Day Trading Stocks & Futures

Not having a single loss day in 3 years is impressive. Yes, large losses spoil entire month. But in your method, we get drained out in whipsaws and non-trending (sideways) markets. Whenever you came across this situation, what did you do? How did you handle it?
I did not say that I did not have a single loss day.I had my share of loss days but I did not have a single large loss day.My system has well defined stoploss and if the market goes against me I will take the loss and close the trade and never be in a hope mode that the market will comeback and move in my direction.It is a normal and acceptable loss of 1% per trade and less than 2 % per day ( max only 2 losing trades in a day ) and it is considered while backtesting the system so it is an acceptable loss.

Whipsaws and sideways markets are facts of trading and no one can avoid them completely.We can reduce them by avoiding trades in sideways range markets. I have fixed maximum 3 trades which can be taken in a particular day.If first 2 are in loss, the trading for the day is stopped and no third trade on that day.Normally I used to get 2 good trades, one in the morning session and one in the afternoon session....

Smart_trade
 

sanju005ind

Investor, Option Writer
@travi and @TracerBullet

Following is the excerpt from Mark Douglas's book Trading in the Zone. Chapter 11 First paragraph.
I am sure you might have read this book.
------------------------------------------------------

In the process, I'll take you through the three stages of development of a trader.
The first stage is the mechanical stage. In this stage, you:

1. Build the self-trust necessary to operate in an unlimited environment.
2. Learn to flawlessly execute a trading system.
3. Train your mind to think in probabilities (the five fundamental truths).
4. Create a strong, unshakable belief in your consistency as a trader.

Once you have completed this first stage, you can then advance to the subjective stage of trading. In
this stage, you use anything you have ever learned about the nature of market movement to do
whatever it is you want to do. There's a lot of freedom in this stage, so you will have to learn how to
monitor your susceptibility to make the kind of trading errors that are the result of any unresolved self valuation issues I referred to in the last chapter. The third stage is the intuitive stage. Trading intuitively
is the most advanced stage of development. It is the trading equivalent of earning a black belt in the
martial arts.
 

travi

Well-Known Member
@travi and @TracerBullet

Following is the excerpt from Mark Douglas's book Trading in the Zone. Chapter 11 First paragraph.
I am sure you might have read this book.
------------------------------------------------------

In the process, I'll take you through the three stages of development of a trader.
The first stage is the mechanical stage. In this stage, you:

1. Build the self-trust necessary to operate in an unlimited environment.
2. Learn to flawlessly execute a trading system.
3. Train your mind to think in probabilities (the five fundamental truths).
4. Create a strong, unshakable belief in your consistency as a trader.

Once you have completed this first stage, you can then advance to the subjective stage of trading. In
this stage, you use anything you have ever learned about the nature of market movement to do
whatever it is you want to do. There's a lot of freedom in this stage, so you will have to learn how to
monitor your susceptibility to make the kind of trading errors that are the result of any unresolved self valuation issues I referred to in the last chapter. The third stage is the intuitive stage. Trading intuitively
is the most advanced stage of development. It is the trading equivalent of earning a black belt in the
martial arts.
The intuitive stage is the most intriguing, where the contra position comes into play :)
However unlikely, it always follows through. Exact same case when there was TD seq at 7500, never felt more gloom, and yet the markets turned in a big way.

From Tapatalk
 

travi

Well-Known Member

sanju005ind

Investor, Option Writer
Operator will make it green or any other color they like, but continuing from last week, 9150 is today's test.
Let's see, but looking for pullback as mkts suggest.

From Tapatalk
3 days to expiry .expecting a good short covering in BN one of these days. That sector has been beaten badly.
 
Last edited:

sridhga

Well-Known Member
Operator will make it green or any other color they like, but continuing from last week, 9150 is today's test.
Let's see, but looking for pullback as mkts suggest.

From Tapatalk

Over a period of time, I came to believe that the operator is just an imaginary person who does not really exist. (Atleast in the case of large caps and index). Maybe, Mr. Market is the operator?
 

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