Do I have what it takes to become a Professional Trader

[peace]

Old Reliance trades are still open and had one good trade-in Bnf. Entered TCS PE.

 

[peace]

if you trade options don't forget it decays with timee mostly in loss or small profit

Yes, do you have any good material on this. Every video or article I read confuses me more.

 

[peace]

if you can afford to loose continuously it means you have an alternative source of income.

1) stop trading for money and trade for winning.
2) trades the lowest size possible in your favorite market.
3) for the moment, don't consider brokerage, tax ... etc (assuming the no of trades are very less / day, it will still be smaller than the losses you make at the current rate ).

how markets are capable to making most of us to loose? its because it tests almost all price points except a very few (the top most and the bottom most). so if you are in the right trend when it is tested we exit at breakeven and then it gives the big move. if we are in the wrong side of the trend, your stop gets triggered anyway.

see the trade logs of many successful traders.

Nice words, I see that you have a good understanding of the market. One mistake I keep on doing is entering in the middle of a range. I should wait for the extremes. Then again it's very difficult to identify the extremes in the live market

 

[peace]

Once you have some working knowledge ( hopefully of ideas that actually work) , Trading process is something like this

1) Make a plan
2) backtest the plan over large sample. You can do it manually or mechanically. You can also paper trade or better - forward test with small capital.
3) If the plan does not work, change it and repeat.
This will take time, mech tests are easier to do but not everything can be tested mechanically.
Here you will ask all the questions for entrys and exits. Should i hold for bigger moves or take what i get immediately ? Small Or Big Stops ? Targets ? Position sizing, max drawdown etc etc. There is no one answer, it will depend on market/timeframe and maybe your behaviour too.
4) If you have done above properly, only then should you start trading with larger capital. And at this stage, it might be a lot easier to follow your plan - because its tested. Still not easy to face drawdowns, but experience might help.

golden words, especially Point 3 is where I am stuck at. The trend I am observing for the past couple of months is I am earning till the last of the month but by the end of the month in one or two days, I am losing all those earnings.

I think forming a system is the most diffcult part in one's journey. I am struggling with it.

 

[TraderRavi]

I made a big loss today in Bnf, I was in profits in the beginning but the compulsive gambler in me made this possible. How to Deal with it? I need some suggestions View attachment 38004 .

I am no different than you. How many lots you played with for this 40k loss in BNF ? How many trades ?

 

[peace]

I am no different than you. How many lots you played with for this 40k loss in BNF ? How many trades ?

6 lots, just 2 trades

 

[pannet1]

Nice words, I see that you have a good understanding of the market. One mistake I keep on doing is entering in the middle of a range. I should wait for the extremes. Then again it's very difficult to identify the extremes in the live market

hi peace,

you got it all wrong.

1) its almost near to impossible to catch the extremes. now you know that they exist. in a downtrend watch out for new low points to form and then wait for them to be tested. try to enter after they are tested, if you want to buy.

2) so it is now clear that we need to enter in the middle of some range, ensure that the range is small, so your stops are also small. if the range is big, position size, so the stop may be big but the reduced lot size, still confirms with your risk management. (loss per trade).

if you could see the price moments in its normal speed (professionals see it in slow motion), then you are OK. notice that mostly when you start to trade there is a rush of blood and we seems to become unconscious and do things as if Mr. Market is making you do things which you would not do in normal sane mind.

1) chasing the trade (fear of missing the trade).
2) fearing of loser (over leveraging)
3) trying to predict the next move (astrology, crystal ball business)
4) try to regain the loss you made on the day (revenge trading)

PLAN THE TRADE ... TRADE THE PLAN

i think you missed the trade log of a professional trader, i posted earlier. you could see it is not a great trading system with good success ratio. instead it looks like an ordinary trading system coupled with MM and magic of compounding.

now you have the trade log in your hand, try to see how you would have traded that script on those days.
.
ever played video games when you were a kid. it is very pleasant. why trading is different because you get punished when you loose (loss of money). for some days you play this like a video game.

 

[peace]

hi peace,

you got it all wrong.

1) its almost near to impossible to catch the extremes. now you know that they exist. in a downtrend watch out for new low points to form and then wait for them to be tested. try to enter after they are tested, if you want to buy.

2) so it is now clear that we need to enter in the middle of some range, ensure that the range is small, so your stops are also small. if the range is big, position size, so the stop may be big but the reduced lot size, still confirms with your risk management. (loss per trade).

if you could see the price moments in its normal speed (professionals see it in slow motion), then you are OK. notice that mostly when you start to trade there is a rush of blood and we seems to become unconscious and do things as if Mr. Market is making you do things which you would not do in normal sane mind.

1) chasing the trade (fear of missing the trade).
2) fearing of loser (over leveraging)
3) trying to predict the next move (astrology, crystal ball business)
4) try to regain the loss you made on the day (revenge trading)

PLAN THE TRADE ... TRADE THE PLAN

i think you missed the trade log of a professional trader, i posted earlier. you could see it is not a great trading system with good success ratio. instead it looks like an ordinary trading system coupled with MM and magic of compounding.

now you have the trade log in your hand, try to see how you would have traded that script on those days.
.
ever played video games when you were a kid. it is very pleasant. why trading is different because you get punished when you are loose (loss of money). for some days you play this like a video game.

I can't express how grateful I am for your words. I will reread them many times until they sink in my mind.
I saw the trade log you mentioned and bookmarked it too, results look very astonishing.
Can you point me to a resource or some journal where someone went through their struggles with forming a trade plan?

 

[pannet1]

I can't express how grateful I am for your words. I will reread them many times until they sink in my mind.
I saw the trade log you mentioned and bookmarked it too, results look very astonishing.
Can you point me to a resource or some journal where someone went through their struggles with forming a trade plan?

Well there are n't many and we don't know if it is taken in real time. the one i pointed you to ... i know is real.

lets say, you have trading system, dont search for it in the internet. for the moment, you already traded and you bought in certain place and sold in a certain place. why ?

crystallize it and it becomes a trading system. remember a trading system with 30% success ratio can also be a making money in the long run and even 90% success ratio can be a looser. We are just trying to win more money than loosing, that's all

so we now have a trading system that will be mechanical. so we wait for our setups to come and place orders and leave the market to do the rest.

trading is not like using a machine gun, pulling the trigger randomly so that we hope that the enemy is conquered. it is more like a sniper waiting carefully for the prey to come to an ideal spot..

once you have trading system then you have filters, max trade in a session etc etc. we just execute the plan (things around our trading system, money management, position size, exits partial exits if any)


backtest your system with the capital you are going to start with. lets say 1 lakh rupees. what if you started to trade on 2009 ... will it make money ... if yes. what is the max drawdown. keep this money as a reserve and start trading as per your trading system. we keep everything constant, except the market, because we dont what Mr. Market will do to us. Rest, what we can do we take it in our hands.

 

[peace]

Closed yesterday's TCS trade and took one Bnf Trade. Entered one more TCS trade.