Often u would find a struggling person talks philosophy
Bcz, that's easy
Kind of accepting what's happening as inevitable
It's fate & u r bound to take it
But very few guys,
refuse philosophy
decide to fight
Make a plan
start from scratch
&
persist with hard work
Relate it with trading
Each and every successful trader was a struggling trader once
It's just becoz he decided to keep philosophy aside and worked upon his core weaknesses,
he became what he is now
2/4
Behind his present success, there would be lots of painful experiences and sacrifices wold be there
which he committed to fullfil his ambition.
That's the solo route to success in trading career
3/4
Philosophical approach will definitely not work here
Do not fal prey to the easy option of accepting the so called fate as failure
That's losers game
4/4
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thr exists no way of building conviction on ur trading process
except "backtesting"
Its not just about the response in price after the chart set up is formed,
scaling in potential
Volatility risk
Impact of demand etc etc
thr r lot many important parameters to b quantified.
All the trading decisions u take in ur trading
has to be backrtested for the last min 5 years data.
Suppose u havent done any backtesting, and u have position which goes against u
u would be just holding it based on ur emotions.
2/5
u dont have any idea about what are the chances for price to regain all the losses
But if u have done the BT, then u will have an exact point of price beyond which there is no hope for any recovery.
3/5
Volatility based Stoploss in day trading
Why closing based SL is fraud idea?
when u day trade with chart analysis,
u need to use OHLC charts
That means u use bar charts or candlestick charts.
U should never use line chart for that
1/10
This is quite obvious and everyone knows that
But the question is why is that?
Pls read on
In OHLC charting,
High and Low of every candle denotes the volatility in that time period.
This parameter is of atmost important in day trading as
2/10
this determines the stoploss for the trade
If a trader measure the volatility of every bar properly,
he is well informed about how much price can swing
away from a certain price point at any given period of time.
psychology behind attempting to find and trade tops/bottom is quite straight forward.
suppose price is going up and near resistance
conceptually trade here is short
if the price fell from resistance and confirmed trend reversal,
1/5
one needs bear a bigger SL here
trend reversal point after confirmation being quite far
So we would wait for pullback so that risk would be lesser
When pullback actually happens,
he assess it as correction and assume the previous trend strength is lost already
2/5
Now, when price completes pullback and resumes falling again
he find himself in the same dilema, that SL quite wide as price fell already
Amateur traders find its solution as picking the top
so that he would be quite close to the SL level when making the entry
3/5
Right Trading Psychology - Role of conviction on ur process & practical way to build it
In my early days
trading wasn’t making progress
I had no idea if my approach would work
Does it have a high probability or not
Took a big leap when I started to learn coding
Thread 1//22
Once I started coding,
I started mechanically checking the set ups I use
Surprisingly I found that I oversee majority of the failure set ups
& end up understanding am playing on low probability set ups
I was betting more on hope than on fact.
2//22
That forced me to test everything before executing
becz
I knew I tend to see what am looking for
Not what actually was there in front of me.
Suppose ur portfolio worth 1 Lakh at the time of investment.
You have seen lot of updates on twitter/telegram/fb etc. that many traders comes up with posting 5% up/10% up kind of updates on their timeline everyday.
thread 1//10
You are being a beginner,
just looking for a paltry 1% increase in worth every day for the next 1 year (almost 250 trading days)
2//10
Here comes the reality
Investment = 1 lakh
Interest = 1%
Interval = daily
Time span = 250 days (trading days)
Final amount = 12, 03,215/-
12 Lakh 3 thousand 2 hundred and 15 rupees !!!!!!!!!!!!!
thats 1100% return !!!!!!!!!!!!!