General Trading Chat

ST da, I have one interesting observation on trading behavior.

Many times, new traders are not able to give up their bad trading habits like going against the trend or hope/pray mode etc. Although their system shouts at them to exit the loosing trade OR hold on to winning trade they are unable to do so. They will hold loosing trade thinking that markets will reverse or dump the winning trade fearing to keep to much of profit on table. In both ways, they suffer. Sometimes they take impulse trades by going against current trend, against their own trading system and again suffer. They are aware that they are committing mistakes and thus delaying their ultimate success but still they are unable to change their trading pattern. Something like, they are forced by habits to act against their own interest.

What do you suggest? How to come out of these bad trading patterns? Its not about system but psyche or behavioral pattern that leads to losses?

Thanks & regards,
Gaur_Krishna
 
ST da, I have one interesting observation on trading behavior.

Many times, new traders are not able to give up their bad trading habits like going against the trend or hope/pray mode etc. Although their system shouts at them to exit the loosing trade OR hold on to winning trade they are unable to do so. They will hold loosing trade thinking that markets will reverse or dump the winning trade fearing to keep to much of profit on table. In both ways, they suffer. Sometimes they take impulse trades by going against current trend, against their own trading system and again suffer. They are aware that they are committing mistakes and thus delaying their ultimate success but still they are unable to change their trading pattern. Something like, they are forced by habits to act against their own interest.

What do you suggest? How to come out of these bad trading patterns? Its not about system but psyche or behavioral pattern that leads to losses?

Thanks & regards,
Gaur_Krishna
Market has uncanny ability to teach and reinforce wrong things on our minds. The market goes against us, we dont cut our losses and then market reverses giving us chance to profit from a loosing trade. So market imbibes on our inner mind that "look if you had cut the loss, you would have unnecessarily lost money....now you saved that loss" and our mind accepts and thinks that not cutting loss is a right thing to do and cutting loss is a waste of money. Same is with booking profits early..many times we book profits early for no reason and then market comes back evaporating our profits...the market tells our mind that "look it was good that you took profits...else now it is gone....." so slowly mind gets conditioned with wrong practices and then market throws a real big loser at us which cripples us, then we take oath that we will follow good trading principles ...and the cycle continues till we get a next crippling loss which takes away all our capital.

I always think that all the traders have at some point or the other suffered a crippling loss...we have made small money here and there before it but this large crippling loss has wiped out all the gains and all of our capital...this happens with every trader. Now just think that you acted as if you are on the other side of your trade meaning you have many small losses. small profits but instead of large crippling loss, you have a blockbuster trade which gave you career best profits and now think how lucky you would feel yourself to be....instead of crippling loss, you now have a huge profit in your ledger and small profits and small losses...but never a large loss...good trading practices help you achieve exactly that.

While testing and developing your trading method, you have to consider that the method should be profitable considering all losses and costs....then only it is a real trading method.Stoploss is to prevent those large losses which will take away all your profits and your capital.

Smart_trade
 
Just ok day for me today, not great.

I wonder who is the trader here who makes full use of the rally to get in on open (as open was nearly low of the day) and got out near close at highs??


Dear ST? Ans who else? :)
Wont say that I made full use of the rally...did not buy at the low of the day but I went long inbetween ,held till the end, also carried some long position for tomorrow. Overall made money :) I am pretty fine with that.

Smart_trade
 
Last edited:

XRAY27

Well-Known Member
Wont say that I made full use of the rally...did not buy at the low of the day but I went long inbetween ,held till the end, also carried some long position for tomorrow. Overall made money :) I am pretty fine with that.

Smart_trade
yes da !! see today trades total three trades with +5 and -12 but last one got +48.. net just 36 after cost...not able to get the entire move !! happy with this because after all i will trade low risk entires ...
 
Dow and snp @ life high ??
see the charts of the US indices. A lot of "M" and "" patterns.. and + WW



The PSU banks had some serious damage today,Canbk, BankIndia, Allahabad etc..
 

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