My daytrading

[S-1585]

I tried to get an answer to this question.But its not answered.

Question: In a month there will be atleast 4-5 days when market runs huge in a single direction which can be traded by any last person in the street.These 4-5 days of profit are enough to neutralize losses of other days and make some bucks on top of it.

Still why do the traders lose out big?Can't they keep their losses small on other 15 days?Is it MM, Discipline,impatience....what is it????

Pour your thoughts....Once in a while let me have a seat of listener from the seat of speaker ...

- Instead of improving existing trading style, jumping from one method to another.
- Following a method of other person without understanding its merits, demerits, its usage in different situations.

 

[Raghavacc]

The fact is most people make small losses on sideways days and they cannot control their urge to trade on sideways days....these small losses add up to a sizable loss figure. To avoid small losses , they will sometime avoid taking timely stops and in the process make a much bigger loss...

On a trend days, most will cash out too early , will not add and will not encash the move fully because of fear of letting the small profits vanish....and the money they make on trend days is small compared to their losses on sideways days....some more innovative and dare devil types go against the trend on the trend days saying " kidhar jata hai...."as they cannot "tolerate" market going in one direction and they come in to fade the move...adding to their troubles and nursing the loosing positions...

Any one can put on a trade....it is no brainer...but understanding when not to trade separates a good trader from a loosing trader.....

Smart_trade

Thanks ST bro... the above advice applies to every one starting from me...
I kept a seperate note book for writing down all your advices. For me they make big difference.

 

[Nihilistic]

Dear Raghav,

Very real-time blunders, due to which, at least I am down.

1. Fear of losses due to past hurt gets one out before reaping the full profits.
2. Inability to manage the trade even though entered in the right direction, turning a winning trade into a losing one.
3. Fruitless efforts to find tops and bottoms so that one can enter at the lowest/highest price.
4. Inability to understand/read the market behavior, i.e., the point of reversal, trend change, what is happening and why it is happening.
5. All in all, lack of knowledge.

Regards,

PS: Your inbox seems full.

 

[Raghavacc]

I am really learning from each one of you. I always enjoy my life as a student.

Lets see we can get more opinions/experiences....

 

[VJAY]

Hi Raghavacc

Just my two cents :

First of all : No trading pan / No stop loss / No idea of position sizing / No MM / Little understanding for the market and the instrument they trade / Not enough experience with life trades / Wrong psychological setup which in some cases only concentrate on how much can I win (greed) and not on how much can I lose / Not understanding of them selfs, in what time frame they fell comfortable / Concentrating on the wrong side : They concentrate only on the money side and not on the trade setup by itself, which brings the money, if done the right way, as a byproduct / Yes, some of you are right : Concentrating only on the money side can also bring up the trade set up which most of the time looks like this : Help, I am in trouble. Can you tell me how to get out of the trade as I lose money. That is also a trade set up / and surely more facts which will be posted by the other participants.

DanPickUp

The fact is most people make small losses on sideways days and they cannot control their urge to trade on sideways days....these small losses add up to a sizable loss figure. To avoid small losses , they will sometime avoid taking timely stops and in the process make a much bigger loss...

On a trend days, most will cash out too early , will not add and will not encash the move fully because of fear of letting the small profits vanish....and the money they make on trend days is small compared to their losses on sideways days....some more innovative and dare devil types go against the trend on the trend days saying " kidhar jata hai...."as they cannot "tolerate" market going in one direction and they come in to fade the move...adding to their troubles and nursing the loosing positions...

Any one can put on a trade....it is no brainer...but understanding when not to trade separates a good trader from a loosing trader.....

Smart_trade

- Instead of improving existing trading style, jumping from one method to another.
- Following a method of other person without understanding its merits, demerits, its usage in different situations.

Dear Raghav,

Very real-time blunders, due to which, at least I am down.

1. Fear of losses due to past hurt gets one out before reaping the full profits.
2. Inability to manage the trade even though entered in the right direction, turning a winning trade into a losing one.
3. Fruitless efforts to find tops and bottoms so that one can enter at the lowest/highest price.
4. Inability to understand/read the market behavior, i.e., the point of reversal, trend change, what is happening and why it is happening.
5. All in all, lack of knowledge.

Regards,

PS: Your inbox seems full.

I tried to get an answer to this question.But its not answered.

Question: In a month there will be atleast 4-5 days when market runs huge in a single direction which can be traded by any last person in the street.These 4-5 days of profit are enough to neutralize losses of other days and make some bucks on top of it.

Still why do the traders lose out big?Can't they keep their losses small on other 15 days?Is it MM, Discipline,impatience....what is it????

Pour your thoughts....Once in a while let me have a seat of listener from the seat of speaker ...

Ahh great quotes for any new & lossing traders.....If one eloberate one by one of above quotes from their trading then there is no look back to him....I personaly got help from ST sir some of problems (in quotes above)...which helped me a lot to overcome some of them...still fighting to overcome many.....still learning...If any one asked any trader...they all came through this above said problems....
Thanks Raghav to remembering it again

 

[Raghavacc]

Re:The event which opened my eye towards breakout's

The event which opened my eyes towards trading.

