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[Satyen]

Hi All I am in , will ask the stupidest things i imagine related to trading here

 

[Sunny1]

Hi all,
now a days all my trades are going in loss. Whatever i do i am making losses.
Dont understand wht the hack is happening. Anyone had similar experiance plz share and advice. Frustrated from past two days of heavy losses.

 

[vssoma]

Hi all,
now a days all my trades are going in loss. Whatever i do i am making losses.
Dont understand wht the hack is happening. Anyone had similar experiance plz share and advice. Frustrated from past two days of heavy losses.

dear sunny,
as of my experience.....
before one month, i had same problem, like...what ever i touch, torn in to losses. even i make money by short sell then after i don't know why i am entering in long positions and i was end up my days with big losses. then i took one week of vacation and came with fresh mind with new spirit. now it is ok.
so when you feel....like.., what you are feeling....just take a break of 3 or 4 days and one important thing is don't look at market during vacation. just enjoy your day. i think it'll work.
good luck.

 

[AW10]

Sunny. I agree with Swamy's suggestion. Lets take a case of driving, when u are in old city, you automatically drive at slower speed then when u are on ring road. In cricket, when batsman is facing a bowler who is killer on that day, they are happy in taking singles and staying on the pitch to face next bowler. (i.e. we adjust our response to latest situation)
So why it can't be applied here. We all go thru ups and downs in trading.. and losses are part of this business. It is going to hit always.We can't avoid them. But we can certainly improve on who we react to them..

First is to realise that you are going thru down phase (sooner u realise it better you will be).
Then comes your response to it.. One approach is to stop trading. Other could be to switch to paper trading mode till u gain the confidence and market conditions are favourable to your trading style. Third approach could be to reduce you trade risk size.

One of the trait of successful trader is that they know when to scale-down and when to go aggressive.

Hope u remember that I talk about setting your per trade/ per day/ per week/ per month loss limits. If one has done that . .then it is just matter of self control to check against those limit and take action. We can't afford to keep giving back to market always. As the nature of game, yes we have to give back something to market.. but we can very well control how much we are willing to give back. That is when defining your loss levels as improtant.

hope this helps.
Have enjoyable trading

 

[AW10]

AW,

There is a technique to set GOALS

SMART Goals:
A useful way of making goals more powerful is to use the SMART mnemonic. While there are plenty of variants, SMART usually stands for:

S Specific
M Measurable
A Attainable
R Relevant
T Time-bound

For example, instead of having to sail around the world as a goal, it is more powerful to say To have completed my trip around the world by December 31, 2015. Obviously, this will only be attainable if a lot of preparation has been completed beforehand!


Lets try to set trading GOAL

I want make use good profits using technical analysis .... is this proper GOAL ?

Here Goal is not measurable so -- incorrect

I want to make 2000rs this mth .... is this proper GOAL?

Now Measurable,
but ..we dont know if its realist or achievable since the capital to be used is not mentioned--- hence incorrect



My goal is to trade well in disciplined manner-- to make rs 6000 on a capital of 3 lacs of rs of capital using risk and money mgmt rules and knowledge of technical analysis and incase i happen to loose more than 2% of capital then reduce the trade size and trade in cash segment.

Specific -- trade well in disciplined manner

Measurable--- to make rs6000


Attainable --- Since we have a plan , tools and knowledge its seems possible


Realist--- seems realistic to get 2% returns in one month for a capital of 3L

Time bound--- One month




This is the way we take first baby step by defining our trading GOAL

1) Define the trading goal..

2)start working on a plan, time schedules, Disaster mgmt rules --- write them down

3) Take plunge into trade

4) Monitor trade

5) Close trade once tgt achieved or

6) If trade goes against you then follow a disaster mgmt rule

Thanks Sanju for sharing this structured approach of setting goal. It very well addresses the HOW part of setting goal. We should keep SMART parameter in defining the goal..

But it does not address WHAT part of my question.
I have seen majority of trader (including me in my early days) start with "I want to make X amt of profit in Trading". Without knowing what trading is, what are the core pillers of trading, without having any strategy etc.. this goal most of the time goes in dust bin. In my view, Profit is by-product of trading. If we perfect the art of trading, then profit is guranteed, it is just matter of time.. But I think, it doesn't work in other oppsite direction.

So, according to me.. if I have to set the goal addressing the foundation of trading.. then it would "Learn to keep my losses small".
Loss means accepting that I am wrong. It is difficult cause we are hard wired in outside world to be RIGHT always. In that world, being wrong has -ive consequnces.. and hence we can't react in the same mindset here too.
Out of 4 outcomes in trading (big profit, small profit, small loss, big loss), only thing that needs to be avoided is 4th outcome. And hence most challenging part is our hesitation in accepting small loss.. which finally turns in to big loss.

