Sometimes I am not satisfied with my profits so I wait for sometime but for most of this time I lose all my profits & starts losing money.Is there any policy how to be satisfied with your profits?Less profit is good or bad.Sometimes I square off in less profits but that stock goes high quickly after I book my profits.How to cope up?
According to me you should place a trailing stoploss on your winning positions and take whatever profit the market is giving you. Or you can book partial profits in a step wise method like if the stock moves 1% in your direction then book 1/3rd profits and likewise. But in this case also you’ll have to trail your stoplosses.
Try to exit at small profit in a range bound market. when nifty is trending use trailing stoploss.
This is very general thing that we all go through it some time or other.
If you are new trader or haven’t yet fixed method, following are my suggestion:
Work with two lots:
For Nifty, Exit first lot in 15 points and change the SL to C2C (Entry cost) and trail for 40 points.
For banknifty, Exit first lot in 30 points and changes the SL to C2C (Entry Cost) and trail for 100 points.
Gathering 300 points in 10 trades is always confidence boosting than waiting for 300 points for single trade.
While the capital is built, confidence also boosts and method also forms.
Please also refer to this: http://tradingqna.com/45016/any-good-tool-for-practing-virtual-trading
I faced the same issue for a long time which you are facing now. What I learnt is that you need to set a system for yourself and trade by that system and don’t let your emotions i.e. greed or fear take control over your decisions. This takes a lot of patience and practice, which you will learn over time and the day you do, you will see more and more of your trades becoming profitable.
Before initiating a trade, decide your risk-reward ratio. Decide how much money you are willing to lose on this trade if it doesn’t go your way and decide how much money you expect to make and stick by them irrespective of how you see the stock performing. The worst thing you can do is move your stop-loss away to remain in the position if you see the price coming towards your pre-decided stop loss.
What I like doing is that I set my stop-loss and keep a target in mind. When the stock goes close to my target and I see some potential for more gains, I bring the stop-loss higher to my cost and move my target away. I keep doing this as long as I feel the stock to be moving strongly in the direction I expected it to until I see the movement dying down or when either my stop-loss or target has been completely hit.
Remember to always trade by a system and try sticking to it. It took a lot of time for me to develop this, but you will overtime. I learnt this the hard way after losing a lot of money initially. Now my trades are much smoother, more profitable and I atleast have some peace of mind while trading rather than getting stressed about the losses.
All the Best
Take small profits many times, which will be equal to taking a large profit once/twice. Since we are beginners it will take a year(or less) to get a good grip on trend, traps. I regularly learn about trading on YouTube, live trading strategies. There are plenty of tutorials online, my favorites are
https://www.youtube.com/watch?v=txWaMpSzHhM #Day-Trading Patterns
https://www.youtube.com/watch?v=DfyNXTz4TD4 #Tech-Analyist Interviews
https://www.youtube.com/watch?v=LBuCclDQb_4 #Day-Trading Methods
https://www.youtube.com/watch?v=DSieueJs83g #Candle-Stick Math
It's just psychology, will take time, you have to become emotionless while trading intraday.
Be greedy when others are fearful and be fearful when others are greedy -- W Buffet.
What to do for Stock futures for Intraday and how to put stoploss,becasue most of the times Sl hit…
Following are my suggestions:
First thing first, if you are a new trader, stay away from Futures. As futures have bigger lot size. Bigger lot size makes them less momentum than Equity Cash and tend to make bigger losses also.
- Stick to equity cash till you earn profit equal to your capital. (Rs.40K suggested).
- Divide your capital in equal three parts. (A) Trade (B) Bounce back trade © SL Management.
- Select scripts between Rs. 200 and Rs. 300. which are part of Index.
- Decide profit based of the historic momentum of the script. Though initially exit in only 0.50 paisa profit with SL of Rs.1
- Take only one or two trades a day.
Some Gain (as less as Rs.200) at the end of the day for straight week gives 1000 times confidence than gain of Rs.1000 on one day.
Well, for future my suggestion will be to decide profit amount per trade and double of that amount as SL. Though entry strategy needs to be chosen very carefully.