Mistakes made in Trading Life
- Thread starter wisp
- Start date
Viju wanted me to post my views on this topic 
if you have a less capital and you are trading a method which needs 3R SL intraday or 75 points Swing SL,then imagine your trading carrier is finished sooner or later.
Frankly,with due respect to everyone here,I don't see any Hope for a trader whose trading capita is just 50k-1L.Because you will be repeating same mistakes again and again.You always fear of losing or excessive greed of making.
if you have a less capital and you are trading a method which needs 3R SL intraday or 75 points Swing SL,then imagine your trading carrier is finished sooner or later.
Frankly,with due respect to everyone here,I don't see any Hope for a trader whose trading capita is just 50k-1L.Because you will be repeating same mistakes again and again.You always fear of losing or excessive greed of making.
Yesterday's BNF afternoon fall used to be the type of day when I either start looking to fine tune my method or start asking people how the move could have been caught and searching forum for other methods or short circuiting the market. The only people that got short circuited in all those escapades of mine were I, me and myself.
The only good thing that I can say for myself is that I dont visit multiple forums. I was a TSF devotee first, then a niftynirvana devotee and now a TJ devotee for the past 3 years I think.
Wonder why most people around the world pray like this though separated by thousands of miles.
The only good thing that I can say for myself is that I dont visit multiple forums. I was a TSF devotee first, then a niftynirvana devotee and now a TJ devotee for the past 3 years I think.
Wonder why most people around the world pray like this
though separated by thousands of miles.
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I am totally agreed on your view.But traders like me has no solution but to continue trading with that small amount.
Mam,with due Respect to you,though you dont see any Hope for a small traders..Its the Hope which is pushing me forward,else I'd have given up a long back.It just a matter of time...I'll be there for sure.
Maana Ki Ummide Kam hai,
Lekin Koshish karna kaha manaa hai
Mam,with due Respect to you,though you dont see any Hope for a small traders..Its the Hope which is pushing me forward,else I'd have given up a long back.It just a matter of time...I'll be there for sure.
Maana Ki Ummide Kam hai,
Lekin Koshish karna kaha manaa hai
please rethink , its no later than ever
Nice thread.
Here is what I think were my major mistakes, other than the tens of mistakes that I made in the beginner stage.
Looks like some of the points (mistakes) are very specific to me. What works for me might be mistakes for others, and vice versa. There is a book (I don't remember the name - I think it is by Brent Penfold, though not sure), in which the author contrasts the trading methods of different successful traders. For example, one says that SL are for fools, and another swears by SL. Buffet is for Buy-and-hold, and someone else doesn't agree.
1. Discretionary Trading: Discretionary Trading doesn't seem to work for me, though it works for many other traders. Nowadays, I only paper trade my discretionary thoughts, with the objective of deriving mechanical rules from the paper trading insights. Thinking during runtime is a big no-no for me. My last set of discretionary (paper) trades are posted in http://www.traderji.com/members-discussion-forums/98974-still-not-doing-right-8.html#post1225746.
2. Not backtesting before going live: I have done this mistake hundreds of times, and recorded many of the trades in my trading diaries in Traderji, only to realize that the method was a loser after spending money and time. Backtesting could have saved me a lot.
3. Incorrect money management: Many times, I have made good money, only to lose it due to bad MM. For example, In Jan 2016, I made over 200% with an un-backtested discretionary entry system, but gave back all the gains in the next 3 months, trading the exact same method http://www.traderji.com/members-discussion-forums/98974-still-not-doing-right-4.html#post1130381. I later realized that this strategy would have worked with a lower risk per trade, but with less impressive returns. However, depending on the win % and RR ratio, the optimal risk % may be different for different systems. In my current trading method that I have been trading for over 8 months now, I risk 15% or more of my capital in every trade, and am still surviving with good returns.
Here is what I think were my major mistakes, other than the tens of mistakes that I made in the beginner stage.
Looks like some of the points (mistakes) are very specific to me. What works for me might be mistakes for others, and vice versa. There is a book (I don't remember the name - I think it is by Brent Penfold, though not sure), in which the author contrasts the trading methods of different successful traders. For example, one says that SL are for fools, and another swears by SL. Buffet is for Buy-and-hold, and someone else doesn't agree.
1. Discretionary Trading: Discretionary Trading doesn't seem to work for me, though it works for many other traders. Nowadays, I only paper trade my discretionary thoughts, with the objective of deriving mechanical rules from the paper trading insights. Thinking during runtime is a big no-no for me. My last set of discretionary (paper) trades are posted in http://www.traderji.com/members-discussion-forums/98974-still-not-doing-right-8.html#post1225746.
