5 Things I Wish I Knew Before I Started Trading?


So, You want to be a trader or investor.

During the last 20+years, since I first enter into the world of financial markets, I have seen historic bull markets, many painful crashes, and the rise and fall of many industry titans. It’s nothing short of a Hollywood movie full of dramatic emotions, financial gains & pains.

There is a saying that 90% of the retail trader and investors tends to lose money.

Why is it so? And what is that 10%, who makes money, do differently? I can’t rewind time, but you can still learn these five things I wish I knew when I started off trading. 

Just like any other business you need to have the right set of tools and fundamentals in place to set you up for success.  

There is a saying that 90% of the traders don't make money consistently.

So what sets apart those 10% of people who consistently make money from the market?

You see, if you want to be a great artist or you want to start your own business, you need to have certain core strategies, fundamentals in place. 

But what happens in trading business is that when someone starts trading, they usually fund a trading account, find a good broker and either listen to some people, and look for the tips etc. and start trading.

And the results are usually not good,. 

But on the contrary, if you want to be a surgeon or if you wanted to start a business, wouldn't you follow a structured approach, wouldn't you really learn key things which are required to become successful in that particular profession.

So why would trading be different?

Based on my experience in trading and teaching thousands o trader and investors worldwide, I found that there are five core elements that needs to be in place to set-up one for success in trading or investing.

The 5M Framework

Let me share with you my 5M framework that can you start your trading journey on a more confident and successful not.  I will be sharing these five elements, one by one, in more details, so you can implement those in your trading investing journey.

Let's briefly talk about what are those five core elements are. I will writing detailed post about each one of these later..

The Mindset

Everything begins with the right Mindset.

You need to think about how money affects you. There are actually four key emotions  Greed, Fear, Hope and Regret (to be covered in the mindset video), that can affect our trading decisions immensely. And because rise and fall of monetary wealth can influence our emotions, it can really become a barrier in achieving long term success. And which is why, developing a winning trader's mind is key to a good trading start. 

The Money

Second core element for trading is MONEY.

Money plays an important role in trading. Don't fall for marketing that you don't need to money start trading and that with $1000 you would become an overnight millionaire trader. While some may have done, a wide majority can't. The fact is, you do need to certain minimum capital to see a meaningful result in your trading. And this is why you need to have the right tools and right processes in place that allows you to find, fund and preserve your capital for your long term success.

The Method

Your duplicatable winning edge.

Wrong methods will lead to you to poor results and that's why third core element for successful trading is to have access to proven methods which work in different market cycles and different business environments that allows you to produce profits consistently.

The Mentor

The GPS that shows you success path.

Even if you have the mindset, even if you have money and even if you have winning  method, but if there is no one to show you the right way, trading can be very painful experience. Find a good mentor or coach, someone who has been there, done that. Someone who has traded with real money and both bear as well as bull markets. A GPS for complete market cycle. 

The Move

Nothing happens, unless you make the moves.

So even if you have the mindset, plenty of money, proven methods and you're lucky to find a good mentor, nothing will happen, unless you make the moves. If you don't take action, all this is useless.

Financial markets go through different cycles, and you need to really understand how and what sort of moves you should make, sometimes rather quickly, so you can profit from incredible opportunities that market offers.


Once you have these five core elements in place,  you will have a rather smoother trading ride. You will be better able to go through market ups-n-downs and sail through both bullish as well bearish trends. I wish I knew about these before I started my journey. It could have saved from emotional pains and financial disasters. 

This 5M framework is powerful and I will be sharing more about each one of these core elements in the upcoming articles & video. So don't forget to comeback to this blog or when I post detailed tutorial about these 5 elements.

So, what if you could restart your trading journey, what do you wish you knew before you started or would do differently?  

What's the biggest challenge that you face in your trading or investing?

Join the conversation by leaving a comment or asking a question below...

Happy trading,

Manoj Kumar

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