Need advice from seniors: Should i stay off market after this loss? Really?

[kingsmasher1]

Caution: Few Harsh words Ahead !!

Let me be very candid, no intraday strategy (which is consistently tradable, i.e. one can verify and validate the setup and trigger in a humanly possible reaction time) can yield such a high strike rate if that has a greater than > 1 RR. So myself (and of course other TJI members) would be very interested to know how you derive 95% figure. Do let me know what is your SL for that 1 or 2 points you earn. is it > risk? if yes, how much?

And of course if it was the stat based on just last 6 months or some long backtest. See, getting 10 sessions of winning streak is no mean achievement, but that is not enough to sign off the trading style. All things boils down simple Math (Win-Rate & RR combination)

So if you have 95% with RR > 1 , I will pay you 4 Lakhs (I mean it, give your bank a/c no, I will transfer) to buy your strategy. Provided I am sure, it is tradable.

I don't know anything how you trade - but let me guess, your SL is wider than your target. Is that right?

Now let me give you an example, I know a guy from my trading group who has a win-rate of around 70% (still less than yours) but he still ends his months in Red. The reason, the payoff sucks. He trades for 12 points with a SL of 50 points (RR = 1/4), yeah funny.

With such a wide net, he of course catches the small fishes from the pond more frequently than others - thats a huge win-rate. But the day SL gets hit, a single loss makes him lose more than 4 winning trades. Eventually, he is ending in red more or less every month. And a losing streak of 4 trades has blown his account. Another bad aspect (similar to the first post of your on this thread), his trading style shows that he is loss-avert & is kin to win every time by any means. As result, on the days when his SL is about to get hit, he drags it wider as he induced to the belief that it will make a U-turn to the profit zone, because it did > 70% time. And he also does average of losing trades (like you did, I believe you usually do that many time, which resulted in profit), But, then

Then, one of these days come:

“If you can’t take a small loss, sooner or later you will take the mother of all losses.” - Ed Seykota

I guess you just did that on your last trade.

I have self-imposed limitations on my thinking and interpreting charts, which I developed after so many years of practices. So essentially, I do the trade as a block-head, where no other idea comes to my mind. Having said that, this post of mine is not at all meant for discrediting or discouraging your trading style. As my way definitely not the only way to trade.

So, do share your method to this forum, let it go under lenses of all other like-minded traders, they will point out if it is the right way or are there many loopholes.

@Tuna: Sir, I thank you, and really appreciate your humble and helpful attitude and taking the time to comment and help.
May god bless you and all the other seniors who have taken off their valuable time with all the success and prosperity for being so kind and helpful.

I have posted the screenshots below for my last consecutive 13 trading sessions, which shows the outcome of the strategy, the last where it failed i didn't quite follow it. I would also PM you my strategy. I really don't mind posting with you, and other helpful seniors in the forum and all the good people who have posted in the thread, however, coming to this point, and discovering this strategy, has taken me lot of time, and loses, so would avoid disclosing it to newbies around, who wish to get a quick success, with little or no efforts of their own. Hence would PM you first. I wish there was a method in traderji, where a thread could be shared with members of a certain experience (like you and all the good and helpful seniors in the thread and the forum).

I have started penning down the strategy as it was more in an irregular manner, will PM you very-very shortly.

[Traderji removed screenshots as it was showing members user id with the broker.]

 

[yachusai]

@ kingsmasher1 Your
1 method is Tuna ji contra method pls visit tunaji charts
gap up or gap down then failed is rjsem sir Yesterday high or low failure method . pls see rjsem sir posts .You use their method

Then your 95% Success method is the main reason to you quit your trading for 3 days

 

[yachusai]

I really don't mind posting with you, and other helpful seniors in the forum and all the good people who have posted in the thread, however, coming to this point, and discovering this strategy, has taken me lot of time, and loses, so would avoid disclosing it to newbies around, who wish to get a quick success, with little or no efforts of their own.

