Employee aspiring to be A FULL TIME TRADER

[trendtrade]

Hello Santosh.

It is a great decision to write such trading journal and share your progress on the forum. Hopefully some members will point out the normal mistakes that most of the new traders go through and you will be able to learn from them.

So far, the BIGGEST PROBLEM that I have with your trading method is that you do not seem to have any proper mechanism to limit your loss to a manageable level. You seem to be taking positions without any specific stop loss and you are keeping overnight positions open, without any hedge. This could wipe your account in one single day, without giving you any chance of any type.

Please focus on the RISK MANAGEMENT PART. You should not experience BIG LOSSES like the one that you have recently gone through. Please choose a method in which you can keep the loss money value to a manageable level. This will obviously reduce your rewards as well, but that is fine.

Market Profile is a good concept and it will help you a lot to understand the overall price movements. Do spend some time on going through the books that you have already purchased. And try to understand the underlying theme of Price and Value and how they both interact with each other, as the market auction mechanism takes place.

Wish you the very best.

 

[Mishra_86]

Hi Santosh! Welcome to the forum, and congrats on your success in option selling. It's great to hear that you've been able to consistently earn profits over the past few months. Achieving financial freedom is definitely a long journey, but with determination and perseverance, it's definitely achievable. However, it's also wise to keep your job while you build up your portfolio, so you have a steady income to fall back on. Just an opinion. Looking forward to follow your progress and trades through this thread. Do you have any specific strategies or techniques that have worked well for you in option selling?

 

[BDN]

Very interesting thread

 

[Santosh_Kumar]

Hi all,

Update after 1 month.

As a part of my job, I was transferred from Telangana to a remote location in UP. I did not expect this at all. It is a worst thing happened to me at this stage of my trading career. Need to make lot of travel and there is no proper internet connection in this area. Hopefully will come up with a way to get adjusted to this new challenge.

Coming to the trading update....

Completed reading 3 books which I was purchased in March 2023 - 1. Mind over Markets. 2. Mind markets and Money. 3. Anyone can learn Market profile. Lot of new insights and I believe it will add value to my existing setup. I can at max do 2hrs practice in a day. Decided to complete back testing, forward testing and paper trading by June 30th. Will update on my thought process after 1 month.

Cheers...

 

[Santosh_Kumar]

Hi Santosh! Welcome to the forum, and congrats on your success in option selling. It's great to hear that you've been able to consistently earn profits over the past few months. Achieving financial freedom is definitely a long journey, but with determination and perseverance, it's definitely achievable. However, it's also wise to keep your job while you build up your portfolio, so you have a steady income to fall back on. Just an opinion. Looking forward to follow your progress and trades through this thread. Do you have any specific strategies or techniques that have worked well for you in option selling?

Thanks Mishra_86!
Yes, Last 8 months are better but still too far from overall profitable. I have been practicing the candle stick formations.

 

[Mishra_86]

Thanks Mishra_86!
Yes, Last 8 months are better but still too far from overall profitable. I have been practicing the candle stick formations.

Good to hear that. ATB!

 

[Santosh_Kumar]

It's trading time again. I will be operating in futures (1 lot) in only intraday and test my strategy till this month end.

Watchlist for 12.06.2023:

1. Apollohosp - Bearish
2. JSWsteel - Bearish
3. Tatasteel - Bullish

 

[trendtrade]

Any special reason to be operating in the Futures Segment? If you are not going to create SHORT Positions for multiple days, then using Stocks/Equities during the learning phase is advisable.

Many traders loose big money, when some huge overnight move happens in the Futures Segment and this puts them under a lot of stress and pressure. In stocks, this pressure reduces comparatively and therefor it is advisable for the learners to trade in stocks instead of derivatives.

 

[timepass]

Any special reason to be operating in the Futures Segment? If you are not going to create SHORT Positions for multiple days, then using Stocks/Equities during the learning phase is advisable.

Many traders loose big money, when some huge overnight move happens in the Futures Segment and this puts them under a lot of stress and pressure. In stocks, this pressure reduces comparatively and therefor it is advisable for the learners to trade in stocks instead of derivatives.

Nowadays, I think, the brokers allow you MIS sell only from your holdings.

 

[Santosh_Kumar]

Any special reason to be operating in the Futures Segment? If you are not going to create SHORT Positions for multiple days, then using Stocks/Equities during the learning phase is advisable.

Many traders loose big money, when some huge overnight move happens in the Futures Segment and this puts them under a lot of stress and pressure. In stocks, this pressure reduces comparatively and therefor it is advisable for the learners to trade in stocks instead of derivatives.

Thanks @trendtrade. Me too had the bad experience while BTST in Futures. This time I will closing the positions on the same day. I have been practising for past 1 month so will be expermeating with 20% of the capital. Will see the progress for 1 month in Futures intraday.