I trade nifty on Pivot break on 5 Mins in direction of 30 TF, my trade log says that my Average loss after brokerage comes to be 10 points(Although my sample size is small).
I understand that for long term survival i need 2:1 reward atleast ,Considering 2:1 Reward ,my target comes to be 25 Points(Adjusting 4 points for Brokerage and 20 points to get desired Reward),Now problem i face is most of times i don't get 25 points and if i wait for 25 points ,most of times lose profits in hands .
Kindly advise how to come out from thus state of dilemma
What I have to suggest would be slightly out of sync with norm...
a. Diversify - don't just trade NF, there are BNF & Stocks as well.
b. Aim for overall 2:1, be happy if you have 1.5:1 overall Reward to Risk
c. Mentally alter your time & trade perception.
I will explain as much as I can, but at the end it is up to each individual to treat all the 3 factors according to her/his mental make-up:
Point C - if you are a person who risks x% of trading capital per trade you take - think about risking the same x% per day you trade - irrespective of the number of trades you do.
Point A - you would need to fix the worst case and best case scenario of NF or any other scrip - i.e. your entry point, exit point in loss, exit point in profit. By doing this for more than 1 scrip you can optimize size, entry and exits - more importantly you can average your risks.
If you follow Point C & A, Point B will become clear.
All the best.