Bro i cant understand Your point, you want help from seniors but you never help to juniors ????

 

[suri112000]

The problem is psychological. As a human, we tend to be more on winning side. We do it too in personal life. We tend to bring in the same philosophy while trading. We need to be on winning side each and every time.. And this is the basic cause for going broke in trading. Any trader less than 10 years or 10000 hours of screen experience, cannot achieve more than 40% of winners with RR of 1:3 (if not more). This fact is in itself enough to disect the actual problem. Human tendency to be on winning side makes the trader to do funny things and one of them is to cut profitable positions early. In the process, the win rate drastically increases soothing the psyche and increasing our chances of loosing the game finally. We need to win big on our winners and we need to cut short our loosers. It takes lot of time to rewire our brains. Experience matters finally in winning this fascinating game.

 

[vikas2131]

Do not trade stock futures... move to stock options..it will limit your downrisk right away..

 

[Protector]

If you feel that you get emotionally after a loss (same is valid for wins), take a short break. Get away from your screens and take a walk around your block. I did this for more than a year and it really helped me to keep my emotions under control.

 

[Subhadip]

Dear Seniors,

Need help.

I am a day trader, and should say, relatively good at it. I had been in continuous profit for 3 consecutive weeks.

Last time i traded, when i was off-sick, suffering from food-poisoning and entered a wrong trade, and went for a huge loss which i also posted in tradingqna of zerodha.

After this, loss same day, i touched god, and promised, that unless i have more than thrice the amount in my bank, i won't trade but this mean, i would be out of stock market, at least for more than a year !!

Now, when i am not trading for the last couple of days, i am re-thinking if the decision to not trade this long, is good or not? Kindly advice.

Pros (if i don't trade before a year):
1) I would have gained financial stability being off-market recovering the loss.
2) I can use this time to learn more about stock market, and trading techniques.
3) I can paper-trade, instead of putting real money to back test my strategies, and possibly coming with a better one.
4) I can have a good work-life balance and concentrate on my main job.

Cons (if i trade now without a gap of 1 year):
1) I have traded each and every day, without single day gap for last 6 months, staying away from market seems real-real tough
2) I may lose practice of trading.
3) Coming back after a year gap, may need again, starting somewhere from scratch (at least psychologically, after this big gap).
4) Sounds funny, but my curiosity of learning trading decreased a lot, when i was on a consecutive days of profit, (mentally i somewhere had, why to learn, when i am already getting what i need - money), even i stopped pre-planning trades, the day before !!
5) I might lose again (though less chance) and this will be a big set back, though i won't make the mistake of averaging again, which led to this huge loss.

I am sure, you all must have gone through this phase, being here much longer, so kindly suggest, what is the best way out? Should i break my promise, and re-enter market before a year?

Thanks in advance.

[This post is edited by Traderji to remove url as per the request from the member.]

You are gambling....and u r addicted to trading....

Now what you will do u have to decide as u r hopefully Adult....

 

[kingsmasher1]

You are gambling....and u r addicted to trading....

Now what you will do u have to decide as u r hopefully Adult....

Dada, Thanks for the response.
Addicted to trading? Agreed. I am trying to stay off as much as i can.
Gambling? Trading is a gambling, except we are applying some intelligent predictions, based on some indicators which we hope to work in our favor, but still it doesn't at times (and hence the stop loss).

In my last trade, i didn't follow a decent money management, (stop loss strategy), and hence went broke. I averaged, against the market, when i knew i was wrong, and it proved fatal for me (don't want to give excuses, but i was not quite in my mind that day, after suffering from heavy fever and food poisoning) in a sane state of mind, i would never have done that. I have stopped averaging losing trades altogether after that, as so many seniors also suggested.

 

[sadiq]

The issue is simple with you .. the current and past trading style seems not ok with your physcology . u must change your trading style .

 

[Subhadip]

The issue is simple with you .. the current and past trading style seems not ok with your physcology . u must change your trading style .

he has to do it..none can do that on behalf of him.......