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#TRADINGLOSSES
1/n
Are you a trader? Is your analysis on stocks right on more than 50% occassions? Is your understanding on direction of stocks or indices correct?
Answer to all above is Yes?
STILL IN LOSSES?
YES?
Read and catch your reasons of failure:
1/n
Are you a trader? Is your analysis on stocks right on more than 50% occassions? Is your understanding on direction of stocks or indices correct?
Answer to all above is Yes?
STILL IN LOSSES?
YES?
Read and catch your reasons of failure:
2/n
1. You are yet to identify your trading style. Are you a postional trader or an intraday trader or a scalper who looks for quick oppprtunities?
It js really important to know that.
You might be right in your stock/index analysis but your trading style is making you fail
1. You are yet to identify your trading style. Are you a postional trader or an intraday trader or a scalper who looks for quick oppprtunities?
It js really important to know that.
You might be right in your stock/index analysis but your trading style is making you fail
3/n
A trade taken on positional view do not generate profits on intraday basis (exceptions are always there).
Some traders despite being right in their analyses loses coz they do not entered the trade as per their trading personality.
It will help you to carry your trade.
A trade taken on positional view do not generate profits on intraday basis (exceptions are always there).
Some traders despite being right in their analyses loses coz they do not entered the trade as per their trading personality.
It will help you to carry your trade.
4/n
2.Position Sizing and Leverages:
Many of us trade on leveraged position. Trading in Futures itself is a leveraged trade despite paying margins.
Trading in cash but taking massive position on MIS basis intraday is also a leveraged position.
How does it effect then.?
2.Position Sizing and Leverages:
Many of us trade on leveraged position. Trading in Futures itself is a leveraged trade despite paying margins.
Trading in cash but taking massive position on MIS basis intraday is also a leveraged position.
How does it effect then.?
5/n
Let me take an example of a trader with 2 lakh capital to explain how Sizing influence emotions and your trade setup:
Scrip 'X' cmp of 100, target 120 and stoploss 90.
Future lot size- 5000
Delivery Margin-1.4 lakh (1 lot overnight)
MIS marging- 65k (3 lots intraday)
Let me take an example of a trader with 2 lakh capital to explain how Sizing influence emotions and your trade setup:
Scrip 'X' cmp of 100, target 120 and stoploss 90.
Future lot size- 5000
Delivery Margin-1.4 lakh (1 lot overnight)
MIS marging- 65k (3 lots intraday)
6/n
Now ideally i should have not exposed my entire capital on one scrip on one trade. (Will discuss risk management later)
But somehow i decidedto take this trade.
Risk/lot - 50k
Profit- 1lakh
First thing-can you really afford to lose 25% capital in one trade?
Now ideally i should have not exposed my entire capital on one scrip on one trade. (Will discuss risk management later)
But somehow i decidedto take this trade.
Risk/lot - 50k
Profit- 1lakh
First thing-can you really afford to lose 25% capital in one trade?
7/n
Never ever do that
Supposeyou still take that, and intraday you made it 2 lots at avg of 101 (1 @ 100 and second at 102) seeing the upmove and good market condition.
T
Now the price falls to 97 (mtm- Rs. 40k)->
Can you handle to see thay intraday loss of 20%of ur capital?
Never ever do that
Supposeyou still take that, and intraday you made it 2 lots at avg of 101 (1 @ 100 and second at 102) seeing the upmove and good market condition.
T
Now the price falls to 97 (mtm- Rs. 40k)->
Can you handle to see thay intraday loss of 20%of ur capital?
8/n
This is called as' LAG GAYI MOMENT'
Had you have restricted to 1lot,this lot still had been 15k and would have given you strengthto carry this trade towards the target.
But now you will be panicked and close this trade in the fear of loss despite the SL was not hit.
This is called as' LAG GAYI MOMENT'
Had you have restricted to 1lot,this lot still had been 15k and would have given you strengthto carry this trade towards the target.
But now you will be panicked and close this trade in the fear of loss despite the SL was not hit.
9/n
Now yesterday you see that scrip moving to 107. If you had stayed in trade, then profits would have been around 35k. Ultimately in 10 days ot reached 120 (1 lakh profit)
But NO
Size killed your trading positions and kicked you out with losses of 40k.
Work on that.
Now yesterday you see that scrip moving to 107. If you had stayed in trade, then profits would have been around 35k. Ultimately in 10 days ot reached 120 (1 lakh profit)
But NO
Size killed your trading positions and kicked you out with losses of 40k.
Work on that.
10/n
3. Emotions
There are 3 things here-
A. Trading on hopes and not looking at charts & underlying developments. Hypothetical targets and SL of choice.
This would better be called as random trading
B. Not respecting your stoplosses and continuing deep in a loss making trade
3. Emotions
There are 3 things here-
A. Trading on hopes and not looking at charts & underlying developments. Hypothetical targets and SL of choice.
This would better be called as random trading
B. Not respecting your stoplosses and continuing deep in a loss making trade
11/n
C. URGE TO TRADE at all the times- you are trading coz you are bored and picking any security and just trade.
The above 3 common emotional errors we do.
A LOT
avoid them at any cost.
Have your entry, targets and SLs clear.
If SL is hit, then exit.
