Lost 1 Lac in mcx , need startegy

Discussion in 'Commodities' started by vinayshah, Oct 13, 2016.

  1. vinayshah

    vinayshah New Member

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    Hi traderji members

    I have lost 1 Lac in mcx trading (in 2 years). I dont know what is going wrong . I have tried many strategies but doesnt work (for me atleast) . I have even use from LRC to COG waves and simple price action to parabolic sar to fractals to DOM reading and much more . I don't want to leave trading . I have no Job and trading on my dads account . He says i can now trade with 10,000 only . If this also gets burnt up , i will have to leave trading .

    Pl. someone guide me atleast for a strategy so to pull me out of this debt and for gods sake my last 10,000 .

    I know no one will be willing to put their trading strategy here online but I just need guidance . I have fully understood risk/reward .

    Thank You :(
     
  2. alokdaga

    alokdaga Active Member

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  3. vijkris

    vijkris Well-Known Member

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    Pls explain your risk management principles u followed since last two years.?
     
    mark8tune, sajid1307 and niftytaurus like this.
  4. TracerBullet

    TracerBullet Well-Known Member

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    while you learn your strategy

    1) Trade with small size. There is no point in risking capital if you don't have proven record to yourself that you have an edge. Buy sell single digit shares and dont loose your capital. Once you can reach your targets for 4-6 months consistently then look at position sizing rules and scale up

    2) Try to practise bar by bar on old data. If you are not profitable here, you probably wont be profitable live
     
  5. rkripal

    rkripal Well-Known Member

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    Get a job. Come back to trading when you have a sizable account.
    Meanwhile continue the learning process.

    Now why you failed? You tried so many things in a period of
    two years. In short, you jumped from one system to another. Sometimes
    it takes years to master one method.

    All the best.
     
  6. vijkris

    vijkris Well-Known Member

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    Bhai, i know u trade SBI with risking very small amount. But very few ppl can replicate ur way.
    U have mastered the psychology. :thumb:

    @ thread starter
    There are many layers of our psychology. namely mind, intellect, memory and ego.
    i wont go into details but i would say u have suffered major injuries to all the psychological levels.
    U r giving more importance to strategy instead of psychology and risk management.
    I sincerely hope that u r aware of the bad psychological state u r in.

    U r in a pressure NOT TO Loose 10k. that feeling itself is a big issue.

    I would also like to ask what is ur income expectation from 10k.?
    Which scrips u would like to trade? MCX fut or NSe stocks ??
     
  7. tradertrader

    tradertrader Active Member

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    Only 1 strategy works for all at last-
    1)Low leverage
    2)No overtrades
    3)low brokerage with good trading platform.
    4) Money management
    If you dont try to maintain all this how much you put you will loose one day even having good knowledge and skills.Bookish knowledge never works develop some sixth sense too.
    Most of trader die only because of greed, fear, revenge trading or ego trading. Do planned trading. I dont say you dont take risk but see how much chance you get out if you stuck. Because we do this business for good returns and high returns come from high risk but risk should be calculated means if you stuck temporary what are chances you get back your price and in between hedge wherever you feel opposite opportunity. Rest your luck. Dont make trading as addiction but do it as occupation. Thanz personal view no offense.
     
  8. tradertrader

    tradertrader Active Member

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    Forget about past Rs 1 lakh if you keep it in mind then you try to recover it and then you in greed do mistakes and in fear you start booking losses. If you would have maintain some patient while earning with some above mentioned point you dont lost much or not be in red. Well I cant share my all strategy but share you few easy tricks.

    1) Use bollinger band breakout and break down in 15 mins or 1 hr chart.
    2) Trade gold patel or guniea in intervals or crude mini. Dont trade base metals.
    3) Do intraday 2-3 trade max.
    4) Use discount broker.
    5)Use support resistance and price action they mostly works. Wait for proper entry dont do hurry trading. Use minimum capital Rs 30000 to 50000 if possible as some fuel is required. If that is possible you can earn upto 1000-2000 per day but plan Rs 1000 first 10 trading session then 1500 next 10... so on. Use upto 1 gold mini or 10 crude mini at different place and try to make rs 1100-1000 per day. But dont be stuborn in making that because some day 500 or some day 1000 or someday 2000 or some day -500/-1000.
    I have used mostly all good indicator but I tell only few really works but many are lagging and for some you need sixth sense. Cog is only important to say reversal possibly near but it is not always correct. If you go for Bollinger band or price action you get quick money if you use 15 mins or 1 hr for intraday.
    6) You have to decide your own strategy because all know sword can be used in war but how to use everyone has different strategy.
    7) Most of people misguided because of rumors or news by stupid traders on many forum, some on failure started reading books and many bla bla. Ultimately what you feel correct and what works for you do that.
    I taught many idiots in life all are incapable to understand my way and started criticizing me but they still there and I am growing even after some inevitable failure.

