Seniors - Have you all gone through bad phase of intraday trading

[rajendrani]

As a newcomer to this field, I started with the basics, learing the basics, papertrading and then entering day trading with small quanity and now big quanity.

When I was papertrading, it was like the market was moving in the direction I wanted and when I started actually doing it, was a complete reversal. Again human tendency for fear and greed so didnt work out good.

Started with basics again and with saints method for intraday minflow got plunge into the stocks not in nifty futures.

But still for me its not all 5 days win situation.
For eg. If I get 5000, 2000, 1500 for starting 3 days and then for 2 days I am at loss of 2000, 1000 , overall still in a profit situation.

I have read about how we can reduce our loss by money management and using less leverages. But today loss for me was a big one and I think I should not be trading. Has this thought has crossed your mind too, because the confidence what I was having till yesterday, is not to be seen today and thats the reason there is a new thread on this forum.

Seniors please advice.

 

[Aman1]

why not everyone has gone through a bad phase and those who say they have not they tell you a lie. My account was down from rs 100000 to 9000 last year and remember last
year was a bull phase. I stopped for a while and pondered what went wrong and then started again and slowly regained what I lost. my problem was I was not taking losses quickly and kept losing.

 

[ARMHM]

Of course everyone loses in the market sometimes. Some lose many times. But then perseverance is the key. Learn from your mistakes and do not repeat the same mistake again. Think that if you were on the other side of trade then what you lost would have been your profit. There are unlimited opportunities in the market every trading day wether it is going up or down. As a trader one must learn to take advantage of those opportunities. I have lost too and that too during a raging bull phase. So someone must have won because for every loser there is a winner. It is a zero-sum game after all.

 

[the tape]

As a newcomer to this field, I started with the basics, learing the basics, papertrading and then entering day trading with small quanity and now big quanity.

When I was papertrading, it was like the market was moving in the direction I wanted and when I started actually doing it, was a complete reversal. Again human tendency for fear and greed so didnt work out good.

Started with basics again and with saints method for intraday minflow got plunge into the stocks not in nifty futures.

But still for me its not all 5 days win situation.
For eg. If I get 5000, 2000, 1500 for starting 3 days and then for 2 days I am at loss of 2000, 1000 , overall still in a profit situation.

I have read about how we can reduce our loss by money management and using less leverages. But today loss for me was a big one and I think I should not be trading. Has this thought has crossed your mind too, because the confidence what I was having till yesterday, is not to be seen today and thats the reason there is a new thread on this forum.

Seniors please advice.

Hi rajendrani !

See the most important thing that i have learned in past few years is the importance of not trading. I don't know which method you are trading but, i am sure that if you have been watching the markets for quite a while now, you must be having one or more favorite trades ( the one's in which you mostly succeed ). Trade those trades only and with time you will learn more tricks. Like you said that you make both profitable and losing trades, there must be something wrong with the losing trades, may be the entries, the exits or they were simply not tradeable.

The ability to recognize what's tradeable and what's not can protect your capital. conserving your money and energy for the best bait is also part of the game.

On an all my point is that we should only trade the rule ( best trade ) and not the exception.

And brother why are you trading such qty that a minor hiccup is forcing you to think about quitting. Trade with small qty till you become consistent and raise the stakes later on.....

good luck

 

[uasish]

Friend after 7 yrs in the Mkt as Full Timer lost in a single day 86K in Jan'08.

 

[Niks]

Friend after 7 yrs in the Mkt as Full Timer lost in a single day 86K in Jan'08.

Sir you must be a really big trader to take that loss ( the smaller ones get irked and try to revenge and get wiped out)

regards
Nikhil

 

[AW10]

As a newcomer to this field, I started with the basics, learing the basics, papertrading and then entering day trading with small quanity and now big quanity.

When I was papertrading, it was like the market was moving in the direction I wanted and when I started actually doing it, was a complete reversal. Again human tendency for fear and greed so didnt work out good.

Started with basics again and with saints method for intraday minflow got plunge into the stocks not in nifty futures.

But still for me its not all 5 days win situation.
For eg. If I get 5000, 2000, 1500 for starting 3 days and then for 2 days I am at loss of 2000, 1000 , overall still in a profit situation.

I have read about how we can reduce our loss by money management and using less leverages. But today loss for me was a big one and I think I should not be trading. Has this thought has crossed your mind too, because the confidence what I was having till yesterday, is not to be seen today and thats the reason there is a new thread on this forum.

