My Trade Dairy - mravi

mravi

Active Member
Closed position at 73 as I wasnt feeling comfortable holding it through expiry.
Wrote 19600 CE. Because of above trade, funds are @ 53400.
 

mravi

Active Member
Wrote 19600 CE. Because of above trade, funds are @ 53400.
BANKNIFTY closed at 19500 level. Which puts my position at risk.
So, today on chance I will exit even with some 800 profit.

I will be also keeping an eye on INDIAVIX. Right now it is trending upwards in daily chart, even though corrected yesterday. If the trend changes I cannot hold this position.

Also I will exit if the stop loss of 2% hits.
 
Wrote 19600 CE. Because of above trade, funds are @ 53400.
Update on this please.

Continue updating your trades. The reversals are a part of the business. Your experiences help the other traders too. So keep it up.
 

mravi

Active Member
After blowing-up money many time, I learnt my lessons.
Hope these will be useful to someone in need like me. I will try to keep it simple.

1. *Before* picking a trade you should know what loss you are willing to take, what ever may be the loss amount you should know it.
- Unless you have clarity on the loss you are going to take, you should not enter a trade.
2. Shift *focus* from entry to exit.
- We all setup charts to find entry point. My learning taught me to setup charts to tell me when to exit.
- This is not same as stop loss.
3. Your *time frame* should depend on the amount your are willing to loose.
- For example, a 3 minute time-frame chart with supertrend signal will keep the losses at 10 to 20 points on CRUDE. 30 to 60 points losses are possible on 30 mins charts. etc..
- Lower time frames can keep losses to minimum, but broker will be happy.
4. Moving averages don't show buy or sell signals. They are just *trend indicators*.
- Of all the best are Exponential MA and Hull MA.
5. *Never trust* crossovers, they are used to catch fish.
- Crossovers provide confidence to buy and fear to exit, everyone knows it, including the big guys.
- Any technical indicator can be made to show a signal as long as the operators willing to take the risk.

Hope it helps someone, who is going through similar situations I went through.
 

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