Restarting my journal. I will be trading and writing this out of a cabin of Camp NanoWrimo, ("an idyllic writer's retreat, smack dab in the middle of your crazy life"), hence this journal will be slightly different in its format. Please give a vote of thanks if you feel it serves a purpose.
I trade based from India and trade the Index and Equities.
Index - National Stock Exchange; NSE/Nifty 50 is the countries premier index and features the 50 largest companies by market cap
Equities - All stocks listed in the Nifty 50 and the Nifty Next 50.
I am a part time trader and started with a corpus of Rs 1,65,000 on May 2015.
By Nov 2015 this principle was reduced to Rs 8,850. I lost money trading both Futures and Options.
From the market value on Dec - Jan 2015/16, Nifty plunged over 15% for 2 consecutive months. I caught the trend early and took out the full 15% from the market. By Feb 2016 my account balance was Rs 1,15,000 without any top-ups.
In March 2016 I added Rs 1,85,000 more making a total deposit of Rs 3,50,000 - Increasing then corresponding available cash balance to Rs 3,00,000. Of which I have invested Rs 1,30,000 into equities @ Nifty 6900-7000 levels and therefore ideally I should have Rs 1,70,000 cash.
However in March 2016 I have made losses trading the index and current available cash balance is Rs 109,000 - i.e. losses of Rs 61,000.
I have realised that I am still struggling with impulsive trades. I also tend to aggressively enter counter trend trades. I am struggling with money management and position sizing. I am struggling with identifying exit points as each week I seem to make some subtle changes to my system.
I am a positional/swing trader. I do well in trending markets.
I use what Dr. Alexander Elder pioneered as the Triple Screen Trading System. I use 3 time frames to analyse a scrip. I use the daily charts to figure out a position bias i.e. long or short, then I use the 4 hour charts to see if the oscillators support the corresponding action, which is followed by use of 1 hour charts to determine entry and SL which is usually below the hourly pivot low.
Dr. Elder advises using timeframes of 1W/1D/1H - but this is too slow for my liking.
What I hope for:
I hope to catch major waves - which are entered through hour charts but follow up for days or weeks even.
The March cycle was the first time I traded stock futures - 2 of the stocks I got stopped out off went on to make stronger moves ahead. I have realised that i was aggressively trailing them. These learnings from each trade reflect changes in the system.
I hope to be able to catch a genuine move up or down - and to trail it for a very long time reducing the need to enter multiple positions. Trailing potential waves successfully is a challenge that I am looking to over come in the short term.
Looking forward to:
Sharing my experiences trading the Index and stocks for the April Expiry. I have read several views suggesting that indicators are lagging, and I agree they have limitations, but from my study I believe I can put them to good use and hopefully with further crystallisation of my trade plan I will eventually become a profitable trader.
I look forward to you all visiting my diary (thanking me once in a while will be pleasant too).
Most of what I write will be what I feel - I will almost always have charts.
I hope that what I write and that whatever I have written thus far will be of some benefit to traders, irrespective of trade style. I hope that you all benefit from this learning curve that for me has only just begun.
The following 9 users say Thank You to 4Play for this post:
Hey! I'd like to start with a quote I read here on futures.io
"A dumb man never learns. A smart man learns from his own failure and success. But a wise man learns from the failure and success of others."
I want to join the April journal challenge because I'd love to see from another perspective and receive feedback.
I'm going to start trading again on Monday but will only trade simulation trades until my laptop comes back from maintenance. Until it's come back I'll try my best to show in detail what has worked for me during my live trading earlier this year and if I have a learning day I'll post as much as possible so anyone can see.
I recommend starting on page four/chapter 4 and forward as it's most relevant but feel free to read anything you wish as it's there to hold me accountable. Oh and if you have ideas please share because I'm happy to learn from anyone. I have my fair deal of mistakes and wish to eliminate them by showing all my wrongs publicly here:
It's not the oldest journal but it has a couple of debacles and it certainly helped me pick up on my (very common) mistakes. It may be more obvious to me than to other readers, but there is definitely an observable "curve" to my trading.
For April, all entries will be done on a Topstep combine, my third so far. It's going to be a small feast, skimming over all the other participant's efforts! Happy trading everyone!
The following 8 users say Thank You to lasecondababele for this post:
I have a journal where I trade price action. I have been trading Forex. Lately, I have been scalping using the techniques from the book "Forex Price Action Scalping" by Bob Volman. In the next few weeks, I am going to be focusing on stop placement using Volman's "Tipping Point Technique".