Need advice from seniors: Should i stay off market after this loss? Really?

[suri112000]

Most of the people embark on intraday trading thinking they would be able to make a fortune in very short period. I am writing this post explaining the intricacies of intraday trading. Intraday trading has some restrictions to make most of the traders to fail in this fascinating sport. The restrictions include limited time period, inability to see higher TF impact. I give one example. Suppose the met department forecast this monsoon is going to be excellent. The met department has a time period of 3-6 months period to prove it is right in its forecast. But we can not trade on long side intraday because no one can predict each day or each hour or each minute to be a rainy day. Monsoon can be erratic for quite few days even though overall movement is positive. The market need not move positive on any day even if the day is clearly rainy day. How the monsoon is going impact on a daily basis to trade intraday with limited time. Likewise many other factors impact intraday trading.

The solution is to take up positional trading on higher TF especially on monthly, or weekly charts until you become comfortable with the rhythem of the market. During this period use only 10% of your capital to test the waters. Trading is for masters who are experienced for more than 10 years.

 

[Vivekra79]

As a solution, I have selected one of the option from Ur post only dear..
Paper trading....yes , it's paper trading first but the question is how n based on what formula and all?
So the simple answer is ..u can't learn market technicals in one day or month.
So better is to ..paper trade on someone s advice.
Xxxxxxxxxxxxxxxxxx xxxxxxxx
I m not a tip provider.

 

[kingsmasher1]

As a solution, I have selected one of the option from Ur post only dear..
Paper trading....yes , it's paper trading first but the question is how n based on what formula and all?
So the simple answer is ..u can't learn market technicals in one day or month.
So better is to ..paper trade on someone s advice.
Xxxxxxxxxxxxxxxxxx xxxxxxxx
I m not a tip provider.

Thanks, i feel i am not that new to the market to take someone else's advice to paper-trade. I still say, i am good enough at trading and still have the confidence to double my account, if i pitch-in.
What happened was just a one-off incident which threw me off the market, and i am staying out more due to religious, emotional and psychological issues and not due to technical deficiencies of trades, but yes - there is always scope for improvement which i will definitely leverage while i am sitting out.

 

[headstrong007]

Paper is like shadow boxing... It's needed for practice. But u can't be a successful trader from direct paper trading. Successful traiding need a long time, its a process. Not a holy grail method which can be found using paper trades...
So my advice as a trader real-life trading using just 3-5 units of stocks is more beneficial. Suppose u r trading SBI-ICICIBANK-DLF-RELCAPITAL, TATASTEEL, TATAMOTORS etc good stocks from future section both for positional and some time intraday too (intraday only when u think big move possibility due to event/result after u have traded it positionally enough times successfully.
Why 3-5 uniits? not one unit. Bcoz try to use position size also, averaging and partial profit booking also part of the game.
It'll not hurt even u make loss for a longer of time in swing trading. But slowly u'll get the experience from real trading which no paper trading can teach...Always write down the thought behind decision-making process along with ledger. Analyze every week.. Successful trading is a process...U need the skills to do it..

 

[Satya.]

how mny lots of vedl u shorted in total?

 

[Satya.]

i read ur story,dis loss iz bcuz of averaging,no prob
dnt take a break,no paper trading
u hv enough skill 2 make money,so it'd b better if u stop averaging,cut d position as soon as u c its closing blw ur price n abt 2 hit ur sl
a wise trder wnt wait 2 hit sl
so,better if u strt again wid 1 lot,hope u hv dat mch capital left 2 trd

 

[kingsmasher1]

how mny lots of vedl u shorted in total?

It may seem like an excuse, but to be very honest - I was in a half awake state that day, just getting up from food poisoning effect, which i had been suffering from last Saturday, my decision making capability went real bad.

What i recall is, VEDL is 3500 lot size, and on a daily trend it was clearly to go up, there was a gap-up that day (on last Monday), and foolishly i went short, after the first bearish candle, not sure why. It went up, and i had left it as-is thinking to average.

Mistake - I averaged it without having it the full run, and then, it went higher and higher up, and i averaged more, and finally reached a point where i didn't have any more funds to average. The position size i recall at one point changed to around 2 lakhs where 3500 is the lot size...lol (the stupidest thing one can ever do). Also, to add salt to wound, since i didn't have funds, i squared off old positions, and added more to see the average sell price increase, but foolishly forgot tht, squaring off old positions, is adding to my loses since my buy price increases as well !!

I squared off (waiting would have gained me profit), only to see later the position coming down more and more.

I have averaged quite a lot earlier not to this foolish size though (but mostly 98% of the cases in short positions, and gained nice profits intraday), but never acted as dumb as that day. I still wonder, what happened to me, as if i didn't have control over my mind and body.

 

[varunkochhar]

Only one advise buddy never never never average a losing trade. Only average aka add winning trades. That is what the professionals do. Add (average) strength never weakness and trail your stops. Averaging a losing trade is like revenge trading. Never works out. For example if stock A is at 100 and you buy. It goes to 90 you buy again (bringing your average down to 95) but still the price at your last buy was at 90 so you are below that price. Now look at this example. You buy at 100 it goes up and you add(average) more at 110. Now your average is 105 and you have added at 110 so you still have that 5 rupees cushion of support.

 

[Satya.]

u dint ans hw mch lot size u shorted ovrall which made u lost 4L?
if avrage loss is 6pts per lot den 21k/lot loss,does it mean u traded almost 20 lots of VEDL?

2 trd 20 lots of vedl,u shud hv atleast 35L Capita

 

[Satya.]

Hope its nt a case like-u had only 5L & u lost 4L,now u left wid 60k-1L in a hand?
some1 had similar stry here & d guy is missing now,may b he lost all of his money.

dear,if u hv 10L capita,den u can rcovr ur loss,else,considr u already out of d game