How did I make profits after consistent loss

[abynjk]

Hello Cubt,

Thanks for sharing your experience. Great Indeed. I guess you are at last with Supply and Demand trading.

http://nsniaga.com/forex/TradingPrice.pdf gives a good insight

 

[Saiyyed Rafik]

I have incurred much loss previously but as and when I have changed my broker and selected my current broker I have earned a lot.

 

[yunusk66]

Support and resistance is the very basic of technical analysis.

When a stock moves up, at certain point demand dries up and supply increases which results in stopping the price to move further up. That level is called as resistance. I wait for this level and go short if the price failed to break the resistance.

Support is, when a stock price goes down at certain level, the supply decreases n demand increases which results in stopping the price to move down further. Then the stock rebounds, this is the level I go long.

2% risk rule is commonly used risk management technique.

For any trade, you should not risk more 2% of ur capital. For example, if u have 5 lacs capital u should not risk more than 10, 000 in any single trade. So that even u make 10 consistent loss, u r still left with 80% of ur capital.

Preserving capital is much more important than anything else to sustain foe long term in trading.

Dear Cubt,

I have been trading for last four years with a capital of 15L. mostly i was in the profit as i don't trade Intra day. I analyze a stock and wait for my entry at discounted level of 30 to 40% and invest my 50% capital on that after i get the technical signal. in stock market you have to be relying on both fundamental and technical. fundamental for to make sure you are investing in the good company and Technical for to determine the entry and exit point.

i have mostly traded for short to medium term ( 2 months to 5 months)

To create wealth go for value investing not intra day.

i have tripled my capital this year. with right fundamental and technical analysis you can double your capital in just one trade.

best of luck.

 

[srivats]

Dear Cubt,Thank you for sharing the info.It is very useful for novice investors.

 

[copypasteaee]

Hi,
I have been trading since 2008, started with stocks and wiped off my account in months. Again started with Options and made my broker rich. Blown my account in few weeks.

Later started analysing, almost ordered all trading related books from flipkart. Spent the next few months only on reading markets than trading. Slowly understood what market is all about.

Again came back, , started with few 1000s. Traded purely on technical analysis, gained confidence and became good at choosing my entry points but still lagging to find when to exit a profitable trade. Later learnt 1 by 1, position size, risk reward, 2% risk rule, pyramiding profitable position etc.

Finally sold off my wife jewels n started trading again. Started with stocks futures only. With all knwoledge that I gained, my account was started growing slowly. Was happy that I was making profits with limited loss. Enrolled in zerodha 60 days chalenge and I was sure of winning it.

But things changed over night, after making consistent profits, made a huge loss, lost all my gains in single trade due to bad position size. As soon as I realized my mistake, reduced my trading size n followed my tech analysis n started off again with slow profits.

Now with 1 more day left for zerodha 60 days challenge, my equity account is up more than 80% in 60 days. Now looking back, there is nothing I did extraordinary, no complicated indicators.

Simple support n resistance based trading.
Followed 2% risk on every trade
Treat money as just numbers

If u could sleep properly with ur holding positions over night, its a clear indication that u r on right track.

Posting it for beginners to realize that trading is simple but not easy! Have the courage to do what u would love to do!

Good luck

very well said :thumb::thumb:

 

[gemat]

Hi,
I have been trading since 2008, started with stocks and wiped off my account in months. Again started with Options and made my broker rich. Blown my account in few weeks.

Later started analysing, almost ordered all trading related books from flipkart. Spent the next few months only on reading markets than trading. Slowly understood what market is all about.

Again came back, , started with few 1000s. Traded purely on technical analysis, gained confidence and became good at choosing my entry points but still lagging to find when to exit a profitable trade. Later learnt 1 by 1, position size, risk reward, 2% risk rule, pyramiding profitable position etc.

Finally sold off my wife jewels n started trading again. Started with stocks futures only. With all knwoledge that I gained, my account was started growing slowly. Was happy that I was making profits with limited loss. Enrolled in zerodha 60 days chalenge and I was sure of winning it.

