My System - My trades.

[Smart_trade]

bangla me kahwhat hai ratane ratan chine suwnre chine katchu......aami ekta suwnr......St sir, Xray sir, Tuna sir, Wips sir Vij sir and many more good traders understand very well about Vk sir system.....but I am totally failed to capitalise his all valueable concepts in my real trades.....another one capital I have wiped out .....I was determind not to errosion my capital heavily in day tradings......but in some days I had been only able to maintain my descipline......but 3/4 days in a month the entire tading had gone from worst to worsen....(pls, mind my poor language....) ....what I was thinking that I have govt service without any pension system , so I have been active in forum and internet to learn safe trading system so that I can earn pension like income through stock market.....but it is day by day it paid me horror kahani.....nah.....I am not right person to survive in the false dreame of day trading......I know I can not leave stock tradings during my life time, now I will go back to invest in penny stocks with my small amount.....this is the rigt path from where I started my trading journey I should go back there that is penny stock trading.......I am very soorry......

Sad to hear that you have not found a system which suits you. Trading in junk stocks is not an answer for coming out of losses.Many junk stocks quoting at Rs 5 and Rs 7 can lose 50-60 % of their value giving loss to the trader.

Trading is never risk free...it has never been risk free.All that we can control is our % of capital risked on a trade and the returns we make if trade is profitable...in low risk strategies also there is a risk which we cannot avoid....we can only accept and control the risk.There is no riskfree strategy giving higher returns in this world.If it was there, all the retired people would have earned by trading that strategy and not invest in bank fixed deposits and bonds.

I suggest that you first work on a system which you like,backtest it and paper trade with rigid risk control before starting trading again. Risk control is atmost important without it any system is useless.

Hope you will soon find a system that works for you.You need not follow any fixed system but you take good points from various systems discussed in the forum and make your own system .

Smart_trade

 

[Happy_Singh]

Sad to hear that you have not found a system which suits you. Trading in junk stocks is not an answer for coming out of losses.Many junk stocks quoting at Rs 5 and Rs 7 can lose 50-60 % of their value giving loss to the trader.

Trading is never risk free...it has never been risk free.All that we can control is our % of capital risked on a trade and the returns we make if trade is profitable...in low risk strategies also there is a risk which we cannot avoid....we can only accept and control the risk.There is no riskfree strategy giving higher returns in this world.If it was there, all the retired people would have earned by trading that strategy and not invest in bank fixed deposits and bonds.

I suggest that you first work on a system which you like,backtest it and paper trade with rigid risk control before starting trading again. Risk control is atmost important without it any system is useless.

Hope you will soon find a system that works for you.You need not follow any fixed system but you take good points from various systems discussed in the forum and make your own system .

Smart_trade

Although this one and other advises like this are very well intention-ed but there is other side to it

Day-trading is not for everyone, if you realize that you are not good at it
the best option is to not do it, perhaps work on you compulsions / addiction for trading.

Happy

 

[Smart_trade]

Although this one and other advises like this are very well intention-ed but there is other side to it

Day-trading is not for everyone, if you realize that you are not good at it
the best option is to not do it, perhaps work on you compulsions / addiction for trading.

Happy

Why day trading alone...in fact any form trading is not for every one...so if daytrading is not suitable, one can try swing trading but here it needs larger stops and willingness to hold positions overnight .

Everyone cannot be a successful trader....this is a hard but bitter fact of this profession.

Smart_trade

 

[Happy_Singh]

Why day trading alone...in fact any form trading is not for every one...so if daytrading is not suitable, one can try swing trading but here it needs larger stops and willingness to hold positions overnight .

Smart_trade

Yes, trading is not for everyone . . .

So, if one clearly recognizes it, then the best path is to Stop Trading
and work on your addiction / compulsion to trade

The first step in it would be seek help, talk to your loved ones . . .
be honest and acknowledge the losses (money/time/opportunity/happiness)
due to your failed attempts at different types of trading.

Everyone cannot be a trader....this is a hard but bitter fact of this profession.

Not really Hard or Bitter, its universal with every profession, not everyone can do everything

The real problem is being deluded about it . . .
If one intends to find a solution, one needs to work on the problem . . .

Be brutally honest with yourself . . .

