Help me to cut loss

[rajendrani]

raj,

Suppose at 2.30 your trade is in profit and trend is in line ,hold it for some more time ,you close the trade once the trend goes opposite.

2.30 is considered a TRANSITION point, if market goes down substantially through out the day (pre 2.30) ,all of a sudden it starts rising due SHORT-COVERING sometimes.

Yes now I understand your point and its very true and seen more often after 2.30 the market trend tends to change

thanks bro,
rajendrani

 

[columbus]

raj,

Suppose at 2.30 your trade is in profit and trend is in line ,hold it for some more time ,you close the trade once the trend goes opposite.

2.30 is considered a TRANSITION point, if market goes down substantially through out the day (pre 2.30) ,all of a sudden it starts rising due SHORT-COVERING sometimes.

If you do not want to miss the BUS,you can ride the trend
with ONE lot of minifty immediately after 2.30 but not after 3.00.(too late)

 

[durgalove0]

Thanks all of u,expecially AW10,i analysed my mistakes looking throgh contract notes.I shared following points i got from my mistakes
1.Allmost all of my failure happened AMO order may i bought at high price and sell at low price
2.Even if mkt not favour i still wait in hope it will recover and not exit....Till when i lost money i exit.
3.even in successful trade i donot book profits if Mninifty earn 20 pts profits or in equiy earn 1 rs...at last i thinka bout booked profit at that time it will lose
Suugestions are welcome

 

[durgalove0]

hi
thanks for all supports and suggestions,This week 3 days i gianed,2 days i lost ,biigest lose in today happened due to AMO order in short sell..But overall no gan/loss....This is significant recovery from my past performance,if today loss not there i can earn atleast 2500 this week....
I do not put AMO order never..i have one query what steps need to follow in intraday trading.I donot follow any steps or recommendation...I just watch the mkt,and compare open price,low price high price,how mkt moving and increasing volume .These all
Any suugestions welcome

 

[gaspy]

Hi
I lost around 20000 rs in last nifty series due to oct24 crash.I remain 15000,how i cut loss this seies?
2.my main pblm is that even i get 10 pts ups isquare off the position and take profit,and again buy/sell dependng on Nifty movement,due to this i loss bigger profit or need to pay lot of brokerage and even of 7 trades out of 8 are sucess,i lost all money in 8 th trade.Any body help me to recover loss

If you have 7 success on 8, Either your risk is too high and you are lucky to don't lose all your capital as the beginning either your ratio :expected gain/stop loss is really too small. Because with a ratio of 0,11 you must win.
Or, in a last hypothesis, your pay commissions very too high. I think your risk too much . I don't know the money rs but for example on future, if you have capital of $20000, you can risk on one trade 1% ( 200$) if you trade e-mini SP500 for only one contract, your stop loss must be at 4 points max. If your target is 2 points your ratio is 0.5.
with 7sucess and one loss you can earn 500$. Yes it's "only" 5% of the capital but you can fill 8 trades on 10 days : 0,5% a day.

 

[NOMINDTR]

Hi
I lost around 20000 rs in last nifty series due to oct24 crash.I remain 15000,how i cut loss this seies?
2.my main pblm is that even i get 10 pts ups isquare off the position and take profit,and again buy/sell dependng on Nifty movement,due to this i loss bigger profit or need to pay lot of brokerage and even of 7 trades out of 8 are sucess,i lost all money in 8 th trade.Any body help me to recover loss

Once you are clear in your trading rules then, only then,

1. Have pen and paper.

2. Write down every trader whether an Exit or Stop

3. Be religious in following a simple rule : Stop Trading for the day when you get your first stop (No overnight positions)

4. Shut down your system if your first trade is stopped (Don't look at market for the day, even trending after the point, you can always come tomorrow)

5. Don't break this system even though you get stopped at your first trade repeatedly (Do not switch over to another trade setup)

6. Experiment this at least for 3 months, with very minimum contract size (60 trading sessions approx), even you can try high liquid equity with minimum quantity. Even better than MINI Nifty, be a single stock as AW10 told.

7. Review the performance

8. After your review if you believe you need to improve your trading decisions, then think of that. Not earlier.

 

[learn2trade08]

charts and only charts will bail you out...imagine if you were on the right side of these 3 trades today....
i am 100% sure you can do a better job than this,all the best and work hard.

Hi
I lost around 20000 rs in last nifty series due to oct24 crash.I remain 15000,how i cut loss this seies?
2.my main pblm is that even i get 10 pts ups isquare off the position and take profit,and again buy/sell dependng on Nifty movement,due to this i loss bigger profit or need to pay lot of brokerage and even of 7 trades out of 8 are sucess,i lost all money in 8 th trade.Any body help me to recover loss

 

[gaspy]

Once you are clear in your trading rules then, only then,

1. Have pen and paper.

2. Write down every trader whether an Exit or Stop

3. Be religious in following a simple rule : Stop Trading for the day when you get your first stop (No overnight positions)

4. Shut down your system if your first trade is stopped (Don't look at market for the day, even trending after the point, you can always come tomorrow)

5. Don't break this system even though you get stopped at your first trade repeatedly (Do not switch over to another trade setup)

6. Experiment this at least for 3 months, with very minimum contract size (60 trading sessions approx), even you can try high liquid equity with minimum quantity. Even better than MINI Nifty, be a single stock as AW10 told.

7. Review the performance

8. After your review if you believe you need to improve your trading decisions, then think of that. Not earlier.

I agree with you on all these points. I want only focus that you have to experiment a system with a minimum contract size but with real money. If your system works in virtual ( paper) and don't work with real money, the problem is not the system but you.
And the most important money management rule is stop trading when you lost a defined percentage of capital and stop too when you wan a defined percentage of capital too. And that, for a day, for a week , for a month.
Of course, define your maximum risk for a trade or for your portofolio, and never exceed this value.

 

[gaspy]

Your case is very commun. After a large losses, stop trading during a period from one to three months. Don't worry, there will be a market and bargains after.
And after this period, you will be afraid to press the button of the computer to order. So begin with very little size, not to earn a lot but to recover trustless. After you can increase the size untill 2% of risk ( of your capital) for one trade and 6% for all the positions in the same time. If comissions are too big for this risk, you are under capitalized.

 

[uasish]

Hi
I lost around 20000 rs in last nifty series due to oct24 crash.I remain 15000,how i cut loss this seies?
2.my main pblm is that even i get 10 pts ups isquare off the position and take profit,and again buy/sell dependng on Nifty movement,due to this i loss bigger profit or need to pay lot of brokerage and even of 7 trades out of 8 are sucess,i lost all money in 8 th trade.Any body help me to recover loss

Do you watch more points going against the trade & then on 1st oppurtunity get out with only 10 points profit ?
Plz elaborate your Risk points vis-a-vis your Profit booking points.