My ideas and trading diary

goldenedge

Well-Known Member
#21
A personal note:

I'm 22. Dropped out of IIT 2 years ago. Reason ? It's too complicated. I never liked it in a nutshell. IITs now a days encourage sucking up to pope instead of raw talent and passion. I got zero marks in my financial engineering course. Not even one mark out of 100!

I discovered trading two years ago. Naturally like most of you I was attracted first because of money and also that it looked like a great challenge for me. Requested 20k after a few months from parents and I instantly lost it in two days.

Later, I started my professional journey in this field. Tried again with a 50k account months later and I converted it to 1 lakh in less than ten days. It was miracle to me at that time. My best trading day was when I opened a trade and hit the bathroom. When i came back, it was 20k in profits! I thought I was a money making machine and a genius.
 

goldenedge

Well-Known Member
#22
Eventually, I couldn't sleep all night without even thinking about the money I'm gonna make tomorrow. I expected 30k so took higher risks . Eventually lost 30k next day and in the next few weeks, I blew up my account.

This was a wake up call for me.

I went deep into gaining knowledge first. I read a lot of top trading blogs and countless books(I can read and understand a 300 page book in less than a day. Perks of IIT). Eventually i started thinking that my emotions was the reason I lost money
 

goldenedge

Well-Known Member
#23
After reading all this and developing a strategy , sound money management and all that I took another 20k to trade.

I lost it all. That's what when it hit me. It was never about strategy or money management or whatever. There is no key to markets. You can make profits in 100 different ways.

First book that opened my mind was - universal principles of successful trading.


Now you tell me you are 60% profitable backtested or that you have a serious strategy. I feel bad that someone will lose a lot of money in future out of ignorance so I ask them to trade with as little as possible.
 

goldenedge

Well-Known Member
#24
See, profitability is useless. In fact all trading mathematics is useless.

For one important philosophical reason everyone forgets - markets don't work like that! It doesn't trade in patterns or whatever you feel to say. It doesn't provide indicator signals for you to trade.

Markets are chaotic. Trying to find comfort in terms of trading mathematics like profitability is not a solution.
 

goldenedge

Well-Known Member
#25
Suppose if my profitability is 60% and my next 6 trades are profitable. Then does that mean my next few trades have a very high chances of loss? You might think so but no. It's called a Monte Carlo fallacy or something like that.

Every trade is always independent of the other one. Meaning, you can theoretically make 100 profits in a row and defy zero Probability laws


The simple form of reality is that markets are chaotic . PERIOD . You will never understand why it is moving like that or it's a waste of time to even try to. Just switch on any business news channel and you'll come across "analysts" who use financial terms to explain why the recommended stock will go up. In reality, who knows? And those analysts make something like 1 lakh per month with just those recommendations!

It's useless to predict or time the markets. They are chaotic period. You cannot control the market movement
 

goldenedge

Well-Known Member
#26
So ,as a trader what are the things you can control? Losses.

The key to becoming a great trader lies always in understanding the philosophy of losses and why people lose.

That's what I figured out eventually. Now, I do understand that the game is never about money . It's about making the best trades.
 

goldenedge

Well-Known Member
#29
Trade 6 (or 7?) - Long zinc 196.1 SL - 195.4
est. profit 196.7 ( range)
 

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