My Trading Journey - Day Trading the account with ~ 1000 INR

[Nagappan]

Hi Nagappan,

Nice thread!! You are right it does not matter how long is the losing streak, but position size. If trades are not in your favor for x days, we should be careful with position size as we have always chance to add when market is in our favor..Pyramiding.

Looking forward and expecting an interesting journey in trading world...

Thanks
rip07

Hi rip07,

Thanks. I reduce the position size once I face some loss. It is not to recover my loss but to manage my account value.

Actually I'm not pyramiding the position in a systematic way. I'm willing to learn more about pyramiding from anyone.

4%, 2%, 2% and 1% pyramiding is working fine in single direction day (Bullish or Bearish ). Both bullish and bearish market in a day eat up the profit we make if we do pyramiding.

So, I like to learn and optimize the position size too.

Regards,
Nagappan

 

[Nagappan]

It wasn't in one go, was it ? You must've traded maybe 100-200 in one trade. What's your stoploss ?

Hi timepass,

No. It was not one go. I took two shots.

At first, I traded VEDL with 300 shares ( maximum amount of shares I traded, based on account value ). It went in my predicted direction, reached upto 1% from opening price. Before I close the position, It hit my stop loss and gave 30 INR profit.

Next, I traded VEDL with 300 shares. Because of no volatility, price movements were arrested. At the end of the day, it gave me 45 INR loss in total.

Regards,
Nagappan

 

[timepass]

Hi timepass,

No. It was not one go. I took two shots.

At first, I traded VEDL with 300 shares ( maximum amount of shares I traded, based on account value ). It went in my predicted direction, reached upto 1% from opening price. Before I close the position, It hit my stop loss and gave 30 INR profit.

Next, I traded VEDL with 300 shares. Because of no volatility, price movements were arrested. At the end of the day, it gave me 45 INR loss in total.

Regards,
Nagappan

What's your stoploss ?? is it in number of ticks or absolute value ?

 

[Nagappan]

What's your stoploss ?? is it in number of ticks or absolute value ?

Hi timepass,

My stop loss is always 1:1 May be I'm wrong with this rule from trading point of view, but data research shows, 1:1 ratio arrest most of the fluctuations. At the end, you will be at profit if your trading strategy yields 60% result.

I usually target 1% if market has good volatility. I target 0.5% if market has less volatility. Sometimes, I target 1.5 % depends on situation.

Every time, I use 1:1 RR.

Some traders use 1:2 or 1:3 or 1:4 ratios. I am not comfortable with it and I have to wait in front of computer screen to catch those trades.

Regards,
Nagappan

 

[Nagappan]

Agree with TP,
BO is worrisome due to leverage,
Tight SL with large quantity filled easy due flashing volatility / Whipsaw
Rather Wide SL with small quantity "may" increase winning ratio.

Can you please tell about your Money Management?

Hi Shikamaru,

BO is like sword. We can make it good / bad depends on how we handle it.

Yes high leverage trading is risky one. But I'm doing experimental trades to better handle this sword.

1:1 RR to avoid fluctuations.

As of now, I am not increasing the position size if trade goes well in my direction. I keep fixed target and fixed stop loss. Sometimes, I move stop loss to cover the brokerage if loss occur.

Regards,
Nagappan

 

[Nagappan]

I made big mistakes today, so big loss.


Account value in the morning : ~ 2200 INR
Loss : ~ 425 INR
Total loss (inc. Brok.) : ~ 525 INR
% loss on total acc. Value : ~ 24 %

First : My prediction today is wrong. Second : I got signal as per prediction so I took positions in wrong direction.

I consider this as failure in my trading strategy and will try to improve my strategy for certain situations.

Price action gave clear signals today. My prediction is wrong.

Regards,
Nagappan

 

[josefjohny]

This one is from my trading journal. I go through this and other notes once in a while to keep myself in check. It might help you. Else ignore.

/ Once we have a trading concept in mind, the conservatism bias takes over: We fail to recognize, or even see, contradictory evidence.


BTW I am not the owner of the above phrase and I don't rem whose it is.

 

[Nagappan]

/ Once we have a trading concept in mind, the conservatism bias takes over: We fail to recognize, or even see, contradictory evidence.

Hi josefjohny,

Can you please explain this detail. Sorry I unable to understand it properly.

Regards,
Nagappan

 

[rip07]

Hi rip07,

Thanks. I reduce the position size once I face some loss. It is not to recover my loss but to manage my account value.

Actually I'm not pyramiding the position in a systematic way. I'm willing to learn more about pyramiding from anyone.

4%, 2%, 2% and 1% pyramiding is working fine in single direction day (Bullish or Bearish ). Both bullish and bearish market in a day eat up the profit we make if we do pyramiding.

So, I like to learn and optimize the position size too.

Regards,
Nagappan

Thread by Subhadip

http://www.traderji.com/derivatives/99863-pivot-trading-new-way-trading.html

This thread is very good for learning how to adds in trending market. He explained pivot and 2MAs methods which are also very helpful.

Pyramiding is not for sideways market, only trending market, he also explained how you can avoid sideways market. Most of the people who are trading for quite some time have good system, but they give away most of their profit in side ways market. It is important to learn when we should not trade.

Thanks
rip07

 

[Nagappan]

Thread by Subhadip

http://www.traderji.com/derivatives/99863-pivot-trading-new-way-trading.html

It is important to learn when we should not trade.

Thanks
rip07

Hi Rip07,

Thanks. It is good information and new way of creating support and resistance lines. I was looking at 15 min data, it applies very well and gave me few good ideas for price action trading.

Regards,
Nagappan