    Traderji is best place where you find many useful forums and many wise people are here and me too is nothing in front of them. Just search traderji many good post here.I learned too much from traderji. Best forum to learn.

    8) Dont make trading addiction make it occupation.
    9) Believe yourself.

    Many more points what came in mind just posted.
     
  9. throwawayacc123

    throwawayacc123 Well-Known Member

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    I can relate to your situation to some extent.

    The first thing you need to do is stop trading commodities, as they require more margins and your risk/trade goes up w.r.t to your small account size.

    Now you trade only cash equities. you can survive on 10k for a long time if you manage your risk/trade carefully. you can go for months and not bust that 10k account. Infact this is where you should have started , but our overconfidence and hopes get the best of us.

    First and foremost rule is survival on small account till you learn and build your confidence. you cannot trade demo, as that will waste your time.

    Coming to the strategy part. Since you have tried everything. Let me tell you something that you may or may not agree, but we traders have make our own way. So please read the below section very carefully, it can save many years of frustration/pain.

    Any strategy that you execute on intraday timeframe is gambling. It's pure gambling. Why? because smart money uses higher TF i.e daily or more to drive the markets.

    if you want to build an edge, you MUST first start from the daily and use lower TF for entry/exit if you're a day trader.

    I cannot give you or tell you exactly how you can day trade using daily charts, but from you post you have all the knowledge to figure it out.

    your best chance is to use pure price action on the daily to gauge the bias/direction/sentiments and then figure out entry/exits on intraday TFs. if you can manage to do this, you will get ahead and have some hope to make it out your current mess.

    I wish you good luck in this maze and hope you come out of it. :thumb:
     
  10. mravi

    mravi Active Member

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    I am also in the same boat as you and mainly failed because of over trading.

    My learnings are:
    - Either technicals or fundamentals, market gives oppertunities.
    - Make a plan & stick to plan. Every plan takes certain amount of time to complete. By hurrying and worrying the plan won't execute faster.
    - There are unknowns and we cannot deal with them directly because they are unknowns.
    - Verify & re-verify the plan and give it sufficient time, it wont be months but years.
    - Every trade you should have some target in mind - either by fundamentals or technicals. Check for possible resistances and supports - or just fixed possible %.

    This is my biggest learning for regular earning -
    - When I say fixed possible % - it means every trading instrument will have certain type of participants, they behave certain way. Including the big & small traders. When we stick to one instrument, after a while we can figure out how the participants are moving it. So, you can anticipate the moves in an instrument if you can stick long enough with it.

    - Black swan event happen, but they are rare. It doesn't mean one can put 100% of the funds in a trade.


    Here are my mistakes if you are interested:
    - Commodity fundamentals Mistakes
    a) Very difficult to find the details. If one can find a website/blog that they can follow it would be good. In my case I tried, I could not find something that I could relate to easily. I could not relate because I dont know the businesses most probably.
    b) Instead of sticking to one commodity, I traded in every commodity available and lost everywhere. I have situations where my 1 lac became 2 lacs (the great silver) in 1 trade, in next trade it became 1 lac again.
    - CrudeOil
    - Copper
    - Natural Gas

    - Money management
    a) 5 times margin by index is very tempting. I ended up putting every paisa I have to maximize the gains.
    b) Sometimes I used MIS margin too. That makes it 10 times. I use to close the position in loss by 11:30, sometimes huge losses.
    c) Then I made a plan, that I will trade to get some 5% in every trade, and keep quite for that day.
    I pulled out 5% gains many times. But impossible to sit tight doing nothing after making that profit, so in next 4 to 5 trades I used to lose 15 to 50%.
     

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