Seniors please advice.

Ofcourse, I have gone thru same stage many times. And I can bet my trading account, if any successful trader says that he has not gone thru this phase.
Seems to me that you are doing right things (paper trading, position sizing, rules etc) so don't give up. Psychology is 80% of trading (I realised it quite late but pretty convinced now). Maybe you should spend some time in trading psychology.

Loosing trade does not make you looser. I compare trading to breathing. Breathing process can't be complete without the presence of exhale and inhale, same is the relationship between winning and loosing trades.

My Suggestions -
1) Have your rules for entry, profit, stop exit, money managment, risk management in place. (and have confidence in them. Your paper trading should have proved it to you)

2) Develop right beliefs about the market. Some of sample belief / thoughts are
a) As a trader, my job is to find, plan and execute trade as per my rules. If there is no trade then I am not going to force a trade.
b) As a trader, I am here to trade.. not to gamble. Putting a trade against my tested rules is gambling.
c) Once in trade, I am ready to accept whatever market gives to me.Whether this trade will be profitable or not,is not in my control.
d) If this trade goes against me, my stops will get me out and save my account.

3) If you loose the confidence, then go back to paper trade or trade with small size to gain the confidence.
4) Know you strategy well in terms of number of consecutive loosing trades, biggest loss, how strategy behaves in various market conditions etc. You backtesting results will help you here.
5) Know the time when you have to stay away from the market. Market does test your patience and keeps us waiting for long time without giving potential opportunity meeting our rules. But thats the market.

Yesderday was Inside day for our market (bar is completely inside previous bar). Over a period of the time, you will know that Inside days are some of the most boring days and chances of getting stopped out are more on such days. But that shd be ok. This only indiacates that trending day is just around the corner. Inside days are followed by breakout in next one of two days. So you will have nice trending day very soon. Be prepared for that.

Happy Trading

 

[rajendrani]

Ofcourse, I have gone thru same stage many times. And I can bet my trading account, if any successful trader says that he has not gone thru this phase.
Seems to me that you are doing right things (paper trading, position sizing, rules etc) so don't give up. Psychology is 80% of trading (I realised it quite late but pretty convinced now). Maybe you should spend some time in trading psychology.

Loosing trade does not make you looser. I compare trading to breathing. Breathing process can't be complete without the presence of exhale and inhale, same is the relationship between winning and loosing trades.

My Suggestions -
1) Have your rules for entry, profit, stop exit, money managment, risk management in place. (and have confidence in them. Your paper trading should have proved it to you)

2) Develop right beliefs about the market. Some of sample belief / thoughts are
a) As a trader, my job is to find, plan and execute trade as per my rules. If there is no trade then I am not going to force a trade.
b) As a trader, I am here to trade.. not to gamble. Putting a trade against my tested rules is gambling.
c) Once in trade, I am ready to accept whatever market gives to me.Whether this trade will be profitable or not,is not in my control.
d) If this trade goes against me, my stops will get me out and save my account.

3) If you loose the confidence, then go back to paper trade or trade with small size to gain the confidence.
4) Know you strategy well in terms of number of consecutive loosing trades, biggest loss, how strategy behaves in various market conditions etc. You backtesting results will help you here.
5) Know the time when you have to stay away from the market. Market does test your patience and keeps us waiting for long time without giving potential opportunity meeting our rules. But thats the market.

Yesderday was Inside day for our market (bar is completely inside previous bar). Over a period of the time, you will know that Inside days are some of the most boring days and chances of getting stopped out are more on such days. But that shd be ok. This only indiacates that trending day is just around the corner. Inside days are followed by breakout in next one of two days. So you will have nice trending day very soon. Be prepared for that.

Happy Trading

Wow, gave lot of confindence bro, your words does make lot of sense.
thanks,
rajendrani

 

[uasish]

Sir you must be a really big trader to take that loss ( the smaller ones get irked and try to revenge and get wiped out)

regards
Nikhil

No with multiple lots Long in Tata Tea,experienced two down circuit same day,what to do,could not cut the posistions.

 

[venkatswamy]

Somehow I feel there is nothing as a 'bad phase' in day-trading. There can be a 'bad day' but once the day is over, the 'bad' is over. Tomorrow is a brand new day with brand new opportunities.

If you do your homework well, take help from sources that have proven track records, and religiously use stop losses, there is no way you can loose very much continuously. Losses become heavy when you are possessed by hope, fear, doubt and greed.