Trade journal and analysis

[Scalpwing]

Hello Traders

I am an amateur trader and have been struggling...mainly due to greed and recent losses...and using no stoploss....
I do not follow any plan and that shows up in the results.

I want to be accountable for what i am doing and posting to public forum , i think should help me.
That is the idea for opening this Thread.
I am located at Noida.

I will put up my rules in the following thread that i will follow to enter and exit trades.. seniors please help refine them and guide me to the right path.
Also i will include my Goals for month and week.


Scalpwing

 

[Scalpwing]

I have been trading for sometime and i have realized my personality is my bottleneck...

initially i started with just momentum trades and would book profits sooner....I would often end the days profitable.. (calculated fear trading)

Later as confidence grew , i started holding for more profits (greed came in trading)... i would not book profits of says Rs 5000 on 500 shares and because i do not use stops...eventually the trade would turn into loss...

The biggest blunder comes now....fear of Losses...and would not book them...partly because i had seen the trade profitable and there is always hope to get it out breakeven... (Hope is lethal when in Losses - I need to get it corrected - so would try to implement stoploss now to relieve fear and also targets to suppress Hope/greed)

.....i almost always exited at the climax of the down move with huge losses.... (the place usually to enter a trade)

The capital loss is bad but more than that my emotional capital , my loss of confidence and restless thinking about the trades is the biggest concern...

I think i started with some spare money , so i was casual about it...but now i have come to a point where even small loss has started to sting....and i am scared to trade....

so I want to take this step to formulate rules for trades...and inculcate Discipline and consistency in both profits and losses.

This thread would be a lot of rant from me..as i want to put in all my thoughts here....that can help me review at later time...

Have trading rules can only work if i can have discipline and patience to follow them....
I would ask group members to advise ways to develop these....(for example i can trade only 3 trades everyday , only trades that i have planned)

My plan is to formulate a plan and execute it in bunches of 100 trades or 30 days.....

 

[Scalpwing]

Before I formulate rules..let me try to encapsulate how trading is an extension to real life...
or how can behavior in real life can be seen when trading....
Trading can be related to anything in life...and if we are not disciplined and patience in real life...it can be seen in Trading as well...

I will take 2 instances to to relate Trading:
Driving a vehicle: Just like when we get out of our home to start the car for the journey...we always have a destination (profit target)....we already know the conditions outside...the weather as well as traffic conditions..(The market condition - rising /falling/choppy and the trade conditions)..if everything looks fine...we start the ignition...

Beforehand we know that the car has enough fuel and it is in good condition...(our internet...computer....as well as funds)...if fuel is not sufficient...the car can not go far....and we always are in fear ...(same happens when fund is not enough..at max we can take small positions and try to build fund)..



Lets says above all is fine...we start the car...we start at 1st gear...and then slowly gear up....and will be full throttle only when we have gained good confidence as well as when path is mostly clear....(same way in morning we should start slow on small size..and as we gain ground..we can increase size)...

If suddenly the Traffic increases , we slow down....or if sudden bump comes...we apply brake...(same way in trading we slow down when congestion comes....and get out if suddenly we see our self being pushed)

we then analyse what happened...and start slow again...


when we are on full throttle...it take some to stop...and any oncoming traffic needs us to adjust our speed..(in trading when we face a resistance..supply...we need to anticipate in advance and need to reduce size...)
at every moment..we need to analyze any new inputs...like a nasty speeding car...an oncoming truck on our lane and adjust... (similarly we need to adjust to oncoming supply and remain flexible always)...

In driving its easy to adjust by applying brakes...because we do not have 2nd chance if we get killed(in Trading we need to have a max kill loss for the day....at which we should feel that we are killed and cannot trader further that day - we can adjust small accidents by having stoploss..)

We drove on the proper lane.(with the trend)..we maintained safe distance (proper risk management)....and we drove with proper speed (proper size)...we maintained composure and calm....(in trading as well)..
if we are lost..we took help from someone who knows the path....(if struck in trading take help from successful traders and mentors)....

and if everything goes fine....we should reach our target....but even if we don't reach our target...at least we made a good progress towards our goal...and should reach is sooner...

we followed all the basic requirements...and did not try to hero...did follow all small things perfectly..and alas we reached....we gained good confidence.....
if the driver does it 100 times...he will be proficient and can drive any conditions...even though he has not driven on those conditions...just because he has developed a proper mindset....
(same goes for a trader...who has followed a strategy to perfection many times..can now evolve to trade different conditions with small adjustments)...

Now the question is what is Holy grail...is it the car...the conditions...the lane...the timing....etc...
here in My opinion the holy grail is the driver....(the Trader)....or rather lets says the psychology of the driver/trader....that allowed him to remain focused on the goal...be calm and composed in tiring conditions..remain flexible...remain disciplined and had patience to wait.....and had confidence in him that he will master any conditions to reach his goal...

and a good driver on road is not just a good driver on road...he is a good person in other situations as well...
so a Trader also needs to be a disciplined and patient person to make it good in Trading...

so in this journal i wish to ask ways to develop disciplined and patience...

Scalpwing

 

[DanPSup]

You have to start completely new from the bottom line, means you have to throw away now what ever is in your head. Not even already planing to execute 100 trades and so on. Stop it now.

Sit down and write down how you want to know when and why you want to do a trade. Define this in details if you want to do any trade on TA analyses or fundamental analyses or in combination or how do you want to define this, as you can do this in many different ways. And do now nothing else. Post a chart here and describe in details why you want to take this trade and why this spript. Before you are not even clear on this steps, you must not even plan on any strategy how you may want to act. So do this part one in very dept and take your time to learn it to adapt even to your psychological mind set.

