Learning through blunders

newtrader101

Well-Known Member
#71
However, because he recorded his actions and shared, it made the rest of us think and reflect. Logs ki Jai Ho!
 

TraderRavi

low risk profile
#72
Happened upon this post by a member:
1. long 8759, out 8741
2. short 8721, out 8743
3. long 8745, out 8731
4. short 8720, out 8733
5. short 8728, out 8704 - autosqaured off.

This has happened to me many times, and I believe probably to most learners.

View attachment 27553
can you post the link of this post ? many such trades by me in nifty :pp
 

newtrader101

Well-Known Member
#75
If your trades are coming out well, it is tempting to increase leverage. But this rarely works out, in fact it can be disastrous. Maybe the prospect of multiplied returns excites us and leading to loss of balance. For instance CrudeOil has 10 times the leverage of CrudeMini. Shifting from CrudeMini to CrudeOil overnight, however, can be disorienting and scary. It is like being used to 80 kmph on your wagonR and suddenly trying to drive at 300 Kmph, a Ferrari.

Slow and steady works best.
 
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VJAY

Well-Known Member
#76
Now only see this thread.....nice thread dear newtrader101....as thread name says blunders happen to every one in trading....only we can try to minimise it...actually blunders teach us new lessons..
 

pannet1

Well-Known Member
#77
It's important to listen to other traders' views and read their threads. I was thinking of starting Equity futures trading. Chanced upon a thread how the trader got a huge loss when the stock gapped up in the morning. 25k wiped out in one stroke!
This is more like no-holds-barred MMA.
i would invite you try commodity futures trading. your idea to trade futures is correct because you could hold short overnight positions. only thing is we should be not doing that with NSE where qty/lot is very high (or) in other words they average it to a level where its difficult for small/medium retail traders ( can't to ) trade.

i just hate the idea of a segment denying me something and tell you cannot do that and you cannot do this.
 
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newtrader101

Well-Known Member
#78
If your trades are coming out well, it is tempting to increase leverage. But this rarely works out, in fact it can be disastrous. Maybe the prospect of multiplied returns excites us and leading to loss of balance. For instance CrudeOil has 10 times the leverage of CrudeMini. Shifting from CrudeMini to CrudeOil overnight, however, can be disorienting and scary. It is like being used to 80 kmph on your wagonR and suddenly trying to drive at 300 Kmph, a Ferrari.

Slow and steady works best.
This is what happened:
One lot of CrudeMIni had given about 3k profit in 3 days, using 20-50 EMA cross (Imfine's thread). At 8 pm I got the bright idea that with Crude instead of Mini, it'd have been 30k. As if on cue Crude made a large 5 min candle down. I immediately squared off the lot of Mini and shorted one lot of Crude using Cover Order, not even bothering to get correct entry. But it came back up and ranged till 11 pm. Net result: 1K loss!

1541259116253.png
 
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newtrader101

Well-Known Member
#79
This is what happened:
One lot of CrudeMIni had given about 3k profit in 3 days, using 20-50 EMA cross (Imfine's thread). At 8 pm I got the bright idea that with Crude instead of Mini, it'd have been 30k. As if on cue Crude made a large 5 min candle down. I immediately squared off the lot of Mini and shorted one lot of Crude using Cover Order, not even bothering to get correct entry. But it came back up and ranged till 11 pm. Net result: 1K loss!

View attachment 30245
So this may be a safe way to increase margin for CrudeMini:
Whenever margin increases by 10 k, add one lot Mini. If it touches 10 lots, then consider buying Crude instead of Mini.
 
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