Path to Consistency

Subhadip sir,as you doubled your money in 40+ trades many times :clapping:
my off topic query is-did you ever trade 20+ Banknifty Futures lot in your trading career?

Yes........

Dada boddo bhul hocche je.

I don’t go overboard beyond my size limit, I know where I will crack. Why to even trade a size which beyond our handling (emotion) capability.

May be I got you wrong at the first place and missed the essence of the query on compounding. May be you are asking is there a way of unlimited (Hypo) compounding of position without buckling on emotional front. Then none of my post was a direct answer. Let me answer that now:

(Pardon my big post)

What is Money - Lots of definition around - here is my favorite:
Money = Effort (Energy) X Time
Transaction = Money Transfer = Transfer of Energy
Explanation:
A farmer spend his time on the farmland and with all his hard work he grows the crops. He sells it to the hoarder or stocker -> Gets Money.

A doctor treats his patient (with his skill, which he earner by investing his time X energy) – and charge money.

Doctor buys food from hoarder or stocker --> Pays money --> transaction complete --> transfer of energy

Farmer falls sick --> Goes to Doc--> pays fees --> transaction complete --> transfer of energy

The whole life is like this (exception exists).

Now on trading , what we deal with – is a live getway (market) of energy – incoming or outgoing. We can handle that flow only as per our capacity, unless grid failure (emotional setback will happen).

Now the issue is different person have different personal bandwidth of handling the load --> 2 persons with 50 lacs may not be able to handle 3000 qty similarly, but they will definitely handle 300 qty, better than a guy having only 2 lakhs.

So, I guess it is simple, we don’t have really fine tune this unless we are looking for Nobel here. Trade size needs to be proportional to Fund allocated. My theory is simple, 1 Laks 1 Lot (75 qty), it was more when Nifty Lot size was lower, I guess few years ago.

So if my capital is 5 lakh, my lot size is 5. How I found it? By trial and error.
Will I be able to handle 40 lots overnight if my fund somedays grows to 40 Lakhs? Not sure. But will surely find out where I am panicking and will be stopping with that lot size – 1.

This has been my way – need to not be right on paper. Following this as long as it holds good. The day it won’t, I guess I will search again.

Good job. Well said....:thumb::clap::clapping:

sir how many points slippage did you face trading that huge lots?

i am reading your thread,i thing you use sl-market orders only,right sir?

That time , most of the time 8 lots..not more than that.. generally not that much slippage 1 to 2 point max... never had any bad expereince

in big size lots, never give market order my dear friend....

ohh
then which order type to select sir,pls help me sir

Only Limit order my dear friend...

unable to scroll to 5th page.

Are bhai,when you come to that stage,you will understand all these things....

Smart_trade