If you manage this in the coming few weeks, then lets move on to the next topic. By the way: I will not be your spoon feeder, but I do not mind to give some inputs from time to time if it helps.

 

[newtrader101]

Just finding out which days offered trend opportunities in BANKNIFTY for one month:

3-7-19

8-7

11-7

15-7

17-7

18-7.19-7

26-7

30-7

1-8-19

There you have it. About 10 opportunities in a month.

 

[Scalpwing]

You have to start completely new from the bottom line, means you have to throw away now what ever is in your head. Not even already planing to execute 100 trades and so on. Stop it now.

Sit down and write down how you want to know when and why you want to do a trade. Define this in details if you want to do any trade on TA analyses or fundamental analyses or in combination or how do you want to define this, as you can do this in many different ways. And do now nothing else. Post a chart here and describe in details why you want to take this trade and why this spript. Before you are not even clear on this steps, you must not even plan on any strategy how you may want to act. So do this part one in very dept and take your time to learn it to adapt even to your psychological mind set.

If you manage this in the coming few weeks, then lets move on to the next topic. By the way: I will not be your spoon feeder, but I do not mind to give some inputs from time to time if it helps.

Thanks for providing me inputs to start with....I have been carrying a baggage of some technical indicators which i wanted to leave alone first....i was using MACD and stoch combination....but now as i need to start a fresh..i would purge them and use only MA and Price and volume to start analyzing.

As you said that start with analyzing the probable trades that i want to take and analyze in details why...How can i proceed on it.....
should i start with analyzing say nifty , banknifty , Nifty50 stocks on last 1 year intraday data using AMIBROKER and start analyzing bar by bar on hourly or daily...and see where the good moves happened and try to find commonality..
or
I start to analyze daily charts of nifty stocks everyday for probable trades for tomorrow...with reason...
or
should i start taking trades ideas on live market on 5 min or hourly , saying i want to buy here for these reasons and this is my stoploss and this is my exit....

I feel comfortable on 5 mins/60 Min/daily charts......

Please do advise as you get time...

 

[Scalpwing]

Just finding out which days offered trend opportunities in BANKNIFTY for one month:

Thanks Newtrader101 for posting a way to start analyzing...I got an idea form your post....that if i can look for Nifty and banknifty chart on 5 min and try finding out good trade opportunities and list reasonf for them...i will gain some confidence...

Your charts looks so clean...which is the charting platform... and can you advise ways to post the chart here....
I am just trying copy paste and see if it works...

Scalpwing

 

[Scalpwing]

Seniors please guide which tool to use to capture Images and edit them fast for analysis.
I am a hard core optimistic and mostly i look for long positions...but i would like to change it by having same number of stocks after analysis for Longs and shorts.

Trial Message: (for trying out ways to enter details)

TRADE IDEA 1: For 19 Aug - RBL bank - LONG
I have just taken a snap of ET charts and tried to add a trend line and SMAs to make some analysis.
I believe if market supports on Monday (seems unlikely though) , it should try to have a go till its Blue SMA.

@Reasons2Enter: trendline break
Above fast MA
extended down move
MACD rising , sloping up in a rounded way

@ReasonsNot2Enter: Immediate resistance (horizontal or Downward sloping Blue SMA)
Not enough volume support till now
sector - banknifty needs to support the move

suppose i am long here , whenever exiting , i will write @Reasons4Exit

Seniors please annotate better ways to enter my reasoning and any other things needed to be added.

 

[newtrader101]

Thanks Newtrader101 for posting a way to start analyzing...I got an idea form your post....that if i can look for Nifty and banknifty chart on 5 min and try finding out good trade opportunities and list reasonf for them...i will gain some confidence...

Your charts looks so clean...which is the charting platform... and can you advise ways to post the chart here....
I am just trying copy paste and see if it works...

View attachment 37116

Scalpwing

It's Kite Zerodha.
Take a screenshot and then crop in Word/Excel. Then copy paste here.

We keep taking losses until we're forced to follow all the rules like stop loss, risk % capping, trade logging etc. Identifying opportunities comes next, after you've internalized these rules. That is you're scared to take a trade w/o SL, risk management, logging etc.

 

[Scalpwing]

Seniors please guide which tool to use to capture Images and edit them fast for analysis.
I am a hard core optimistic and mostly i look for long positions...but i would like to change it by having same number of stocks after analysis for Longs and shorts.

Trial Message: (for trying out ways to enter details)

TRADE IDEA 1: For 19 Aug - RBL bank - LONG
I have just taken a snap of ET charts and tried to add a trend line and SMAs to make some analysis.
I believe if market supports on Monday (seems unlikely though) , it should try to have a go till its Blue SMA.

@Reasons2Enter: trendline break
Above fast MA
extended down move
MACD rising , sloping up in a rounded way

@ReasonsNot2Enter: Immediate resistance (horizontal or Downward sloping Blue SMA)
Not enough volume support till now
sector - banknifty needs to support the move

View attachment 37118


suppose i am long here , whenever exiting , i will write @Reasons4Exit

Seniors please annotate better ways to enter my reasoning and any other things needed to be added.

Trade panned out as expected , it touched the SMA , But any profit would have evaporated if not booked.

Daily:

5 Min Intraday:

Possible reasons: Nifty was in favour
MACD was in favour
Volume support

@Reasons2Exit: Nifty didnot support till day end....Nifty evaporated all its gains.
Afternoon breakdown (1.30 - 2 PM) after consolidating for a few hrs around 410
Best time to exit: 10.30 AM as it never broke that high again. It made double top at 1 PM


Seniors Please annotate your reasonings as well.