Your real confidence will come with the experience. When I first started trading, I was buoyed tremendously by making a few really good trades. Just as quick as I was up after making some good ones, I was down after some bad ones.
Real confidence came after several days, weeks, and even months of constant repetition, and watching my account grow on a consistent basis. At your level, enjoy the high times, but be aware to deal with the low times. Eventually you will be at the point that you have the identical mindset when you lose or win you have a big winning trade. You will enter a zone where making trades is just a part of business. The confidence is in knowing your methodology and margin practices are the principles and the foundation of why your account keeps growing.
Don't worry or be too encumbered over how much you earn on a daily basis. Your goal should be to just develop consistency. The earnings will just fall in place. Even though I am an excellent trader, I still have to shut those things out on a regular basis. Just the other day I made 30%. That feels good! I would like to keep it up. The focus still needs to be to just show up at work and do my job.
Most of the time, the mindset when someone places a trade right after a losing one is to make up for the previous losing one. Wrong way to think! If you find yourself thinking that way, then take the 1st losing trade, shut the computer down, and walk away. Your equity is less than when you started the day, but big deal! That happens. That is business.
The flip side is getting over-confident. You make 3 straight winning trades, gain 10% on your account, and now you ("You" is a figure of speech. Not necessarily referring to YOU.) believe you are indestructible. That thinking will hurt the trader just as much as feeling they need to get back at the market.
The hardest part of trading that you will develop is the intangible part, and that is that mental part. It takes patience. It takes patience being willing to watch your account grow $50 per week (Just an example.), because you want $20,000 week RIGHT NOW!
There is a reward in patience. This is the one thing I hope you gain from all this. If you take the 7K you have now, be patient, and you were only able to make 1/2% per day, you will be a millionaire in a little over 2 years. I understand perfectly we all need to be rewarded for our efforts, and so I'm almost certain you will be pulling some winnings long before you make 1M, but you get the picture.
Here's another way to look at it, and it is practical. Take the 7K, grow it 1/2% per day, then withdraw 25% of your winnings each month, you are a millionaire in 33 months.
Having said that, I did say don't make goals. Just aim for consistency. Just by doing that, 1/2% will become a walk in the park to you.
As far as trading strategies go, that has to be personal. You can learn and gather ideas from other traders, but the final culmination of your methodology will be exactly what is right for "chaitu". I can't tell you to scalp, daytrade, or position trade. I can't tell you what to trade. This is because our trading has to be catered to our makeup. I believe my methodology is the best there ever was. BUT...that is not a fact. That is my confidence speaking, and no one could ever convince me to trade different than I do. In the previous paragraph, I mentioned the core principles. Those are the absolutes. Your methodology is the thing that is personal.
Thanks 4xpipcounter,
yup,
The ones i had huge losses were situations in which i had 1-2% profit by 2:00 PM, yet dint book them thinking i'll get more, and ended up incurring loss due to Auto- square off at 2:45 PM
LOL
yup the point is to be satisfied with 1-2% a day and be unemotional. I'm trying to achieve that, being a novice day trader.
I ve already made some progress from Rs.7000 to Rs.7600 by making Rs.200 on 3 consecutive days, now i feel confident a bit.
I've actually stayed away for a few weeks after being bashed from 24k to 7k.
Dunno why, whenever i made a loss and entered another trade on the same to day to make up for it, i again lost the next trade.
That also counts into the emotional part i think.
Any more suggestions or trading strategies?
Thank you.