A plunge in Indian Stock market
- Thread starter sspms2002
- Start date
Before you make a journal, you need a well documented trading plan that contain your entry criteria/stops/target/MM...etc. It has be detailed.
Once you have done that you can keep a journal and record your trades. if you make mistake you record and highlight it and you have force yourself to not make that mistake again.This is how you will build the discipline.This will slowly eliminate your emotions and you will be executing your trades like a robot.
Keeping a journal without having a proper trading plan will not help because you don't know what mistakes your are making.
Now preparing a trading plan takes a lot of work.
But once you have your trades recorded , you can easily what mistakes your making , which areas need work(probability/No of trades/Cost of trading/R/R..etc). you can do all sorts of analysis and improve in the areas.
Get to work...
Second edit: you need to make a entry for each trading indicating "mistake/No mistake" no matter what the outcome of the trade. e.g if you correctly follow your trading plan and execute your trade and you have a loss on that trade , you mark is as "No mistake".
if you do make a mistake , you need to put a reason why you made that mistake e.g was it traded on some emotion or any other reason. The idea is to build the discipline to execute your trading strategy without emotions.
After a month or two , your journal will show how you can improve your strategy by analyzing your losses. For this you need to keep screenshot of every trade and possible data for replay later for analysis. It will more importantly tell what needs to be balanced. Either probability/No of trades/ R/R. you don't have trade 5-6 times everyday to make money. you can take just one and make a good amount. trade less and make more(Efficiency). More trades doesn't mean more money.
All this stuff is pretty straightforward but many many people fail to do these basic things and hence it takes them forever to grow as a trader.
Once you have done that you can keep a journal and record your trades. if you make mistake you record and highlight it and you have force yourself to not make that mistake again.This is how you will build the discipline.This will slowly eliminate your emotions and you will be executing your trades like a robot.
Keeping a journal without having a proper trading plan will not help because you don't know what mistakes your are making.
Now preparing a trading plan takes a lot of work.
But once you have your trades recorded , you can easily what mistakes your making , which areas need work(probability/No of trades/Cost of trading/R/R..etc). you can do all sorts of analysis and improve in the areas.
Get to work...
Second edit: you need to make a entry for each trading indicating "mistake/No mistake" no matter what the outcome of the trade. e.g if you correctly follow your trading plan and execute your trade and you have a loss on that trade , you mark is as "No mistake".
if you do make a mistake , you need to put a reason why you made that mistake e.g was it traded on some emotion or any other reason. The idea is to build the discipline to execute your trading strategy without emotions.
After a month or two , your journal will show how you can improve your strategy by analyzing your losses. For this you need to keep screenshot of every trade and possible data for replay later for analysis. It will more importantly tell what needs to be balanced. Either probability/No of trades/ R/R. you don't have trade 5-6 times everyday to make money. you can take just one and make a good amount. trade less and make more(Efficiency). More trades doesn't mean more money.
All this stuff is pretty straightforward but many many people fail to do these basic things and hence it takes them forever to grow as a trader.
Last edited:
Get to work...
But as of now i have though of 10Min/2min/ MACD / Stochastic + Price action patterns to be the basic building blocks of it..
I will try to formulate a Entry + Stop loss criteria from a LONG perspective...I am thinking of selecting 10 NSE stocks and compiling all good moves over last 3 months and try to fit them in above criteria...
Hmm, i see you have a ton of work to be done in building the strategy.
Word of advice. Don't build your strategy on indicators , they will fail over time - why? because institutions don't use it. Remember its the institutions that move the price. They look at Support and resistance. Base your strategy purely on Support and resistance and price action.
However your mind will trick you and tempt you to use all kinds of indicators and systems and this is where you will struggle a lot..i mean a lot.
you will not realize what i have written above for another 2-3 yrs if you are still in the game.
All i can say for now is you have to keep fighting with yourself...
:thumb:
Word of advice. Don't build your strategy on indicators , they will fail over time - why? because institutions don't use it. Remember its the institutions that move the price. They look at Support and resistance. Base your strategy purely on Support and resistance and price action.
However your mind will trick you and tempt you to use all kinds of indicators and systems and this is where you will struggle a lot..i mean a lot.
you will not realize what i have written above for another 2-3 yrs if you are still in the game.
All i can say for now is you have to keep fighting with yourself...
:thumb:
Today was again a slow day or rather i have slowed myself as i am try to see things from different angles...
I traded a couple of positions all LONG in JET Airways , CIPLA , TVS Motors..
I followed a tight Money managment today and booked losses in range of 300-500..
Stocks Traded: TVS Motors, CIPLA, JET AIRWAYS
P&L : Green 481 after commissions
Winning trades vs Losing trades : 2:2
I traded a couple of positions all LONG in JET Airways , CIPLA , TVS Motors..
I followed a tight Money managment today and booked losses in range of 300-500..
Stocks Traded: TVS Motors, CIPLA, JET AIRWAYS
P&L : Green 481 after commissions
Winning trades vs Losing trades : 2:2