General Trading Chat

[Vipul_84]

Thanks Pratap Sir. I think, we are evolving a complete system here with proper entry, exit & position sizing.

I am bit nervous with 1.5% risk per trade. Need to do with lesser risk at 1%.
So for 1%, I think with 20 pts SL , we need to trade 1 lot for every 1.5 L of capital.

1 SL hit = 75*20 =Rs1500/- loss
So its 1% of 1.5L.

Hope I am right in my calculations?

Money Management


I trade 1lot per 1 lakh with avg 20pt SL

so on 4L capital (not margin) you are risking ....75*4 * 20 = 6000rs

which is 1.5%

so 10 consecutive failed trades will give only a draw down of 15%

now if I make 200pts (net) on this it means I make 75*4 x 200 = 60000

this is 15% on capital

if 1% risk it will give 10% on capital....if make more than 200pts that is more return

I am happy with this as compounding of 10% is a slow and steady increase in capital and if you factor in the fact that profit can be redeployed to increase qty it increase even faster.

 

[wisp]

swing if closes above yday high might enter some ... till then intraday

the daily AMA is still about 80 odd points above though

Pratap Sir,
Are you trading pure AMA or do you look at some other indicators/afl before you enter or exit a trade? Thanks.

 

[wisp]

What is important is how many points one makes consistantly in a month....consistancy is the key...120-150 points one can make on many methods in our forum.But more than the method, how trader manages his trades is important.

Smart_trade

So very true Da, easy to make points and easy to lose them too. Consistency is key which many of us lack.

 

[Vipul_84]

One more query @Pratap sir,

Can we make this entry & exit totally mechanical if we are happy with even lesser points of say 30 pts per week? In that case, the returns would be around 6% if we make total 120 pts that month with 1 % risk per trade (20 pts in NF)

 

[sherbaaz]

another way of looking at intra day is focus on fixed points profit. let say daily goal is to make 40 points every day. u may also have losses decide your loss limit for the day. now if u can make 40 points daily for 2 month or 2 series increase the lot size and again focus on making 40 points for another 2 months and if successful keep adding.
once you achieve your tgt just dont look at chart and trading for the day. let nifty go where it wants to go making another 100 points or 200 points move. most imp day in day out you are making 40 points its may be in 1 trade or it may be in 4 trades in a day.
the above will not put too much pressure on you as tgt is not making 100-200 points and also since you know how much is your tgt (keep it modest initially) u will trade selectively set ups and with calm and discipline.
let say in 20 days u have made 600 points after a loss of 200 points ie is 45k gross with one lot. and within a year u may be trading with 7-10 lots only for 40 points if u earn more points on any day keep it in reserve for loss, this way u wont have prob taking losses also
From my exp i must say such tgts are very much achievable and in such way provided you have good system/stgy and most imp iron discipline.
regds,s

 

[pratapvb]

Thanks Pratap Sir. I think, we are evolving a complete system here with proper entry, exit & position sizing.

I am bit nervous with 1.5% risk per trade. Need to do with lesser risk at 1%.
So for 1%, I think with 20 pts SL , we need to trade 1 lot for every 1.5 L of capital.

1 SL hit = 75*20 =Rs1500/- loss
So its 1% of 1.5L.

Hope I am right in my calculations?

yes correct

 

[pratapvb]

One more query @Pratap sir,

Can we make this entry & exit totally mechanical if we are happy with even lesser points of say 30 pts per week? In that case, the returns would be around 6% if we make total 120 pts that month with 1 % risk per trade (20 pts in NF)

mechanical does badly in sideways...so some discretion one lands up taking... have not thoroughly tested mechanical way to comment

 

[pratapvb]

Pratap Sir,
Are you trading pure AMA or do you look at some other indicators/afl before you enter or exit a trade? Thanks.

I do looks at something else, but that is shared to me by a friend so not shareable without his consent.

 

[vikas2131]

Aditya Birla Nuvo to be dropped from BSE indices January 20..

 

[wisp]

Thank you for all your teachings ST Da, VJAY, Subhadip and everyone else who has taught me.