Hit rate of a beginner

#1
Hi all,

I have just started trading for the last 3-4 months and have been enjoying the experience. Contrary to what most people say, I am not finding this very confusing or heartbreaking. I tend to make profits most of the time I take a trade, and go wrong a few times as well. Till today, I have made 32 profitable intra-day trades and have sold 18 shares at a profit. I made also made 12 loss-making intra-day trades, and have not yet sold a stock at a loss. However, I do have 5-6 stocks in my demat account that are deeply in the red, and probably I'll soon release them and learn to bite the bullet (Those are a bunch of smallcaps that I bought in the first month without a stop-loss, a typical beginner's mistake).

Now, whenever I share my experiences with friends and acquaintances, everyone says it is not how it works out and the stock market is far more trickier than that. Most people are actually giving me the typical example of how people win by fluke when they start to gamble and how they lose it all. My question is - What has been your beginner's experience? Am I doing exceptionally well or is it a regular thing with most attentive traders? Are these warnings by people (some of these people trade as well) something to be taken seriously, or do you think that people who trade with a discipline will always remain profitable?

P.S. I have no background in finance; I trade mostly on news and don't know how to read charts. However, I am decent at research and number-crunching and follow 200-300 stocks diligently.
 

ashu1234

Well-Known Member
#2
Hii,
Its good to hear that you remain profitable in 3-4 months of trading. But its a very small sample size, you have to go a long way still. I have kind of same experience at the start, started off really well in trading Index options, then tried testing my skills in stocks(intraday and mix of intra+positional) and then I admit I faced the inevitable. Being from a background of Finance, I was able to connect what's gone wrong, but by the time you realize its too late. So its not like there is problem with you, its just that market sometimes become so random with news flow or some new factor that you are forced to make errors and once you start making error it over-rides your judgmental and other skills like methods, discipline etc. One more thing, the market cycle also impacts your trading, if you started learning in a bull cycle so typically your personality shapes out to be bullish by nature for all time and it will reflect in your trade sheet if you analyze and like wise, so in bearish cycle because of earlier impact you tend to loose(its very true if you hold stocks).

So above things which I have mentioned will happen sometimes to you at some point of time, and a slightest error can result in drawdown, on the contrary if you are too alert and put too tight stop losses again you will loose from too much tightness in your trading, so you need to find your balance and must have some trading method which should be able to help you survive in both the cycles and trading method is not a ready made thing you have to develop your own as per your personality and aptitude.

One more thing I've seen common for the traders of our type, its a 5 year cycle of learning-earning-loosing, if you are able to come up with good trading plan and able to survive, down the line somewhere near this 5th year you would be able to realize your true potential as I am about to reach that threshold and very confident about what works and what not for me.

So all the best and be systematic in whatever you do.:)
 
#3
Ah thanks for the detailed response.

When I started the markets were kinda bullish for a month, and then got into a slump. :(

I am learning to be disciplined but I am too greedy I guess. I have hardly used stop losses, because everytime I place one the stop losses get triggered inevitably.

Trying to develop a trading plan, but every day is a new day and though old mistakes are taken care of, new mistakes emerge. :D
 

iryna

New Member
#4
hey guys!) im new in forex trade and im using a demo account, also i like that game because i can play without losing cash!
play.google.com/store/apps/details?id=game.pack
they also have a desktop version!
forex-game.net
hope its can help somebody
 

ashu1234

Well-Known Member
#5
Ah thanks for the detailed response.

When I started the markets were kinda bullish for a month, and then got into a slump. :(

I am learning to be disciplined but I am too greedy I guess. I have hardly used stop losses, because everytime I place one the stop losses get triggered inevitably.

Trying to develop a trading plan, but every day is a new day and though old mistakes are taken care of, new mistakes emerge. :D
I guess in personal trading mistake is common and universal we never plan what is the maximum loss we are happily willing to take.
oxymoron but true. If you are somehow good to spot trend and able to trade then I think defense(limiting losses) is the best attack.
 

Vertigo_1985

Well-Known Member
#6
Hi all,

P.S. I have no background in finance; I trade mostly on news and don't know how to read charts. However, I am decent at research and number-crunching and follow 200-300 stocks diligently.
My best wishes with you :).

Btw what research you do and what's number crunching? i find it difficult to follow 5-10 stocks, please tell me how you manage 200-300 ?
 

bunti_k23

Well-Known Member
#7
Rahul dont know it all........he is thinking that he ws gud frm 3 to 4 months maybe it ws trending market thts why u got the trades but boy dont b so ovrconfident ok 3- 4 months is not a big time to act with so much confidence anyway best wishes....
 

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