Discipline is the key - My trade logs

I have been passive reader in this blog for some days now and wanted to take the plunge by putting this first thread of mine.

My objective is to become a consistent winner in day trading stocks. The key to become a consistent winner is by disciplined approach towards trading and towards life itself. So i want to put it in writing here, what i want to do in my trading life and define related other activities.

I want to use this as my trading journal and as a general guide for my life around trading, which will ultimately help me to become a disciplined trader. I want to update this thread at the end of every day. I also want to read this first post of mine every day, as the first activity once after switching on my PC

I - Other related activities, which help in general life and in-turn helps in trading
1. Wake up by 5:30
2. Go for walking by 6. Remember that brisk walking really helps in brisk mind and supplies energy for the entire day. As trading is a tough job, going forward, it really requires good amount of concentration. Physical activity for 30 mins really helps u in this.
3. Rest for 15 mins minimum
4. Prayer and Meditation for 20 mins. Start the prayer with atleast 20 Thoppukaranams (Super brain yoga - http://www.you tube.com/watch?v=KSwhpF9iJSs).
5. Routine activities, kids school etc starts at 7:15, ends at 9am.
6. Break fast between 9 to 9:30
7. 9:30 to 10:00 - Analyse US/Europe closing. Dont watch news channels. Dont read any reviews from experts. Dont visit any blog. Dont analyse any chart. Prepare systems for trading by 10am

II - Trading
1. I begin with capital of 10k. Revised to 20k wef 01Dec10
2. I trade only in stocks
3. My risk per trade is max 1%, ie, Rs 200
4. My risk per day is max 2% ie, Rs 400 (2 loosing trades, then iam done for the day!)
5. My Profit target per trade is 1:1, 1%, Rs 200.
6. My Profit target per day is 2%, Rs 400, ie on 2 successful trades
7. If at all i trail and run the trend, then i trail it at 1% on a trade.
8. I will track only 3 symbols and trade only those
9. I will not trade before 10am
10. This is going to be the setup till end of Dec 10, before reviewing it further...just do it...dont bother about anything else

III - End of the day
1. Review trades done during the day. This is important since we will remember what happened during the day. If we miss the evening then chances that we may not remember what exactly happened at the particular moment when we acted or not acted.
2. Record as per the template and post it here
3. Analyse/Select symbols for next day's trade. What is the criteria?, i dont know right now. But selection process does involve
-- finding out whether any news items set to pan out during the next day.
-- movement in the share during the day (previous day)
-- news items wrt the stock's Sector
-- important supports/resistances in daily charts and marking the same in intraday chart

IV - Other related activities, which help in general life and in-turn helps in trading
1. Always have ur dinner between 8.30 to 9pm. Make sure that u plan and carry out other activities, studies, chart analysis, household work, going out, temple visit etc in such a way that it does not postpone ur dinner.
2. Hit the bed between 10 to 10:30pm


Wish me luck

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Edit logs:
12Nov10-Added point nos 9 and 10
14Nvo10-Added sections I, III and IV
30Nov10-Capital revised to 20k and all other points in Sec-II Trading is changed accordingly
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nice to see dat u want to be disciplined from the start itself & not succumbing to greed!!

but a reward to risk ratio of 1:1 is a strict no no IMO!! if ur risk is 100 Rs.....ur reward shld be at least 200 Rs.!

Iam a beginner here in this blog and not in trading life

It is around a year now ! Having said that, i have been reading stuffs and testing strategies. After 6 months, when i paper traded one of the strategies, it came out well. Although there were times, when i could grab >1:1, iam unable to predict reasonably well when that reward is going to be more than 1:1. So let me, for the sake of success, begin with 1:1.

And after that when i started to trade real money, it was not so pleasing, mostly because of discipline issues. So this thread should make me a good disciplined trader and a person .
I believe nothing succeeds like success and for success, one needs to be disciplined enough.

So wish me luck in this adventure :thumb:

All the best Narass :thumb:

My best wishes and best of luck to you my friend...:thumb:

all the best let sairam be with u in all ur trades dear

Hello Venkatesh,
please elaborate more on point 1 and 2 still didn't understand

Regards

It was about trading with pivot/support/resistance. And probability of our stop getting hit is low.

If you really do what you wrote, you are definitely not a part of "the herd". And you don't require any one to wish you luck either.

Source : been there, done everything, still doing