Trading Experience

suri112000

Well-Known Member
#21
Often we encounter the problem of where to book profit.

I donot know about other traders but I would like to share here what I normally do.

I keep a track of losses and arrive the average of losses.

For example, i have following losses.

40, 20, 10, 80, 50

total of five losses is 200. The average of losses comes to 40.

So, I strive not to book profits below 40 which i consider early exit.

I am free to book profits anything above 40 and more above that level is beneficial to our trading health.:D

This method helps you to reduce your losses by keeping loss booking level below average losses and increasing profits by booking profits above average of losses.

Call it "Loss aversion method"
 
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#22
@ retireby40

Hello sir ,

Can U throw some light (all light actually :D) on scalping ??

How do you trade your setup ? When u decide to enter and exit ? any books recommend to take the grasp ? I am trying to read all scalping posts as possible .

Thanks
Hello O Kabira
Watch videos on youtube about claytrader for more information about scalping. It is not that easy if you have UI like ICICI or HDFC. It requires cutting edge technology with very light UI.

I have given my setup in first couple of posts on this thread. There i have mentioned that i try to enter looking at S/R levels, MACD crossovers and RSI. It is not that foolproof technique.

Sometimes i execute trades within couple of mins while most of the times i have to wait for the price to come to my exit criteria level.
Sample trades given as following.
 
#23
Sirji , I cant see this type of graph on my q backoffice. I tried everything but nothing shows up . Is this a paid service ? I may be wrong . sorry for the posting here but the img was attached in this thread so ..
I don't know but I can generate various reports through Q-Backoffice like this. I have not opted for special serice. whatever available there I use.


Please post your experience as well.
 

okabira

Well-Known Member
#25
Hello O Kabira
Watch videos on youtube about claytrader for more information about scalping.
Hi @retireby40

I have already watched claytrader's channel like 4-5 months ago , and he is good . My trading exp ? . I dont think i am in a place to explain anything b'cuz i am just starting (live) . Though I did Paper trading like for 1 year with 4-5 occasional trades to check strategy . I have started live now only . I am using Crossover system with volume . So far generated 1350 on 4000 account on live account (33 %) .

cheers :clapping:
 

suri112000

Well-Known Member
#26
Hi @retireby40

I have already watched claytrader's channel like 4-5 months ago , and he is good . My trading exp ? . I dont think i am in a place to explain anything b'cuz i am just starting (live) . Though I did Paper trading like for 1 year with 4-5 occasional trades to check strategy . I have started live now only . I am using Crossover system with volume . So far generated 1350 on 4000 account on live account (33 %) .

cheers :clapping:
I feel very small when I watch such intelligent people. Without knowing anything about markets, I funded by trading a/c with Rs.50000 and on the first day of trading i shorted 5000 qty of a share (priced below Rs.100) and booked Rs.4000 profit that day. And that is the only profit I made with that Rs.50000 capital before I blew it. I blew another two such accounts thinking that I would have better chances of winning if i increase my capital and its different story.

Now a days people are becoming smart and learning the abcd of trading with small capital before they increase their capital.

I really admire those people for such awareness.

Nice steps okabira.
 
#27
Now a days people are becoming smart and learning the abcd of trading with small capital before they increase their capital.

I really admire those people for such awareness.

Nice steps okabira.
Suri ji,
Interesting encounter with the market. :)
We would like to hear from you about
1. Your trading style, Intraday, positional or buy n hold.
2. Picks for trading, how you shortlist them?
3. Your experience about how much can be earned consistently in mkt.
4. You prefer Technical analysis/ fundamental analysis?
5. Books to refer?

regards
 

suri112000

Well-Known Member
#28
Suri ji,
Interesting encounter with the market. :)
We would like to hear from you about
1. Your trading style, Intraday, positional or buy n hold.
2. Picks for trading, how you shortlist them?
3. Your experience about how much can be earned consistently in mkt.
4. You prefer Technical analysis/ fundamental analysis?
5. Books to refer?

regards
I believe and prefer no rush trading/investing. In other words, very relaxed way of trading/investing. In my 6 years of experience, I have tried every form of trading ie scalping, intraday, positional. Most of my profits are delivered from swing/positional. You would understand better if I explain with an example.

6 to 7 weeks ahead of expiry I position myself with an option trade. I know maximum loss potential of this trade by expiry. I make small changes to the position so as to reduce the maximum loss and to expand profit potential if it works as per plan by expiry. I trade Nifty futures proportionately to cover up the loss posed in option trade and relax the entire month. If option trade works I am in bumper profit. but if it fails I am normally bear no loss by the end of the month. So, my overall target is 100 + points and it may go upto 300 points as the trade unfolds in my favour and loss potential is almost nil points. Normally I make anything from -2% (very rare) to as high as 15% per month. I am comfortable with whatever I am with. If i am earning anything above 50% per annum after deducting all expenses including income tax obligations is considered as excellent return.

As far as buy and hold strategy is concerned, it is very long term journey. I keep accumulating fundamentally strong companies when they show technical weakness. It is a continuous process of SIP like investment.

The following books helped me to change my perspective towards market.

Trade your way to Financial Freedom - Van K Tharp
Trading for a Living - Elder Alexander
Come into my Trading Room - Elder Alexander
The Disciplined Trader - Mark Douglas
Trading in the Zone - Mark Douglas
ytc price action trader - Lance Beggs
Phantom of the Pits
 
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#30
Here is the last post from my side about my trading experience. I would like to know from others now onward about their plans.

Trading Style
* Scalping / Pivot

5M chart with Supertrend, MACD & RSI
* Crossovers for spotting entries, Setting target
1M chart with Supertrend MACD & RSI
* Crossovers for Entry, Stop

Trading Hours
9.15am to 3.30pm

Pre-market preparations
* Analyze the trend lines on 5m chart
* Analyze the S/R using trend lines and SuperTrend
* Guess the possible range.
* Guess the trend.
* Scan through newspapers for possible news event.

Plan the trades.
* Define entry points
* Decide target price
* Decide Stop Loss
* Define entry time of the day. Mostly don't trade in the opening 1 hr.

Plan the scenarios (Gap-up, Gap-down)
* Spot the Support/Resistance
* Spot the level to pull the plug / exit/ last stand
* Confirm the trend of the market in first 1 hour.

Setting the target
* High Risk - Narrow range targets. most of the time SL get hit.
* Low Risk - Wider rage, Pivot levels, Crossovers.

Trade Execution
* If price action confirms the plan
* Scenarios in place.
* BO/SL order is must.

Exit when
* SL is triggered
* Target is met
* Manual exit

Risk Management (This I could not manage
)
3% of the balance. i.e. Rs. 3000 for 1 Lakh Rs.
RR 1:3 means 1rs stop, 3rs tgt.



Imp Guidelines
* Decide when NOT to trade
- Enough profit? Then don't trade
- Enough loss? Then don't trade
- Volatile mkt? Then stay away
- News / Event / results ? Stay away and enjoy reading.
* Better miss a good trade than being in the bad one.
* Market will be there forever.
* Get in the flow
* No averaging. One lot pyramiding
* Always Wait for opportune moment. No hurry
* No Mobile trading while travelling, poor signal or network congestion.
* No trading while outstation.
* Don't take position when meetings are scheduled in next 1-2 hours

Due to this plan, 90% of my trading in derivatives reduced. I only trade in equity with above rules.
I am still working on this, and I am not able to retire by 40, as my name suggest.