I am trading into indian stock market for more than a year. I have been a consistent loser. Made huge losses in the beginning. Nights were sleepless and continuous thought of whether should I continue or terminate my dream of becoming a intraday trader? should I stop trading or continue?? With losses these type of question is not a surprise. I had been struggling very hard. Kept on finding the solution through multiple sources. But till then I worked without any pay for a year. I don't know what attracted me to the market. I loved it with my heart. so wanted to learn and cut my losses. but how?
Let's take you through the process which I tested over the year and learnt the hard lessons. I started with very small amount. Lost all within few weeks and put another and lost that too. Then I started questioning myself. From the questioning, comes the findings. Even though I was analysing my trade i made losses several times. Blown my account.
My parents were like what happened to my child. He is not interested in even taking his meal on time. What is he doing literally. I was going through very tough phase. I was trying everything. Still i was making some and losing some. I was just 22 years old. Wanted to build my career but things were turning very differently. I was really depressed. Didn't knew what should I do. Whether my dream will come true or will have to end up without completing it.
The theory of conspiring the world. I totally believe into that. I had strong belief that someday i will find the way it should be done.
I followed many traders on youtube/social media. Few were helpful few were bullshit. Days were spending without any job. Not a penny to run my life. Just depending on fathers income. Which sucked me every time. Slowly things started changing with the understanding of the market.
What i did while i losing?
1. Repeated mistake
2. averaging on losing side
3. following some people and listening to them
4. going against the trend and not able to cut losses.
5. most important keep on increasing stop loss. biggest mistake.
6. overtrading and not having patience
What I did to cut losses?
With so many losses. I now knew that I can be wrong. So when I get wrong I would take the losses at defined stop loss. And Put me into right expectation to become millionaire overnight.
Where to put stop loss?
This is where most of traders make blunder mistake. They put certain % stop loss or certain point stop loss. Which I don't find relevant.
Rather it should depend on area of value. How to define them. See the pivots points, S&R, or help of indicator like supertrend, moving average etc. Mean put stop loss very small, close to indicator. If it got hit. It's ok rather than increasing them bcoz at last when it would get hit it will give you the loss which won't be bearable by you.
If price action is not able to fix your stop loss. Use indicator to decide the stop loss or vice-versa. I am personally using indicator so that major destruction don't happen.
Might you think this,
Only it takes my stop loss and move into the expected direction. No, it's not like that. I knew well that it has been tracked by many times institution/big players but when area of value breached. There is no problem in taking loss.
My stop loss hunting reduced by more than 80%. It's just because I put it in the area of value. So, Find area of value through pivot points, S&R, fibonacci levels or with help any indicator.
Through this way you will reduce your loss making position to very large extent. I am using some combination of indicator and reduced to 70-80% of looses with a go. Left is experience which filled the space.
Lastly, I would suggest you to build a system because human make so many wrong decision to buy and sell. Moreover, If you have made a strategy with the help of any software/any indicator. Your entry and exit will be on certain levels. And you won't be biased as well. As human beings become biased. That too will get reduced. So look at this carefully and build a system. I am damn sure you will reduce your losses and maximize your profit.
I made it. Hope you too can.
Happy trading and investing!!!!
What do you think?? Leave your comment.
Let's take you through the process which I tested over the year and learnt the hard lessons. I started with very small amount. Lost all within few weeks and put another and lost that too. Then I started questioning myself. From the questioning, comes the findings. Even though I was analysing my trade i made losses several times. Blown my account.
My parents were like what happened to my child. He is not interested in even taking his meal on time. What is he doing literally. I was going through very tough phase. I was trying everything. Still i was making some and losing some. I was just 22 years old. Wanted to build my career but things were turning very differently. I was really depressed. Didn't knew what should I do. Whether my dream will come true or will have to end up without completing it.
The theory of conspiring the world. I totally believe into that. I had strong belief that someday i will find the way it should be done.
I followed many traders on youtube/social media. Few were helpful few were bullshit. Days were spending without any job. Not a penny to run my life. Just depending on fathers income. Which sucked me every time. Slowly things started changing with the understanding of the market.
What i did while i losing?
1. Repeated mistake
2. averaging on losing side
3. following some people and listening to them
4. going against the trend and not able to cut losses.
5. most important keep on increasing stop loss. biggest mistake.
6. overtrading and not having patience
What I did to cut losses?
With so many losses. I now knew that I can be wrong. So when I get wrong I would take the losses at defined stop loss. And Put me into right expectation to become millionaire overnight.
Where to put stop loss?
This is where most of traders make blunder mistake. They put certain % stop loss or certain point stop loss. Which I don't find relevant.
Rather it should depend on area of value. How to define them. See the pivots points, S&R, or help of indicator like supertrend, moving average etc. Mean put stop loss very small, close to indicator. If it got hit. It's ok rather than increasing them bcoz at last when it would get hit it will give you the loss which won't be bearable by you.
If price action is not able to fix your stop loss. Use indicator to decide the stop loss or vice-versa. I am personally using indicator so that major destruction don't happen.
Might you think this,
Only it takes my stop loss and move into the expected direction. No, it's not like that. I knew well that it has been tracked by many times institution/big players but when area of value breached. There is no problem in taking loss.
My stop loss hunting reduced by more than 80%. It's just because I put it in the area of value. So, Find area of value through pivot points, S&R, fibonacci levels or with help any indicator.
Through this way you will reduce your loss making position to very large extent. I am using some combination of indicator and reduced to 70-80% of looses with a go. Left is experience which filled the space.
Lastly, I would suggest you to build a system because human make so many wrong decision to buy and sell. Moreover, If you have made a strategy with the help of any software/any indicator. Your entry and exit will be on certain levels. And you won't be biased as well. As human beings become biased. That too will get reduced. So look at this carefully and build a system. I am damn sure you will reduce your losses and maximize your profit.
I made it. Hope you too can.
Happy trading and investing!!!!
What do you think?? Leave your comment.
Hey, thanks for the information. your posts are informative and useful. I am regularly following your posts.
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