I am getting too confident?

Before I begin a small introduction.

I trade with around 75000.
I earned around around 11000.
That’s around freking 14 percent.

Planning to increase my capital to around 3 lakhs and so on.
Planning big things in life.
Am I getting over confident?

BTW I am 20 years old.

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That’s a big mistake. If you are already making 15 % or X percentage. Keep going without adding more money. even if you have to, Add small portions. You haven’t seen worst markets days. Wait for some time. I advice 100% to hold on for a while.

Noted. Thanks

You have decades of life. Don’t rush as if you are dying tomorrow neither market ENDS tomorrow.

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:sweat_smile: :sweat_smile: Done


My suggestion will always be to scale progressively. First, with your current capital, try to get 100% ROI. Once you do that you will have even better confidence.

Sure. Thanks

Good going:

Few pointers on Position sizing

  1. 2 quarters consistent profit is a good sign of Long term trader. So at least trade that much before increasing risk.
  2. Increase capital after draw drown phase when recovery phase come and that too increase quantity so that increase Risk is not more than your already earned profit per day/week .

you did not mention how old are you in market. I guess you are a beginner.

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Congrats @dtyxg

Always put amt in your trading acct which u can afford to lose. :slight_smile: and if you are a beginner, then, its advisable to scale as u learn and grow.

How you manage your drawdowns is going to determine your journey.

Wishing u all the success. Lets discuss more on trading and stuff here at tradingqna

what is a drawdown?

A drawdown refers to how much an investment or trading account is down from the peak before it recovers back to the peak.

Let’s say your trading account value was 10 Lac. If it goes to 7 Lacs , then we can say that the account had a drawdown of 30% ( 3 lacs)

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Similar to many, I would also ask you to increase your capital through the way of earning profits initially and not by infusing much. Adding more will also mean you would lose more. Capital and returns are pretty much decent. Add and increase in bits, learn and grow. Nice realized gain though.

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You can increase it to any amount if ::

  1. You have risk management in place
  2. Stay calm during drawdowns
  3. Have a system in place which makes more profit than loss. Answer yourself how you made this 11K proft. How did you select the stock, How did you select the entry point. Why and when did you book profit.

Don’t run or you’ll ruin it all.
You might have a good trading strategy but they are also bound to fail someday. Before you increase your risk appetite, build a good risk management strategy that will take care of your account in all situations.

Depends on your overall capital (including the ones outside of F&O). If you have 3 consecutive max-loss trades; will it reduce your overall capital by 50% ?

I think you should move ahead step by step. Don’t skip steps as you may miss important lessons that may come into play later.

from this screenshot I counted 12 trades with just 2 losses. 14% return is amazing.

There are two reasons why you are asking this

  1. You have not backtested & forwardtested properly. This is what gives you confidence in taking trades.
  2. I guess You still have issues taking risk and you know in your head you might screw up with money management .

I guess you are trading well whatever with whatever trading system you are using. You got best of how market trended but I think you have issues with handling money management and taking risk and fear of losing it all of.

Take 2% risk per trade and keep drawdown under 10%. If you lose 20% take all your money off the table, 50% loss is the red line. Follow this simple rule.

This market is highly inconsistent you can’t always predict in future you would make that same 14% back it could be 4% or even 2 % or could be a crazy 14%.

Frankly age has got nothing to do with. Some of my neighbor uncles who were trading made 2 cr a week and lost 1 cr overnight. But hey if you are trading lower TF’s and find yourself spending too much time trading, have a break, chill out and manage your time. Frankly you should congratulate yourself. You made quite amount of progress.

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When you ask others about your plans, you are evidently doubtful of what you are doing.

That’s not experience talking but adrenaline.

Stick with the same capital for an year or two and you ll have a story to tell. You say you are 20, an year added is 21. Why the hurry?

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I don’t think anyone can tell you the best strategy. It’s only you who has to decide which way to go.
It’s good that you feel confident about increasing your risk. But make sure that your risk management strategy is already in place.

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