Learning through blunders

[newtrader101]

• Stick to the TF in which you started the trade. Don't switch TF in the midst of a trade. If you see a trend in the 15 min TF, it may not be confirmed in the hourly. So you have to confine your trade to the 15 min TF.
• Develop a checklist for trading
• Beginners should not risk more than 1% of their total trading capital in each trade.

 

[newtrader101]

Spend 15 mins or more every day reading a book on trading.

 

[newtrader101]

When you get an entry signal, don't just jump in. It may be only a retracement. Retracements don't offer much profit. Check the trend and confirm that the signal is aligned with it.

 

[newtrader101]

Be wary of signals coming after opening gaps...better wait for a few more bars.

 

[newtrader101]

So many things to watch out for...
But then, what kind of training do you need to learn to drive? It is fun if you are prepared, and danger if you are not
If you are trading for a living, not much different.

 

[newtrader101]

GOLDPETAL futures in MCX commodities are very suitable for learning the fundamentals of trading. You can go long or short and hold for several days. Margin per unit is around 150/- in Zerodha. Expenses come to around 1.30 per trade.

 

[newtrader101]

Crudeoil trends are somewhat easily visible from 1 hour upwards. 15 min and below is a real jumble.

 

[newtrader101]

However, Bollinger bounce + Stochastics/RSI gives OK success rate on Crude 15 min.
Super trend doesn't do well on 15 min Crude.

Note: Earlier I wrote good success rate. But Crude is too volatile, range trading is unpredictable...

Tuna and VarunKocchhar have written extensively on CrudeOil trading.

 

[Raj232]

Each one has his/her own experiences with stock market. Some say dont trade on expiry day, other say dont trade "Options" at all as it is too risky.

Its like the blind men with the elephant, each one experiences it differently. Thats what makes the market.. for each buyer there is a seller and for each seller there is a buyer... each with their own thinking

But see what works best for you.. your trading style and your circumstances e.g. intraday trading, mobile trading, option strategy, etc. and stick to it and be consistent, you will be highly profitable.. just my 2 cents.

 

[newtrader101]

Started a daily reminder on my phone:

"I accept that I have no idea where the price is going to go next..."

That takes care of my arrogance. Something like Alcoholics anonymous pledge that Elder discusses.