Mistakes made in Trading Life
- Thread starter wisp
- Start date
Does reading help? Nothing will help if we havent backtested!!
I have read all of TSF multiple, multiple times burning midnight oil, (all along, the thought process used to be, if Saint Sir taught it and said it will succeed, it just HAS TO).
Well, yes it has to succeed because Saint Sir's systems are well thought out BUT!! the monkey in the middle is me pulling triggers at all the wrong places. Here the problems I faced were:
1) I had no clear definition of pivot, my definition was fluid
2) I could not follow my SL rules strictly
3) I did not backtest enough
4) I used to be quite disappointed
if on a day I made a 70 point loss Pratap Sir or Komal (people from TSF would remember her? ) made 500 points! So the next day I would become a tukka trader
5) My previous behaviour with SWIFT continued here too, i.e., jumping in and out of trades based on various opinions in the forum
- here what one has to realise is a senior trader if booked profit, will also know how to reenter, which I may not
- entry or exit in one method may not may not coincide with entry or exit in another
- what people may say in forums may be entirely different to what they are actually doing with their live trades
6) late entries and too early entries
In addition to reading through TSF, I read so many books and TJ and TSF pdfs, some of which are Al Brooks (tough read!!) , Law of charts, Sam Seiden, Prechter ( In addition to reading the book, I also spent so many days and nights watching Elliott wave course videos), Adam Grimes, some guy called Phil something - cant recall, Mark Douglas, Larry Williams, Turtle trading, a compilation of James 16 thread and Raghav thread, all of Your trading coach books and most of his site, and many many more books. If only I had read and studied so hard while at college I may have a Nobel Prize by now! Anyhow, I am not saying reading is bad, but backtesting is first and foremost!!
I have read all of TSF multiple, multiple times burning midnight oil, (all along, the thought process used to be, if Saint Sir taught it and said it will succeed, it just HAS TO).
Well, yes it has to succeed because Saint Sir's systems are well thought out BUT!! the monkey in the middle is me pulling triggers at all the wrong places. Here the problems I faced were:
1) I had no clear definition of pivot, my definition was fluid
2) I could not follow my SL rules strictly
3) I did not backtest enough
4) I used to be quite disappointed
if on a day I made a 70 point loss Pratap Sir or Komal (people from TSF would remember her? ) made 500 points! So the next day I would become a tukka trader5) My previous behaviour with SWIFT continued here too, i.e., jumping in and out of trades based on various opinions in the forum
- here what one has to realise is a senior trader if booked profit, will also know how to reenter, which I may not
- entry or exit in one method may not may not coincide with entry or exit in another
- what people may say in forums may be entirely different to what they are actually doing with their live trades
6) late entries and too early entries
In addition to reading through TSF, I read so many books and TJ and TSF pdfs, some of which are Al Brooks (tough read!!) , Law of charts, Sam Seiden, Prechter ( In addition to reading the book, I also spent so many days and nights watching Elliott wave course videos), Adam Grimes, some guy called Phil something - cant recall, Mark Douglas, Larry Williams, Turtle trading, a compilation of James 16 thread and Raghav thread, all of Your trading coach books and most of his site
, and many many more books. If only I had read and studied so hard while at college I may have a Nobel Prize by now! Anyhow, I am not saying reading is bad, but backtesting is first and foremost!!
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Below are the challenges I had faced on my journey,
1) Not sticking to a strategy. Still I face this issue sometimes as I try to make a simple strategy complex rather than trading it in the simple manner. This has deteriorated my performance.
2) Stuck in analysis paralysis rather than trying the strategy with forward testing after backtesting.
3) Fear of being wrong and hence not closing the losing trade till it reaches stop loss, even though evidence suggests it is time to get out.
4) Fear of missing out and entering at a price that is out of R:R ration planned.
5) Over confidence during winning streak and lack of confidence or no confidence at all after losing streak.
