Mistakes made in Trading Life

[wisp]

Hi all,
As you all know, I am known to ask all kinds of silly doubts here at Traderji. Thank you all for bearing with all my questions and doubts through the years and for having the patience to answer them. Thanks ST Da, Subhadip and everyone else who thanked my post for encouraging me to start this thread.

Let us all share in this thread the types of trading mistakes we have made in our trader journey and any ideas on how to avoid/reduce these.

 

[timepass]

Missed trades, fear of pulling the trigger, booking out too early/holding till too late...these are the usual ones.

Today I saw Bankindia gap up, but looked a weak gap up. I expected it to come down at least to fill the gap, so sold some of it at 182.3 average. I knew that it was going to come down, but couldn't hold it for much, and cleared out at 181.7; it made a low of 180.5 (PDC 180.85).

Happens often, I do read the price well, but not able to take the follow-up action to its conclusion.

OTOH, I think that any profit is better than a loss (now Bankindia is up about 3%)

 

[wisp]

My journey as a trader so far has been a lot like Po's (Kung Fu Panda) journey toward becoming a dragon warrior. Often times I have been a bumbling fool, making uneblievable mistakes.

I was encouraged to start trading by a local brokere who referred me to some articles online and showed how x,y or z had made a killing. Initially I started out as an investor, having no clue about trading, my broker was the one who called me and asked to buy this or that (and to hold on ) and as you all can guess, what a disaster that was I quickly lost a couple of lakhs. I vowed never to trade again. So mistake no. 1 Taking calls from broker!!

A couple of years later, I was in between jobs and the trading bug which lay dormant reared its head. Like Po I was clumsily trying to trade and learn, someone directed me to TJ, after a bit I landed in ST Da's Stochastic thread, it was Greek and Latin to me, being brand new to Charting D if I only I had known then that charts will rule my life and time for the next few years!! - I think I may not have become a trader really), ST Da was rarely visiting TJ at that time I think, anyway searching for him I found TSF and there my actual trading journey began.

I looked around there and everything was a bit hard to understand - naturally cos I had arrived there a few years late and there was so much to learn. Since I went there looking for ST Da, I started reading the SWIFT thread (I think most TSF ers will know this method!) I was hooked into SWIFT and made a thousand mistakes may be!! so from next post I will start with the mistakes I made in SWIFT.

Oh before I go to the next post, let me write mistake no. 2 I had already committed. Jumping into trading without understanding how deep a hole I was jumping into I had no idea about the amount of time (in years) that it would take to succeed and the amount of information and practical experience one needs to gain before success.

 

[wisp]

Missed trades, fear of pulling the trigger, booking out too early/holding till too late...these are the usual ones.

Today I saw Bankindia gap up, but looked a weak gap up. I expected it to come down at least to fill the gap, so sold some of it at 182.3 average. I knew that it was going to come down, but couldn't hold it for much, and cleared out at 181.7; it made a low of 180.5 (PDC 180.85).

Happens often, I do read the price well, but not able to take the follow-up action to its conclusion.

OTOH, I think that any profit is better than a loss (now Bankindia is up about 3%)

Exactly! I think you summed it all up so well and these have been repeating for me over and over

 

[XRAY27]

Fear of missing, Ah !!! movement there after !! Greed of profit !!! these are my prime mistakes in trading start !! from last 2 years i'm not in this cycle,..!!! Is i'm pro still i doubt my self

..because now i'm suffering with frustration as trades are not coming under swing/positional with low risk but not done Blunder,Plunder and surrender with this frustration..

 

[wisp]

Fear of missing, Ah !!! movement there after !! Greed of profit !!! these are my prime mistakes in trading start !! from last 2 years i'm not in this cycle,..!!! Is i'm pro still i doubt my self

..because now i'm suffering with frustration as trades are not coming under swing/positional with low risk but not done Blunder,Plunder and surrender with this frustration..

Bro is it greed for profit or fear of losing profit?

In my case, especially after losing days, I dont want to lose the profit I have gained and I move my SL closer (of course the mind that is capable of giving a logic for EVERYTHING will give a very sound reason for moving SL) and of course it gets taken and I will be sooooo glad that I kept the SL at the right place at the right time.

And then....... price keeps moving in the original direction having never touched the original SL point from where I should not have moved.

 

[vijkris]

Wisp Sir,
Please include a poll with multiple choices, correct answer can be more than 1, so keep option to select more than one answer.

My mistakes in trading life which I can remember.

1. Not backtesting a method and blindly believing others.

2. Not fixing one rule/method, i.e jumping the methods every 15 days.

3. Loosing faith in method if more than 2 sl hits.

4. Fear of pulling the trigger.

5. Sleeping in front of terminal.

6. Getting involved in fights in forum.

7. Not waiting for signal, i.e impatience and jumping in early

 

[wisp]

Ok, so swift, what a simple method it is. It takes trades above 21 MA in direction of 60 MA, Simple method, but the number of mistakes I made with it!! Some were very successful with this method, I think there was a guy by name Jayaraj he caught on to it like fish to water!!

However me, well..
The first day I traded BNF with it, I was very successful, aka beginner's luck

My main mistake with this method was fear of pulling trigger at the right time and also I would say not understanding price movements fully basically because I did not backtest the system enough. I did not have the maturity to continue backtesting when backtested trades were failing. Somehow thought going live was better and after all ST Da says the system works so it HAS to work. Of course it WILL work with the right person pulling the trigger, not a bumbling PO like me

Another mistake I made with this method was, jumping in and out of trades based on other people's opinions in the forum!!

 

[XRAY27]

Bro is it greed for profit or fear of losing profit?

In my case, especially after losing days, I dont want to lose the profit I have gained and I move my SL closer (of course the mind that is capable of giving a logic for EVERYTHING will give a very sound reason for moving SL) and of course it gets taken and I will be sooooo glad that I kept the SL at the right place at the right time.

And then....... price keeps moving in the original direction having never touched the original SL point from where I should not have moved.

Fear of missing out a trade !! so early entry not waiting for the setup to complete ,greed for profit simple step is to waiting at the bottom without moving TSL :lol::lol:

 

[wisp]

Wisp Sir,
Please include a poll with multiple choices, correct answer can be more than 1, so keep option to select more than one answer.

My mistakes in trading life which I can remember.

1. Not backtesting a method and blindly believing others.

2. Not fixing one rule/method, i.e jumping the methods every 15 days.

3. Loosing faith in method if more than 2 sl hits.

4. Fear of pulling the trigger.

5. Sleeping in front of terminal.

6. Getting involved in fights in forum.

7. Not waiting for signal, i.e impatience and jumping in early

Vijkris Sirji,

Good idea, perhaps should be made a confidential vote so people wont feel embarassed and not vote