Dear Traders: If you have recently signed up for this service, there is a good possibility that you might be new to trading. If you are a new trader, this note is for you. Sincere apologies for the length of this note, but we strongly believe reading this note is important to start your journey as a long term trader.
I have embarked on several journeys in my eventful career. In school, mathematics was my favorite subject. As an engineer, I started looking at everything with critical reasoning & an analysis bent mind. As a Masters student in one of the top engineering schools in the US, I learnt problem solving & most importantly to be empathetic to diverse views & cultures. Then, I worked at a start-up in the US where I learnt through ‘observing’. The company grew multifold from a small start-up to an enterprise in less than 3 years. I then transitioned to a multi-billion $ conglomerate in the global corporate world leading critical areas & processes. Then, I headed back to one of the top global business schools, started up myself post b-school, built one of the fastest growing companies from a living room to five offices across the globe, a large team with sizeable revenues. Around all this, I also progressed from a part-time trader to a full time active trader in a journey spanning 17 years.
Why am I telling you all this?
I strongly believe that trading played a large role in my entire career helping me come to terms with my emotions, biases, strengths & weaknesses. I believe trading room is the only place where one cannot act, pretend or be ‘politically correct’. You are on your own & have to learn to come to terms with your own emotions & biases.
Some of you will have similar journeys in your professional career, but trading in the markets may be new to you. Nothing could be more detrimental to a trading account than making money on your first few trades. More often than not, winning in the first few makes one feel invincible without realizing that you are actually on your way to going out of control. Over the last 17 years, I am yet to meet a trader who hasn’t given back all his gains from the first trades & has not blown his account. Some of them, multiple times.
Commencing the trading journey in this manner is not a good sign if one is looking to build a long term successful career as a trader. If one is unable to develop the abilities to regulate his/her emotions, then trading may not suit you, investing might. The bottom line is that until you fully understand your emotions, it is important to preserve your hard-earned capital & not lose it to over-trading or revenge- trading.
All the 2 cents are shared from my personal experiences and are my learnings. I have seen them work very well consistently for years before I decided to articulate them in the form of 2 cents. Do go through each of them. Apply them one by one on very small trades till it becomes second nature.
Most successful traders operate only in a large institution set up. Unfortunately, small retail traders have zero access to them since they interact only with very high net worth traders/investors devoted to their fund. I empathize with smaller retail traders who mostly lose all their capital to the larger institutional traders.
At Arnam Capital, we are committed to making every possible effort to provide a soft landing to new traders & helping existing traders scale the learning curve quickly to build a healthy trading portfolio with good returns.
I am hopeful that one day you shall pass on my shared experiences coupled with your own to other traders that shall create a domino effect & pave the way for improving overall performance benchmarks of small retail traders.
I wish you all a long term successful trading journey!
Team Arnam Capital