Fudge style trading . My log , My journey . Seniors kind guidance needed

[hedgefudge13]

Hey guys ,

Hope you guys are doing well . I have finally decided to become a professional full time trader . (age 23) . and Been reading researching and testing alot . and wanted to share my trades here so senior members can find faults and hopefully help "one of their kind" , get better . My dream is to be one of the few extremely skilled traders alive (i can see many of them on this forum , ST sir , Saint sir etc.. )

So below are my rules :
1. my capital is small and my stomach is not strong , so i take positional trades only on nifty . The rest I am basically a scalper . 0.40rs-0.70rs/share , I am happy .

2. I am a scalper/day trader by personality but i donot believe I need to trade everyday . Due to using 8-10times leverage per trade . I generally make 0.75%-2% if a trade goes right and can loose 1%-2% when a trade goes wrong .

3. I am still working on the risk and reward ratio to be honest cause , if i hold my trades 40%(aprox from paper trades) of them could give me around 4% returns per trade , but i am very impatient and fear of a reversal . I need to work on this . anyone have any tips for this ?

4. My approach is to gauge if the market is strong or weak for the day or at that point in time . And trade shares which support that view . (Basic tape reading). Then i use price action to enter and exit when either my stomach says enough or my greed is satisfied .

5. My monthly target is 10% . As many seniors said that this is practicle target and achievable with alot of effort , skill and knowledge .(still dont think i have enough skill and knowledge in me . )

6. Would love if people could comment and guide me in my journey .

So , thats basically my plan . I'll be posting below my trades for the day or positional(if any taken) . would love some criticism cming my way .



Regards,

Fudge

 

[healthraj]

All the Best. Hope you will stick to your Rule number 5 of expecting only around 10% every month.

So you have to answer to yourself,

What if you make or loose 10% in the first week itself ? Will you continue trading for the month or will you wait for the next month?

 

[hedgefudge13]

well when I loose a good % of money . I generally stop and take a break . Until the markets become favorable again .
I am still working on these things .

Ty for support

 

[jahan]

Hello,

From ur post #1.......u said that u paper traded ur strategy...see my experience tells me that paper trading is not enough.... u need to feel real trades in order to eliminate emotions/fear/impatient...etc.

in order to be a consistent trader..one of the rule is diversification....but u r trading only nifty positional....means u can't get 10% every month...but u can achieve 10% on monthly average basis if ur strategy is proven/backtested.

see u also asked about exits...my experience says that stay in the trade as much as possible avoid quick exits...and its take most of ur patience but end results will be good.

Regards,

 

[raul12]

Hello Fudge,

Firstly, All d best in your venture as a FTT:thumb:.
Btw I'm also in similar age group as yours and trade when I get time from my day job

Anyway Pls keep in mind that both of the following are EQUALLY DETRIMENTAL to your long term equity appreciation:
1. Holding onto stocks even after SL is hit
2. Exiting a profitable holding prematurely before it hits the target because of fear.

My main point here is to emphasize the significance of pt 2 because most of the traders do this and don't even realise that they are committing a mistake (as you get profit out if this). It happens on account of traders psychology.

 

[hedgefudge13]

Hello,

From ur post #1.......u said that u paper traded ur strategy...see my experience tells me that paper trading is not enough.... u need to feel real trades in order to eliminate emotions/fear/impatient...etc.

in order to be a consistent trader..one of the rule is diversification....but u r trading only nifty positional....means u can't get 10% every month...but u can achieve 10% on monthly average basis if ur strategy is proven/backtested.

see u also asked about exits...my experience says that stay in the trade as much as possible avoid quick exits...and its take most of ur patience but end results will be good.

Regards,

True sir . I generally day trade Stocks and only keep nifty as positional . My problem is with the exit part . Currently I am using ATR as the stoploss . but its huge , around 130-150 points .. still not sure abt this . would be awesome if you could throw a few ideas on this .


Thanking ,

Fudge

 

[hedgefudge13]

Hello Fudge,

Firstly, All d best in your venture as a FTT:thumb:.
Btw I'm also in similar age group as yours and trade when I get time from my day job

Anyway Pls keep in mind that both of the following are EQUALLY DETRIMENTAL to your long term equity appreciation:
1. Holding onto stocks even after SL is hit
2. Exiting a profitable holding prematurely before it hits the target because of fear.

My main point here is to emphasize the significance of pt 2 because most of the traders do this and don't even realise that they are committing a mistake (as you get profit out if this). It happens on account of traders psychology.

Hi Raul,

K my first question .. How do you trade with a full time job !!? especially an indian job where the pay is low and they say 8hurs working but turns out to be 18hours working .

secondly I donot have problems with ruthlessly cutting my losses . As you will see in todays trade i cut my loss and after that the stock moved in my direction and hit the target (I will post the chart below). But holding on to the trade is a problem for me . I think i am overcming this problem slowly as I am seeing the amount of money i could've made if i would have held the stock .


Thanking ,

Fudge

 

[hedgefudge13]

ok today's trades .
Today turned out to be bad for me . I had 3 trades , out of which 1 Trade i couldnt execute cause the stupid terminal got an error while i was confirming the order and just shut down
It was a 1.5% return

1st trade (which i couldnt execute , TechM)

As you can see the arrow was a buy when it had tested and failed breaking R3 , from looking at the market strength , IT index strength and the stock strength , it looked like it would retest the R3 and probably break it . but it couldnt break R3 .

2nd trade (Was on the right side of the trade , but cause of my risk aversive nature , my stop was a bit too close and it got hit , after that tatasteel zoomed towards my target and achieved it)

3rd This was an impulse trade and I got into the trade late . It would have been profitable if I had noticed the breakout on nifty earlier and if it would have hit my in the head that bank stocks are very high beta stocks . But , well lesson learnt i guess . Another mistake , SBI was a strong stock of the day , I guess I was safer to short something like PNB , Bank of baroda or Axis bank as they were a bit weaker .

So , Lessons .
-I need a higher stop . So that I dont get whipsawed .
-When breakout happens on nifty , quickly attack the banks
-Get a new terminal !!


NOTE: I am currently testing another strategy or an observation based on tape reading .today it had around 66.66% successrate . But one day is too less to test . Will be checking it for like a week .


Would love to get some feedback from seniors on my entries and exists and how to improve my odds of success .


Thanking and Requesting,

Fudge

 

[amitrandive]

So , Lessons .
-I need a higher stop . So that I dont get whipsawed .
How high ?What if there is a reversal against your direction ?Do you want to take a bigger hit?
-When breakout happens on nifty , quickly attack the banks
Sure? How did you get this ?Why not attack the banks when BankNifty breaks out?
-Get a new terminal !!
Absolutely,you cannot experiment with old outdated technology with your bread and butter

Thanking and Requesting,

Fudge

My questions,please reflect and answer.

 

[hedgefudge13]

Extremely good question . I was thinking the same . I am currently risking 0.5% per trade . if you look at the tatasteel trade , I actually exited in fear few piasas before it hit my stop . To my surprise , it didnt even touch my actual stop level and it just reversed . I think it has to do alot with psychology .
thinking for 1% Stop loss and to put the stop at the high of the previous swing AND stick to it .


Would like others feedbacks on this