(MCX Comedy..Errr. Commodity) - How to Fake your Trade
- Thread starter Tuna
- Start date
1. Anything Can Happen - none knows what next. Neither the trading system.
2. But, You don't need to know what Market will do next, to make money - if you have system with statisticcally proven edge, you will end up with more money at end of a given period based on trading timeframe you follow. For less 15 mins, it could be weekly, for hourly TF it is monthly.
3. Individual trades are only small droplets in your overall Equity curve, positive or negtaive. Don't give any undue importance to an individual trade by increasing size /risk beyond tolerance threshold, just because you feel this is sure shot, remember point # 1
4. There is random distribution between wins and loss - we never know which one is going to be the winner, no way
5. System should be followed all time. If we make the trading entry/exit as random as well (not following system), that randomness along with the one on point # 4 above will lead to bankrruptcy
6. Most important thing in trading - no it is not system, risk management etc - it is Waiting. Learn to wait. Does not matter you took 5 or 50 trades a month, what matters, are you net positive or netgative at the month end. There is considerable wait-time between development of the edge of your trading system. If you can not wait, you will take poor quality trades, leading to randomness of point #5, that along with point #4 will ruin you.
2. But, You don't need to know what Market will do next, to make money - if you have system with statisticcally proven edge, you will end up with more money at end of a given period based on trading timeframe you follow. For less 15 mins, it could be weekly, for hourly TF it is monthly.
3. Individual trades are only small droplets in your overall Equity curve, positive or negtaive. Don't give any undue importance to an individual trade by increasing size /risk beyond tolerance threshold, just because you feel this is sure shot, remember point # 1
4. There is random distribution between wins and loss - we never know which one is going to be the winner, no way
5. System should be followed all time. If we make the trading entry/exit as random as well (not following system), that randomness along with the one on point # 4 above will lead to bankrruptcy
6. Most important thing in trading - no it is not system, risk management etc - it is Waiting. Learn to wait. Does not matter you took 5 or 50 trades a month, what matters, are you net positive or netgative at the month end. There is considerable wait-time between development of the edge of your trading system. If you can not wait, you will take poor quality trades, leading to randomness of point #5, that along with point #4 will ruin you.
Yes, patience part is very important which I learned from my stocks investment. Do not enter a trade for fun when there is no signal. For example I took only 4 trades in last 45 days & outcome is below from them:
1. Profit of 320 points
2. Loss of 30 points
3. Loss of 10 points
4. Profit of 550 points & it is currently holding from last 2 weeks.. For this trade I waited for one week after hit 2 SL continuously.
1. Profit of 320 points
2. Loss of 30 points
3. Loss of 10 points
4. Profit of 550 points & it is currently holding from last 2 weeks.. For this trade I waited for one week after hit 2 SL continuously.
Similar threads
-
-
-
-
-
(MCX GoldM + Fixed Deposits) vs Gold Coins as Investment for 10 Yrs Time Period
- Started by Creative
- Replies: 22