hi folks,
i was into trading a few years back but it was more of a part time hobby on my leave periods. i have now decided to quit my career to start trading full time and have been getting back into the action since the last three months and i feel i am getting back into shape.
tomorrow i begin the real time trading.the start of a new full time career. i hope to learn a lot from the master traders out here.
the forum was a place i used to drop by back then and learn much - as i intend to do now as well. the difference being - then - i had money to burn and time to kill and now - trading is a full time profession on the horizon so the situation is poles apart. i never truly respected the markets although i made good money even back then. but, with the micro knowledge growing - i now realize i was a lucky gambler and not a trader.
now, i am a newbie trader and hope to progress on the right path. i hope to learn a lot on my path out here.
basically by nature i am a mix of a scalper/trend trader - in the sense that i cannot hold onto losing trades for too long. my stop losses are very small whereas i can hold profits for so long - that at times, its scary, lol. . off late i realized that scalping is too tiresome and after 4/5 trades i am mentally exhausted. whereas trend trading requires a bigger stop loss in place. so i have been working on a combination of trend trading and scalping. ill explain my set up in brief.
the chart set up is a daily chart where i look for the day trend and the hourly chart for confirmation. my trading chart though is the 5 min chart. a day before my trades i scan through the shortlisted high volume stock futures to select the ones with clear trends. similarly with commodities. once i have the trending stocks and commodities i wait for the market open to re-confirm the trend. once my set up is confirming the direction of the trend i go to the 5 min chart to wait for a pullback and enter in the direction of the trend. once the short term trend ends i may decide to exit or if the profit is decent wait for a pullback again and remain in the trend until i get a reversal signal. i chase using stop loss to safeguard profit and how much on where the stop loss depends on the conditions in the prevailing circumstances.
my base indicators are the 5/21/50 ema's on the main chart. in addition i use the cci for confirmation. it has been a good set-up that is working for me so far. the tough part was the discipline required to trade on signals which i am slowly getting at a stage where i am - not bad now. i tweak the cci settings as per the back-test so it has no fixed value as such. (eg - i use values of 14 to 40 of cci depending on scalping / short holding / stock / commodity etc). randomly once or twice a day i use the obv and a 50/200 ema to confirm short and mid term reversal.
no fixed target or stop loss and no fixed risk/reward ratio as this is something i decide on how strong the set up is. i am cautious around pivot and support/resistance levels. i usually avoid the consolidation area on trades and tend to trade only after the breakout for a few points. generally the risk reward as per my learning trade history has been falling in the 1:3 ratio although i do not trade with any profit ratio. all i try to do is to keep my win/loss ratio as close to 60/40. that is the most important criteria i aim for. i wait and wait for the best set up on the first trade as i have realized that it defines my day - so i usually go in for just 1:1 risk/reward ratio on the first trade. once i have winner i realize that i can wrap up for the day if need be and not force a trade for the rest of the day so it gives me a decent amount of patience to wait and wait for the trade signal and not rush into a sideways market.
if i have exited a stock or commodity in profit or loss - i do not re-enter it for that day at least. this is because the fact that i had traded with a clear mind on my first trade and exited for a good reason . whereas now -greed, revenge, or clouded thinking is not making me think straight. i take a break of at least 10 minutes after each trade to calm the mind - be it disappointment or excitement. i have gladly realized that winning or losing is not affecting my emotions like it used to before - the emotional curve tends to stay flat mostly off late. win or lose i take a screenshot after 10 minutes and analyse the trade to keep my mind off the knee jerk reaction to re-enter the trade or enter a new one. so i take a screenshot, close that particular stock or commodity for the day to analyse and to ensure i do not trade it again. the hard core traders may not agree but trust me, it works best for newbie traders like me.
i do not listen to, least of all follow news or tips as i feel tips are the best ways to turn yourself into a gambler and news - it may already have or it will automatically reflect on charts accordingly. i do not trade on big events - say results day, two hours before inventory in crude or natural gas etc
i use daily chart to study and analyze, as i am slow and takes me time to interpret the candles and chart patterns. i do a full post trade analysis when i do not intend to take a trade anymore or on weekends/ holidays usually.
so, let us see how things pan out for me and if i am doing something right i hope the newbie can learn as i intend to learn from the master traders out here.
happy trading guys and catch you soon...
