Before the trade....

the tape

Well-Known Member
#1
I am usually studying the markets when they are closed, watching the charts, looking for something and have succeeded in finding that something so looking for more ! Many of us do that. these are all discoveries on our personal levels and it's too hard to explain what we found ( and some of us don't like to disclose those cracks for simple reason, that is " i found it " ).

Now i am assuming that there are many like me who have a system that is a profitable one, have strategies which if traded with discipline can give profits CONSISTENTLY. I mean to say that we have a strategy and plan and blah blah... But, when it comes down to final showdown ( trading session ), we mess it up. we take impulsive decisions and right after entering or exiting the trade, we regret it or when we are in the position, sometimes it becomes too damn hard that we are no longer holding the position but instead the position is holding us. and that too for a simple reason, we have lost money in day trading and we are scared of losing more of it. therefore the decisions taken at that time are bad ones. Those decisions are emotional ones. they are out of greed and fear and frustration AND we are not breaking any discipline, they are......

We are talking about psychology here.......

And we will try to beat those emotions by doing all are preparation before the trade and during the play time, we will just let the robot trade....

The fight for me here is not to become profitable in day trading, that i already am. It is for reaching up to a level where losing is not an option........

Since the material would be less i will not be posting frequently.....
 

praveen taneja

Well-Known Member
#2
Bro if u are interested in human psychology I hav one problem hahahahaha not mental but on mkt .listen when i am in profit in any trade try to book as early as possible due to fear .& when i m in loss keep on reducing stop loss thinking that mkt will bounce now Really very upset with this habit of late booking loss .Can u tell wat to do to improve this habit of mine n i think many more will come on this thread with the same problem thnx for picking a good problem
 

Cactus

Active Member
#3
at the time of implement....we normally forget what the rules we had made.......!:D

....another good thread from pipe master.
 

vpsarathy

Active Member
#4
Bro if u are interested in human psychology I hav one problem hahahahaha not mental but on mkt .listen when i am in profit in any trade try to book as early as possible due to fear .& when i m in loss keep on reducing stop loss thinking that mkt will bounce now Really very upset with this habit of late booking loss .Can u tell wat to do to improve this habit of mine n i think many more will come on this thread with the same problem thnx for picking a good problem
I have a time limit that I exit at at 3pm and if it is going my way exit at 3.20 not later than that. This takes care late bounce up and gives extra profit. If the fall is considerable say 60 to 70 points then exit at 3 pm. and close the comp till next morning. No looking back to see what happened after I left, whether it rose upwards or not. This gives good sleep and tomorrow is another day. Donot do more than 3 trades in a stock per day. Stick strictly to stop losses. AS soon as you buy or short sell fix stop loss immediately and place order to sell or buy for double the quantity. Adhere to tight Money Management principles. If you do all this you will not end up having losses more than 4/5 days in a month max that too will be at a controlled level.

Happy trading

vps
 

Cactus

Active Member
#6
when i am in profit in any trade try to book as early as possible due to fear
book profit on half of the position, & hold remaining with trailing stop.

when i m in loss keep on reducing stop loss thinking that mkt will bounce
stop should not be reduced. if trade seems wrong....instead of holding a losing/uncertain position.....get-out immediately....even after booking some loss.
 

AW10

Well-Known Member
#7
Bro if u are interested in human psychology I hav one problem hahahahaha not mental but on mkt .listen when i am in profit in any trade try to book as early as possible due to fear .& when i m in loss keep on reducing stop loss thinking that mkt will bounce now Really very upset with this habit of late booking loss .Can u tell wat to do to improve this habit of mine n i think many more will come on this thread with the same problem thnx for picking a good problem
Most common challenge faced by all mkt participants (except those 10% of traders who are profitable).
IMO, very first step in improving of psychological problem is
1) To accept 1000% responsibility of your action. Convince that it is only u can improve it. If we keep giving reasons to mkt, FII, CNBC, tips from other guru's, situation will not improve.
2) Try monitoring your thought process. If you hear words like - "I hope .. ", "please God...", "Now it is going to bounce..." etc when u are into loosing position.. You know that you are proven wrong by mkt. So time to exit. These are the leading indicators we need to monitor as a trader. We know very well that when a Pivot High is broken on the chart then price is going to rise.. But have we analysed.. what happens when we think in terms of "I hope...".."God.. " "Please..." etc.
3) Start putting Stoploss order (with limit and trigger) before putting the main entry order. We are lot more in senses when we don't have open position. So use it to your benefit...
4) Work on your Belief... by telling yourself, that your job is to take small loss.. All losses were small when we saw them first.. they go bigger when we don't accept them early.
5) For profits taking - use 3 lots.. and keep taking them out 1 after another. When u take 1st lot, it will satisfy the EGO part of your personality.. (that u had winning trade) this will also reduce your risk on the trade. When you take out second lot - it wills satisfy your FEAR...(because not mkt can't take money from your profitable trade. you have already blocked profit).. and let last lot run without emotion.. like a Pro Trader.. and keep trailing Stoploss. If you want to keep it simple then use atleast 2 lots..
6) Move your stops only in the direction of profit. Do not lower them and feed your HOPE mentality.. Hope doesn't work in the market. Be realistic. Loosing trades are part of this business.

