideas, opinions

and my own experience so that you will get right

education . We have done our best to ensure that

the information published in this book is

accurate and provide useful valuable

information that will help you in your Trading

and make your Trading journey easy.

Any legal or financial advice I give is my own

opinion based on my own experience. You should

always seek the advice of a professional before

acting on something I publish or recommended

in it.

Copyright

No part of this book may be reproduced, lent,

resold or otherwise without the prior permission

of AS TRADING & INVESTING . 

If you want to contact us then

you can write to us at : AS TRADING & INVESTING.

                                                           STEP - 1

One of the most important in Trading which

help you to become a successful trader is

maintaining a Trading Journal. Most of the

traders do not maintain a trading journal

because they think that what is the need to

write your trading detail after we made a trade

right but let me tell you, the single best way

for achieving success in trading is maintaining

a journal.

Trading journal contain

your entry, exit, stop loss,

your profit and loss, your

mistakes, lessons and may

more things which help you

to identifying your major

mistakes which you do in

your trading mostly & have

to improve in order to

achieve success. Trading

Journal help you to keep a

check on your emotions

means are you making

decision based on emotions

or on your trading plan.

I share with you my trading journal sheet so that

you can also start maintaining a trading journal

from now and then see the chances after using it.

TRADING JOURNAL SHEET FOR YOUR TRADING -

Click for journal sheet

TRADING JOURNAL

TRADING PLAN

                                                 STEP - 2

* TRADING  PLAN                                                     

Trading Plan is the most important element in

Trading cause it help you to take rational and right

decision in trading without any emotional

involvement but beside this many traders are

confuse on how to make a Trading Plan means what

should write in it. Around 1 year ago I am too

confuse about it so I thought I should share my

Trading plan with you so that you can make a right

Trading plan which help you to take right trade.

Here is my Trading plan template so fill it properly

and take trade on that basis with discipline and

consistency.

Print this Trading plan and place it near your

trading desk.

EXIT

TRADING PLAN

READ THIS PLAN DAILY BEFORE TRADING

VOW TO YOURSELF

GOAL

RULES FOR TRADING

YOUR STRATEGY/ SET-UP

(i) SET-UP A

(ii) SET-UP B

ENTRY STOP LOSS

TRACK YOUR JOURNAL.

AFTER MARKET ROUNTINE

RISK MANAGMENT

MAXIMUM LOSS LIMIT PER DAY

MAXIMUM LOSS LIMIT PER TRADE

RISK : REWARD RATIO

TRACK YOUR TRADES

PREPARE FOR NEXT DAY

LEARN FROM TODAY'S MISTAKES

REVIEW YOUR PLAN.

ADOPT A WINNING MINDSET.

SIGNATURE

RISK

MANAGEMENT

STEP - 3

UNDERSTANDING

RISK MANAGEMENT

Importance of Risk Management

Rules of Risk Management

TOPIC COVERED - Need of Risk Management

*2% Rule

*RPT Rule

*RRR Rule

*Posiotion sizing

    Closing thoughts

As a Trader we all know that in Trading

especially in Intraday Trading there is a a

high degree of risk involve. Trading is a game

of probability means there is no certainty so

we have to manage our risk in order to make

odds in our favor, in simple Risk

Management is the key factor in becoming a

successful Trader.

NEED OF

RISK MANAGEMENT

PSYCHOLOGY

RISK

MANAGEMENT

STRATEGY

60%

10%

30%

Risk Management is a very under-rated

concept in Trading as all the novice traders

only focus on a perfect strategy that can

make 100% profit all time and often

neglect Risk Management which is the

most important concept in trading. But as

a Trader you have to understand that

there is no holy grail strategies in trading,

there is Risk Management which can make

you or break you in trading, so instead of

searching & changing strategy just focus

on your Risk Management in trading then

look how your trading change from

continous losses to consistent profits.

IMPORTANCE OF RISK

MANAGEMENT

RISK MANAGEMENT

CONSIST OF 4 PILLAR

There are 4 pillars in Risk Management

which you should apply in your trading

for the best result and also for a

profitable trading. Follow these rule step

by step in your trading for a good risk

managnemnt system.

2% RULE

RPT RULE

RRR RULE

POSITION SIZE

THE 2% RULE

This rule is consist that you are going to risk

only 2% of your capital whether a small

capital or a big one but you just have to risk

only 2% of your whole capital. This rule will

help you to not take big losses in 1-2 trade

which can wipe out your capital on which

you will regret later.

According to this rule you

have to risk only 2% of

your capital for Example -

if you have 10000 Rs then

you have to risk only 2%

of it which is 200 Rs only

that means you going to

risk only 200rs in trading

in 1 day or in 1 trade that

depend on you.

