How to overcome of greed of booking small Profits?


#1

Hello Everyone

Most of my trades are cover order with proper stop-loss suggested by few Technical Indicators. Whenever trade doesn’t go in my direction, I wait for it to hit the stop-loss and end up booking losses which is totally fine for me. But whenever trade starts going in my direction, I revise the stoploss with 1-2 rupees lower than the trading price. And then stoploss gets hit. And I end up booking small-2 profit. This way, my total loss is always higher than profit. Can someone suggest me a way to be profitable in trades.

Note : My trade success ratio is around 65%.


#2

I personally used this to make consistent profit plz refer this link. you can find your own comfort zone. Its all about making returns by the end of the day. Happy trading :slightly_smiling_face:.


#3

Successful traders manage the downside, they don’t worry about the upside.

Every Trader should manger Their Loss And Cut the loss as soon as possible and Leave the Profit Booking on Market.

There were many Chances when Market is ready to give you Rs.10-12/- Rs Profit per share but Due to fear Of Losing Money People exit early Just by Taking Rs.1-2/- per share.

People are ready to accept Rs.4-5/- per share Loss but They are not ready Take Rs.4-5/- Per share profit. Why? When Someone see Profits on screen They try to Exit as soon as possible from the trade but when They see Loss on screen They wait wait & wait for Hours(Intraday), Months, Years and this can goes for Lifetime.


#4

Ideally you should buy when the indicators and price movement suggest a buy and you should sell when the indictors and price movement suggest a sell.

When would you exit your position if you had no stoploss trailing it?


#5

@Srinivas : I never trade without stop-loss. I have learnt this lesson hard way. Most of my trades or cover order. Even for the CNC, once trade is completed I put the stop-loss. And once trade starts moving in my direction, I revise the stop-loss 1-2 rupees lower than the current market price.


#6

If this is happening it means you are trading with a leverage/borrowed money. Stop trading with a leverage and things with automatically start falling in place.


#7

What you have mentioned is a very common problem among traders. The only solution to this is self-control. Once you have decided your Target and Stop Loss level, don’t change them. Let the market do what it wants to do. Let go of the urge to manage the trade, let go of the illusion of control - we can’t control the outcome in the market.

I know this is easier said than done, but know that it can be done, and it has been done by many traders, so you can too! It may take some while to attain such discipline but it is a necessary step.


#8

Today i did Iron Condor in bank nifty expecting a huge drop in VIX after RBI meet.
It went well as expected , but i wanted to book full pfts and left it for some more time. 13k profit ended up in 13k loss :frowning:
Not an iota of feeling. Last august got 45k pft during RBI meet though.


#9

@VelmuruganSengottai : Why don’t you use trailing stop-loss ?


#10

position is hedged , booked 16/17pt loss … max loss might be 25pt loss per lot
usually i follow time based entry/exit for these weekly bank option trades


#12
  1. Reduce your position size
  2. reduce your leverage
    Reason u quickly book profit is fear of loosing

#13

@TraderVenk: Isn’t point 1 directly imply to point 2 ? If not, how they are different ?


#14

No. Small position size and high leverage is also a dangerous think. U shd be able to walk away from screen and be relaxed, i,e, your right position size. It only happens if the SL at say 1% is immaterial for you. (profit may also look immaterial so u don’t rush to exit). This is the trick …although i have read many times, it took long time to realise… u r each trade risk is not more than 5% of your funds & longer time frame.


#15

Gosh! Past performances does not guarantee future trades especially whn it is event based.

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?

Anyway, Thursday is back again! You can make profits without margins too. Time to keep all the lines ringing… :stuck_out_tongue_winking_eye:


#16

When trailing your stop loss better keep an eye on avg intraday movement of the stock and place it below that range, you would be moving your stop so close that the stock has no room to move.

Can use ATR or PSAR to trail stops or any other such strategy. Try these and see if it works. Like others have mentioned it is emotion which affects us, following a clear exit strategy should help you in this.


#17

Success in trading comes from taking small profits in the market. If a trader is new then he should focus on small profits rather then go for a big long-term profit. There should be small losses, small profits it automatically leads toward big winners. Many financial experts provide stock tips and profit-making advice to avoid silly mistakes while trading in the market.


#18

Best way is SET AND FORGET.

Once you set your trade, Get out of trade screen and do something else.

Let market work for you.


#19

how true… i just posted my experience about this


#20

I felt like my trading profit which is much sweeter than Marilyn Manroe was talking to me the other day. :heart_eyes: :heart_eyes:

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#21

i am not playing for the outcome of the event , i am playing for the drop in vix after the event which is 100% certain :wink:
outcome here was anywhere 25pt loss to 50pt gain …

i really dont think any shorters will make money on thursday , unless they are playing on next week options …
buyers rarely make money and if my memory is correct only on one expiry BN gained 600pts that too after a 300pt gapup…
STT is killing most of the opiton trades on expiry …