2. Not backtesting before going live: I have done this mistake hundreds of times, and recorded many of the trades in my trading diaries in Traderji, only to realize that the method was a loser after spending money and time. Backtesting could have saved me a lot.
3. Incorrect money management: Many times, I have made good money, only to lose it due to bad MM. For example, In Jan 2016, I made over 200% with an un-backtested discretionary entry system, but gave back all the gains in the next 3 months, trading the exact same method http://www.traderji.com/members-discussion-forums/98974-still-not-doing-right-4.html#post1130381. I later realized that this strategy would have worked with a lower risk per trade, but with less impressive returns. However, depending on the win % and RR ratio, the optimal risk % may be different for different systems. In my current trading method that I have been trading for over 8 months now, I risk 15% or more of my capital in every trade, and am still surviving with good returns.
I did a mistake if we call that a mistake then its a mistake which is-
Everyone was trading F&O,Commodity,but I always kept myself stick with only Cash Market.
I dont understand Options at all.I even dont tried to read option material.I even dont tried to switch to Commodity market when I see many of my old friend are moving towards it.Meanwhile,I started trading BNF and made a decent profit,but not forcing myself to trade BNF anyhow.
Keeping the things simpler,just like Maggi Noodles is the key
Everyone was trading F&O,Commodity,but I always kept myself stick with only Cash Market.
I dont understand Options at all.I even dont tried to read option material.I even dont tried to switch to Commodity market when I see many of my old friend are moving towards it.Meanwhile,I started trading BNF and made a decent profit,but not forcing myself to trade BNF anyhow.
Keeping the things simpler,just like Maggi Noodles is the key
1. Instead of a buy order punching a sell order. (I did this mistake numerous times on mobile)
2. Keep waiting for the setup. When setup looks too far, making a trade without set up to get relived from boredom.
3. Averaging a trade. (A reason for catastrophic losses).
4. Unable to control the urge to book profits early and later kicking the floor for missing out a big move. Similarly, I cursed myself, for not taking profits early when the market reversed to hit my SL.
5. I had trading plans. When I reviewed my past trades, it is heartening to note that I barely traded as per plan. No surprise, blown the accounts numerous times.
6. Failed to maintain discipline after continous losses or profits.
7. Unable to control my desire to be right on all trades even though I know it is highly impossible. This has forced me to cling on to the trade even when the loss is widening.
8. Many times market jumped my SL. (though not my mistake).
9. I am still haunted by false dream of making a lot of money by making large single bets. (How dangerous it is to me and to the health of trading)
10. Took lot of time to understand what type of trading is suitable to me. Scalping, swing, intraday or positional.(You should not have sleep less nights).
If one does not trade the system it suits him, he is risking valuable health and wealth.
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2. Keep waiting for the setup. When setup looks too far, making a trade without set up to get relived from boredom.
3. Averaging a trade. (A reason for catastrophic losses).
4. Unable to control the urge to book profits early and later kicking the floor for missing out a big move. Similarly, I cursed myself, for not taking profits early when the market reversed to hit my SL.
5. I had trading plans. When I reviewed my past trades, it is heartening to note that I barely traded as per plan. No surprise, blown the accounts numerous times.
6. Failed to maintain discipline after continous losses or profits.
7. Unable to control my desire to be right on all trades even though I know it is highly impossible. This has forced me to cling on to the trade even when the loss is widening.
8. Many times market jumped my SL. (though not my mistake).
9. I am still haunted by false dream of making a lot of money by making large single bets. (How dangerous it is to me and to the health of trading)
10. Took lot of time to understand what type of trading is suitable to me. Scalping, swing, intraday or positional.(You should not have sleep less nights).
If one does not trade the system it suits him, he is risking valuable health and wealth.
[/SIZE]
I did a mistake if we call that a mistake then its a mistake which is-
Everyone was trading F&O,Commodity,but I always kept myself stick with only Cash Market.
I dont understand Options at all.I even dont tried to read option material.I even dont tried to switch to Commodity market when I see many of my old friend are moving towards it.Meanwhile,I started trading BNF and made a decent profit,but not forcing myself to trade BNF anyhow.
Keeping the things simpler,just like Maggi Noodles is the key
Everyone was trading F&O,Commodity,but I always kept myself stick with only Cash Market.
I dont understand Options at all.I even dont tried to read option material.I even dont tried to switch to Commodity market when I see many of my old friend are moving towards it.Meanwhile,I started trading BNF and made a decent profit,but not forcing myself to trade BNF anyhow.
Keeping the things simpler,just like Maggi Noodles is the key
well !!! trading is always simple ,we complicate that ,But should not forget the point - trading is the hardest way to earn easy money
You track commodity na !!! but not trading that ??
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