i was into trading a few years back but it was more of a part time hobby on my leave periods. i have now decided to quit my career to start trading full time and have been getting back into the action since the last three months and i feel i am getting back into shape.
tomorrow i begin the real time trading.the start of a new full time career. i hope to learn a lot from the master traders out here.
the forum was a place i used to drop by back then and learn much - as i intend to do now as well. the difference being - then - i had money to burn and time to kill and now - trading is a full time profession on the horizon so the situation is poles apart. i never truly respected the markets although i made good money even back then. but, with the micro knowledge growing - i now realize i was a lucky gambler and not a trader.
now, i am a newbie trader and hope to progress on the right path. i hope to learn a lot on my path out here.
basically by nature i am a mix of a scalper/trend trader - in the sense that i cannot hold onto losing trades for too long. my stop losses are very small whereas i can hold profits for so long - that at times, its scary, lol. . off late i realized that scalping is too tiresome and after 4/5 trades i am mentally exhausted. whereas trend trading requires a bigger stop loss in place. so i have been working on a combination of trend trading and scalping. ill explain my set up in brief.
the chart set up is a daily chart where i look for the day trend and the hourly chart for confirmation. my trading chart though is the 5 min chart. a day before my trades i scan through the shortlisted high volume stock futures to select the ones with clear trends. similarly with commodities. once i have the trending stocks and commodities i wait for the market open to re-confirm the trend. once my set up is confirming the direction of the trend i go to the 5 min chart to wait for a pullback and enter in the direction of the trend. once the short term trend ends i may decide to exit or if the profit is decent wait for a pullback again and remain in the trend until i get a reversal signal. i chase using stop loss to safeguard profit and how much on where the stop loss depends on the conditions in the prevailing circumstances.
my base indicators are the 5/21/50 ema's on the main chart. in addition i use the cci for confirmation. it has been a good set-up that is working for me so far. the tough part was the discipline required to trade on signals which i am slowly getting at a stage where i am - not bad now. i tweak the cci settings as per the back-test so it has no fixed value as such. (eg - i use values of 14 to 40 of cci depending on scalping / short holding / stock / commodity etc). randomly once or twice a day i use the obv and a 50/200 ema to confirm short and mid term reversal.
no fixed target or stop loss and no fixed risk/reward ratio as this is something i decide on how strong the set up is. i am cautious around pivot and support/resistance levels. i usually avoid the consolidation area on trades and tend to trade only after the breakout for a few points. generally the risk reward as per my learning trade history has been falling in the 1:3 ratio although i do not trade with any profit ratio. all i try to do is to keep my win/loss ratio as close to 60/40. that is the most important criteria i aim for. i wait and wait for the best set up on the first trade as i have realized that it defines my day - so i usually go in for just 1:1 risk/reward ratio on the first trade. once i have winner i realize that i can wrap up for the day if need be and not force a trade for the rest of the day so it gives me a decent amount of patience to wait and wait for the trade signal and not rush into a sideways market.
if i have exited a stock or commodity in profit or loss - i do not re-enter it for that day at least. this is because the fact that i had traded with a clear mind on my first trade and exited for a good reason . whereas now -greed, revenge, or clouded thinking is not making me think straight. i take a break of at least 10 minutes after each trade to calm the mind - be it disappointment or excitement. i have gladly realized that winning or losing is not affecting my emotions like it used to before - the emotional curve tends to stay flat mostly off late. win or lose i take a screenshot after 10 minutes and analyse the trade to keep my mind off the knee jerk reaction to re-enter the trade or enter a new one. so i take a screenshot, close that particular stock or commodity for the day to analyse and to ensure i do not trade it again. the hard core traders may not agree but trust me, it works best for newbie traders like me.
i do not listen to, least of all follow news or tips as i feel tips are the best ways to turn yourself into a gambler and news - it may already have or it will automatically reflect on charts accordingly. i do not trade on big events - say results day, two hours before inventory in crude or natural gas etc
i use daily chart to study and analyze, as i am slow and takes me time to interpret the candles and chart patterns. i do a full post trade analysis when i do not intend to take a trade anymore or on weekends/ holidays usually.
so, let us see how things pan out for me and if i am doing something right i hope the newbie can learn as i intend to learn from the master traders out here.
happy trading guys and catch you soon...