10 straight SLs and 2 trades to recover

#1
Dear Fellow Traders,

I recently had an experience which shook me and almost had me rethink about my confidence in trading.
For 3 days , I had Stop losses hit across 10 continuous trades.
I am a purely Technical Trader, all SLs are put on the basis of TA and reading and interpreting charts.
Though over a period of time I have learned how to set SLs and do not risk more than I can afford to lose, most of my SLs are very tight and I have also learned to accept SLs as part of the game.
I began thinking as to should I keep wider SLs.( In Options even a 0.10 point difference makes a big difference with lots being of 8000).
Also made me think if my strategy is not working or should I be something else?
What happened on the 4th day was almost unbelievable. Just 2 trades which went in my favour were enough to cover the losses of the previous 10.
Though I must admit, I was very hesitant to carry out those trades but did them as I felt I cannot let such instance shake me and this was a chance to recover losses.
Again the Psychology reversed. Now I think that my strategy was right but the market rewards you only when it wants to, not when you want it.:lol:

I am sharing this with fellow traders as I believe most of us go through such experiences now and then.
 
#2
Nifty & Infy Futures trades at 5000 & 1950 today makes it all the more important!

It is nice to hear those 2 trades that covered your 10 loss trades. It does no good to your confidence on getting consecutive losses.

Some ideas -

Stoploss is a very tricky stuff. Tight stoploss keeps throwing one out of trade with losses, and, liberal stoploss allows one to have large loss in wrong trades.
Stoploss needs to be decided on TA & system testing and the position sizing can be done on the basis of stoploss and how much one is willing to lose in a single trade (money management). While the size of stoploss has no bearing on rewards, it helps you to cover yourself. Again all this depends on system test results - how many continious loss trades, payoff, no. of profit trades / loss trades, etc., Looking at the Equity Plot assuming the worst, that is the maximum decline in equity to prepare one for the worst. Again, since 'Past performance is not indicative of ....' you need to add some additional buffer / margins!
 
Last edited:

avad

Well-Known Member
#3
Dear Fellow Traders,

I recently had an experience which shook me and almost had me rethink about my confidence in trading.
For 3 days , I had Stop losses hit across 10 continuous trades.
I am a purely Technical Trader, all SLs are put on the basis of TA and reading and interpreting charts.
Though over a period of time I have learned how to set SLs and do not risk more than I can afford to lose, most of my SLs are very tight and I have also learned to accept SLs as part of the game.
I began thinking as to should I keep wider SLs.( In Options even a 0.10 point difference makes a big difference with lots being of 8000).
Also made me think if my strategy is not working or should I be something else?
What happened on the 4th day was almost unbelievable. Just 2 trades which went in my favour were enough to cover the losses of the previous 10.
Though I must admit, I was very hesitant to carry out those trades but did them as I felt I cannot let such instance shake me and this was a chance to recover losses.
Again the Psychology reversed. Now I think that my strategy was right but the market rewards you only when it wants to, not when you want it.:lol:

I am sharing this with fellow traders as I believe most of us go through such experiences now and then.

Nice 1.

Cheers and hapy trading:clapping:
 

rh6996

Well-Known Member
#5
Thanks button NOT ALLOWED to me it seems...is happening a lot lately!!
It was indeed a very good expirience to share. Will boost the confidence and resolve to be disciplined for amny others. Thanks a lot!!
 

praveen98

Well-Known Member
#6
Dear Fellow Traders,

I recently had an experience which shook me and almost had me rethink about my confidence in trading.
For 3 days , I had Stop losses hit across 10 continuous trades.
I am a purely Technical Trader, all SLs are put on the basis of TA and reading and interpreting charts.
Though over a period of time I have learned how to set SLs and do not risk more than I can afford to lose, most of my SLs are very tight and I have also learned to accept SLs as part of the game.
I began thinking as to should I keep wider SLs.( In Options even a 0.10 point difference makes a big difference with lots being of 8000).
Also made me think if my strategy is not working or should I be something else?
What happened on the 4th day was almost unbelievable. Just 2 trades which went in my favour were enough to cover the losses of the previous 10.
Though I must admit, I was very hesitant to carry out those trades but did them as I felt I cannot let such instance shake me and this was a chance to recover losses.
Again the Psychology reversed. Now I think that my strategy was right but the market rewards you only when it wants to, not when you want it.:lol:

I am sharing this with fellow traders as I believe most of us go through such experiences now and then.
Hi Ketan,
We not only need to have a SL so that we will not be taking more loss than we can afford?
But we should also learn to take position size of what our account size permits? isn't it?
All the Best,
praveen:clapping:
 
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