Traders, a simple question for you

newtrader101

Well-Known Member
#1
Experienced traders will find this simple but newbies invariably might go for the obvious but wrong answer.
Qn:
If you have just won a trade (with good profits) would you still mark it as a bad trade, as good as a loss? Why?
Eg: Your risk limit is 2%, but you placed a trade risking 6% of your capital, knowing it as a sure trade. And you did win. Would you mark it as a good trade or a bad one?
 

sumosanammain

Well-Known Member
#4
More like a horrible trade, as now, you have been rewarded for being indisciplined.
This is the start of the demise of the person as a professional rule bound trader.

Whats left is a sattebaaz, a speculator, who will bet according to his whims and fancies. Note, I used the word, speculator,, and not a trader, as you are no longer a trader if you break rules.

So, in your journal, which you SHOULD be keeping, mark it as a horrible trade gone right, maybe due to some good deeds that you may have done previously.

Always err on the side of caution, like, this trade looks dicey, doesnt meet all my parameters, so maybe I will put in a reduced quantity.. Though even that is not advisable, as if it doesnt meet your criteria, its not a trade to consider.
 

manny.here

Well-Known Member
#5
First of all there is no sure trade or guaranteed trade in market . Atleast I have not done any trade till now which i can say sure trade.

There are ways to bring trades to within risk capacity. Like trading in cash instead of Future where you have controlling risk % . But still then 6% cap stake in 1 trade is something which one should think about.

After doing the trade there is no point of marking it good or bad trade. Decision should be taken before taking the trade.
 
#6
Experienced traders will find this simple but newbies invariably might go for the obvious but wrong answer.
Qn:
If you have just won a trade (with good profits) would you still mark it as a bad trade, as good as a loss? Why?
Eg: Your risk limit is 2%, but you placed a trade risking 6% of your capital, knowing it as a sure trade. And you did win. Would you mark it as a good trade or a bad one?
Not an experienced one, however, will share from little that I have. This question is a tricky one, however, very interesting! According to me, there are two answers to this question:
  • Easier said than done to call it a "bad" trade. Even if I know, that I did not follow my rules, was not disciplined and deviated from the process, since it is a profit and I made some bucks; my inner self - the thing that we call "mind" - will trick me. Actually, the Reptilian Brain (primitive ancient brain which is responsible for our basic animal instincts) will narcotize dopamine well before my higher consciousness (that makes me a Human being different than other species) realizes - it shall make me "feel good". The "guilt factor" would be missing which would have been the case otherwise if I would have lost money in the same trade. Since, there will be no stress hormone present in my brain and it was a winner, my mind will built upon a false confidence which will further feed my Ego stronger. If not checked and stopped by inner-dialogue at this stage, next day, I will do the same thing - thus Entropy will kick in - from ordered disciplined state I will go to disorder and soon Mother Market will slap me real hard, as she has no room for Self-Ego and Indiscipline.
  • A Trader is who actually realizes this and puts it into practice. He or she does not deviate from the plan ever. They have tried and tasted all dishes and knows what suits the best. So, to begin with if the risk limit is set to 2% as per the plan, the Trader will never (or cannot) commit the mistake of making it to 6%. And religiously like a trained solider will exit if the SL is hit. And after exit will not whine or complaint because the Trader knows that's a part of the game, it was tried-tested and thus implemented; hence, no room for Plan-B mid air. By the power of Human evolution, the Trader will always be self-aware by giving the "keys of the store" to the Higher Consciousness (the Pre-frontal cortex) and control the Lower brain i.e. the Reptilian Brain; which will eventually stop him or her from taking any irrational, erratic, nonsensical mistake. Whatever, action the self takes, it will be a part of the plan. After the taking the pre-defined SL, the Trader will graciously move on to find the next kill, least bothered, to what happened on the previous trade. He or she shall hold no grudge and might very well take a reverse-trade (not a revenge-trade) on the same instrument if the rules of the plan are met again.
 
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#7
As a newbie this is part of the learning curve, but one should learn fast.
Depends on how many accounts you can afford to blow, but since mkt spared you, be humble and rectify rather than being arrogant and think mkt will do as you like.
 

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