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
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%.