Priyanvada's chit chat home ...
- Thread starter priyanvada
- Start date
Yes...Perfectly Right 
... I think so ... any master in the field will term this process as accumulation ... If the trader is retired from trading job, then we can then decide he has made money or not...
... It is all related to timeframe ... See Initially I entered with big amount ... Risked all and made some good amount one day ... the next day I am feeling confident and again risked all and lost double the first day ... So ... So ... So what do you think I will have on third day... or "N"th day...?
At the End of "N" days,
My Account status = Initial amount + Sigma (i = 1 to N) {Profits (i)}
... here as we see,
1. Initial amount = Constant
2. Sigma(bla bla bla!) = This is the term which is going to decide whether you are going to be smiling on "N"th day ...or Sad on "N"th day ...
... So simple logic says, If I wanna make sigma(bla bla bla) positive and big, I must make Profits (i) as big as I can ... So Now,
Profit(i) = function (Amount you Risk on "i" day)
Profit(i+1) = function (Amount you Risk on "i+1" day)
... So this all looks very straightforward to our brain ... and the most important thing which slips out from our eyes is ...
(Amount you Risk on "i+1" day) = function {Profit(i)}
.... In case you make profit "i"th day, Then you are IN. But in case you made a loss on "i"th day you are doooomed!... because on (i+1)th day, you are not going have Risk amout equal to Risk amout on ith day!
Example: - Say you have 10000 Capital ...
Case 1: -
1. On day 1 you risked all and made 10% = 1000 Rs. ...
2. On day 2 you risked all but made 10% loss = 11000*.9 =9900!
Case 2: -
1. On day 1 you risked all but made 10% Loss = -1000 Rs.
Capital = 10000 - 100 = 9000
2. On day 2 you risked all but made 10% profit = 9000*1.1 = 9900!
... So you see in both cases your performance was 50-50,
So at end of second day if you see clearly and honestly,,,
1. You have performed well 50-50 in terms of profit and loss but..
2. The capital at the end of third day you are short 100Rs.,,,, and you are puzzled where this 100Rs. has vanished!...
3. You have TOTALLY wasted 2 days and although performing equal in terms of profit and loss,,, You are at Overall loss on the final day!
... So this overall trading model is very favorable to make loss...it is not fair and equal and straighforward as we think it,,, and thats why I was praising the line,...
Traders obejective should not be making money but to accumulate it!
I hope you got something I am trying to say here...
regards,
priyanvada
... I think so ... any master in the field will term this process as accumulation ... If the trader is retired from trading job, then we can then decide he has made money or not...... It is all related to timeframe ... See Initially I entered with big amount ... Risked all and made some good amount one day ... the next day I am feeling confident and again risked all and lost double the first day ... So ... So ... So what do you think I will have on third day... or "N"th day...?
At the End of "N" days,
My Account status = Initial amount + Sigma (i = 1 to N) {Profits (i)}
... here as we see,
1. Initial amount = Constant
2. Sigma(bla bla bla!) = This is the term which is going to decide whether you are going to be smiling on "N"th day ...or Sad on "N"th day ...
... So simple logic says, If I wanna make sigma(bla bla bla) positive and big, I must make Profits (i) as big as I can ... So Now,
Profit(i) = function (Amount you Risk on "i" day)
Profit(i+1) = function (Amount you Risk on "i+1" day)
... So this all looks very straightforward to our brain ... and the most important thing which slips out from our eyes is ...
(Amount you Risk on "i+1" day) = function {Profit(i)}
.... In case you make profit "i"th day, Then you are IN. But in case you made a loss on "i"th day you are doooomed!... because on (i+1)th day, you are not going have Risk amout equal to Risk amout on ith day!
Example: - Say you have 10000 Capital ...
Case 1: -
1. On day 1 you risked all and made 10% = 1000 Rs. ...
2. On day 2 you risked all but made 10% loss = 11000*.9 =9900!
Case 2: -
1. On day 1 you risked all but made 10% Loss = -1000 Rs.
Capital = 10000 - 100 = 9000
2. On day 2 you risked all but made 10% profit = 9000*1.1 = 9900!
... So you see in both cases your performance was 50-50,
So at end of second day if you see clearly and honestly,,,
1. You have performed well 50-50 in terms of profit and loss but..
2. The capital at the end of third day you are short 100Rs.,,,, and you are puzzled where this 100Rs. has vanished!...
3. You have TOTALLY wasted 2 days and although performing equal in terms of profit and loss,,, You are at Overall loss on the final day!
... So this overall trading model is very favorable to make loss...it is not fair and equal and straighforward as we think it,,, and thats why I was praising the line,...
Traders obejective should not be making money but to accumulate it!
I hope you got something I am trying to say here...
regards,
priyanvada
Last edited:
Hindalco has moved up again ... but I am bit confused about my option now ...
... If I sell now I will get double the investment ... but is it premature exit or right exit? ... I am not sure... Should I exist tomorrow morning itself or ... see if it can break 115 Rs. Resistance in coming 3-4 days?... My mind says wait wait wait....
...but is it WISE to wait now? ... when I am in profit it really makes me uneasy ... So funny!. .. but still...question remains...
What to do Now ?
What to do Now ?
What to do Now ?
regards,
priyanvada
... but I am bit confused about my option now ...... If I sell now I will get double the investment ... but is it premature exit or right exit? ... I am not sure... Should I exist tomorrow morning itself or ... see if it can break 115 Rs. Resistance in coming 3-4 days?... My mind says wait wait wait....
...but is it WISE to wait now? ... when I am in profit it really makes me uneasy ... So funny!. .. but still...question remains...
What to do Now ?
What to do Now ?
What to do Now ?
regards,
priyanvada
Yes I do expect further upmove atleast for next 2-3 days....
I hope it starts painting the red flag in my favorite William %R again!
So today I am going to watch it and watch it and watch it ....
I don't get this? What does this mean? Roll up?
Do you mean purchase 1 more lot or what?
I can't purchase 1 more since my tiny budget is finished up now ...
But did you mean the same What I understood by "roll up"???
regards
priyanvada
I hope it starts painting the red flag in my favorite William %R again!
So today I am going to watch it and watch it and watch it ....
I don't get this? What does this mean? Roll up?
Do you mean purchase 1 more lot or what?
I can't purchase 1 more since my tiny budget is finished up now ...
But did you mean the same What I understood by "roll up"???
regards
priyanvada
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
|
Threads that belong in General Chit Chat | General Chit Chat | 5 | |
|
Lovely Chit Chats | Trading Psychology | 56 | |
|
After market/weekend chitchat | General Chit Chat | 202 | |
|
arthachitra | Software | 13 | |
|
#DAY/Positional trading/general chit chat corner# | General Chit Chat | 1 |