Don't carry in a hope
C. URGE TO TRADE at all the times- you are trading coz you are bored and picking any security and just trade.
The above 3 common emotional errors we do.
A LOT
avoid them at any cost.
Have your entry, targets and SLs clear.
If SL is hit, then exit.
Don't carry in a hope
12/n
This would be considered as lack of discipline.
Learn to be disciplined and stick to your plans.
Markets are supreme, you can not always beat it. Do not think to take revenge and add to your losses.
Find your next trade and move on.
Market have enough opportunities.
This would be considered as lack of discipline.
Learn to be disciplined and stick to your plans.
Markets are supreme, you can not always beat it. Do not think to take revenge and add to your losses.
Find your next trade and move on.
Market have enough opportunities.
13/n
It is not necessary to have an open position in hand at all the times and trade everyday despite there are no clear opportunities.
Learn to wait.
This is what i have learned the most from my teachers @SubhadipNandy
and @VijayThk
It is not necessary to have an open position in hand at all the times and trade everyday despite there are no clear opportunities.
Learn to wait.
This is what i have learned the most from my teachers @SubhadipNandy
and @VijayThk
14/n
4. Focussing on too many scrips and trade at a time:
Restrict yourself to few scrips. You can't trade all the scripts in the market.
NO ONE CAN
Find your trades.
Build a good grip on those selected scripts if you want to trade them regularly.
4. Focussing on too many scrips and trade at a time:
Restrict yourself to few scrips. You can't trade all the scripts in the market.
NO ONE CAN
Find your trades.
Build a good grip on those selected scripts if you want to trade them regularly.
15/n
Sm people uses various scanners to filter stocks. It is fine to do that,however pick the best of them that fits your trade plan.
I know many traders who trade nifty and BN with a couple of selected stocks. They are focused & doing well
Helps to concentrate & drive your trade
Sm people uses various scanners to filter stocks. It is fine to do that,however pick the best of them that fits your trade plan.
I know many traders who trade nifty and BN with a couple of selected stocks. They are focused & doing well
Helps to concentrate & drive your trade
16/n
5. Following the crowd and your trades are driven basis noise of the market or news:
There is hell lot of noise in market.
Everybody is not wrong and everybody is not right.
But what about you?
Let your trade decide that.
5. Following the crowd and your trades are driven basis noise of the market or news:
There is hell lot of noise in market.
Everybody is not wrong and everybody is not right.
But what about you?
Let your trade decide that.
17/n
Juat bcoz you saw an opposite trade in any social media portal, you booked losses?
Dont do that.
Believe in yourself and your trades if those are based on a good study.
If you really wish to follow the other person's advise on trade,then try to understand logic.
Juat bcoz you saw an opposite trade in any social media portal, you booked losses?
Dont do that.
Believe in yourself and your trades if those are based on a good study.
If you really wish to follow the other person's advise on trade,then try to understand logic.
18/n
In this market, everyone has their own style, basis of analysis of their own, their unique ways of looking at trades, mutiple indicators.
They could be right or wrong.
Some work purely on price action and some follow many other things for directions
Develop ur own style
In this market, everyone has their own style, basis of analysis of their own, their unique ways of looking at trades, mutiple indicators.
They could be right or wrong.
Some work purely on price action and some follow many other things for directions
Develop ur own style
19/n
6. Lack of Risk Management Skills
No.1 job of a trader is to manage his/her risk and protect capital
Ideally you should not risk more than 2% of your capital.
And this 2% should also be divided into multiple trades.
There are many books and all of them speaks about it
6. Lack of Risk Management Skills
No.1 job of a trader is to manage his/her risk and protect capital
Ideally you should not risk more than 2% of your capital.
And this 2% should also be divided into multiple trades.
There are many books and all of them speaks about it
20/n
Your quantities of trade should be based on your risk levels.
You may earn less due to limited capital but the risk of losing capital will be reduced too.
'No Capital- No Capital Markets'
Your quantities of trade should be based on your risk levels.
You may earn less due to limited capital but the risk of losing capital will be reduced too.
'No Capital- No Capital Markets'
21/n
7. I will try my luck today in options-
Option trading itself is a risk based trading strategy bt it is altogether different stream of trading
If you are not an option trader then do not jump into it
Options look cheaper but if not rightly traded then could be very costly
7. I will try my luck today in options-
Option trading itself is a risk based trading strategy bt it is altogether different stream of trading
If you are not an option trader then do not jump into it
Options look cheaper but if not rightly traded then could be very costly
22/n
People tell stories about BN and Nifty options turning 100 times in day. But nobody tells that options can be turned down as well from 100 to 1 in no time.There is no quick rich in scheme in market.
Build yoir expertise in options and then rush into it.
People tell stories about BN and Nifty options turning 100 times in day. But nobody tells that options can be turned down as well from 100 to 1 in no time.There is no quick rich in scheme in market.
Build yoir expertise in options and then rush into it.
n/n
Everyone has a lot to learn in this market.
Some have learnt by their losses and some have learnt from others losses.
Choice is yours.....
Happy Trading
Everyone has a lot to learn in this market.
Some have learnt by their losses and some have learnt from others losses.
Choice is yours.....
Happy Trading