2% risk

Full

capital

RPT RULE

(RISK PER TRADE)

In this rule you have to identify how many

trade you are going to take in a day so that

you can make risk per trade. That 2% rule

help us to calculate the total risk or loss we

are going to take in trading & this RPT Rule

tell us how to distribute the risk among

trades so that we don't make any overtrades

and do revenge trading.. traders means if you

are going to take 4 trades in 1 day and you

decide to risk 200rs means 2% of your capital

then according to RPT Rule you will risk 50 Rs

in each trades means just divide the total

risk with the number of trades you are going

to take and yes you have to risk only that

amount in 1 trade not more than this in this

way you will not do overtrading.

For this rule first you have to identify what

kind of trader you are means are you a scalper

or a conservative trade or a agressive one on

that basis you have to decide how many trade

you will going to take in a day.

This rule help you take only good trades

that make good profit for you. For this rule

first you have to identify you entry, exit,

stop loss. On that basis you have to

identify you R:R ratio means your risk to

reward ratio. For example - If you risking 1

Rs for earning 2 Rs then your risk to

reward ration is 1:2 means you risk 1 Rs for

making 2 Rs, this is called R:R Ratio.

RRR RULE

(RISK REWARD RATIO)

LOSS

PROFIT

Risk to Reward Ratio is

very important cause it

help you take good trade

and leave those trade in

which your chance of

winning is very low and

also make your trading

probability high. Always

consider risk to reward

ratio before going to

take any trade.

Well there are many types of risk reward

ratio so in this I will explain you which one

is good and which you should avoid in

trading

High probability : Low risk

Low probability : Low risk

High probability : High risk

Low probability : High risk

You have to take trade in first 2 scenario in

which your risk is less and probability is high

and always avoid trade with last 2 scenario for

better trades. A high Risk to reward ratio is

good for trading by this you will be in profit

even if you have only 65% win rate strategy.

This is the most important rule in Risk

Management cause it consist of those 3 rules

which we discuss earlier. Position sizing

means how much quantity you are going to

take for a trade as per your Risk set limit.

Many traders do position sizing like that

they take trade on random number like 100

or 50 shares of any company after this they

adjust their stop loss according to position

means if they take 100 quantity and their

valid stop loss is 5 point away then their loss

will be 500 Rs but it is very big loss for them

so they put stop loss near 2 point for risking

only 200rs in that case the price go little bit

down hit their stop loss and then again go in

their way as a result they make a loss and

next time they don't put any stop

loss as they think it hit and go

in same way again and

make a big loss.

POSITION SIZING

For calculating right Position Sizing you

have to divide your Risk Per Trade with

your stop loss point in that way you will

get right quantity for trade. For example -

You decide to risk only 50 Rs in a trade

okay and your entry point is 100rs and

your target limit is 110 Rs and your stop

loss is at 95 Rs so what will be your

position size for that trade so its simple to

calculate just divide you risk per trade

with your stop loss limit means divide 50

rs with 5point (50/5) = 25 quantity means

you have to take 25 shares of that stock

for trading not more than that. This is

called position Sizing that help you to take

right trade with right quantity. Right

position sizing is important for your

emotional balance to right decision

without any emotional involvement.

Calculation for Position Sizing

CLOSING THOUGHTS

In conclusion, the above discussion should give us a

clear picture of the importance of using risk

management in trading. Apart from the risk

management you have understand that in trading

you have to develop your own strategy which you

backtest many time and then apply in live market

never use those strategies which you saw on Youtube

and start trading after this first back test it properly

and only then trade and also not change your strategy

very frequently every strategy has losing phase no

startegy can give you 100% accuracy so just stick with

one strategy or a system and follow strict risk

management with discipline and consistency and also

develop a wining mindset which keep you

emotionally strong to take those decision which is

right in the situation.

I hope this small e-book will help you in your trading

and by following these rules you will follow a good risk

management system in your trading. Always follow a

trading plan and keep records of your trades so that

you can track them for modify your trading and help

you to improve in trading I wish you best of luck for

your trading journey.

FINAL WORDS

Congratulations! If you have made it to this point,

you definitely create a right trading mindset in

you. I know I’ve provided you with a lot to think

about in this guide, but you now have the

knowledge to take the information and apply it to

your trading.

I hope you’ve enjoyed this guide as much as I loved

writing it for you. I can’t thank you enough for

your continued support for Trader AS TRADING & INVESTING and

everything I do. So I just want you to thank you.

"Trading is like learning a new skill. You need to be

willing to put in time and effort to be proficient in

it. There are countless lessons to learn from the

markets and every mistake you learn is a step

closer to profitable trading."

THANK YOU

FOR READING

For more trading related

knowledge you can go my blogger : 

channel  @AS TRADING & INVESTING.COM