What Makes You a Trader?
In the era of quick internet, discount brokerages, and chattering social media, becoming a "trader" has never been so simple. Open a Demat account, download an application, watch some YouTube videos, and you are good to go. But let's get real — hitting "buy" and "sell" doesn't qualify you as a trader.
Professional traders don't trade based on gut instincts, news breaks, or WhatsApp tips. They operate a well researched trading system — a set of rules that can be repeated and consisting of:
Entry rules (e.g., price breakout + confirmation of volume)
Exit rules (target or trailing stop)
Stoploss level (laid in terms of ATR or structure)
Position sizing (risk per trade)
Without a system, you're gambling. Traders use the market as a business, not a casino.
2. You Manage Risk First, Profit Second
One of the biggest indications that you are a true trader is when you consider risk first.
You have ₹1,00,000 capital. Do you mindlessly go and buy Bank Nifty options 5 lots? Or do you compute:
Risk per trade (1–2% of capital)
Stop loss level
Max exposure per day
Professional traders defend their capital aggressively. They get the fact that being in the game is more vital than winning big on one trade.
Keep in mind: A 50% loss needs a 100% return to break even. Intelligent traders never allow that.
3. You Embrace That Losses Are The Game
No trader has a 100% win rate — not in India, not anywhere.
The difference between a market visitor and a trader is how they handle losses. A real trader:
Doesn’t panic after a losing trade
Avoids revenge trading
Follows the process even after back to back losses
For example, even if your strategy wins 60% of the time, you’ll still lose 4 out of 10 trades. And that’s normal.
"Losing is part of trading. What counts is how you deal with it." — Every successful trader ever.
4. You Think in Probabilities, Not Certainties
Ask a newbee:
"Will Reliance move up tomorrow?"
Ask a trader:
"What are the chances of a breakout at this price level, according to my strategy?"
Notice the difference?
Successful traders are aware that they're not forecasting the market; they're playing probabilities. They think like statisticians, not mystics.
Every trade is a calculated gamble:
With positive expected value (more reward than risk)
Based on past performance
With emotional detachment from outcome
5. You Control Emotions Under Pressure
If you've ever closed a trade too soon out of fear, added more lots rashly, or doubled up after a loss — congratulations, you've had trading psychology.
To become a trader, you require emotional discipline:
Hold to your stoploss
Don't overtrade following losses
Remain composed in volatility
Don't get greedy following a single large win
The market is a test of your mind. Those that struggle emotionally do not make it — no matter how intelligent they are.
A trader doesn't merely trade — they track.
Any serious trader keeps a trade journal to record:
Entry/exit price
Setup employed
SL & target
Profit/loss
Emotional state
They analyse weekly or monthly:
Win rate
Average risk reward
Repeated mistakes
Best performing strategies
This self reflection is what distinguishes bettering traders from stagnant ones.
7. You Learn Continuously
Markets change — what works in 2021 might not work in 2025.
Actual traders upgrade their knowhow continuously:
Study charts, patterns, and indicators
Learn from books, webinars, mentors
Try new tools such as TradingView, Algo platforms
Learn about FII/DII activity, macro trends, and sector rotation
In India, if you're trading without knowing Open Interest (OI), volatility, or global cues — you're trading blind.
You are a student of the market.
Learning never ends in trading. The greatest traders are perpetual learners.
No, you don't have to trade daily to become a trader. On the contrary, overtrading is a mark of amateurism.
A trader:
Waits for quality setups
Steers clear of low conviction trades
Adheres to routine daily schedule — premarket, live trading, post market analysis
Obeying market timings and not trading merely for the sake of thrills
In the Indian context, most traders overtrade BankNifty weekly options merely for the sake of thrills. But experts choose their fight wisely.
"Sometimes the best trade is no trade." — Jesse Livermore
9. You Know When Not to Trade
There are times when the market is choppish, flat, or newsdriven (such as RBI policy or election days). A seasoned trader knows:
When to remain on the sidelines
When volatility becomes too excessive
When the setup is not clear
When personal feelings are too intense
Trading is a survival game. Knowing when not to trade can help safeguard your capital — and your sanity.
10. You Respect the Market
A trader doesn't attribute losses to the market, brokers, or news.
They are fully responsible — because they know:
The market owes them nothing
Every trade is on their own terms
Risk is in the game
They also steer clear of arrogance. One good month does not make you invincible. Honoring the market keeps you humble — and enduring.
Last Words: Are You Becoming a Trader?
If you're still reading this, chances are you're serious about trading. Now, ask yourself:
✅ Do I trade with a strategy, or randomly take trades?
✅ Am I managing risk effectively?
✅ Do I analyze my performance and learn from failures?
✅ Do I remain emotionally calm under stress?
✅ Do I trade with patience and discipline?
If your answers are mostly "yes" — congratulations, you're on the way to becoming a real trader.
If not — begin today. Develop the habits, understand the process, and approach trading as an art.
Because trading isn't about being right — it's about being consistent.
