How to be a Trader – Step by Step Guide

Still I’m searching for a place where I can learn everything on “How to be a Trader” without any clutter or BS. Most of the online sources are filled with a lot of unwanted information which can confuse anyone who wants to be a trader. So… I decided to come up with my own solution to help you out with every essential thing you need to know  to be a professional trader, make a living from the market & reach your ultimate dream.

Trading Process Development Program




Knowledge gives you power. You should know what you’re doing! My approach to learn the “Art of Trading the Markets” is called “KCSM”. It’s just another funny name came to my mind! 


K – Knowledge

    • Why you want to be a Trader?
    • What’re you trading? Stocks, Currencies, Bonds, Commodities, Indices?
    • Which type of trader are you?
    • How to select a Broker?


C – Capital

    • What’s your capital? How much money you need to be a trader?
    • Starting Equity? How big it should be? Why?


S – Strategy

  • What’s your Risk Management Strategy?
  • What’s your Money Management Strategy?
  • What’s your Trading Strategy?
      • +Tactics

          • Trading Plan
          • Daily Routine
          • Trading Journal

M – Mind

  • Effective Mind Management
  • How you can train your subconscious to guide you to be a trader?



Once after you finish reading KCSM Model & doing the proven exercises I mentioned in those chapters you can start demo trading with virtual money provided from your desired broker firm. You can read more about brokers XXX.

Demo Trading

01. Create a Demo Trading Account 

Start Demo Trading with an account filled with the exact amount of capital you wish to trade in real life. Avoid using those demo accounts filled with $10000, $50000 or $100000 unless you’re going to start with such an amount.

02. Trading Essentials Checklist

Now you have a,

  • Daily Trading Routine of truly Professional Trader
  • Method to Journal your trades & thought process
  • Trade Station with backup options!
  • Good Trading Mindset!


  • Trading Strategy with nice Trading Edge!
    You know that you should enter the market once you see a potential trade entry which is above 1:2 Risk Reward Ratio (RRR)
  • You know your Risk Per Trade (RPT)
  • You have a dynamic & highly effective Position Sizing Strategy (Money Management Strategy)

03. Steps to Trade the Market

Think you’re trading the real money account! Feel it from your roots.
Don’t be afraid! Just trade when you see your edge!
Follow my 5 Step Process of Trading in your virtual money account for next 3 Months.  Don’t forget to write everything in your Trading Journal.



Once you lose more than 20% of your Demo Trading Account:

  1. Stop Trading !!!
  2. Check your Trading Journal to find the exact issue with your trading!
  3. Go back & read every thing in KCSM Learning Module again.
  4. Start a new Demo Trading Account filled with original amount & continue trading until you can stay positive for next 3 months.

Use your trading journal to analyse your trades on sample sizes. Specially pay attention to the way you think as a consistently successful trader. Compare your journal entries to monitor the development of your thought process once a week.  

You can move to the next level once you prove yourself that you can protect your capital for 12 weeks. :)



  • You’re not a newbie anymore!
  • You have proved yourself that you can manage a trading account for last 3 months!
  • You know how to think like a professional trader & you start to feel like one even though you’re not!
  • You’re not afraid of the market because you truly accept the risk &  you know the beauty of probabilities.
  • You’re not worried about few trading losses as you’re trading in sample size instead of taking individual trades!
  • You’re reading this with a little smile on your face as you know you can do it!


Real Money Trading – Phase 01

Start Real Money Trading with HALF of your desired trading capital.
Continue Trading for next 3 months.

If you face a draw-down of 10% : STOP TRADING !!!

  • Go back to the Practice Mode again
  • Check out your Trading Journal to find the exact issue & take immediate measures to rectify it!

If you manage to protect your capital & have a rising equity curve during these 3 months you can proceed to the Phase 02.

Real Money Trading – Phase 02

Welcome to the final step of my Trader Development Process!
Now it’s the right time for you to go with everything you got!

Go & do it! Trading isn’t a rocket science. It’s very simple! You don’t need to know everything about investing, economics, fundamental analysis or technical analysis to be a trader & take money out of the market.  You’re the one who made it complicated by trying to add everything in to your basket.

What’s Next?

  • Always keep your cup empty!
  • Read books, blogs, thoughts & insights of other traders!
  • Attend events, meet-ups, mastermind groups whenever possible.
  • Never stop Learning !!!

Good Hunting to you!

Sachith Sumanathilake