TECH-nikaal ANALysis...!

[Debarghya Mukherjee]

In case of trading it is not important what is your winning %. Rather how much you win in a single trade using proper money management. Because if you have a 1:3 risk reward ratio then loosing 3 traders mean you can wash all in one winning trade(leaving commissions apart). So what is your risk reward ratio is more important question.

wht is the successful trade % tat u look for? or isnt there any?

askin this because, if one wants to trade for a living, wht is the level of consistency u look for before u quit the 9 to 5 sweatshop? - ofcourse it might differ from person to person, but would like to have an idea...

 

[sumosanammain]

In case of trading it is not important what is your winning %. Rather how much you win in a single trade using proper money management. Because if you have a 1:3 risk reward ratio then loosing 3 traders mean you can wash all in one winning trade(leaving commissions apart). So what is your risk reward ratio is more important question.

Forget 1:3, even a 1:2 ratio is not achieved by normal traders. At least 90 % of traders do not have a 1:2 ratio. Maybe thats why 90 % of traders loose money consistently.

Other than EOD traders, its extremely difficult to have even a 1:1 ratio in intraday. Anyone who has made a few thousand trades should identify with this post of mine.

 

[Smart_trade]

wht is the successful trade % tat u look for? or isnt there any?

askin this because, if one wants to trade for a living, wht is the level of consistency u look for before u quit the 9 to 5 sweatshop? - ofcourse it might differ from person to person, but would like to have an idea...

I classify the trades into following 3 catagories :

1) Successful or Winning trades : These are the trades which had made atleast 1.5 :1 reward/risk in daytrades and 2.5 to 3 :1 in swing trades.

2) Unsuccessful or Loosing trades : These are the trades which either hit my stops and I loose the amount ( % of my trading capital or R ) or part thereof. In few cases before hitting our stops , we get a position closeout signal....so we dont loose full R but may be 0.25 R or 0.5 R...

3) Scratch Trades : These are the trades which are scratched loosing the brokerage and taxex,levies etc.

The methods I trade do not have targets......but the past results have shown that for swing trades the Reward to risk is min 3:1 and for daytrades it is 1.5:1. But as there are no fixed profit taking levels, we have had a few swing trades where the RR was 10:1 ( these are Bank Nifty Fut trades )...but those trades are rare.

Hope the above helps.

Smart_trade

 

[NTrader42]

the past results have shown that for swing trades the Reward to risk is min 3:1 and for day trades it is 1.5:1.

Hope the above helps.

Smart_trade

Thanks ST sir

With those RR ratios, winning even over 35-40 % of swing trades and 45-50% of day trades will keep the account positive. Accepting this fact and being calm when the trading gets into a losing streak is the key to success.

ST sir, if you don't mind, what is your typical Win : Loss : Scratch, ratio for 1. swing and 2. day trading.

Thanks
NT

 

[oberoivivek9]

hello friends

the technical analysis will help the person to analyse the market . if there is any problem in the data then it can be solve and help the stock traders to predict market. the market analysis can be prevent the stock traders to solve the problem.
thanks

 

[oilman5]

Sorry Linkon7,
i am writing something in ur thread, though u know all, but as discussion turns tangential; i am commenting.
1] Market understanding is very much necessary
2] WRONG trading method.............trading based on tips,based on news, based on media
3] bullish market........break out or pullback buy
4] bearish market .......short in future at known resistance, break down play in weak stock
5] volatile market .....buy at weekly support , book quick profit,sell at weekly resistance & 3% fall book profit.
..........................
R/R analysis av trader never understand,unless they overcome emotional trade.Present generation can learn a lot by READING Linkon & Smart_trade.
Just have patience, study all their article , also their trade with chart,......easily one be trader by practice

 

[Easytrader]

In other words, you are saying is, you found your comfort factor.

Smaller TF made you un easy and shifting to higher TF is working for you.

Thats part of the growing up process. finding out what works for you and then working on the strength rather than finding out what doesnt work for you and spend countless days trying to make them work....!

Thats 100% true got stuck with this factor for soooo long and one day realized this fact! till then 65% of the capital wiped out


Learning the hard way is the hardest yet how peaceful i am feeling right now after reading your post..

Thank you Linkon ji for bringing such a wonderful topic on this forum TECH-nikaal ANALysis...!:thumb:

 

[Easytrader]

Personally, the last time i had a negative week was from 11th-15th July'2011. Overall, end of the week was always positive. Somehow it didn't make me happy. My monthly target had been reduced to 200 points per month and i was getting hyper defensive. From 2nd Jan, i cut my trading volumes drastically and the result was very astonishing. The last time i clocked 800 points on nifty was in beginning of 2010 and i used to be reckless then. This month, i clocked 807 and i still have 3 days to go. Except for 3-4 trades, I was on total control for most of the trades. The execution has suddenly become lethal.

What changed is the way i see profit in rupees terms. When the m2m profit / loss on a trade doesn't generate excitement / fear, the whole exercise of trading becomes perfect. Wide stoploss doesn't scare me. There is no fear when i carry overnight naked positions. There is no excitement when i rope a 50 pointer trade. Somehow emotion out of the picture and i am enjoying trading again when the stress of high volume is gone...!

All of us fight our own demons and isolating the grey area is very tough as the mind always plays the devil inside. It is always looking for reasons to be fearful. When we look for thing that can go wrong on the chart, we invariably find reasons to be fearful when we should be brave. We look for confirmation on the charts and opportunity slips through the fingers....!

The entire point is so clear right now its a mind massager for me what a good thing we hear it and know it still the atmosphere is so filled with profit and loss smog like situation. I failed at practicing what i know and wasted time to find out a solution from something i don't understand there is always a tomorrow feeling eat up my time and the green day got far away..

"Bob Dylan -Answer is blowing in the wind "Only thing is people like me should know where to look at"

"Advice to myself Remove the I and trade keep it small so that things stay in control small takes the greed out"

Thank's Linkon Ji once again:thumb:

 

[VaibhavPRO]

I classify the trades into following 3 catagories :

1) Successful or Winning trades : These are the trades which had made atleast 1.5 :1 reward/risk in daytrades and 2.5 to 3 :1 in swing trades.

2) Unsuccessful or Loosing trades : These are the trades which either hit my stops and I loose the amount ( % of my trading capital or R ) or part thereof. In few cases before hitting our stops , we get a position closeout signal....so we dont loose full R but may be 0.25 R or 0.5 R...

3) Scratch Trades : These are the trades which are scratched loosing the brokerage and taxex,levies etc.

The methods I trade do not have targets......but the past results have shown that for swing trades the Reward to risk is min 3:1 and for daytrades it is 1.5:1. But as there are no fixed profit taking levels, we have had a few swing trades where the RR was 10:1 ( these are Bank Nifty Fut trades )...but those trades are rare.

Hope the above helps.

Smart_trade

Hi ST da

10:1 RR in day trades is also possible with certain methods.One needs to read the markets early and with experience of market structure one should be able to judge whether to have a fixed target or not.No need to trade swing.

Like today i made Rs.7900 with risk of only Rs.750 in Axis bank futures

 

[jlmalhotra]

Hi ST da

10:1 RR in day trades is also possible with certain methods.One needs to read the markets early and with experience of market structure one should be able to judge whether to have a fixed target or not.No need to trade swing.

Like today i made Rs.7900 with risk of only Rs.750 in Axis bank futures

I agree but you get these trades once in 10 or 15 days.

and usually stocks rarely touch third support or resistance levels on trading day.
What levels did u short and on what timeframe