Trading Journal based on "Teach a Person to fish ..."

Hello

I am using this space to blog my attempt to use the method tought in the above mentioned thread for doing intraday trades.

I am learning to trade. I have read that only 5 to 10 % succeded in this profession. Also that intraday trading is toughest of all types of trading. At the same time intraday is also the best form of trading to learn trading. I will be doing paper trading or mock trade.

I will be getting the setup done for software and data input, if it gets done ok then will start blogging about trades tomorrow, if not then whenever its done.

Meanwhile I will try and summerize the method in my own words.

Thanks
nb


Link to the Original thread with SAINTS' Lessons

Link to My Post with Concept

Hello,

Had some one told me this can happen I would never have believed it. I was actually frozen out, could not think, and did not see what I can see on the charts now. Wow what a day.

My first day at day trading (mock) and we have had a monster.

I guess I was already biased on the short side , so i took a short at 5087 (1 lot). After that round 11:23-24 there was a spurt of 20-30 points and i knew i have to square, but decided to hold on.

The market opened up and I registered the price being quoted (at which i could have squared) in my log (5140). I had planned to have a stop of about 30 points. (I learned today that even if i had the SL in the system it may fail to square the trade, the SL jumped is what they say ).

The market again showed a dip and the price had to retrace just about 10 points to convince me its time to get my money back, so i logged another short trade (5130, this time with 2 lots).

To my horror, the price kept going up from there as if it went down to just con me into taking that revenge trade. This time i decided firmly to take my 30 points stops, but seeing the price movement i could not log the price, i kept waiting for a 4-5 points retrace, finally had to log the price of 5190.

Then something happened that i would have never ever believed, i just sat there watching the ticker running away, don't know what happened, just sat there frozen, every 5-10 points retrace looked a very good selling point to me, did not short as did not have guts for it.

But the worst part is never ever during those 4 -5 hours it occurred to me that i can take up a long position, it’s just so wired, can’t think of another word for it.

So today’s trades

Short @ 5087, squared @ 5140 ==> - 60 * 50
Short @ 5130, squared @ 5190 ==> - 65 * 100

Nett loss Rs. 9500

Gosh, it’s so easy to lose 10 Gs in a day!

I am mad at myself, will not get into could have/would have, but should have …… anyway, thinking I should take a break, maybe for a month

Learned a lot, will take some time to assimlate and make notes.

Thanks
nb

Attached Images

20071009 Trades.PNG (15.9 KB, 106 views)

Hello

One question for readers of this blog/journal

What would be the IQ of a person shorting the charts attached?


Thanks
nb

Attached Images

20071009 Why would anyone short this monster.PNG (17.7 KB, 131 views)

You are taking break only after doing one day of trading in PAPER!! That too for a month!Why dear? TO ASSIMILATE? GOD!
Why don't you take 100 days of intraday history of different time frames,code your thoughts or ideas in the language which your software understands,which includes entries and exits,and simply BACKTEST the idea.Learn the pitfalls of ur idea by this process.
This will save your 1000 days.As you will need to take several breaks of several months,each time after you will think that this is the time I will restart paper trading.
GOOD LUCK.

Just Some Practical View On Your Summary.

1) Irrespective Of A Long or Short, One Has To Be Prepared To Cut & Reverse The Positon & If You Can Visibly Figure Out Reversing The Position Is A Very Good Idea, Then Why Not Double The Quantity Probably Together Or The Second Lot With A Little Upside In The Favourable Direction.

2) It Is Apparent You Were Biased In Your Strategy On The Short Side & Was Not At All Prepared For The Long & That Explains Your Being Frozen.

3) One Should Be Nimble Enough To Be Prepared For Everything Atleast In Mind.

4) Don't Give Up or Feel Dejected, Just Be Better Prepared & To Be Better Prepared Follow What The Smart Money Is Doing In Terms Of Index, Sectors & Stocks....

5) Don't Worry, The Market Humbled Many A Domestic Institutional Investors (DIIs) Who Have Been On The Sell Side For The last Few Days. The So Called Experts Managing Tons Of Retail Money.

SavantGarde

Hello Sir

Thanks for your comments, guess what you are the first one to do that on this thread.

If you really thought i needed a break, i was sucessful in conveying my feelings. What i meant was it was so frustrating that maybe ....

Hope you got the picture.

As for your suggestion of using past data, i have been specifically instructed not to do so. No backtesting, no coding, no indicators. Just Higher Highs and LLs and then add S/R & trend lines in due course, nothing else to start with.

Its just price action for me, for the time being.

Thanks
nb

Hello Sir

Thanks for your comments. I find them very encouraging and constructive, will remember what you have said.

Hope i continue getting your guidance

thanks
nb

What?
You mean you want to believe somebody else than the market itself? Without using past data,how will you know that your idea of trading is right in most of the cases?
Some wrong ideas:
1.

2.
But a right and very good idea is also there in ur post:
For a technical anayst or trader,backtesting is like the rudder of the ship which gives direction.
Remember this friend and you can develope a very good trader in yourself,in scalping or in swing trading.

Hello again

Thanks for your post. According to you, what is the time as in number of months / years that are required to learn to trade. And what would be the road map?

I have heard that backtesting concepts without understanding the basis behind them is a sure way to failure. To understand any concept being applied to markets one has to first understand price action and related issues (volume et al), not only as in theory but also getting a feel of it is necessary which can happen only if one were to trade, and to speed up the process, noting like ID.

Anyway, would like to see the road map you propose for learning to trade.

Don't know who said it, I quote

"To Learn the things you need to know, you learn by doing them!"

Thanks
nb

Well,I think you have some misunderstanding here with this term of 'backtesting'.
Firstly tell me what is your idea of a 1."system" and then
2.what is "backtesting a system"?