BNF Trading Dairy... Trying to become disciplined

Good Job Brill. your diary is helpful a lot.
Thanks

Do you do trading for living?
Trying...

Do you trade daily? what is your account performance till date?
Most of the days. I started with equity day trading. was so confident that some days traded several thousands of Hindalco. But later sense prevailed as losses mounted. Gone thru many books like 'Trading for a living' by Alexander Elder, came to know that how market is poised against an inexperienced day trader. Yet to recover from initial losses. for last few months trading BNF with mixed result. Because of 'early exit when in profit and not getting out of lossing trades' overall the a/c is -30% down

Have you found any trader on TJ who does trading for living?
Do not know anyone personally. But from their posts could understand that there are many who make consistent profit
Thanks

Most of the time when i book profit the price just move far in my trade direction and create problem in the next trade which i keep on and end in loss.

looking at ur mindset onething u can do is exit at fixed target of 2x (x denotes ur risk)after entry ie if ur initial stoploss is 2 rs at entry u place exit for trade at 4rs and wait for trade to either hit stoploss or 2x target. this way even if only 40% of ur trades hit 2x ull earn a decent profit. u have to backtest if ur system gives 40% success minimum this way .

giving example how this can work if ur capital is 5 lakh and ur risk per trade is 1% ie 5000rs and u get 2 trades avg per trading day then u have 40 trades in a month assuming only 40% of those 40 was succesfull it means u have 16 trades with a profit of 10000 and 24 trades with a loss of 5000 put together gives u a overall profit of 40000 for month which is 8% of ur capital after deducting brokerage slippage taxes u can still earn close to 6 to 7% which is not bad.

once u get entry just put stoploss and target set alert for either happening minimise ur terminal wait for either to happen.
hope this helps.

its unbelievable the kind of advice you are getting here. Sure, i will get backlash but here goes..

First, you are not even eligible for trading with that minuscule amount that you call capital.

you need a minimum of 5Lac and above for trading, but that's only after you have built a solid strategy that works for you.

Reading your comments, no doubt you are a beginner. I will lay out a roadmap so you know where you are headed and how to get there.

Try to understand the below facts.

1. It takes years to gain market knowledge first before developing a strategy. So you will have to take time off for learning. you cannot trade during this time.I would say min of 2 years.

2. While you are STUDYING the markets and NOT trading , you will have to really get into price action and indicators. All technical analysis comprises of Price action(chart patterns, S/R) and indicators(take your pick) .Understand them really well, be it chart patterns or MACD or Moving averages.

3. Understand why a big trading account is required , small accounts will put a TON of pressure on you to make money and will cause all sorts of psychological problems down the road. Which is the problem here.

4. Understand and plan out how much you want to make on monthly basis. It is ridiculous to expect 15-20% monthly even at beginning stages, let alone at experienced stages. It's reasonable to expect anywhere from 3-5% per month and you should be consistent.

if you can make 5% a month for 1 year consistently , then you are a damn good trader.

5. That 5% could mean 1L or 10L depending on your account size. Look at percentages and not mere numbers like salary. Think in terms of percentages only.

6. It will take some time to build emotional discipline, there is no escape from this. Every trader in the world has to work on this. Strategy/Big account size will not help.

So, you will have to first get a job. make enough money (10L and above) ,build as many assets you can.

you are still way way back and the journey is very very long.

Market knowledge + Solid Strategy + Emotional Discipline + Big Account size = chance at success in trading.

Each component has to be mastered , if you skip even one , you are doomed.

To simplify , i will put it in time and stages.

Stage 1 : Market knowledge
Time - 2-3 years
What to learn - Price action and indicators(trends + oscillators)

Stage 2 : Strategy development
Time - 1-2 years(this includes live testing, back testing not really useful)

Stage 3 : Emotional discipline( Real trading begins here)
Time : 1-2 years
Capital: 2-3 Lac
Expected Loss - 100%(These losses or profits will teach you to control your emotions)

Stage 4 : Big Account
Time : 1-2 years
Capital : 5L and above
At this stage , there should be no emotions while trading.

if you can make it through all that , you have a chance. Of course goes without saying proper and simple Risk and money management is mandatory in all stages.

Good luck !!