Need help to trade better and to trade RIGHT

#1
A small introduction about me.

I was trading before on and off for few years and was never profitable. Mostly day trading, never felt okay with overnight holdings. Be it in cash segment or derivatives, almost always square off before the end of the day.

About a month back, my cousin asked if I could help him with trading. I said NO as my track record is not good, I am not someone you should get help from. Going by the online article, only 1% of the traders make money, you should try different investment / business option. He kept insisting and I am also doing some odd jobs and post corona things aren't good. In the end, I said okay and started trading few weeks back. I explained what kinda returns he can expect from this and everything I thought he should know before we started.

1st day wasn't good, in fact it was bad. It's me, responsible for the loss. Lost about 4% on the day one. :(

The idea is to make 40-50% per annum. Decided to trade low risk option strategies like spreads, but me been a day trader in the past, couldn't trade the spreads as it's supposed to be done. Short strangle/straddle scares the sh?t out of me cause of the unlimited downside. Long/short iron condor/butterfly doesn't look attractive (may be I am wrong), strangles/straddles though attractive they are most likely to lose in the long run. Don't know if I should stick with naked short/long in futures or even options and do intraday. Again I wasn't successful before, so why this time would be any different if I continue with day trading. Still wrestling whether I should do intraday or positional (though I wasn't keen on positional trading when I was trading in the past, I was profitable - may be the reason I am thinking about positional trading).

Okay. I am here to learn to trade better and more importantly to trade RIGHT this time. I am here to stay for atleast a year, if profitable (esp. achieved the target) longer than that. It's a long weekend. I will be here most part of the weekend, hoping to learn. :)
 

marimuthu13

Well-Known Member
#2
A small introduction about me.

I was trading before on and off for few years and was never profitable. Mostly day trading, never felt okay with overnight holdings. Be it in cash segment or derivatives, almost always square off before the end of the day.

About a month back, my cousin asked if I could help him with trading. I said NO as my track record is not good, I am not someone you should get help from. Going by the online article, only 1% of the traders make money, you should try different investment / business option. He kept insisting and I am also doing some odd jobs and post corona things aren't good. In the end, I said okay and started trading few weeks back. I explained what kinda returns he can expect from this and everything I thought he should know before we started.

1st day wasn't good, in fact it was bad. It's me, responsible for the loss. Lost about 4% on the day one. :(

The idea is to make 40-50% per annum. Decided to trade low risk option strategies like spreads, but me been a day trader in the past, couldn't trade the spreads as it's supposed to be done. Short strangle/straddle scares the sh?t out of me cause of the unlimited downside. Long/short iron condor/butterfly doesn't look attractive (may be I am wrong), strangles/straddles though attractive they are most likely to lose in the long run. Don't know if I should stick with naked short/long in futures or even options and do intraday. Again I wasn't successful before, so why this time would be any different if I continue with day trading. Still wrestling whether I should do intraday or positional (though I wasn't keen on positional trading when I was trading in the past, I was profitable - may be the reason I am thinking about positional trading).

Okay. I am here to learn to trade better and more importantly to trade RIGHT this time. I am here to stay for atleast a year, if profitable (esp. achieved the target) longer than that. It's a long weekend. I will be here most part of the weekend, hoping to learn. :)
Forgot about F&O trading...try trading cash intraday, only with stocks in f&o universe...

Keep risk as much as low around .5% per trade, restrict yourself maximum 4 trade per day..so that in any given day your risk is not more than 2%.. here is reducing risk doesn't mean tight SL... SL should be based On price patterns/indicators suggestions ... Adjust QTY accordingly so that u don't risk more than .5% of the capital..

All these will work if you have EDGE ( profitable trading system which was backtested for atleast 1000 trades ) ..
 
#3
Forgot about F&O trading...try trading cash intraday, only with stocks in f&o universe...

Keep risk as much as low around .5% per trade, restrict yourself maximum 4 trade per day..so that in any given day your risk is not more than 2%.. here is reducing risk doesn't mean tight SL... SL should be based On price patterns/indicators suggestions ... Adjust QTY accordingly so that u don't risk more than .5% of the capital..

All these will work if you have EDGE ( profitable trading system which was backtested for atleast 1000 trades ) ..
Thanks for the suggestion @marimuthu13

One of the reason I trade index is that I don't have to scan the possible candidates to trade everyday. Can just stick to Nifty. Your suggestion is also right, with odd lot market it would be better to manage the position sizing/risk. When I was trading in my account risking more wasn't this tough, as my account size was small. But now the account size comparatively bigger and the fact that the money is not mine, I am hesistant to risk even 1 - 1.5% a day.

I was never able to backtest any trading strategy before. One I don't have any sophisticated software to do that and even when I have one, will I be in a mental position to apply that in trading. System will say enter and I wouldn't find the entry right or vice versa. Probably I should develop that first before finding a trading system and backtesting to find if it's profitable. As people suggest that trading psychology matters the most than the system.

By the way, I am reading this thread Learn how to fish.
 

Vmaster369

Well-Known Member
#4
Buy right sit tight only way Equity is way to make money lol

Below is example of Normal individual becoming One of the legend ;xD ifhe can do it You can do it too
He dont trade in option he buys Equity Shares ;xD
wayhe talks u can tell its not fake he speaks from heart ;xD
 
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#5
Buy right sit tight only way Equity is way to make money lol
Thanks for the suggestion. I will see what I can do about this.
By the way, I am reading this thread Learn how to fish.
Read about 20 pages in that thread. It's familiar, may be I have read the deleted thread before. Not sure. Anyway, I guess after that it's pretty much discussion and further fine tuning of the method. I am gonna re-read and move on to the next thread I bookmarked (the ones that are pretty similar to this one).

I guess since I am new here, my posts are awaiting for mods approval.
 
#6
Re-read the first 20 pages of the thread "Learn how to fish"
Here is the word file of that, only the posts about the method. If anyone interested, feel free to download
I have few minor doubts, the thread is closed for any further discussion. I don't know where to ask those for clarification. If anyone can give some direction to where I can ask doubts about the method discussed in that thread, that would be swell.

Moving on to the next thread, again the same topic Pivot Trading- a new way of Trading
Just a feeling that reading a different version of the same topic would lead to better understanding of the method.
 

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#9
40-50% in a year just by investing is sitting tight is quite tough. I recently found a platform called vityasa where various RA's give investing / trading calls. you can see if you find anything suitable to you. They are paid services though but their metrics are available.
 

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