Biggest Loss in SBI - Day Trading

[sudoku1]

Need to refine the system ...Could have made good profit..But yes happy with whatever small trades done.

SBI closing @2493.....This was suppose to be good day, but due to overtrading have turned it against myself...

Lesson learnt,

Overtrading can turn in loss,wipe all profits earned,reduce confidence which then make u overcarefull and u start doubting u'r system and u go against u'r system and market ...

Hoping to remember this lesson throughout the trading career...

Raju

wen in doubt....always remain on sidelines . no one has lost by NOT trading for a week or so!

 

[timepass]

wen in doubt....always remain on sidelines . no one has lost by NOT trading for a week or so!

Unless he had some options in the portfolio

 

[Raju]

Sudoku1,

U are right, when in doubt remain on side.I had earned handsome amt in last 7-8 days.So dared to jump with full amt. and got caught.Now would again do backtesting for on system and start again with very low volume, with discipline and waiting for correct signal if system passes backtesting and eliminating shorcommings of system would enter to learn to trade well instead of just trying to gain lost money.

I am confident that with guidance of members of U and all other members of Traderji would regain lost money.Ofcourse would follow strictly , even in profits.Whatever system I am exploring is good , but emotions and overtrading stood against me.

NEVER TO MAKE MISTAKE AGAIN OF OVERTRADING.Had learnt this earlier but that time qty was not that high, this time learnt the hard way.

System seems to be doing good.So would not quit.Just that I fought against my self system and market.In last 5 yrs did not dare so much amt.This experience proved fatal.

I also was not that confident of the system earlier.Just 7-8 days back system had generated Sell on daily basis.But did not dare to trade as was new to system.Three days back system had given buy on JSWSTEEL & HDFC-II.Both went good was able to catch JSWSTEEL correctly.

So to summarize..restarting with less qty and waiting for system to give signals with proper stop loss.

Raju

 

[AW10]

Raju, so sorry to read your first post of this thread. But I can very well relate to this experience (though I did not blow my acct, but have take major hit in earlier days of my trading).

Looking at your reply to Sudoku, I get an impression that you are doubting your system and overtrading for this.
In my view, problem is not with system and technicals but it is lack of money mgmt rules.
Don't know if you have rules to limit you loss per trade / loss per day/ loss per week/ loss per month etc. These rules are must, if you want to keep the earned profit in your pocket. These rules will work as unidirectional valve between market and your account.
These rules would have put a tab on overtrading too.

Otherwise Market is know to take money for us. Even from trader who have good trading system.

One of the warning sign that I have for myself is the amount of profit made in last few trades. Generally as human being, we are more prone to overconfidence/overtrading after great winning streak.

All the best and wishing you faster recovery.

 

[Raju]

Hi AW10,

Thanks for the kind words and the precious advice.U'have told me the real mistakes ..."OverConfidence" & bad "MoneyMangement" on my part..That's true...

I had done scalping in SBI and volumes were less.After giving Market Order..all went bad as priced decreased a lot.

Thanks for wishes..Started revising MoneyManagement.
I have already started backtesting of system again just to eliminate any shortcomings.Performing Blackboxtesting.

Regards,
Raju

 

[Smart_trade]

Sudoku1,

U are right, when in doubt remain on side.I had earned handsome amt in last 7-8 days.So dared to jump with full amt. and got caught.Now would again do backtesting for on system and start again with very low volume, with discipline and waiting for correct signal if system passes backtesting and eliminating shorcommings of system would enter to learn to trade well instead of just trying to gain lost money.

I am confident that with guidance of members of U and all other members of Traderji would regain lost money.Ofcourse would follow strictly , even in profits.Whatever system I am exploring is good , but emotions and overtrading stood against me.

NEVER TO MAKE MISTAKE AGAIN OF OVERTRADING.Had learnt this earlier but that time qty was not that high, this time learnt the hard way.

System seems to be doing good.So would not quit.Just that I fought against my self system and market.In last 5 yrs did not dare so much amt.This experience proved fatal.

I also was not that confident of the system earlier.Just 7-8 days back system had generated Sell on daily basis.But did not dare to trade as was new to system.Three days back system had given buy on JSWSTEEL & HDFC-II.Both went good was able to catch JSWSTEEL correctly.

So to summarize..restarting with less qty and waiting for system to give signals with proper stop loss.

Raju

Very sorry to learn that you have suffered a large loss....learn from this loss and let this situation never come to you in future. Manage your losses...run your profits and the money will automatically come to your trading account.

Your amount risked on any particular trade should not exceed maximum 2 % of your trading capital....most successful traders dont risk over 1 to 1.5 %....and the quantity you trade should depend on how much your trading capital is and what percentage of it you want to risk on each trade. With this risk level one can easily double his money in one year.

The market is coming down.....the right trade is being short ( with stoploss of course).....on no timeframe the market is looking bullish.....trade the facts in the market not the hope. A trader is most vulnerable to self destruction when he feels that he has found a "sure winner cannot fail " trade....Guard against that.....

Take a small break....that will settle things down...

Best wishes for your early recovery....


Smart_trade

 

[Raju]

Hello Smart_trade,

I am very much thankful to you for the MM related advice.I remember I had read somewhere "Journey of a trader".I am quite impressed by it.Were U the author of the same ?
Whatever good trading I have done uptill today is because of Traderji forum.Bad trades are because of my overconfidence and bad MM.

Thanks to everyone for providing me immense knowledge along with IntradayData/IntraDataDownloader/AFL and timely guidance....

Deciding to do Paper trade for next week...

Would not dare to trade against trend....My daily analysis forming buy signals..

1. INDIANBANK-I - On list
2. AXISBANK-I - On list

AxisBank ...Any news coming for this bank ?

Purely PAPER trade...Need to build more confidence on system.As everything is going down ..but system says can get chance to trade on upside in coming days...

Raju

 

[molthi]

Gone through that trauma myself. Time and again going against the flow of the price. It took several years to learn that we dont trade the market but ourselves , our beliefs,wishful thinking. We feel afraid to short the scrip which is already down 4-5%.
When came to understand the power of price momentum that trading became much better.

 

[superman]

I hope your learnt your mistake and dont do any more mistake of having a grudge/strong aim to recover this loss within short duration.

i am newbie in market but i have heard that its not the first big loss that will be huge and painful ;but it will be the subsequent loss that occurs due to having grudge against market to win over it and recover the lost amount.

Be careful and restore to paper trading/fine tuning if necessary
All the best

 

[Raju]

Superman,

"But it will be the subsequent loss that occurs due to having grudge against market to win over it and recover the lost amount"....

That's ....Excellent ...

Regards,
Raju