Thoughts on Day/Swing Trading

[kumarvar1122]

Dear Dan

First of all: One mistake nearly all beginners make when want to start trading: They assume that they will make money from the begin they start trading. Reality shows that this is very unlikely. It is exact the same situation when you started in your new job after finishing your education for it. At begin you acted like a beginner and only after time you started to understand what is going on in dept in that specific business.

Very true, it was the very same attitude that drew me to learn trading initially, but the more I learnt methods, techniques, systems from this thread and TJ, I started realising the other (and most important) side of trading, i.e. losing.

It was all possible only because of comments and experiences shared by you and other expert traders. Thanks for your words, I certainly have changed my attitude towards trading, that it is a journey with ups and downs.

One simple rule for small accounts: First double the account and after that double your size of positions. If you have a losing row, go back to one position until your account is again on the amount it was when you doubled it.

Thanks very much, I will try to do so when I start trading in a month or so, may be I will try to protect my capital for few months which would give me immense confidence for the fact that I was able guard my capital from veterans like you .

One thing I am really scared of is my emotions, which could have adverse effects in a business like trading, can you or other friends please suggest methodologies or rules so I can practice it to have my emotions under check.

ST sir, Mods, Senior Members, I am not sure if I can ask these questions here or should I be heading to beginners section. Please guide me through.

Thanks in advance for trying to assist/guide me.

Thanks
Kumar

 

[DanPickUp]

Hi

As you have now many tools in your hand, trading psychology is one of the tools learned best by doing it and feeling it in reality. Reading about it will not bring too much.

Why do psychotherapists put there clients in to situations in where they can feel what makes them a problem? Because it is the only way they can feel it and then they can talk about it.

Most important thing: You have to overcome any loss you make. That is the main thing in trading psychology and you have to feel when you feel good and when you feel bad by taking any position in the market. That in a very small nutshell is the: Trading in the comfort zone. If you think you need more knowledge about that: Search for post's about Mark Douglas.

DanPickUp

 

[friendforevers0007]

need help st bro i am into trading for past 4 years the thing i have learnt alot of things i do trading only based upon money management no technicals. i wan to lern technical analysis i saw some of your reviews but i want to use some real time software currently i downloaded eod data from chart nexus can you help me out.. any software which i can use initially free and set ups for intra day i use nse india charts . as you said for intra use some higher time frames.. so which is not available on nse site please help me out..
txx

 

[friendforevers0007]

dear st

I am into trading for the last 4 years. I did trading just by money management no technical at all . i saw some of your review in this thread but as you know its not easy . i start doing some technical by using free eod software from chart nexus and for live i use nse india site as you mention in the thread which i saw till now use some longer period like 30 min for 5 min can you guide me any free software for live data feed in which i can saw 30 min time frame too. and can you help me out for learning technicals too and strategy n all as far till date i earn just because of money management

 

[Smart_trade]

dear st

I am into trading for the last 4 years. I did trading just by money management no technical at all . i saw some of your review in this thread but as you know its not easy . i start doing some technical by using free eod software from chart nexus and for live i use nse india site as you mention in the thread which i saw till now use some longer period like 30 min for 5 min can you guide me any free software for live data feed in which i can saw 30 min time frame too. and can you help me out for learning technicals too and strategy n all as far till date i earn just because of money management

I think financeyahoo.com will give you 5/10/15/30 and 60 min charts. These charts are delayed but that should be ok initially, later you can go for softwares like Amibroker, Metastock or Metatrader and go for live data feed.
There are some utilities which people have developed in this forum which extracts data from yahoo finance and fill in Amibroker. I have not used these
utilities as I have subscribed to paid intraday data.

Smart_trade

 

[Smart_trade]

When Not To Trade Is Very Important Trading Decision

Last few days have been sideways range days and the up moves as well as down moves are very fragile and they are not holding up. I have received many pms, phone calls from traders who are either trading their own methods or trading on calls given by others . And as these systems are mostly trend following systems they are hitting stoplosses regularly . Some call services have had 8-12 stops hit consecutively on full quantity, thus seriously damaging the trading account of some traders.

Trend following methods need sustained trends in the timeframe which we trade. Though the market trends only 25-30 % time, there is a trend on larger or smaller timeframe. Trend following systems cannot make money in sideways markets where trends are not durable tossing us in both the directions.

I have done some posts about how to know whether the market is trending or not. A trader has to understand the structure of the market he is trading and mindlessly following trend following systems in sideways, small range markets saying that " Descipline and Faith on the system will make money finally" is like banging our heads against a wall and saying if we do it with discipline and faith,one day the wall will break.. It may put our heads out of shape.

In such markets it is better to step back and not to trade till the market is in the sideways range....or trading smaller lots is very essential in preserving the capital and being able to keep the gun powder dry so that when the market comes out of the range and starts trending we can go with all guns firing.Large and continuous losses also put pressure on the mind of the trader and I really wonder whether after 10-12 continuous losses even most " disciplined" trader also will be able to take 13th and 14 th trade.......everyone should ask this question to our own minds....After sideways phase a trend will always come....it is much more cyclical in nature...so be financially fit to take full advantage of the trending phase...

So preserve your capital, trade small in sideways markets.....dont do "Financial Harakiri" in the name of discipline. Remember that " When not to trade is a very important trading decision too "

Smart_trade

 

[trade4joisar]

I have done some posts about how to know whether the market is trending or notSmart_trade

If anybody need post, they can get here, if there are any please post here.

http://www.traderji.com/day-trading/49521-thoughts-day-swing-trading-9.html#post540286

 

[techtrader2]

Thanks ST...in this market majority of systems being followed by traders I speak to are going through drawdowns or having a large number of losing trades.......everybody is complaining...so these words by you are worth their weight in gold...if a trader can keep out of the market 3 out of 12 months in a year when it is sideways he can really be saved lots of emotional turmoil...i am going to act upon your advise...

 

[DanPickUp]

http://i49.tinypic.com/vemz68.png

 

[DanPickUp]

Guess most of you just asked your self: What the heck is that? P&F traded in the Yen in side way markets which changed the level from time to time.

The problem with such markets are to know how to hedge your self in the right way for any move up or down when it is needed.

As every body in the forum dams side way markets, I love them. They are money making machines. Trade them the right way with the right hedged strategies and you will make money.