Hi everyone, I was thinking if we can have a dedicated thread for loss making trades because I believe we get to learn more from our losses than profits. We can study or analyze what went wrong that we had to book a loss.
Losses are integral part of trading & actually profit n loss are 2 sides of a same coin.
Also it will act as a caution not just for new traders but also for experienced players.
If u like the idea to share your losses here then we can keep this thread alive else it will end up getting buried being inactive.
It shouldn’t matter brother, I wanted to keep some creative title. I hope we should not take it as an offense as generally the word Loser is associated with something belittling !
( There used to be a show on TV long time back with a similar name Biggest Loser. That was about weight loss program. So in that , many overweight people with obesity used to participate & the show was intended for biggest weight losing title using exercises, gym workout, dieting etc etc. )
Sorry for going off topic! Just wanted to convey something here.
And learning is a life long process, & we all should remain open to learn from everyone around us.
Yes its not possible in markets to turn out to be a winner everyday, some days are meant for extra learning, & we all come out as a loser sometimes, loosing some of our trades and that should serve as a learning lesson for all as sharing it with everyone will help all of us together as better guidance can be received & confidence of a loss making person could be boosted up.
I hope the loss making person can receive extra guidance here from other members as we are all part of Zerodha family & our single intended objective is to come out as a successful profitable trader.
Nice u came up with this post. But, Bro everybody fears abt ur surgical strikes n might not come in line of fire. It is better the moderator @tintin creates the post n moderates. Also, the title can be kept as “Discussion:Loss Trades of the day”
Actually this thread was in my mind and you stole and post here . When I make a loss will post here and discuss what wrong with that trade we’re. Nice topic.
I dont hv any issue with the title, Bro. As the thread grows, any new person will just see the topic name n wonders wht is this post abt? after seing the latest replies. For tht purpose I suggested an apt title.
The purpose of the post will remain as u hv put forth only!
I lost my 100% capital in a day. It wasn’t my first day at trading terminal but, yes I did loose all of them.
This had happened on 26th October 2017 . My trade setup for the day as such
Traded 10K shares of SBI. And booked 37.25K profit
Traded 15K shares with SBI only in reverse direction hit the stoploss. My stop loss was 5 rupees higher than CMP.
Last Trade of 12 shares Havells India hit the stoploss, which was 8 rupees below the CMP.
Biggest Learning.
Never user full margins provided by brokerage houses.
Always have a profit and loss target in mind for everyday. If anyone of them is achieved, stop trading.
Trailing stoploss might save you from big losses but It can also ruin your big profits.
Thanks for sharing. Indeed very high quantity trade size. Did you wrote options too or is it being LONG on different strikes of calls n puts after designing a strategy?
yeah … tried iron condor which is shorting at the money options and hedging it with outside the money options ( to take advantage of drop in vix after the rbi meet ) …
did 20 lots this time … actually in the morning premium was comparatively low ( 230pts this time vs 260/270 pts for ATM options ) otherwise i might have done 40 lots
PS:
i was in 14/15k pft at 3pm , but i wanted to get the full profits but unfortunately BN went down even further after recovery
Well, generally its human psychology as people don’t like sharing loss making trades. It happens with everyone. I can understand, how it feels to suffer a loss & sharing it out is not easy. One feels disturbed already. But still even if some people do share their losses, then we all can learn & contribute.
Gosh! Past performances does not guarantee future trades especially whn it is event based.
Obviously, Iron Condor means involving Option Writing. One of the mistake traders do is keep switching between Normal Leverage & High Leverage. I think they get used to tht while trading Futures.
Wht is the Profit/Loss vs Margin ratio tht u r looking at?
Did u get inspired/influenced by surgical strike stategy popularised by @spaceship? You shud try it in group of other strategies I believe. I see lot of ppl taking lot of risk after @spaceship started detailing his trading.
Anyway, Thursday is back again! You can make profits without margins too. Time to keep all the lines ringing…
Hmmm !! Well I clearly posted earlier that few of trades dealing with one sided position in very high quantity is not a responsible trading practice.
One day you may win big but the next day, you may get buried in grave. Markets won’t give second chance.
I have seen people losing 50k - 1L in a matter of minutes. I too have suffered losses at times. There is no person who has never ever suffered any single loss.
Surgical strike strategy is utter madness. A mature trader applies a balanced approach. We may get tempted few times to trade single sidedly but always remember, Leverage is a 2 side sword.
What to do then? Well retail traders usually don’t have high amount to make strategies. But yes if suppose a small trader has for example 20K amount. He should try to divide it in 3-4 portions.
So trading with 7K using margin multiplier of 27X will give him decent leverage per trade.
Overall risk gets diversified & he can trade couple of stocks. Also if a trade goes wrong, he may book some loss but he still has other positions.
