Hi
As I have received many questions from the above member per PM and toke my time to answer all his questions, I would like to let all of you know how I responded to the basics behind the above post from him.
Trying to open a trading business by not even being sure what will be done, is in no way to recommend. Keep this example in your mind as a worst example and never ever plan it the way this member does.
I know this is a hard post, but it will keep away at least others from being stupid by just trying to start trading business like this members tries to do and in that way I did good to others and bad to dear JTG.
Sorry JTG, but what you plan is just ridiculous and has no future. Please spend the money you want to start with in trading options to the poor or keep it and learn an other year at least about options and how to trade them. In that way you at least will be able to make some decent profits, in case you do not find a mentor which can teach you live and daily.
Now lets me move on and let you show what happened:
Hello Dan, hope u doing good.
Well now i believe its time when i want to jump completely into stock market n fulfill my passion in next 2-3 months as i m really fed up on dirty politics happening everywhr in corporate. I knw its kinda too early as i know hardly anything abt movement of market except few technical indicators and do keep a watch on news around.
I wud really like to hv ur kind advice for a jump start. Wat wud be the best way i shud start my journey and build upon good knowledge n success over it.? I m sure ur valuable advice will really help me in fulfilling my passion. Kindly advice.
My answer:
Here a list of subjects which just jump in my head and you have to over think:
Starting trading capital?
Starting saving capital you can live from and how long you can live on that?
Platform knowledge?
Order placement knowledge?
Commissions you have to pay for any trade?
Taxes?
Newsletter with good value. Any you are interested in?
Working at home or in an office?
If work at home, how looks your working place and how is your family dealing with your new job?
Internet connection?
Akkus for handy and laptop or how do you get electricity for your tower in case there is non?
Normal telephone connection?
Back up of trading data and what kind of external hard disk can you use in case your system is infected?
Data Source and can you safe your data there?
Time frame you want to trade?
Sport activity's you can do beside trading to keep the body a bit in shape?
Alcohol or any drug problems?
Family problems or other problems you are not in control of?
Self discipline?
BEGINNING TRADING PLAN with all what you have to include in it?
His PM:
Thanks a lot Dan. Your precious advice always matters.
Hello Dan. Hope u doing good.
I have realised each n every step suggested by u above and have started taking utmost care of them.
Now other thing i realised that inorder to hv good returns, i will stock to options trading. Thus, i m trying to learn different option strategies, starting with straddle which i think is quite easy as a startup compared to other strategies. Kindly advice if i hv choosen a good strategy as a startup or if u can suggest something better which will increase my knowledge n learning potential.
My answer:
Hi dear buddy
Two points we have to clear:
Nr. 1
There are endless option strategies around which can be traded in different markets. I have around 66 strategy folders and in each one of those folders is one detailed option strategy trading plan for a specific market or trend or market situation or range in that specific market. This is called: A full range of bullets for what ever happens.
As you trade at the NSE, you not have many choices like the CME offers on option trading. But that is not the point.
Nr. 2 is the point". Where to start?
As you tell that you want to do a start up in live trading, you should trade what you know and not what you do not know. So I am a bit surprised by what you ask.
How good are you in stock trading and how good are you in future trading?
Let us clear that first and then lets move on to the next point.
Thank you Dan for your kind advice as always.
Now answering to point no.2, as a beginner, I have learned few technical stuff like RSI, Bullish candlestick pattern(like engulfing, piercing, etc).I learned technicals, started trading, but fear always dominate me then greed. I am always in control of my greed but fear is something that makes me panic.
After consistant loss, i realised that market is more than just indicators. So i started reading newspaper, watch tv, visit forums, etc and realised that market follows news n rumors and not technicals. But the things is i am never able to decide my entry, exit n sl points. Due to this, i gain in penny and loose in dollars.
I hope u might hv understand my current trading skills. Rest awaiting ur further kind advice.
My answer:
Before even thinking to move on to options, you need to make money with what you do now. So forget options for the moment and for the next near future.
Trading plan: What is your trading plan? Did you ever make a real trading plan for what you do now?
If not, that is what you will have to do next and nothing else. No more trading, just evaluating a trading plan.
Are you analyzing your market you trade every morning and how do you analyze your market? Analyzing the market you trade every day before you enter it is a must.
In my opinion: You need a mentor or help from a senior trader in India. I not can give you that help as I not have that time and as I trade the CME and not the NSE.
Any way: The next two questions are on the table. Lets talk next tomorrow.
Thanks a lot Dan for your kind advice as always. My answers are given below:
Trading Plan - I visually see the graph, guess the trend and take position. I also check the trend by plotting series of EMAs which was derived by columbus and it helps me.
Analysing - I hv maintained an excel sheet about my trade details but never analyse them. And in morning i do analyse the opening bell by looking at global markets around.
Rest awaiting ur further inputs.
My answer:
Hi
From here I not can analyze what kind of mistake you make when you trade, as you say you win little but loos big.
Is any body in you near you can trade with? So you could work together and analyze your trades, specially the once you lose big.
If you have a screen shot program like picpick, you make screenshots from such trades and send it to me with the explanations of:
-What was the reason or reasons why you toke the trade.
-How did you enter the trade and what was your stop loss strategy include your order placement for it.
-How or what was your adjustment strategy for any case at the moment you entered the market.
- What was your exit strategy or target at the time you entered the market.
-How did you managed the trade during the time you where in the market.
-What did you do when the trade went against you and what did make you think to act the way you did in that situation.
-When and how did you exit the market and what did you make thinking to act the way you did in that moment.
His answer:
Hello Dan, thank u, as always, for ur valuable suggestion.
Please be informed that currently i am out of town for next 2-3 weeks for project related work so am out of trading, but will be online on forum sometimes. As soon as i get back home, i will update you with the necessary information.
DanPickUp
