First week over, traded for the last 3 sessions.
Capital used = 10 lacs
Risk per trade = varies between 0.5% ( Rs.5000) to 2% max ( Rs.20,000)

Return in 3 days = 8.9%
Day 1 : Started with 1% risk per trade ( Rs.10k), had a good day

Day 2 : Started with 1% risk, was up around 5% by midday. Switched to 2% risk , had 2 back to back stops.
Day ends at 1.6%
Day 3 : due to 2 back to back losses earlier, shifted down to 0.5% risk per trade . A good day.

Why did I reduce risk ? In chess, if a GM loses 2 back to back games, he tries to draw the next game, does not try to win.
Position mgmt is the same, increase risk when the going is good. Reduce risk when the going gets bad. As money gets accumulated ( equity increases) we start taking slightly larger risks. This was taught to me by @ManojDalmia72 when I was in prop
In commodities prop trading, we started the day with say 5 lots. As we accumulated profits, our position sizes started getting bigger as we took on more risk. If the going was bad, we either stayed at same lots or decreased
For success in daytrading :
System = 25%
Position mgmt = 25%
Discipline to stick to the process = 50%

Any day if I have 3 consecutive losers or lose 2%, I will shut down trading for the day
Shutting down the terminal and stopping trading at a pre-determined level is an absolute must and most important. I always ask my students to do this and this is the least followed rule by traders. Those who do, have better performance and peace of mind
In the previous post, many said 3 days I would make 20-30%. In order to do that, one would need to take an insane risk of 5% per trade. A few back to back stops will destroy capital and lead to a psychological dampner.
DO NOT HAVE UNREASONABLE EXPECTATIONS FROM TRADING
In my daytrading, I have around 30-40% losing days. But those losing days are capped at max 2% risk. Whenever I had tried to get in revenge mode and recover on the same day, I have lost more. So now it's a hard rule that I will stop at -2%
So, despite having a good system - position mgmt - discipline, one will have losing days. Everyone does.
Just keep the losses within a small level. Live to fight another day. Rinse..repeat
How good a trader is is not defined by his system etc. What defines a good trader is how he handles risk.

So a good trader = efficient risk manager

The faster you understand this, the better
I have done all the mistakes a trader can do, I still do mistakes. But the process is continuous in cutting down those mistakes to as low as possible. This is an ever ongoing process as only God does not make mistakes, we humans do :)

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More from @SubhadipNandy

6 Nov
Initiated a put butterfly on Nifty weeklies #positional
I used to play a lot of butterflies earlier, the new margin rules have again made these attractive. I do not hold butterflies till expiry, neither am I expecting the 1:9 RR. Managing this trade is another ballgame :)
Initiation and management of a butterfly is rule based for me.
Rule 1 : initiate only when net debit is < 15% of difference in strikes

Similarly, the position mgmt now will follow a set of pre determined rules
Read 9 tweets
4 Nov
Spread is now at 15
Even with Nifty totally going against the view, one can get some profits if one squares off now. But this is too low a risk, so I will hold overnight :)
Read 4 tweets
2 Nov
Lots of queries on how to draw correct trendlines while trading QB
1. See this trendline
2. The highest point to trendline distance is the target when the trendline breaks
The slight upmove in Nifty post trendline break was false/fake as MFI continued to go down
The trade
Read 30 tweets
18 Oct
How do you improve as a trader? How do you pinpoint your mistakes and misses? How do you understand how VIX moves and what it says about the indices moves? How do you discover new setups or unique interpretation of indicators?
#A_thread
Softwares like Amibroker or Tradingview have a feature called Bar Replay. It simply removes data from the point chosen and starts plotting one bar at a time. You can also choose seconds after which each bar gets updated. Use this feature
Example 1 : the INFY selloff post results. Go back to that day and check how prices moved from opening, what the indicators were saying , how option prices were changing
Read 10 tweets
9 Oct
My presentation is tomorrow at the #CMTIndiaSummit20 will begin at 3 sharp.
#CMTIndiaSummit20 Last 2 days remaining to register for the event go.cmtassociation.org/6Z8jZ
Use VISHAL2020 for 20% discount
Will be explaining my approach to quantify swing highs and swing lows. Post event codes will be released on @tradingview , free for all
Read 5 tweets
9 Oct
Last Sunday, I introduced the VolShift indicator at the #AlgoConvention . Showed the index charts as of then and warned that markets were in trend. Find below the charts shared then and the charts today. Self explanatory
Nifty as on last Sunday
Nifty today
Read 7 tweets

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