My Trade Journal

[VJAY]

SETBACKS IN TRADING....shared by Amitrandive

Remember to view setbacks, losses and failures as learning opportunities – those things that hurt, instruct. All great achievers have made innumerable mistakes and have failed, that is what provided the “experience” and the “education.” This is necessary to manifest your trading vision.Let’s look at five ways to deal with setbacks:

Don’t aim to avoid a handicap, such as starting your trading business without capital or wanting to understand a new market despite time constraints. If you have a challenge, study it from all angles and seek to identify a creative solution; otherwise a tiny toy wrench can grow into a huge iron monkey wrench stopping your progress cold.
Don’t blame others for your problems. Successful trading requires personal accountability and self-limits. Be honest with yourself. Use your mentors and, as well you can, be your own mentor by pretending that someone has come to you for advice on that very trading issue. How would you answer them?
Continue to strive and strengthen your qualities of self-discipline. You will not make it as a trader if you can’t keep your commitments. Setbacks that are caused by commitment implosion often can cause weaknesses in special areas, turn the weakness into strength. Be your own heaviest critic but don’t beat yourself up – in other words, you are not a failure, you had a learning experience.
Every setback or loss has a silver lining or seed of opportunity. Find it and use it. It may involve a new strategy, but you are getting there anyway.
Take the attitude that every issue has a solution. A problem is only a problem if you think you can’t, and therefore you won’t, solve it. As Henry Ford once said, “Whether you think you can or you think you can’t, either way you’re right.”

 

[VJAY]

 

[VJAY]

Simple MM trick ...by our own STda

Now with rs 1 L trading capital you trade 50 Nifty. Suppose you make 200 points in the first month giving you a profit of Rs 10,000...for next month again same 50 qty...200 points profit....now your total capital is 1 Lac + 10K +10 K = 1.2 L ...so in 3rd month you trade 3 contracts or 75 Nifty....200 points in 3rd month will give you 15 K profit...so in 4th month you trade with 4 contracts...so on and so forth...but if anywhere there is a monthly loss of 10 or 15 K, reduce 1 contract....so add when you make money..reduce when you loose money.

You can follow whatever MM you are comfortable with...all MMs have a basic idea that increase the qty when making money, reduce faster when loosing money.You are taking additional risk with market's money ie out of profits earned.

This MM looks very simple but it is very tough practicing it with discipline ..but do it for 2-3 years and you will be trading really big quantity all from markets money. After 1 year the qty increases very fast and so does the profits. In case you have couple of loosing months, you will achieve the qty after 2-3 months

 

[VJAY]

 

[VJAY]

HOW DO YOU HANDLE STRESS? LEARN THE 4 WAYS WE HANDLE STRESSFUL SITUATIONS - ANTHONY ROBBIN....Shared by DSM

Even with the best intentions, many of us believe that our emotions are out of our control, that they happen spontaneously, and that we handle them in a multitude of ways. But in fact, there are four basic ways in which people deal with emotion. Do you recognize any of these? Once you identify your primary strategy for dealing with emotions, you can shift to an approach that truly works for you.



Avoidance
The first defense against negative emotions is avoidance. We all want to avoid difficult or painful emotions. As a result, we tend to avoid any situation that could lead to the emotions we fear, or worse, try not to feel any emotions at all. While avoiding negative situations may protect us in the short term, it also keeps us from feeling the very emotions — connection, energy, excitement — that we desire most.

Denial
The second defense against stress is outright denial. When you experience an emotion and try to deny what you're feeling, your emotions will simply intensify. The pressure will build and what you are trying to ignore will resurface – potentially at an inconvenient time.

Competition
The worst addiction facing people today is not drugs, it's not alcohol, it's problems. Often, after moving past avoidance and denial, we decide to stop fighting our painful emotions and decide to fully indulge in them. Rather than learn what our feelings are trying to tell us, we get our fix of significance by making our problem worse that everyone else's. It becomes a "badge of courage," and we begin to compete with others, saying, "You think you've got it bad? Let me tell you how bad I've got it!" Do yourself a favor and get your need for significance met for doing something positive rather than for your problems.

Learning and Using
Truth: Problems are gifts. Our biggest problem is we think we shouldn't have problems. Albert Einstein put it this way, "Crisis is the greatest blessing for people and nations, because crisis brings on progress…He who blames his own failures and difficulties to crisis, rapes his own talent and gives more importance to problems than to solutions." Leaders use their pain. Find a way to use stress and pain to serve you.
Reply With Quote

 

[VJAY]

BNF

 

[VJAY]

No trades for me ....

 

[VJAY]

 

[VJAY]

Good Q&A about profit booking.......answerd b yST da



Querry:

I trade pivot breaks in on 5 TF in direction of HTF trend.I m able to get good entry trades and also able to cut my losses short when trade is not working or when breakout fails.

I m unable to take profits at appropriate level ,some times i exit so early catching only 20% of move or sometimes i wait ,losing all my profit.i get into a state of dilemma.

Please advice some logical take profit strategy to be incorporated in my system.

Answer:

1) Profit taking is very important part of any trade managemet.It is the part which makes money for us.

2) Profit booking is both science and an art.

3) All good traders are good at booking profits.

Now we come to daytrading. Here we have to strike a very delicate balance between letting profits run and grabbing profits aggressively. Few points to consider while booking profits are as under :I will just mention the points , a few posts can be added on each of these points.

1) Market volatility and range: If the market ( NF) say is giving 120 points range every day, then booking profits in 20 points is booking too early....but if the range is 50-60 points then 20 points is a good move.

2) Trending /sideways day we have at hand : In a trend day we have to hold the positions and add to them and hold till the end....trend days normally end very near top/bottom of the days range.

But in sideways days we have to book profits more aggressively. Else the market will reverse and the profit will disappear.

3) Important Supports /Resistances: Important supports /resistances such as TDST levels,major pivot highs/lows, Sequential low risk sell/buy areas,VWAP and the VWAP bands etc

4) Rejection and failures : Rejection and failures at important pivot highs/lows and support/resistance areas will give a clue to book profits.

5) Market Activity : Observing market activity at important pivots can give a good clue for profit booking....if the market starts making small bars which intertwine with each other then it is a sign to book profits. On the contrary if the levels are broken effortlessly then hold on to your position.

6) Steep Rise/fall: After a sustained rise and fall, we get a steep rise or fall and big bar, that is a sign of a selling/buying climax. Grab the profits there.

7)Some important price patterns like hammers and inverted hammers, hanging man,engulfing bars coming at important levels after sustained rise/fall also gives great clues for profit booking.

8)Power of 9: After making 9 buy/sell set up bars the market will take a correction...so trail the profit taking at low/high of each successively higher/lower bars. Market also has a tendency to make short term top/bottom after every 5 bars in one direction...this observation is for any timeframe.

The above are just mentioned to give you a template to think and work on your profit taking. Many people follow booking 1/2 qty if trading NF in 20 or 30 points and trail the remaining half.

 

[VJAY]