Stock FUTURES To Keep A Close Eye On

[sunilrhs]

I meant to say, had you not been there then Ararav, for that matter me too, would have sold the first lot itself after panic and whole story would have repeated itself...

It is you by whom I am in profit EOD everyday. Just want to learn a lot from you and hope to trade like you one day...:thumb:

Hi Sunil,

Most things that I practice for trading which will normally get frowned upon......it is understandable...because for me whatever I do comes from past real life experience.... and mistakes committed are really something that I am quite unforgiving on myself...then it becomes an obsession what could I have done differently ..so that the mistake didn't happen....that is how I have learnt most things in life.....!!!

Since I don't own & haven't read a book on Trading...though a Van Tharp's E-Book was sent by email by a very close friend.... seriously did try to read it ...but each time got only as far as about 28 odd pages only... and now even If I have the inclination to read it from cover to cover.....I don't know which computer the e-book was stored on.....Ofcourse I could always search the email and download it again....

Question of selling the first MNF bought at 5307 was never never anywhere on my mind when the drop started..........Why????

Because If I have deployed only on 1 lot of MNF out of total of 4 lots...and the Market Structure remained intact... my only thought was at what price to deploy the 2nd lot of MNF.... in hindsight.... I am not happy that the second lot was bought @ 5228 when we saw NF drop below 5200...I would have been happy with myself.... if the 2nd Lot was bought around...5203....That's how unforgiving I am on myself....

I will also learn new things... while Aarav conquers his devils.....!!!

SG

 

[SavantGarde]

Yes... Sunil...I did understand what you meant....!!!

I must say... my mind has always worked better under pressure....!!!

Here is an example.....!!!

I buy something at 100 thinking it will go to 103-105 but it it goes down to 98.50 at which point I have a mental S/L of about 97 but something happens...and it drops like a stone past my mental S/L to 93 at which point most Traders are sweating and sell at much lower price than they would have normally....This is the point where my mind gets into top gear... although it jumped my mental S/L by a huge margin.... what do I do... instead of selling I buy at 93 and wait for some pullback.... to around 96 to exit the one bought @93 so... at this point I am sitting on a 3 buck profit for the one entered at 93 and if I see another buck up to say 97 I sell the first entry for a loss of 3 what is the net result.....break even without the Brokerage & Taxes....!!!

This works... everytime.....just that our mind should never freeze up when the price does something unexpected......most Traders that I have come across....just remain frozen watching with a blank look at the screen....believe me at that time there is no limb movement either....!!!

SG

 

[SavantGarde]

Now Aarav has managed to add some safety to his original 1 lot MNF bought @ 5307 ....How...you all might ask....!!!

Aarav's first entry @ 5307 2nd @ 5228 Average of 5268 sold 1 Lot today @5289

So Let's assume that MNF has closed @ 5268 instead of +5300

so at 5268 holding one MNF he has created additional Margin of safety of 61 points (5289-5228) Therefore, he need not be in any hurry to even enter another second lot around 5228......!!! He needs to only look at the second Lot below 5268-61=5207... Provided Market Structure is Intact...

SG

 

[luvmalik]

savant sir, sorry coudnt update earlier. coal india sold @ 351.20.

sir, as i am holding ifci and its results dnt look that positive so what are your views

 

[SavantGarde]

savant sir, sorry coudnt update earlier. coal india sold @ 351.20.

sir, as i am holding ifci and its results dnt look that positive so what are your views

Malik... get a good nights sleep....we shall see if we have anything to worry about once the market starts....

SG

 

[myamit]

Here is an example.....!!!

I buy something at 100 thinking it will go to 103-105 but it it goes down to 98.50 at which point I have a mental S/L of about 97 but something happens...and it drops like a stone past my mental S/L to 93 at which point most Traders are sweating and sell at much lower price than they would have normally....This is the point where my mind gets into top gear... although it jumped my mental S/L by a huge margin.... what do I do... instead of selling I buy at 93 and wait for some pullback.... to around 96 to exit the one bought @93 so... at this point I am sitting on a 3 buck profit for the one entered at 93 and if I see another buck up to say 97 I sell the first entry for a loss of 3 what is the net result.....break even without the Brokerage & Taxes....!!!

This works... everytime.....just that our mind should never freeze up when the price does something unexpected......most Traders that I have come across....just remain frozen watching with a blank look at the screen....believe me at that time there is no limb movement either....!!!

SG

First of all, let me tell you that I really like your work and appreciate your efforts to help new traders. I'm also following your various posts/threads describing your work/systems/strategies (here at TJ) and liked/learned a lot.

