every day i start trading i loose so much that i am not able to recover the whole day… in fact i end up loosing more…i am a beginner at trading … please suggest how to cut my losses … actually i’m not able to make out the trend during the beginning and end up entering the market in the opposite direction … so experts, analysts ,please suggest me how to start TRADING …
thankyou
To begin with, please stop trading. If you are unable to figure out how and what, then you are not good to start and burn your capital.
Kindly dont get me wrong.
Also, what in the world compels you to punch in the trade in the first hour ? , its not like you are in a 100 meter dash.
Take it easy, spend sometime educating yourself, there is a lot of free content out there which will point you to right direction. Do all that, read up and answer to yourself if you want to be involved in the markets.
If the answer is still a yes, then start investing…make some money, prove to yourself that there is money to be made by being patient. Then after few years…try trading.
Welcome to the club!
Even I was doing the same thing and ended up in hefty losses, when I started trading.
As a beginner most of them, do this and this nothing to worry, sort of.
Even Nithin sir advice in some other blog is to wait and watch for some time and then enter if you feel comfortable.
During the initial few minutes volumes will start pouring in and in later part of the morning say from 10:30 onwards activity reduces.
There will a second or so delay in the response of the stock when compared to NIFTY, capitalize this opportunity during NIFTY Rises and Falls.
Do not blindly believe in some pattern of previous historical data, That is more useful only when you are doing delivery trade, not Intraday.
If you want to learn, keep the investment very small say 5000 etc, and try to understand how you are doing. Try different strategies but with 5000 only, Once you feel you are doing good, check with higher investments.
If you get a loss of 100 rupees, investing 5000 rupees, it is same as losing 1000 rupees when you invest 50000 rupees, keep that in mind.
since u r a beginner and also losing money(which is normal), ensure that u control ur position size. successful traders risk 1-2% of their capital, i suggest u risk even lower, like 0.25% of ur capital. something useful can always be learnt from each and every trade, so keep looking. read books, ask questions, i am sure u’ll do well in a very short span of time.
thank you sir
i have been reading a lot since a couple of months,
ur advice on investment is really good i didn’t think of it ,
and i guess i will learn the art of trading through experience only, which is going to take some time…
so ur point is that to become a trader, first we must become investors? never heard of such a thing before, could u elaborate pls?
thanku so much for these wonderful suggestions …
well now after 5 months into trading i don’t jump into trades the way i used to … my style has changed a lot …
the problem mentioned in this question was because i was trading 1 min charts then but now i trade 5 min charts based on price action as i have been studying about that a lot since a couple of months…
your suggestions r good and will definitely help others who r still making the mistake of jumping earlier…
thank
Happy to hear that you have learnt and changed your style!
Good luck!
My case is reverse as i get in market in few minutes i make profit but b’coz of greed i start trading more n more hoping for hefty profit and end up losing more then the profit which i earned
i suggest u one thing read price action books by AL BROOKS and see the change with which you see charts and soon the change in your accounts as well…
Good Luck!
Aftab, Greed and Fear are major factors which drive the market. Try to keep some limit for both profit and loss. If you make some profit on a share, square it off and close that scrip from the computer screen example google finance window. Do not open it again. Try to choose some other scrip and trade in that.
Astroguru how do u use a google finance window … Can u guide me please … Is it real time data or delayed…
Google finance is real time data. The charting there is good and quick updating, Just log on to www.google.com/finance and type the scrip name and see the chart. You can get news flags also. There is a link Settings and Technicals, In technicals add RSI for 10 interval etc. Use curve method to draw the graph, candle sticks or OHLC might be confusing for beginners.
Also there is portfolio you can add any number of scrips and track it live.