if you’re only trading equity and losing so much money, it’s 100% due to a lack of patience, not even holding trades for a few weeks. even yes bank’s equity has returned 26% in the last 13 months.
invest in an uptrend stock with higher highs and higher lows, and hold especially if you have plenty of capital. why use a stoploss in long equity positions? just double average - even in a downtrend there are minor uptrends? filter stocks within nifty 200 and pick the right sector in momentum.
please diversify your portfolio unless this is spare money. like, allocate say at least 20% to mutual funds, 20% to etfs to guarantee some return (or at least avoid such losses), and use 60% for equity stocks till you learn. etfs are also a solid option when it comes to equity trading.
While you figure out how to assess, some obvious stuff - unless you are really loaded and 1cr is small change, better reduce capital drastically.
Most of us lose in initial years, we have to pay markets some tuition fees while we learn. Why pay more ? I used to trade with 1 qty SBIN for some time. Its a classic rookie mistake to trade with too much capital too soon ( and take too much risk etc)
You can reduce capital to say 1lakh or even lower. Fixed costs will become high and you might lose even with edge. But you can figure that out in your trading stats and wait until you have something clear that works over long periods.
Also - its good to track impact of taxes and slippages in your trade reports.
Quite likely you are trading with very poor reward to risk ratio. In trading, cutting losses short and letting your profits run is important. Also, as other folks have mentioned here trade with very small quantity during learning phase. Gradually, increase the deployed capital as you understand your physchology well and trading system well.
Tony Saliba was one of the Market Wizards who traded for a year with 1 lot just to understand his trading system and his own psychology better.
Details of your trades can be picked up from Console. I’d recommend you to maintain a trading journal to make notes about what works and what doesn’t.
For equity delivery, I track in Google Sheets, value research. I have been doing this for more than 4 years now. I hold 155 positions currently and close to 600 trades are logged. Value research gives details on whether you have beaten the BSE 500 or not, dividends, and bonus details are very helpful. I add dividends manually in Google Sheets and all company adjustments.
To evaluate your trading strategy, start by analyzing your past trades to calculate your win rate, risk-reward ratio, and drawdowns. Use metrics like profit factor and return on investment (ROI). Backtest your strategy with historical data to gauge performance. Keeping a trading journal to track your decisions can be beneficial. Additionally, learning technical analysis can enhance your evaluation process, helping you understand market trends and improve your strategy over time.