In my early days of working , I used to go to my office by Bus unlike you people who go to your office very first day with an Audi A-6!!!.

While coming back from the office I used to catch 2 buses.I mean by first bus I would comedown to a junction .From there I would catch one more bus to my house.

It will be around 8PM by the time I would reach that junction and from that junction the frequency of buses towards my house was very randomn though we had plenty of buses in that direction. Some times the frequency was 30 minutes, sometimes it was 45 Minutes.

Whenever there is a big gap between arrival of two buses, passengers used to accumulate and the first bus that comes after that gap would be over crowded. Due to the gap people used to become frustrated and impatient.As a result that first bus used to look like a battlefield. People used to rush in to the bus like as though they have not seen the bus at all. Then inside, fight for the seat, quarrel..shouting..I could see all kinds of stalwarts .Only thing missing was an arrow and a bow!!!

However one day I came to junction at 8.30 PM .I had to wait for almost 40 Minutes. Passengers were very big in number. The unpleasant experience that I used to have every day made me to pass that bus since I was tired. I waited.

Exactly after 4 Minutes ,I got 3 buses one behind another.all were empty so much so that I could sleep while travelling.This day passed.

Next day also similar thing happenend.Not even a minute late exactly after 5 Minutes 2 empty buses after the crowded bus passed.

3rd day alsoNot even a minute late exactly after just 2 Minutes.

I wondered.whether it is a peculiar phenomena?

It happenned day in and out..the maximum frequency between that warring crowded bus and next empty bus was 12 Minutes..The beauty is that the empty bus which I took always reached my destiny well before crowded bus
It really opened out my eyes..That is the day when I understood what exactly is a breakout and what is a breakout failure..

Being impatient, being frustrated,in pursuit of being first,in the fear of missing people rush and make irrational decisions in life as well as trading. Almost 99% of the crowd.Their mind is conditioned. Its hard to changeThats why experienced people say dont follow the crowd dont follow the herd

Most people trade breakouts in the same way .The moment they see a breakout they jump in and get trapped..They are not patient enough to wait for a retest or breakout failure..The hole is created not by market but by impatience,frustration and trying to be first and a feeling of "missing something

Life teaches so many lessons every day.. Thats why I say go thoughtlessobserve nature ...takeout the garbage from inside

 

[aaplana]

Re: The event which opened my eye towards breakout's

The event which opened my eyes towards trading.

In my early days of working , I used to go to my office by Bus unlike you people who go to your office very first day with an Audi A-6!!!.
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The hole is created not by market but by impatience,frustration and trying to “be first” and a feeling of "missing something”……

Life teaches so many lessons every day.. That’s why I say go thoughtless…observe nature ...takeout the garbage from inside……

Very Well said, A Very Very Simple way to explain BREAKOUT AND BREAKOUT FAILURE.
It could not be simpler than it .
Thanks Raghavacc :clapping:

Regards Aaplana

 

[Raghavacc]

Who is a mentor? who is a guru?

I am writing on this topic because if we want that real happiness and want to know the purpose of life and want to know how to fullfill that purpose legitimately we need a Guru ( mentor) atleast in life if not in trading.

A mentor is one who enables you to divert all of that cosmic energy ( I wrote on this subject) towards the achievement of your goal.

The above is a modern term of mentor.

During ancient time A guru himself used to be a mentor.A Guru is far far above a Mentor.

Apart from doing whatever a mentor does, Guru helps you to
1.Realise the purpose of life,
2.He makes you to understand why you are here
3.Why you are born as a human being
4.What are your personal duties and social duties and more than that
5.He helps you to kill animal instincts within you which comes along with you invariably, when you are born, due to our experiences in the past birth's.

We become HUMAN BEINGS only after we kill animal instincts installed within us since our birth. TILL THEN WE REMAIN AS ANIMALS.

Most of us die before we can kill our animal instincts.The best examples are Politicians of our country.

A Guru is Guru because he can create whatever he wants and he can destroy whatever he wants due to sheer willpower present within him due to years of Tapas or Dhyana ( Meditation).For human the REAL LIFE begins the day he finds a true Guru...

 

[adityasaraf007]

I am starting to create a pdf of this thread.

You may download the initial few pages from here.

I would be updating the pdf regularly. Enjoy your Sunday.

 

[balasoft80]

Hello Raghav,
I feel that today market is behaving something different from our observation. Though there are few hammers in NIFTY and Tatamotors, it looks like it didn't give better result. Could you please share your thoughts and trades today?

Also when market opens, if we see WRB as a first bar in the 5 minute chart, Do we need to take any consideration from that?

Also, could you please point out any good materials to understand price action with with volume if you have? I understood most of it from your charts with volume. But I am not sure whether thats good enough or something left with it

Thank you so much for your help.


Hello adityasaraf007,

Please let me know if you need any help on creating the PDF document. I am very much eager to help you on this. So that it will be handy to all new comers.


Thanks
Bala