1) Not sticking to a strategy. Still I face this issue sometimes as I try to make a simple strategy complex rather than trading it in the simple manner. This has deteriorated my performance.
2) Stuck in analysis paralysis rather than trying the strategy with forward testing after backtesting.
3) Fear of being wrong and hence not closing the losing trade till it reaches stop loss, even though evidence suggests it is time to get out.
4) Fear of missing out and entering at a price that is out of R:R ration planned.
5) Over confidence during winning streak and lack of confidence or no confidence at all after losing streak.
Entered stock market with Rs.25000 in 1992 and invested in stocks which were recommended by sub-brokers. Such low capital investors main brokers were not entertaining those times. Almost lost whole of the capital.
Again entered the market in 2009. And this time the focus was on day trading.
Funded the account with Rs.50000. Started implementing the trading skills by watching intraday charts. Whatever I made was through shorting the markets. I blew my account finally. The only memorable trade was shorting in Unitech and made Rs.4000 in a single day. Remaining all trades were loss making.
Then in 2010 funded the account with another Rs.50000, this time I changed the markets to crude, silver. I have made Rs.14000 in short silver when it was crashing. That is the only memorable trade and the remaining trades were loss making and finally blew the account.
By this time, I have realised that I was wrong in my approach. Analysed the trades, and found out that I was booking profits when small and booking losses when large and big. RR was pathetic. Hit ratio was upto 70%. The importance of RR was realised and efforts were made to backtesting a strategy.
During this period I happend to get in tough with forums like Traderji. I started using Amibroker and backtested hundreds of AFLs. Lot of sleepless nights ruined by health.
I was in belief that I was not making profits because I have no proven strategy. Then started developing strategies and testing them on past data and real time. Countless hours were spent in this.
I have subscribed to many Tips providers and system sellers thinking that they might be knowing some thing better than me. These are all proved to be cheaters and roughs.
By now I have realised that we need to have a solid strategy, good capital base, risk control. Also realised the dynamic nature of markets.
I took one year break and made efforts in search of a good strategy and a capital base of atleast Rs.10 lakhs.
Finally entered again 2011, and this time i was making the trades and result was breakeven. No gains or no losses.
By the end of 2011, i started seeing the sunny side of trading and also i realised the importance of making long term investments apart from trading.
When i won my first 60 days challenge of Zerodha I was sure that I am on the right track.
Again entered the market in 2009. And this time the focus was on day trading.
Funded the account with Rs.50000. Started implementing the trading skills by watching intraday charts. Whatever I made was through shorting the markets. I blew my account finally. The only memorable trade was shorting in Unitech and made Rs.4000 in a single day. Remaining all trades were loss making.
Then in 2010 funded the account with another Rs.50000, this time I changed the markets to crude, silver. I have made Rs.14000 in short silver when it was crashing. That is the only memorable trade and the remaining trades were loss making and finally blew the account.
By this time, I have realised that I was wrong in my approach. Analysed the trades, and found out that I was booking profits when small and booking losses when large and big. RR was pathetic. Hit ratio was upto 70%. The importance of RR was realised and efforts were made to backtesting a strategy.
During this period I happend to get in tough with forums like Traderji. I started using Amibroker and backtested hundreds of AFLs. Lot of sleepless nights ruined by health.
I was in belief that I was not making profits because I have no proven strategy. Then started developing strategies and testing them on past data and real time. Countless hours were spent in this.
I have subscribed to many Tips providers and system sellers thinking that they might be knowing some thing better than me. These are all proved to be cheaters and roughs.
By now I have realised that we need to have a solid strategy, good capital base, risk control. Also realised the dynamic nature of markets.
I took one year break and made efforts in search of a good strategy and a capital base of atleast Rs.10 lakhs.
Finally entered again 2011, and this time i was making the trades and result was breakeven. No gains or no losses.
By the end of 2011, i started seeing the sunny side of trading and also i realised the importance of making long term investments apart from trading.
When i won my first 60 days challenge of Zerodha I was sure that I am on the right track.
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