@Amit_Gulecha @TraderHarneet Would like your opinions
Thread on risk and trading psychology in day trading:
Some traders stress too much on RM and TP to cover their many incurably inept trading methods. Some simple rules which is all you need are:
(1/n)
Thread on risk and trading psychology in day trading:
Some traders stress too much on RM and TP to cover their many incurably inept trading methods. Some simple rules which is all you need are:
(1/n)
Pre-Trade:
1. Have a proven system in place.
2. Do not risk more than 1% of cap per trade.
3. Fix a number of trades per day. I don't go beyond 4-5 trades at any cost. Many days, I am done in 3 trades only.
4. Focus on R:R but also make sure you focus on POP.
(2/n)
1. Have a proven system in place.
2. Do not risk more than 1% of cap per trade.
3. Fix a number of trades per day. I don't go beyond 4-5 trades at any cost. Many days, I am done in 3 trades only.
4. Focus on R:R but also make sure you focus on POP.
(2/n)
During the trade:
1. Be a trend follower. Higher rate of success.
2. Do not always book in full at target in the direction of trend. Book partial, move SL to cost and let it trail. More often than not, trends continue than reversing and will give extra gains.
(3/n)
1. Be a trend follower. Higher rate of success.
2. Do not always book in full at target in the direction of trend. Book partial, move SL to cost and let it trail. More often than not, trends continue than reversing and will give extra gains.
(3/n)
3. Have SL in place as soon as you enter.
4. Do not think when in trade. Thinking is to be done before entering. After entering, your only job is to wait for SL to hit or book and trail your positions at profit.
LET MARKET DO ITS JOB.
(4/n)
4. Do not think when in trade. Thinking is to be done before entering. After entering, your only job is to wait for SL to hit or book and trail your positions at profit.
LET MARKET DO ITS JOB.
(4/n)
5. Do not have too many open positions. Makes it hard to focus.
6. Don't look at MTMs. Will impact you psychologically.
(5/n)
6. Don't look at MTMs. Will impact you psychologically.
(5/n)
Post trade/EOD:
1. Maintain a journal with trade details.
2. Check how many rules you followed and how many you broke.
3. Assess the mistakes made. Make a plan to try and not make them again.
(6/n)
1. Maintain a journal with trade details.
2. Check how many rules you followed and how many you broke.
3. Assess the mistakes made. Make a plan to try and not make them again.
(6/n)
Rules i personally follow:
1. I risk 1-1.2% on a trade in the direction of trend.
2. I risk 0.5 - 0.7% on contra trades since contra trades offer better R:R but have less POP than trend direction trades.
(7/n)
1. I risk 1-1.2% on a trade in the direction of trend.
2. I risk 0.5 - 0.7% on contra trades since contra trades offer better R:R but have less POP than trend direction trades.
(7/n)
Trading Psychology pointers:
1. Don't enter markets with a mind bias. Let market show you the way.
2. Learn to buy high and sell higher; sell low and cover even lower.
3. Do not try to catch bottoms and tops. 9 out of 10 times you won't.
(8/n)
1. Don't enter markets with a mind bias. Let market show you the way.
2. Learn to buy high and sell higher; sell low and cover even lower.
3. Do not try to catch bottoms and tops. 9 out of 10 times you won't.
(8/n)
4. Grass always looks greener on the other side. Focus on one setup and one instrument at a time when learning.
5. Do not enter futures and options without experience and less cap. High chance you will be left without an option to continue.
(9/n)
5. Do not enter futures and options without experience and less cap. High chance you will be left without an option to continue.
(9/n)
General points:
1. Get min 7 hrs sleep and breakfast before trading.
2. Your mind can play funny tricks with lack of sleep and food.
Re-tweet if you find it useful.
1. Get min 7 hrs sleep and breakfast before trading.
2. Your mind can play funny tricks with lack of sleep and food.
Re-tweet if you find it useful.
