Do I have what it takes to become a Professional Trader

Do you think a retail trader can become profitable consistently for long time?

  • Yes

  • No

  • Can't Tell


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#21
Well there are n't many and we don't know if it is taken in real time. the one i pointed you to ... i know is real.

lets say, you have trading system, dont search for it in the internet. for the moment, you already traded and you bought in certain place and sold in a certain place. why ?

crystallize it and it becomes a trading system. remember a trading system with 30% success ratio can also be a making money in the long run and even 90% success ratio can be a looser. We are just trying to win more money than loosing, that's all

so we now have a trading system that will be mechanical. so we wait for our setups to come and place orders and leave the market to do the rest.

trading is not like using a machine gun, pulling the trigger randomly so that we hope that the enemy is conquered. it is more like a sniper waiting carefully for the prey to come to an ideal spot..

once you have trading system then you have filters, max trade in a session etc etc. we just execute the plan (things around our trading system, money management, position size, exits partial exits if any)


backtest your system with the capital you are going to start with. lets say 1 lakh rupees. what if you started to trade on 2009 ... will it make money ... if yes. what is the max drawdown. keep this money as a reserve and start trading as per your trading system. we keep everything constant, except the market, because we dont what Mr. Market will do to us. Rest, what we can do we take it in our hands.
I am very clear about when and why I am taking entries. So that part is covered
One part which puzzles me is, I don't have clear rules like how many trades I should take in a day/week or when should I stop taking trades.

The way I trade is, I wait for my entry point and takes the trade. Sometimes the price will not come to the entry price. What should I do on that day? In these cases, it itches me to get into trades. How to handle these situations.

I recognize the importance of system and I lake a clear system obviously.
 

pannet1

Well-Known Member
#22
I am very clear about when and why I am taking entries. So that part is covered
One part which puzzles me is, I don't have clear rules like how many trades I should take in a day/week or when should I stop taking trades.

The way I trade is, I wait for my entry point and takes the trade. Sometimes the price will not come to the entry price. What should I do on that day? In these cases, it itches me to get into trades. How to handle these situations.

I recognize the importance of system and I lake a clear system obviously.
the answer lies in the back tested trade log of yours.

lets say the range is very wide and your trading system takes breakout trade (you buy at the new high). lets say this happens by 9.20 to 9.35 and then for the remaining session the price is maintained within the range and closes near the low of the range. :p

another day, you have the exact same scenario of breakout and the market continuous to make new highs. particularly on the day, you did not take the trade.

so which one is correct. the answer is what rule did you have for your trading system. you have to take all trades according to your system. of course, you can have time filters (no trade after 11 am, no trades after making two consecutive losses). this is all decided from analyzing your back tested trade log.

when you are trading, you will be fully accustomed to your rules and there is no hesitation or fear of any kind and trades are taken mechanically according to them.

which one is most required for you.

a) to remain constantly in the market (or)
b) take trades like a professional.

market does not run away. there is always another day. imagine just making 3% every month is actually very big when you add compounding to it.

100 + 3% = 103%
103 + 3% = 106.9%
.....
 

TracerBullet

Well-Known Member
#24
I dont know whether this amount is trivial for you to loose. If not, then stop. First obtain and confirm your edge using small capital and expect to lose for some time. You will have to pay tuition fees to market while you learn. I used to trade with 1 SBIN stock some years ago ..
Once you have edge then scale up in steps.
 
#25
I dont know whether this amount is trivial for you to loose. If not, then stop. First obtain and confirm your edge using small capital and expect to lose for some time. You will have to pay tuition fees to market while you learn. I used to trade with 1 SBIN stock some years ago ..
Once you have edge then scale up in steps.
Of course, this money is important to me it's just that I couldn't close reliance at my sl but i do think it will turn into profits
 

pannet1

Well-Known Member
#26
Of course, this money is important to me it's just that I couldn't close reliance at my sl but i do think it will turn into profits
atleast squareoff one loosing PUT and sell another Reliance PUT now, making this a limited risk, limited reward bear PUT spread. ideally, the SELL should happen when volatility is increasing (or when the long PUT is winning). But the problem is we are trying to rescue a loosing PUT, making this redundant.

alternatively you could buy some reliance shares, so it will make some money if you continue to loose on the PUT.

the mantra is we survive for a long period of time, then we have give yourself more chances to get back in the game.
 

TracerBullet

Well-Known Member
#27
I couldn't close reliance at my sl but i do think it will turn into profits
This is very very harmful behavior for trading. Stop is stop. How you stop is a decision to be made while designing and testing the plan and there may be many ways to trade. But then you have to follow it.
What you make/loose in one trade is irrelevant. If you cannot follow rules your results will not tell you whether you actually have an edge. So whats the point ?

Market does not care what you/me/anyone at all thinks. Do what you will with this trade, it does not matter. If i say close and you close and then it runs in your favor you will say i was wrong. And vv. But this is not how traders work and this will certainly not work long term.

Read this. I would say read the entire blog ..
 

TraderRavi

MM is the holy grail
#29
Are you trading in stock options from a long time ? If so , can you confirm that stock option premiums are very high now compared to what they were before 20 Sep ( corporate tax cut announcement by FM ) due to increase in volatility. Now option sellers are demanding very high premiums for ATM and OTM stock options.
I have stopped positional trading in stock options due to this reason.
Even in intraday I have taken very few trades as I find stock options premiums very inflated thus unattractive.
 
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pannet1

Well-Known Member
#30
Are you trading in stock options from a long time ? If so , can you confirm that stock option premiums are very high now compared to what they were before 20 Sep ( corporate tax cut announcement by FM ) due to increase in volatility. Now option sellers are demanding very high premiums for ATM and OTM stock options.
I have stopped positional trading in stock options due to this reason.
Even in intraday I have taken very few trades as I find stock options premiums very inflated thus unattractive.
in US Markets, all future scripts are multiplied by same number (100 or 1000 cant remember). there they dont play protective daddy thingy like here in india. if this was the case here, we would have cheaper or variable margin requirement. do you have any idea on what other reason they give for the variable multiplier by NSE/SEBI.
 

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