General Trading Chat

[mudraatrader]

SGX Nifty (Jun 7) 8,308.00 +18.50

It will be interesting to see, whether SGX closes at or above 8325

 

[vivektrader]

ST da, What do use to identify whether we are in strong momentum move ( apart from discretion/eyes ). I am looking to add entry rule in plan to join good momentum moves with small size using more aggressive entry method.

For now, i will try to use RSI(14) in OB/OS for 5 bars, or if price sticks to +-2SD1 without retracement. thanks

TC bhai can you explain aggressive pivot entry and range consolidation entry.

 

[amandeep86]

Even the best traders make wrong trades,they have their stops hit. Those loss trades are few but they are certainly there. Just train your mind that you will not see the trade going against you for a long time and you will cut your losses short and also train the mind to hold your winners.

***********...so slow,steady and rock solid in consistancy.That will lead you much ahead in this game.

Smart_trade

Da,

What % of profit do u consider reinvesting back to business in order to grow capital.

I have small capital and take out profits and use them for my basic household expenses.How can i grow my capital??

 

[Smart_trade]

Da,

What % of profit do u consider reinvesting back to business in order to grow capital.

I have small capital and take out profits and use them for my basic household expenses.How can i grow my capital??

This is the problem which every new trader has to face. What % to reinvest depends on whether one is in capital building stage or capital preservation stage. In capital building stage of a new trader his capital is small, household expenses and housing loan installments take away major chunk of the profits leaving very little for capital formation. This happens with every new trader. It happened with me too and the capital formation is slow. But one should invest back 50 % of the profits in capital formation stage. Once capital acquires a critical mass, then the profits increase rapidly and our expenses dont increase in the same proportion and then the capital formation process becomes faster.

In capital preservation stage all financial needs, present and future , are met and the trader trades not for making more money but he trades because he enjoys it and that gives him occupation and income apart from fulfilling his passion. In this stage money ,though important, assumes lower priority. In that case he may take out all 100 % of profits and invest it elsewhere.

I too used to have same questions when I was in capital formation stage, I was into trading full time, no other income source,no inheritance in terms of money, and household expenses and HDFC housing loan installments to be met from trading income....but after a few years the capital grows in exponential proportion....so just concentrate on trading well and making consistant profits...all other things will fall in place .

Smart_trade

 

[cinderblock]

Ek aur din rest and relaxation

Chalo is saal ke times sudoku ke liye kuch practice ki jaye :thumb:

 

[PreSap]

This is the problem which every new trader has to face. What % to reinvest depends on whether one is in capital building stage or capital preservation stage. In capital building stage of a new trader his capital is small, household expenses and housing loan installments take away major chunk of the profits leaving very little for capital formation. This happens with every new trader. It happened with me too and the capital formation is slow. But one should invest back 50 % of the profits in capital formation stage. Once capital acquires a critical mass, then the profits increase rapidly and our expenses dont increase in the same proportion and then the capital formation process becomes faster.

In capital preservation stage all financial needs, present and future , are met and the trader trades not for making more money but he trades because he enjoys it and that gives him occupation and income apart from fulfilling his passion. In this stage money ,though important, assumes lower priority. In that case he may take out all 100 % of profits and invest it elsewhere.

I too used to have same questions when I was in capital formation stage, I was into trading full time, no other income source,no inheritance in terms of money, and household expenses and HDFC housing loan installments to be met from trading income....but after a few years the capital grows in exponential proportion....so just concentrate on trading well and making consistant profits...all other things will fall in place .

Smart_trade

Great question Aman Sir! :thumb: Its a question I should have asked but realised only after you did.

And the answer ofcourse is very helpful.
Thank you!

 

[Smart_trade]

Between Capital formation and Capital Preservation there is one stage of Capital Growth. In this stage trader adds 80-85 % of his profits ( after taxes) into his capital and trades aggressively. This is the stage where the capital is grown exponentially,as the profits are much bigger than the withdrawal for expenses.

Every trader has to walk this path in his trading career.

Smart_trade

 

[^k^]

ST Dada,I read somewhere you started with 50k amount in those days.
Aaj ke hisaab se uss waqt ke 50k=aaj ke 5lakhs

so you traded equity intraday or delivery based?
did you use leverage?

 

[Smart_trade]

ST Dada,I read somewhere you started with 50k amount in those days.
Aaj ke hisaab se uss waqt ke 50k=aaj ke 5lakhs

so you traded equity intraday or delivery based?
did you use leverage?

When I started trading, there were no futures and options. That time we used to trade Reliance,Tisco ,Orkay both intraday and positions. That time weekly options unofficially were there ( they were called Phatak in local language) ,I used to trade those Phataks also. There used to be unofficial Badla in the market where one can hold positions in Badla. There were Dabba trades...I have traded all.I have used leverage as that time margin rules were not that strict and settlement was on 15 days period.

But all trading positions. Nothing in delivery. I have almost blown this initial capital couple of times and had to put additional money selling my stocks which were bought when I was in a job. Those were crazy days...

Smart_trade

 

[^k^]

SBIN going nice.Bullish Bias above -1SD setup.