Lost 90% of my Capital in Intraday Trading - How do i Rebuild?
- Thread starter mohan_raj
- Start date
- Tags capital intraday intraday trade lost capital
Thanks for the motivation @cubt ,
@tamil_trader , i am following your thread "Tamil Trader Crude oil Diary Live Updates"
I have taken the advices provided by the members here and will be working on my own methods and strategies as well as learning the existing TA tools.
I am thankful to the members who have posted here , as i have got some ideas and insights from their posts like paper trading , back testing, swing trading,stop losses and one hour chart method.
Hope i will be better educated, before i start trading once again after infusing more capital.
@tamil_trader , i am following your thread "Tamil Trader Crude oil Diary Live Updates"
I have taken the advices provided by the members here and will be working on my own methods and strategies as well as learning the existing TA tools.
I am thankful to the members who have posted here , as i have got some ideas and insights from their posts like paper trading , back testing, swing trading,stop losses and one hour chart method.
Hope i will be better educated, before i start trading once again after infusing more capital.
Please go through this may be useful.
http://www.traderji.com/options/87285-nifty-option-trading-32.html#post853758
http://www.traderji.com/options/87285-nifty-option-trading-32.html#post853758
take the opposite side of where you think the market will go you should recover lol just kidding. being a fresher to Indian market but not to the market I would say these I think first you need to forget about rebuilding your 5k capital and invest a lot of time learning and developing skills to trade . here are some points to do-
1) building a methodology that gives you a positive edge over the market ( it should be clear and simple no ifs or but either a trade or no trade)
2) Money management ( the reason why you lost 90% of your capital) did you have a stop loss? if yes, what was your risk tolerance 1%,2% 5%? if no, then why . not having a logical and proper stop loss = gambling which means risking all on each trade and the fact is we never know how a trade would work out no matter how good it looks. serious traders look at the market as a business of probability and therefore do not risk more than what they are comfortable to loose on any given trade.
3) proper Mindset - All traders - and I mean ALL traders that have spent any time trading have taken a ride on the same vicious emotional trading roller coaster which you are going through now - many times. i also lost a lot of money in 2010 trading the forex market.. this can only be mastered overtime trading real money . mastering how to manage greed and fear and trade with discipline and confidence.
1) building a methodology that gives you a positive edge over the market ( it should be clear and simple no ifs or but either a trade or no trade)
2) Money management ( the reason why you lost 90% of your capital) did you have a stop loss? if yes, what was your risk tolerance 1%,2% 5%? if no, then why . not having a logical and proper stop loss = gambling which means risking all on each trade and the fact is we never know how a trade would work out no matter how good it looks. serious traders look at the market as a business of probability and therefore do not risk more than what they are comfortable to loose on any given trade.
3) proper Mindset - All traders - and I mean ALL traders that have spent any time trading have taken a ride on the same vicious emotional trading roller coaster which you are going through now - many times. i also lost a lot of money in 2010 trading the forex market.. this can only be mastered overtime trading real money . mastering how to manage greed and fear and trade with discipline and confidence.
@Stock trendy thank you for your post. It was very useful and gave me confidence. The best part of your post which affected me the most is as quoted below:
"Then the question arises, "why a few win and most don't?"
first, think about this. Every trader has access to the same tools, the same research, the same charts, the same quotes, the same proven trading methods, etc. So, why is it that, with everybody having access to the same stuff, only a few make consistent profits over time?
Well, it�s clear that the common denominator is the person. Yes, you! So, if somebody asked me to list the big three mental / emotional characteristics that define the majority of successful forex traders, i would list:
1. Discipline & passion
2. Confidence & courage
3. Patience & persistence
one could have a great trading methodology and a system, but weak on
psychology is likely to fail. Whereas someone with a mediocre trading system, but strong discipline with mental & psychology skills is likely to be on a winning side.
One trader i recently interviewed has no clue about macd, or stochastics or rsis or elliott wave. He has a very simple system of trading the breakout on triangles and trendlines � that�s all he does, and consistently produces over 700 pips profit
trading forex. He has a simple system, a set of rules, sets achievable and realistic goals � and all he does is follow these simple rules! � no rocket science. Recently one trader told me �i'd read very good books by elder, mark douglas, toni turner, candlestick course by nison, edwin lefevre etc. However, after reading those i was still trying to find the 'secret' to trading successfully and was not sure about
my system. I realised that the 'secret' to successful trading is that there is no secret!"
I have saved your post in my computer for future references too, that is to remind me of the reality.
@piratetrader thank you for the positive advice. I will be concentrating on both the points you mentioned. I lost my capital in 2 trades , both the times i was trading against the trend and had no stop losses. First time it was my ignorance and over enthusiasm as it was my first day. Second time it was because i didn't learn from my first mistake and was trying to be smarter than the market, thinking that it will take a u turn which didn't happen on that day. Though my title says that i want to rebuild, i have changed my priority to becoming a profitable trader @ the end of every day and then a professional trader. I know that on my way to being a professional trader my losses will be covered.
I am in learning stage now, going through numerous posts in TJ both psychological and technical things, and experimenting with what i have learned like trading with the trend etc.
"Then the question arises, "why a few win and most don't?"
first, think about this. Every trader has access to the same tools, the same research, the same charts, the same quotes, the same proven trading methods, etc. So, why is it that, with everybody having access to the same stuff, only a few make consistent profits over time?
Well, it�s clear that the common denominator is the person. Yes, you! So, if somebody asked me to list the big three mental / emotional characteristics that define the majority of successful forex traders, i would list:
1. Discipline & passion
2. Confidence & courage
3. Patience & persistence
one could have a great trading methodology and a system, but weak on
psychology is likely to fail. Whereas someone with a mediocre trading system, but strong discipline with mental & psychology skills is likely to be on a winning side.
One trader i recently interviewed has no clue about macd, or stochastics or rsis or elliott wave. He has a very simple system of trading the breakout on triangles and trendlines � that�s all he does, and consistently produces over 700 pips profit
trading forex. He has a simple system, a set of rules, sets achievable and realistic goals � and all he does is follow these simple rules! � no rocket science. Recently one trader told me �i'd read very good books by elder, mark douglas, toni turner, candlestick course by nison, edwin lefevre etc. However, after reading those i was still trying to find the 'secret' to trading successfully and was not sure about
my system. I realised that the 'secret' to successful trading is that there is no secret!"
I have saved your post in my computer for future references too, that is to remind me of the reality.
@piratetrader thank you for the positive advice. I will be concentrating on both the points you mentioned. I lost my capital in 2 trades , both the times i was trading against the trend and had no stop losses. First time it was my ignorance and over enthusiasm as it was my first day. Second time it was because i didn't learn from my first mistake and was trying to be smarter than the market, thinking that it will take a u turn which didn't happen on that day. Though my title says that i want to rebuild, i have changed my priority to becoming a profitable trader @ the end of every day and then a professional trader. I know that on my way to being a professional trader my losses will be covered.
I am in learning stage now, going through numerous posts in TJ both psychological and technical things, and experimenting with what i have learned like trading with the trend etc.
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