Happy

 

[Smart_trade]

Most successful traders when they are starting their trading go through losses,accounts blowing...etc but they constantly work on their shortcomings.At no stage they feel that they can never make it in trading ....when trader gets this feeling, it is almost 90 % true that he is not suitable for trading.

People in the forum dont tell this bluntly because it is considered blunt and arrogant and if there is even 5 % chance that the trader is down temporarily but he will work on improvements and be a good trader then we are doing injustice to a great trading career . So people leave it to the person to find out.But I guess everyone after few years comes to know if he is suitable for trading.

My friend who used to trade sitting next to me and I sincerely wanted him to succeed, was a failure in trading. He realised and accepted the fact and he started his conversational english and soft skills classes and now he is doing very well conducting programmes for new IT and engineering companies recruits, corporate mid level executives, corporate training programmes etc...

So there are many opportunities outside trading also....

Smart_trade

 

[Tuna]

Well this goes something like this AFAIK (Reader's alert: Unsolicited Advice ahead):

Finding Something difficult and Improving on That: What I am going to say has nothing to do with trading. If any of you are exposed to 'machine learning' programming you will understand it a bit easier. Never the less, let put it in a non-technical way. The way our brain works, it learns from mistakes. A baby who is learning to walk will fall down quite a number of times but eventually, learns it. Same goes with every aspect of life. Like someone fighting with Boss at the workplace and losing his Job.

After 2-3 occurrences, he will understand the consequences (career issue, financial injury) and will (at least try) to recover from that ill-habit.

Now, what exactly is the trigger for the recovery action (or correction of the Algo which is inbuilt in that person's mindset, creating this issue):

• The damages done - However arrogant the person may be, he will eventually come to terms with the damages he is doing to his career and financial fortunes by losing job in that way
  
• Introspection - This is where the code (bug) tries to get a patch applied to change the mindset to get a course correction

Let me tell you, we human are the most sophisticated piece of living, moving, an auto-healing piece of programs that are known to the universe.

Now what's the point?

The point is, what is the trigger for the Main Program (the person in the context) to understand that one of his coding modules got a bug inbuilt? It is the penalty.

So you will see there are people around who do not commit the same mistake twice - are the most successful one. As each habitual bug (deficit in their character code) get spotted in the first sign of the damage and total count of penal actions (same mistakes being repeated) is less.


This is the quality of great trader !!

The problem with trading is - each penalty comes with 2 deficits - you lose time + you lose your hard-earned money.

So if your core program is a sluggish one - that is , you need to commit considerable number of mistakes and repeat those (Trade Size error, No SL, Not following Setup etc) to get the auto-healing features of your main program to get kick-started (the improvement of trading habit) - you will suffer a huge amount of financial hit before making the course corrections. And most of the time it is simply not possible for many of us.

So, yes, trading is most unforgiving professions for defective programs, errr. persons. Same applies to other professions, but the damage done is less.

 

[varunkochhar]

My 2 cents is that people want excitement in their trading but in fact it should be boring but profitable. We all say let your profits run, but how many of us could capitalise on the Nearly 6000 Points in Bank Nifty in the last less than 6 months. As per the charts posted last night, the buy on scaling of 36EMA came in the 1st week of Jan. around 18000. It has not given a sell as yet. The human mind thinks itself to be so much superior that it throws up too many possibilities and denies us to be mechanical. Well if we had been machines we could have been sitting on profits of Rs.2,40,000 on an initial investment of less than 10000.

 

[Tuna]

My 2 cents is that people want excitement in their trading but in fact it should be boring but profitable. .....

Says it all. Period.

 

[varunkochhar]

What happened with Puchu ji is very sad and unfortunate. It happens with every trader countless number of times in the beginning. Tuna ji has given a very powerful insight as what one learns from his mistakes is the difference between the good and the average or a failed trader. Very few people if any are born good traders, the rest have to learn the ropes by spending hours/days/months/years looking up charts and learning the patterns being repeated and then mastering one. The system is as good as the trader. Every system has its shares of merit and demerits. It is how you use the merits and overcome the limitations of the sytem makes it good and profitable. You may laugh on this but even a simple coin toss is a system. If you have an RR of 4:1 on a coin toss system you only need to be right 3 times out of 10 to make some money.

 

[kumudhan]

varunji, pl post the afl for this chart....