Manoj's Trading Diary

[manojborle]

Looking for a target of 24820

done and exited 24800

 

[manojborle]

Todays trades in BNF : -45 + 85 = 40 points

 

[manojborle]

Short BNF 25078, SL 25122

 

[manojborle]

was expecting at least 24965 par sala thoda pahle hi palti mar gaya

 

[manojborle]

done and exited 24964

 

[manojborle]

+114 points in contra. I had stayed in the trade too long, should have exited in the first downmove only. This trade could have been a break even trade as the second pullback almost came back to my entry.

 

[manojborle]

BNF trades total today - 3
Total points - -45 + 85 + 114 = 154

 

[manojborle]

My trade history says I lose more on next day ,when I make good points in 1 day. So tomorrow is trading holiday for me. anyways travelling to mumbai tomorrow so no commentary also

 

[manojborle]

Looks like tomorrows trading activity should happen in 24820-24910

 

[manojborle]

PAPER TRADING TEN-STEP PLAN

1. Design your trading rules and your money management rules:
write them down on paper in a checklist format. Cover every aspect of your entries, exits, and overall methodology. In addition, get your money management rules written down in the same way.

2. Start to paper trade.
Once you are clear on your rules, start paper trading on the same time frame, financial market, and with the account size you plan to work with when you use real money. See if trend trading, scalping, scaling in or scaling out suits you.
Through trial and error in a safe, paper-trading environment, you will be able to determine if you need to adapt your rules.

3. Evaluate your performance.
Keep track of your paper trading results and approach this as if you are trading with real money.

4. Group in lots of 25 trades.
Group your paper trades in lots of 25 trades each, and calculate your profit/loss, average win/loss, largest win/loss, number of winning trades, number of losing trades, and number of consecutive winning and losing trades.
A group of 25 consecutive trades that has a profitable outcome is a profitable lot.

5. Practice until profitable.
Analyze your trading results and make adjustments until you are profitable, and feel good about your trading.

6. Three consecutive profitable lots of 25 trades.
Before trading with real money, be sure you have a total of three profitable consecutive lots of 25 trades each while paper trading. If you’re a day trader, be sure to
have spread your day trading over enough days, weeks, or months so you experience up trending, down trending, and bracketed markets.

7. Keep trading in lots of 25 trades.
When trading with real money, keep using the 25 trade-lot size to analyze your profit/loss, and so on, and see how you are doing.

8. Reevaluate your approach.
If you are not profitable trading with real money after trading one lot of 25 trades, stop trading and go back to paper trading. If you are then immediately profitable paper trading, then chances are your psychology is the problem.

If your paper trading is not immediately profitable this time, then you may have just been lucky the first time you paper traded and did not do it long enough to experience the different types of market cycles.

Until you have a qualified trading approach as proven through how you paper trade, then you will not know if you problem lies in your trading approach or if your problem is with your psychology.

9. Experiencing losses.
If you experience six consecutive losing trades and/or a draw-down of more than 15 percent, the market cycle or volatility on the market and time frame you are trading has probably changed. You must adapt quickly and effectively to these changes.

10. During excessive draw-down, follow these steps.

a. Stop trading with real money. Keep trading the same market and time frame and go back to paper trading. Wait until you have three winning lots of 25 paper trades before trading with real money again.

b. Make adjustments to your rules to see if that eliminates the losses you incurred in your recent draw-down. If so, paper trade again to validate your adjustments.

c. Change time frames until you find the time frame that is working the best.