Having said that; I'm confused with your above post. What you have described in example is merely averaging and possibly biggest sin for any traders. Also keeping mental stoploss and allowing it to pass by bigger margin is another mistake.
Firstly, you have kept some number as mental stop. Now there many ways to arrive at this number but to me Stoploss is ones affordability to loss. When I'm allowing that to pass by than my loss is going beyond affordable limit and that is in no case acceptable.

I've came across lot many different thoughts that justify averaging. Like one quite convincing is that around defined level lot of SL triggers and hence price may jump your stop loss but it will come back to its original level very soon. To me, even if this is to happen than exit at defined SL and re-enter (if you believe that market structure is still intact) again at lower price.

Having said this, I firmly believe in one thing...
There can be only four results of any trade.
Big Profit, Small Profit, Small Loss, Big Loss

God has given every trader a power that they can eliminate one big thing from above list. By not keeping SL and defining targets, we only tell God that I'm okay with big loss but please never ever give me big profit. If my expectation is to eliminate big loss from my trading than I should start defining SL and not the targets.

I'm sure you must have your reasons for your post. But I feel that this may mislead newbies and hence I'm posting this to discuss. I'm sure you'll appreciate and share your thoughts so others just do not blindly stop using stoploss and start averaging.

Regards,

 

[SavantGarde]

First of all, let me tell you that I really like your work and appreciate your efforts to help new traders. I'm also following your various posts/threads describing your work/systems/strategies (here at TJ) and liked/learned a lot.

Having said that; I'm confused with your above post. What you have described in example is merely averaging and possibly biggest sin for any traders. Also keeping mental stoploss and allowing it to pass by bigger margin is another mistake.
Firstly, you have kept some number as mental stop. Now there many ways to arrive at this number but to me Stoploss is ones affordability to loss. When I'm allowing that to pass by than my loss is going beyond affordable limit and that is in no case acceptable.

I've came across lot many different thoughts that justify averaging. Like one quite convincing is that around defined level lot of SL triggers and hence price may jump your stop loss but it will come back to its original level very soon. To me, even if this is to happen than exit at defined SL and re-enter (if you believe that market structure is still intact) again at lower price.

Having said this, I firmly believe in one thing...
There can be only four results of any trade.
Big Profit, Small Profit, Small Loss, Big Loss

God has given every trader a power that they can eliminate one big thing from above list. By not keeping SL and defining targets, we only tell God that I'm okay with big loss but please never ever give me big profit. If my expectation is to eliminate big loss from my trading than I should start defining SL and not the targets.

I'm sure you must have your reasons for your post. But I feel that this may mislead newbies and hence I'm posting this to discuss. I'm sure you'll appreciate and share your thoughts so others just do not blindly stop using stoploss and start averaging.

Regards,

Hi Amit,

In one of the earlier posts I mentioned.... things I do will normally be frowned upon.....!!!

Why does everyone go around saying S/L is a must....Let me tell you the conclusion that I have arrived at... it is from reading Trading Books....!!!

For me I regard the Market as a battleground.... I am NOT going to put a S/L in the system.... where my Helmet peeks out from where I maybe hiding ...that just compromises my location... that is exactly what a S/L is.... it has been fed into the minds of new Traders..by whom.... think about it...sometime....!!!

I have seen software by small group of HNI who could see every S/L in the system.....!!!

Even if I have to keep a S/L in the system..it will always be away from from the herd...where the smart money will not feel, it is worthwhile going down so much to take a few of the guys out....!!!

S/L should placed as described above... Position Sizing is what makes one avoid putting a S/L... it is quite a bit of writing to describe what I am talking about...perhaps in a few weeks I shall illustrate it...!!!

At the end of day my Trading practices are only as good as my Ledger....and that I think will bear out my Trading Practice compared to anybody anywhere....!!!

SG

 

[SavantGarde]

Amit...

What will you suggest to a guy who comes to you and says he has 7300 shares of SUZLON at average price of 120....???

SG

 

[shamika]

hi friends
i am new to stock trading and to this forum as well
hope you guys help me in understanding stock market

 

[SavantGarde]

Amit...it's not like I go around advocating No S/L for Instance....in todays post addressed to Malik..... he had 2 lots of SBI Think the first one was about 21xx and second was 2067 or 2087 ...my initial post to him was to keep 1 lot to exit @ 2307 and second post was to keep a Trailing Exit of 2252.xx which was changed to 2249.xx thereafter there was a sudden dip.... and SBI made a low of 2222.xx and not getting an update from Malik... thought his Trailing exit must have Triggered....only to see his post in the evening that he exited @ 2307... which means he was busy and didn't see my posts of Trailing Exit....or he saw the post and decided not to keep the Trailing exit... Frankly... I have noidea what Malik's Trading Capital is .... seems he must be pretty deep pocketed to not to even follow a Trailing exit.....!!!

SG