Thread by @tejaschachcha

#tjtrades #learning #TradingEducation #stocks #TechnicalAnalysis

A #thread on the most important aspects of #trading learned from experience.

Before proceeding, want to pay my respect to the people I have learned from along the way @nishkumar1977 @KPTheTrader @Mayank_Narula1

1. Have realistic expectations. Trading is not a way of making an easy money. It can't make you rich overnight but if you don't understand this point well, trading can surely make you poor overnight.

2. Following a strict stop loss is one and only paramount condition for survival. You can't win if you can't play.

3. Before you learn anything, learn about stop losses and how they are calculated. Stop losses are not random, they are ideally a few points below demand zones and requires to exit position because a certain demand zone has failed to support the price.

4. You can't learn trading just by reading books. Once you know basics get out there and test the waters (but with your safety guard - stop loss on).

5. Before entering every trade, log your rationale behind trade and a stop loss level. Don't enter in a trade if you don't know.

6. Respect your stop loss levels. Can't stress it enough. Accept your mistake and move on.

7. If you are a lucky one and get profitable trades, make sure you book partial profits when a price is struggling to cross resistance and you're sitting on a good profit.

Profit booking methods vary depending on which style of trading one is following but it never hurts to take some gains off the table when you can.


Always remember — your investments belongs to the market and your profits belongs to you

(courtesy @VijayKedia1 ji)

8. Review all failed trades. Try to find what you could have done better. Might be hard initially but over time you will start seeing your mistakes as clear as sky. Reflect back and optimise your entry levels.

9. Initially start with a smallest position that you can easily afford to lose. When learning to swim don't feel shame in getting into kids swimming pool.

10. Increase your position size only when you haven't had capital losses (or gains) for 20-30-50 trades on average. Trim down the position sizing if you are making losses to a smallest size where losses can't hurt you. Adjust your position sizing with your performance.

11. Trade. Rinse. Repeat.


Remember when trading, do not rely on your gut feeling. Trust only price action and listen to what market is trying to tell you.

#GoodLuck and welcome to the trading journey.

End.