Picture this: you’re scrolling through Instagram and see another flashy trading course ad promising overnight wealth. A young trader in designer clothes stands next to a Lamborghini, claiming you can “become a crorepati” in just months. Sound familiar? Well, 23-year-old professional trader Umar Punjabi has some hard truths that might burst your bubble.
In a recent candid conversation, Umar revealed what it really takes to succeed in trading – and spoiler alert: it’s nothing like the glossy promises you see online.
Why Everyone Thinks Trading Is a Scam
“66% of Indians don’t trust each other,” Umar pointed out, referencing the Legatum Prosperity Index where India ranks 121st. When you apply this general skepticism to something as complex as trading, it’s no wonder most people think it’s all smoke and mirrors.
But here’s the thing – some of that skepticism is actually justified. The trading industry is flooded with fake success stories, photoshopped screenshots, and “marketing accounts” that show whatever profits you want to display. It’s become so easy to fabricate trading results that even Umar admits, “everything can be fixed in this industry.”
The real kicker? Many people defending traditional approaches (like sticking to FDs over investing) are often the same ones missing out on genuine opportunities because they’re too busy defending outdated beliefs.
The Fast Money Myth That’s Ruining Lives
Let’s get this straight: fast money in trading doesn’t exist. If anyone tells you otherwise, “you should run away from them,” Umar warns.
The reality? Even with the best mentor in the world, even if you trade sitting right next to a successful trader, you won’t be guaranteed to make money. Why? Because the mental battle you’ll fight requires training and time in the markets.
Umar’s journey is proof of this. Six years ago, he was taking ₹20 bus rides from Bhiwandi to Thane for his classes. Today, he lives a completely different life – but it took him at least two years of constant effort and consistently losing money before seeing real results.
What Real Trading Returns Look Like
Forget the fantasy numbers you see online. Umar’s realistic monthly returns? Around 20-25%. That might sound modest compared to the “300% in a week” promises floating around social media, but here’s what makes it real: he can prove it.
Through verified third-party profit and loss statements from multiple prop firms, Umar has documented over ₹30 lakhs in payouts across the last year. These aren’t fake screenshots or marketing accounts – they’re blockchain-verified transactions from credible firms like Funding Traders, which has paid out $25 million to traders to date.
The Three Deadly Mistakes 99% of Traders Make
Want to know why 93% of people lose money in trading according to SEBI data? They make these three critical errors:
- Mistake #1: No Fixed Time Window
Most people think being a trader means staring at charts all day. Wrong. Umar trades just two hours daily – 12:30-1:30 PM and 7:00-8:00 PM. Outside these windows, he doesn’t care what’s happening in the markets.
- Mistake #2: Poor Risk Management
People get greedy and start risking more when they feel lucky. Umar’s rule? Never risk more than 2% of his capital per trade, no matter what. If you have ₹1 lakh, never risk more than ₹2,000 on a single trade, under any circumstances.
- Mistake #3: No Proven System
Most people jump into trading without backtesting their strategies. Umar spends around 26 days per year just backtesting – that’s roughly 12 hours per week analyzing historical data to verify his strategies work.
The Right Way to Learn Trading (Spoiler: It’s Free)
Here’s Umar’s step-by-step approach for someone with just ₹5,000 who wants to become a trader:
Step 1: Don’t invest that ₹5,000 yet. Give it to your mother for safekeeping.
Step 2: Spend 3-6 months consuming free content on YouTube. Make notes like you’re doing research, not just casually learning.
Step 3: After your research, identify what makes the most sense to you. Just like choosing commerce or arts after general education, pick your trading specialization.
Step 4: Only then consider buying a course from someone who makes sense to you and can prove their credibility.
Trading: Profession, Not Hobby
Here’s something that might shock you: part-time trading doesn’t exist. “I have not seen a single part-time trader who is making money,” Umar states bluntly.
You can’t be a part-time doctor or lawyer, and you can’t be a part-time trader. While execution might take just 2 hours, the research and analysis behind those trades takes years to develop.
How to Spot Real Trading Educators
With everyone claiming to be a trading guru, how do you separate the real from the fake? Look for these signs:
- Live trading proof: Can they call markets in real-time and be right 7 out of 10 times?
- Proper system teaching: Do they teach rule-based systems or just vague concepts?
- Time involvement clarity: Do they specify exact trading hours rather than promoting “all-day trading”?
- Risk management framework: Do they clearly explain how much to risk and when?
- Community support: Do they provide access to other serious traders?
The Psychology Behind Trading Success
The hardest part of trading isn’t learning technical analysis – it’s managing your emotions. When you’re in a winning trade, you’ll battle whether to exit early or hold for more profit. When you’re losing, you’ll fight the urge to hope it comes back instead of cutting losses.
This psychological warfare is why only 1% of traders consistently make money. It’s the same reason why success in any field requires the same psychological skills: self-discipline, proper mindset, persistence, and consistency.
The Luxury Trap in Trading Marketing
Ever notice how many trading influencers flaunt expensive watches and cars? Umar admits it works: “If I go to an event without a watch versus with a ₹50 lakh watch, people will approach me when I’m wearing the watch”.
But here’s the reality check: 90% of trading influencers are just reading from textbooks. They focus on lifestyle content and profit screenshots but offer zero actual trading education. The question you should ask isn’t “Do you have a Lamborghini?” but “Can you teach me how to get one?”
The Bottom Line
Trading can be life-changing, but not in the way most people expect. It’s not about quick riches or easy money. It’s about developing a skill set that includes technical knowledge, risk management, emotional control, and unwavering discipline.
If you’re serious about trading, start with free education, spend months researching, and be prepared for at least two years of hard work before seeing consistent results. Most importantly, be skeptical of anyone promising fast money – including your own strategies until you’ve backtested them thoroughly.
Remember: in a field where 99% of people lose money, the last thing you want to do is follow the crowd. Take the boring, systematic approach that actually works, even if it doesn’t make for flashy social media content.
The path to trading success is long and challenging, but for those willing to put in the real work, it can indeed be transformative – just not in the timeline the marketers want you to believe
