Trading Guidelines for Me

[BNFTrader]

Trading Guidelines

A great reminder against over analysis, and useless thinking process involving should / would / could have type of thinking.

Decision Points: As far as trading is concerned every analysis should lead to the identification of “Actionable” price levels. If your analysis is not able to identify the price levels where you can take concrete action, it is a waste of time and you are practicing a useless skill. Money is made by buying low and selling high. It is a universal truth. Trading cannot be different. The problem is many traders do not know where exactly the lows and the highs are. You need a slight change in perspective to know this. Markets move in short term ranges. A trend is a series of range breakouts. When the Markets break to new highs, it is always in the lower end of the range above. Once you become comfortable with this reality, you can always trade whether it is trending or ranging. Just buy the range lows and sell the range highs.

By Nifty Nirvana Blogger Smart Trader (Niranjanam)

Thanks

 

[BNFTrader]

Re: Trading Guidelines

Inspired from the thread, Top 5 things I learnt from trading

1. Treating trading as business . . . no over night magic
   
   
2. Markets are controlled environments and are designed to loose money. Trading is dealing with uncertainty. One cannot control how the market behaves but one can control only himself. Market doesn't ask one to trade and hence one should take responsibility of the outcome for which the person alone is solely responsible.
   
   
3. Trust your system and let profits run and cut short your losses. Don't try to predict top or bottoms. Money is made in between not at the top or bottom. Markets can remain illogical for longer duration and never fight with the markets
   
   
4. Always trade as per your current understanding, without worrying about the outcome. Respond to the Price Action, S/R and Volume cues as per your feel of the situation. Trading skills will keep improving with experience. Trade freely without any pressure for being right, learning is a continuous process.
   
   
5. From time to time things can and will go wrong, broker terminal, data feed, external events, all sort of issues will crop up, accept all that as part and parcel of the trading business. Accept every possible outcome of every trade, no matter what. Keep Faith, believe in yourself.

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[BNFTrader]

Re: Trading Guidelines

Hello

Developmental stages of trading are defined by different people in many different ways. But in the most simply terms it can be defined in just 2 stages.

The second being trading successfully :thumb:. While the stage before that is an attempt to establish a trading practice

Establish a Trading Practice:
This stage is characterized by a difficulty in achieving consistency and regularity in trading, and by trading time often being spent doing something other than the trading - planning, coding, browsing, chatting, brooding, daydreaming, etc.

The obstacles that must be overcome are procrastination and resistance, lack of motivation, boredom, fatigue, disappointment and doubt. These problems are overcome through a frequent deliberate review of one’s purpose in trading in order to generate strong motivation, through creation of a practice routine, through goal-setting with regard to trading practice, and through cultivation of discipline and diligence.

Mastery of this stage has occurred when the trader doesn't miss a single trade in a trading session except when it is absolutely unavoidable, and when the trader rarely if ever indulges in procrastinatory ‘time passing’ activities while waiting for their trading session time to end

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[BNFTrader]

Hello

Trading Strategy Notes

I divide strategy into 2 aspects, one is the trend definition and second is everything else including entry, exit, stops, position sizing, money management. Some may find it strange that I consider entry/exit rules, stop loss placement etc as part of MM/Position Sizing, but it just makes sense to me.

Another interesting way of looking at it is, if we consider trading as a conversation of a trader with the market, then the current trend is what the market is telling me and my trades are my part in that interaction. Where i place my entry/stops/exits, how i trail my stops, where i book gains etc
is all part of my response to what the market is trying to tell me, and all of it have to be guided by my risk taking capability aka MM.

No matter, if we like it or not, trader's belief system will impact his trading, it is thus better to try to incorporate them in the trading system itself. If some trader feels comfortable trading buy/sell arrows on his chart then he should look for a completely mechanical system where no decisions need to be made during trading hours.

I believe that I need some form of flexibility, but this flexibility also needs to be controlled with some definite, well defined rules which will never be broken. I am using the trend on BNF Hourly charts to decide the direction of my trades and my trend definition rules are well defined I never break these rules, they are my safety net, but I can use flexibility in sizing, multiple scale-in, scale-outs, part booking of profits as long as my current position size will never violate my overall sizing rules that are in accordance to my risk profile.

I believe, one method for defining trend is as good or as bad as any other method, one can use HH/HL//LH/LL or MAs or ST or any of those fancy colorful AFLs, as long as we have a well defined and well tested system that can be used to define current trend, it serves the purpose. Having said that, I won't argue with anyone who is looking for or is busy researching/designing an Ultimate System, just wish them good luck, All The Best

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[BNFTrader]

Hello

Intention
All of us get into trading for the potential of making big profits, it is the money that we are after.
But while trading the last thing we should do is focus on Money. The Process is what we should focus on.
The trading ledger P&L is just one of the many ways we can keep score of how well we are trading.
How well we have followed our trading guidelines is far more important than how much money we made.
Have we taken actions to implement our trading rules, do we execute all orders without hesitation?
Although money is what keeps us in the game. our trading actions are a Practice at learning to become a better trader.

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[BNFTrader]

Seeking Discipline

Seeking Discipline

Last few sessions I have taken quite a few random trades, breaking the trading rules I am supposed to follow.

The trades did not result in much of a loss but gives me an uneasy feeling . . .

So for next few days will trade Bank Nifty Future Swing System with an intention to execute all the signals as is.


The last signal triggered was Short @ 18935, i am not carrying this short trade.
Starting tomorrow will execute all new trades triggered on the system



Thanks :thumb: