Is Daytrading dangerous?

Not losing money or the break-even stage is the first stage to progress. This is also difficult to achieve, bcoz there is very high cost of trading (various taxes) is attached to Indian Market. You are not losing money means u are already winning the brokerage and other taxes amount.

Next step is to tune your system so that u can catch few jackpots when there are clear trends.
IMO: Out of 10 trades Usually, 7-8 trades cancells with each other (small profit-small losses). The rest 2-3 big profit trades which makes the differences. If any trader wants to survive in the long run, then u must able to catch few jackpots when the market gives easily.
Those 7-8 trades which cancelled with each other are the cost of trying to catch the jackpot trades with trailing stop losses.


Stop losses depends on the TF you are trading and entry. Whenever u want to put a trade, u must be sure about maximum risk and the possible reward. Put a trade only with either favourable risk-reward or when the certainty of success is very high.

Any mechanical system can generate 100s of signals, out of which may be only 40-50% may match low risk-high reward. The aim must be to catch a low risk-high reward trade and ride on profit until the trend end using trailing stops. If the system is good it will catch the jackpot automatically with the cost of overall 70-80% breakeven trades.
Treaders don't survive in the long run bcoz blindly following the mechanical system. Every trade signal is attached with different risk-reward. We need to filter out trades and vary position size according to risk-reward.


Dear headstrong007 ,

Very well said....... specially highlighted part( Bold Red)..........this is essence of successful trading .


HEM
 

lemondew

Well-Known Member
Infact i feel its better if the 7 trades are stop losses and get the account down negative. But you really didnt scratch the trades or close the trade in small profit. But really allowed it to go to jackpot.

Dear headstrong007 ,

Very well said....... specially highlighted part( Bold Red)..........this is essence of successful trading .


HEM
 

pannet1

Well-Known Member
i am not challenging any of the wisdom you guys spoke in this thread before .. i would like to see you post your trades for week and the thought process involved . and the ledger .. or point the link to your diary ...

again .... with no offense intended ... we preach ... what did not work for us in our trading life. contrary to the usual tone .... that you are loosers ... that only talk .... i believe that you could really be a successful day trader ..... a rare though.

preaching does not improve my bottom line .... on the contrary .. it makes the struggling trader to believe that they lack many things ... psychology .. money management ... jobbing skills ... position size ... timing .. entry .... exit and everything (even their pet dog that barks and the one that's quiet) ...

please have mercy guys.

NB: If your preaching is intended to make you yourself feel better ... thats fine too ... then struggling traders please identify it ... and look elsewhere
 
i am not challenging any of the wisdom you guys spoke in this thread before .. i would like to see you post your trades for week and the thought process involved . and the ledger .. or point the link to your diary ...

again .... with no offense intended ... we preach ... what did not work for us in our trading life. contrary to the usual tone .... that you are loosers ... that only talk .... i believe that you could really be a successful day trader ..... a rare though.

preaching does not improve my bottom line .... on the contrary .. it makes the struggling trader to believe that they lack many things ... psychology .. money management ... jobbing skills ... position size ... timing .. entry .... exit and everything (even their pet dog that barks and the one that's quiet) ...

please have mercy guys.

NB: If your preaching is intended to make you yourself feel better ... thats fine too ... then struggling traders please identify it ... and look elsewhere
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Does this help? It is a new strategy that I am testing on a test account.
I would suggest you read the 2 long posts by @headstrong007 . There is a lot of wisdom in them!
 

pannet1

Well-Known Member
View attachment 25984

Does this help? It is a new strategy that I am testing on a test account.
I would suggest you read the 2 long posts by @headstrong007 . There is a lot of wisdom in them!
is it holdings. if yes, then its intelligent, because you have the possiblity to extend the Reward for many days after, instead of being struck in intraday.
 
Online transfer of funds seems the culprit.

When you make profit or loss, if the exchange of cash takes place in physical form, we would know the actual pleasure or pain seemingly. When you make a loss, give that cash in physical form to someone dear to you. Similarly, when you make profit, withdraw money physically and feel the high.

Just try, it makes the difference!!!! Feeeeeel the pain or pleasure. :p
 

pannet1

Well-Known Member
is it holdings. if yes, then its intelligent, because you have the possiblity to extend the Reward for many days after, instead of being struck in intraday.
that was so stupid ... just got overwhelmed by my idea ...
 

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