Me & My Mom ................................... Our Trading-Our Style!!

[msdtime]

Another Hilarious fact about Mom's trade today:
1. Not only she mistakenly traded May future.
2. But also she put in a Market order.

Now imagine a market order in an illiquid contract.
She got her order filled at 10,453.10.
Zerodha kite is showing exact same price as day's high.
quite an achievement!!!
.
.
Between right now she is insistently arguing with me, how a May fut is moving as same as March fut.. and that there is really no difference in price discovery...you trade march or may, there is really no difference... etc...etc.

Remember this earlier post? Mom accidentally bought May Fut instead March expiry then.
Well here is an update.
Initially I thought she would square off the position next day. She didn't.
She continued to wait in false hope of reversals for nearly a week. That could have wiped out complete margin.
So at last on 9 th March, when I came to know of this - she was already in nearly 150 points in loss.
So I hedged her position by buying 10400PE.
Later exited the PE with nearly 13500 profit.

The Nifty May expiry future is still in position. Planning to square off if Nifty shows any sign of correction.

So all in all converted a stupid mistake into whooping 30-35k profits !!!!

 

[newtrader101]

Remember this earlier post? Mom accidentally bought May Fut instead March expiry then.
Well here is an update.
Initially I thought she would square off the position next day. She didn't.
She continued to wait in false hope of reversals for nearly a week. That could have wiped out complete margin.
So at last on 9 th March, when I came to know of this - she was already in nearly 150 points in loss.
So I hedged her position by buying 10400PE.
Later exited the PE with nearly 13500 profit.

View attachment 25055

The Nifty May expiry future is still in position. Planning to square off if Nifty shows any sign of correction.

View attachment 25056

So all in all converted a stupid mistake into whooping 30-35k profits !!!!

Great! It dipped and then came back up.
Most novices would have exited.

 

[pannet1]

Also I invented my own formula for Position sizing out of nowhere. I don't know if it's valid or need improvement.
May be some of the masters here will enlighten me.

1. The 2.5% Rule: Capital ₹ 60,000
   so max loss on each day ₹ 1,500 only
   Target - ₹ 1,500
2. Divide by 3 - i.e. trade 3 scrips at a time. ( 4th slot suspended for sake of NF, as I am not trading but only observing it)
   max loss per scrip - ₹500; target - ₹500
3. Add the position on each ATR move up
   But only with trailing SL of BE.
4. Max Loss/(|LTP - SL| + ATR) = Position size

So The formula that I invented for position sizing is I calculate the difference between the LTP and SL and ATR to it. Then I divide the Max. DD I am willing to take with this no to arrive at my P.S.

For eg. Today at 9:30 AM SBIN was at ₹ 246.80, while the SL was placed at 246.37 just below it. Also ATR was at 1.35
So my Max possible DD was 246.80-246.35+1.35 = 1.8. I was willing to take only ₹ 500 risk. So my PS was 500/1.8 = 277. But I took only conservative 250 position.

Why add ATR?
ATR is average size of last 14 candles (intraday candles have no Gaps!). Consider a situation in which a candle ends just above your SL level. Now you cannot exit as SL is not breached and its high chance that S/R will act as such and direction of price will reverse in next candle. Putting SL exit order is also not an option as you never know when it will form a hammer or price reversed just after hitting your SL but still closed above SL level. So I always wait till candle end. Now what if the next candle continues the trend and ends below your SL. In such scenarios your net Loss/DD will be Trade price - SL + the length of this latest candle. Now the ATR tell us the tentative size of this candle. AND you are saved.

I seen your latest post. it great going. wonderful narration about mom and documentation.
just one suggestion, try not capping your reward, at least in some cases. i learnt this hard lesson from my mentor and its doing wonders to my account.

 

[msdtime]

The complete ledger from 01-04 to 02-05
The ledger clearly demonstrate that how psychology works and for novice trader how losses are always higher than gains.
Common Aai, LEARN something asap.

 

[msdtime]

Date - 02-05-18
I am returning to trading again. Today decided to try trading in CDS for first time.
Somehow form somewhere I catch this idea that, in USDINR 30 min TF works. This caused me to halt trading during later part of session as I had to observe price action as chart in front of me was following 10 min and 15 min TF rather than 30 min TF as I was believing.
Traded just 10 lots of USDINR May expiry Fut.
Anyways eked out nearly ₹ 600+ profits on nearly ₹ 4333 margin

 

[msdtime]

03/05/18
Today also traded in CDS. But exited early as due to some urgent business.
Net profit - 137 only
CDS SELL USDINR18MAYFUT DAY MIS LIMIT 10 10 0 66.7350 66.7350 complete 180503000003741 03-May-2018 09:15:37
CDS BUY USDINR18MAYFUT DAY MIS LIMIT 20 20 0 66.7650 66.7625 complete 180503000014125 03-May-2018 09:22:32
CDS SELL USDINR18MAYFUT DAY MIS LIMIT 10 10 0 66.8200 66.8200 complete 180503000104937 03-May-2018 12:40:45

 

[msdtime]

Another Day - Another Game!!

Today I decided to start trading with Finvasia. The overall NOW experience was very good. Sleek Bare-bone platform with very fast login and order execution. But the most amazing thing is that, that it offers multiple platforms - Software, Mobile App as well as Web. But fun part is that, the NOW offers two web based trading tools. The 1st regular web platform has the same layout as NOW software. But the 2nd platform is very colorful awesome looking with lot's of smooth edged graphics and colours.

The 1st half of the today's trading session was consumed in tutoring Ma about new platforms. So traded in later half only. There was nothing much in the USDINR today. It was just a straight bull run from start till end.
Managed to gain ₹ 1302 gross profit on ₹ 6900 margins.
That's nearly 18% return!!!!!!!!
But I never use full margins, so even if we consider 10k capital, it's still 13%!!!

 

[msdtime]

07 May 2018:

Ma today executed some good trades.
Apart from practicing the art of accepting losses, you also need to prepare mentally to recover the losses.
She could today recover from deep loss, that is satisfying for me.

But in the end still in loss due to taxes - -79.69

 

[msdtime]

08-05-18

Accepting losses and honoring one's stop loss levels are so basic and yet so hard.
The concept is simple but emotions play the villains.
But even Kohli gets out on very simple deliveries.
And emotions sometimes play on the minds of even most seasoned traders.
Today Ma started quite good. Booked a good loss on first trade as she bought at very high levels and USDINR abruptly reversed without touching target levels. The curve that it took while reversing was so beautiful that nobody could have predicted that it's going to go down like crazy.
So inevitably Ma booked losses and reversed the position.
2ns trade was amazing. At one time she was like MTM ₹ 1900 profits. At last she booked the profits with MTM at ₹ 1500.

And then it all started going downhill like crazy.
I think it was MTM induced euphoria.
She discarded almost all the basics of trading.
She sold when RSI as well as Stochastic were in oversold region. She traded even though she knew that counter tends to remain choppy for quite a some time after great move like USDINR witnessed today after RBI intervention.

But the last trade that she took was beyond my imagination. Just like her earlier trades she continued to hold even though price was breaching one support after another.
So finally MTM reduced to 500.

Did I mention that Mom did one great blunder today. It was only after that, that she lost her focus. Just look at the trade around 12:30 PM.
She was suppose to add to the position, but in a haste she squared off the position.
And it took her frantic 10 mins before she realised..