As it is always said that stock market is very uncertain and dangerous game, but at the same time nobody wants to quite it.Every day comes wioth new method and with new hopes and trader sits in front of terminal with 'ready to loose' mentality 'rather than sitting for gain' mentality. Here I am expecting some views on this topic whether trading can assure returns per annum???
I think, yes it is possible but for that discipline, clear thought about what I am doing , clear theory and mindset, exact expectations about yield, and clear thought about risk ability is required.
Generally trader always try to ignore what he has lost and tries to project what he had tried and which trades he had done positively.
One should keep balance sheet for his trading. That should be reviewed daily/weekly/monthly/quarterly/yearly basis.
If there is loss on daily balance sheet that should be make over in weekly balance sheet...if loss in weekly balance sheet that should be make over in monthly balance sheet....this method must be followed strictly...
Applying this method one should get clear picture about where he is ! And once he gets clearer picture about what he has to recover in a stipulated period ....and can stick for that view...
At the same time one should not take it as he has to cover in a particular period...cause this will influence his trade emotionally and will force him to take the position though there is not surity about returns...in other words though risk reward is not in favour these emotions will force him to initiate the trade.
For this one should keep patience ...wait to get the situation in favour of his trade exactly....till then one should strictly avoid any trade...
I think before going to chart etc...one should discipline his mentality as well as thinking process. Because though one get knowledge about market behaviour its applying method is very important thing and success lies there only!
I think, yes it is possible but for that discipline, clear thought about what I am doing , clear theory and mindset, exact expectations about yield, and clear thought about risk ability is required.
Generally trader always try to ignore what he has lost and tries to project what he had tried and which trades he had done positively.
One should keep balance sheet for his trading. That should be reviewed daily/weekly/monthly/quarterly/yearly basis.
If there is loss on daily balance sheet that should be make over in weekly balance sheet...if loss in weekly balance sheet that should be make over in monthly balance sheet....this method must be followed strictly...
Applying this method one should get clear picture about where he is ! And once he gets clearer picture about what he has to recover in a stipulated period ....and can stick for that view...
At the same time one should not take it as he has to cover in a particular period...cause this will influence his trade emotionally and will force him to take the position though there is not surity about returns...in other words though risk reward is not in favour these emotions will force him to initiate the trade.
For this one should keep patience ...wait to get the situation in favour of his trade exactly....till then one should strictly avoid any trade...
I think before going to chart etc...one should discipline his mentality as well as thinking process. Because though one get knowledge about market behaviour its applying method is very important thing and success lies there only!
6 comments:
I have 2 lakhs capital for index trading. Remember, it is only for index trading - stocks capital is seperate.
First one lakh i keep it strictly for day trade on index future. My target Rs.3000 profit for the day net of brokerage / Stt / Ser Tax. Can't I earn 35 points every day per lot of 50 and two lots traded every day???? 3% perday return on Rs.1 lakh employed - 50% permonth of 20 trading days (leaving some room for unexpected whipsaws) 600% per annum.. is it not enough??
Or do you say I am greedy??
No, I am not greedy... I am realistic... I am here in this market to make money.. this is my bread & butter...
Another one lakh i kept for positional index trading; where I keep my a month index future position open overnight which is hedged by another month index future.
Next day morning the either of the positional one will be closed as per trend and again hedging will be done at EOD. This way one can accumulate profits. Yes, there are whipsaws, wrong trdes... even after discounting all this one can make good amount of money.
I am not in the game of arguing whether positional trades are better than day trade and vice-versa. I love both of them; I love both bear money and bull money.
I care about profits. I care about how to trade with strict discipline / consistency / adhere to my own rules of trade / money management. Thats it.
Boss, market is full of opportunities. Every day it comes from a new window / door from an unexpected corner of the market; if you are alert enough & closely watching the development and swiftly responding to it by riding the tide... profits are yours. Nothing to doubt about this.
Happy trading
yes...I agree, trade with strict discipline / consistency / adhere to own rules of trade / money management..those are important conepts to get huge returns...!
tnx for swift reply. BTW, how to join the chatroom in your homepage.
Nothing is "assured" in this world.
The answer lies in money management and the expectancy.
Read Tharp's book - Trade Your Way to Financial Freedom.
ss
Dear Sweety
Your intraday target's and systems are good for consistent profit.
Just one suggestion regarding your positional trade and that is it does not make any difference by either u hedge your current month future with ext month or you buy it everyday and close your position at eod.
To hedge your position for positional you should hedge it with the options is the correct method in my view.
This is just my suggestion as I used to do the same as you do and it did not make good money for me in positional trade.
Thanking you with Best Regards,
Nik @niketan78@gmail.com
sweety,
joining chat room on my blog is very easy.There is + sign click that you have to enter ID and password..then click login...you will get access...
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