Some people might say that if we focus on loss, then we will attract only loss.. which might be true.. hence we have to keep our goal clear. And once we have achieved some level of perfection in keeping our losses small, we have to move our focus to profits.

Now coming to how part
- Define your per trade/ per day/ per week/ per month loss limits
- develop yr approach for how u are going to implement it
- Select instrument where u can trade your strategy with these limits
- Paper trade / market reply in amiborker and take trades meeting these criteria, put stoploss and let your eyes and body see those stops getting hit
- come to real market and trade with such small loss limit (It can be as low as 10 rs per trade risk.. where u just buy 1 qty of stock and put 10 points stoploss as per your trading approach). Ofcourse need to watch the brokerage part..hence find suitable brokerage
"Idea here is not to make killing money.. but to learn to keep losses small".
- Track your performance at the end of month and rate your performance and see if things have improved or not.

Benefit -(1) your mind will start accepting that a loosing trade is not bad. You will have to keep passing that msg to yourself.
(2) You start seeing stops and do background calculation quickly and improve yr skills to keep losses small.
(3) You would know when to slow-down and apply break on yr trading.

This will be my approach.. but I am sure, people might have different opinion.
And nothing wrong in that.. cause we all are individual and have our own preference. I would be happy to get feedback on this.

Hope this helps
Have enjoyable trading

 

[Pchartis]

thankyou AW10 for starting this thread
Newbies like us needs such a place
...........I would like to ask here what is it thats keep motivationg all of (besides money) sucessful traders and how do they cope time management as besides trading one has to learn from various sources like net,books etc
along with their personal commitments.
I found time management very difficult as i always lacks it when it comes to trading & learning
Do share your views and experineces

AW10 : Thank you very much for all your contribution,time and guidance to all

Regards,

 

[Sunny1]

Sunny. I agree with Swamy's suggestion. Lets take a case of driving, when u are in old city, you automatically drive at slower speed then when u are on ring road. In cricket, when batsman is facing a bowler who is killer on that day, they are happy in taking singles and staying on the pitch to face next bowler. (i.e. we adjust our response to latest situation)
So why it can't be applied here. We all go thru ups and downs in trading.. and losses are part of this business. It is going to hit always.We can't avoid them. But we can certainly improve on who we react to them..

First is to realise that you are going thru down phase (sooner u realise it better you will be).
Then comes your response to it.. One approach is to stop trading. Other could be to switch to paper trading mode till u gain the confidence and market conditions are favourable to your trading style. Third approach could be to reduce you trade risk size.

One of the trait of successful trader is that they know when to scale-down and when to go aggressive.

Hope u remember that I talk about setting your per trade/ per day/ per week/ per month loss limits. If one has done that . .then it is just matter of self control to check against those limit and take action. We can't afford to keep giving back to market always. As the nature of game, yes we have to give back something to market.. but we can very well control how much we are willing to give back. That is when defining your loss levels as improtant.

hope this helps.
Have enjoyable trading

As always very lucidly write up by you. how manage to explain in such a lucid way.

And of course I remembered setting loss limits but reserved your advice for future use as I have kept my capital very low.

well I agree too wth Swamy's suggestionand next 3 days is holiday I will keep away my mind from market and trading . only relaxation and meditation .

From monday I will keep my number of trades very low and rest of trades will
be paper trades.

Will try lots paper trades. lets see what happens.

Will be reporting next week .....

 

[nac]

well I agree too wth Swamy's suggestionand next 3 days is holiday I will keep away my mind from market and trading . only relaxation and meditation

:rofl:

I was about to ask you to go for a vacation after reading your earlier post. But swamy did it already. TJ members are fast in giving a solution. If you are seeing so many negative days, better take longer vacation than this three day market closing. They were asking you to go out for vacation not staying in the same place and do meditation. Atleast go out watch movies, spent some time with your friends/family. If you are residing in coastal area go to beach. Go out somewhere...

 

[Sunny1]

:rofl:

I was about to ask you to go for a vacation after reading your earlier post. But swamy did it already. TJ members are fast in giving a solution. If you are seeing so many negative days, better take longer vacation than this three day market closing. They were asking you to go out for vacation not staying in the same place and do meditation. Atleast go out watch movies, spent some time with your friends/family. If you are residing in coastal area go to beach. Go out somewhere...

As of now movies seems to be better option. I know they talking about
vacation but not possible as of now.....

already had a whole month (jan-feb) as holiday. went to mumbai for some work but did not done anything there other than resting...

also meditation is such powerful we know how to do and it needs practice.

 

[tvrssvk]

Can we really make good money trading?

If so, is it a concentration of full time or part time?

Since I am already making a profit of around 15-20% from my business, will I be able to come close to that by trading.

I also think now learning(investing lot of time), is it worth.....later.....for a slow and steady income.......