But things changed over night, after making consistent profits, made a huge loss, lost all my gains in single trade due to bad position size. As soon as I realized my mistake, reduced my trading size n followed my tech analysis n started off again with slow profits.

Now with 1 more day left for zerodha 60 days challenge, my equity account is up more than 80% in 60 days. Now looking back, there is nothing I did extraordinary, no complicated indicators.

Simple support n resistance based trading.
Followed 2% risk on every trade
Treat money as just numbers

If u could sleep properly with ur holding positions over night, its a clear indication that u r on right track.

Posting it for beginners to realize that trading is simple but not easy! Have the courage to do what u would love to do!

Good luck

are u addicted to trading? amount to invest in stock market around 10-15% of your total savings for starters like me. then invest more when u gain confidence and 2% risk is a good rule to follow.

 

[toingpoing]

Great Cubt bro ! Salute your spirit and attitude. All the very best. :thumb:

 

[shikhajindal06]

Unplanned Trading, lack of patience, knowledge and over confidence always become the reason for uncertain losses. Emotions have no role to play in portfolio investments. Let the brain rule the heart or built a brain in your heart too. Then only anyone can become successful in trading. One should one work on the reason of losses and overcome that to get profit in future.
Technical analysis is very much required to get profits, one should take the help of smart brokers and professional advice, tips and market alerts.
One should check his strategies and work on it, that when to enter the market and when to exit
Proper chart reading, follow the trend and Sensex.
Position size and holding is also matter alot
• Developing an Entry and Exit Strategy Properly
• In the short-run, the price of the share can wildly fluctuate so always try to invest for the long-term. But do not invest too much in one kind of shares.
• One can invest through Mutual Fund as well because the bulk of your equity corpus should be invested in mutual funds because investing in equities can be risky, especially when indices are close to their all-time high levels. Do not block your money on highly risky shares and stocks try to split your money on other investment like Mutual Fund to get assured return and future protection as well.
• Avoid buying a stock that is up more than 5% in pre-market trading. The stock’s movement has already been too great to expect to get a lot of upward movement. (It may be a decent short sale, but there tends to be less risky options.)
• . Avoid short selling oil companies or utilities, even if they have bad news. These stocks tend to have very low beta, and they often don’t have enough movement to make a decent profit. They don’t trend up or down enough, so I just avoid them in my specific trading style.
• If you miss a good entry on a trade, don’t chase the money! I have numerous times missed my opportunity to buy during a slight pullback, only to buy another 2-3% higher, after which my forced entry proved to be too close to the high of the day. Try not to repeat this mistake.

One can read this motivating article whose link I am giving below

http://www.jamesaltucher.com/2013/1...ut-life-while-daytrading-millions-of-dollars/

 

[gopalmohansharma]

Hello, The collective movement of their actions and reactions to their own actions and to other people’s actions. You make your trade by closing your eyes you press enter, You have no idea what the market is doing but you begin to react to your action–you wonder if you made the right decision, if you should adjust your stop loss or if you should have gotten in earlier or later. That continues to occur after you open your eyes and see how your action (trade) is acting in relation to others people’s actions and reactions. Just keep in mind, you can’t predict future, everybody thinks they can, but they can’t, this is for not just trading but for everything. You can always seek to increase the odds in your favor. The key is that you can take larger and larger risks if you work on better and better ways to deal with those risks. something is not working out, even if your heart wants it to work out, you have to say “No” and cut your losses. If a business relationship is not working out, don’t put more energy and time into it. You have to decide every moment if this is the situation you want to be in. The only way to survive is to laugh. There’s that saying: “Man makes plans but God laughs.” Well, you might as well be on the same side as God. Trade with only those setups which gives a proper risk to reward ratio. The most perfect way of trading is that you can start learning about trading with a demo account and once if you find a consistent profit in it , you can enter into the real market. Don’t get emotionally attached with the trades. keep your emotions aside while trading just take it as a business deals thinking and taking it practically.

 

[Hulu Girl]

If you have consistent loss then take break from trading. Then re start it with knew learning skills.