All these tips are from my personal experience. They have worked for me... and hope you find it useful.

You can do it man. It just requires working on yourself and your thought process.. You don't have to goto third person, make phonecall, drive to some place etc to fix this..

Happy Trading..
 

praveen taneja

Well-Known Member
#8
wowwwwwwwwwwwwww thnx bro muuuuuah very nice will take not of it but wat if i dont hav money to trade in 3 lots at a time or courage due to losses continuosly for the last 8 mnths huhuhuhu wat to do then?????????
 
#9
Most common challenge faced by all mkt participants (except those 10% of traders who are profitable).
IMO, very first step in improving of psychological problem is
1) To accept 1000% responsibility of your action. Convince that it is only u can improve it. If we keep giving reasons to mkt, FII, CNBC, tips from other guru's, situation will not improve.
2) Try monitoring your thought process. If you hear words like - "I hope .. ", "please God...", "Now it is going to bounce..." etc when u are into loosing position.. You know that you are proven wrong by mkt. So time to exit. These are the leading indicators we need to monitor as a trader. We know very well that when a Pivot High is broken on the chart then price is going to rise.. But have we analysed.. what happens when we think in terms of "I hope...".."God.. " "Please..." etc.
3) Start putting Stoploss order (with limit and trigger) before putting the main entry order. We are lot more in senses when we don't have open position. So use it to your benefit...
4) Work on your Belief... by telling yourself, that your job is to take small loss.. All losses were small when we saw them first.. they go bigger when we don't accept them early.
5) For profits taking - use 3 lots.. and keep taking them out 1 after another. When u take 1st lot, it will satisfy the EGO part of your personality.. (that u had winning trade) this will also reduce your risk on the trade. When you take out second lot - it wills satisfy your FEAR...(because not mkt can't take money from your profitable trade. you have already blocked profit).. and let last lot run without emotion.. like a Pro Trader.. and keep trailing Stoploss. If you want to keep it simple then use atleast 2 lots..
6) Move your stops only in the direction of profit. Do not lower them and feed your HOPE mentality.. Hope doesn't work in the market. Be realistic. Loosing trades are part of this business.

All these tips are from my personal experience. They have worked for me... and hope you find it useful.

You can do it man. It just requires working on yourself and your thought process.. You don't have to goto third person, make phonecall, drive to some place etc to fix this..

Happy Trading..

Dear friend,

you rightly said all.

regards,

nick
 

the tape

Well-Known Member
#10
What are the things that we should look at before the trade ??

A healthy market. a market that is trendy and not sideways. its so easily said but its probably the hardest part to identify a breaking price. To catch a move that will not return and move ahead.

If a market or stock is directionless, there is a very high chance that the trade would fail but fortunately the recent times are very favorable as the market is usually giving directional moves as the volatility on the daily basis is high. This may again change like it was before when market was mostly sideways.

I am sure u agree with above that if u are trading a stock that is sideways u will loose. any objections ???

We can all have different criteria to decide whether the stock is sideways or not based on the way we trade. we must have it. the ability to recognize not a bull or a bear but firstly a runner.

This can prevent us from the frequent in and outs that praveen mentioned and also decrease the no of trades and increase the profits, if we learn to catch a runner.

The patience word used in the stock markets is not the patience of holding on to winners or loosers, its the patience of waiting for the right opportunity and going against our need to trade.

I will try to post some charts explaining what i think can help us in determining a healthy market.