Is a strategy really necessary to trade?


#1

can’t we simply buy at whatever price and place stop and 2 times of stop as target? won’t we be successful this way? it is believed that sound risk managemnt is key to success. so should we really have a stratgy? your thoughts?


#2

You can get answer to ur question urself by answering another question “Is it really important to board a bus at the designated bus stops only?” “Y can’t I board a running bus wearing helmet, pad etc.,?”

Choice is Yours!


#3

you cannot buy technically at whatever price because the stock has cycles of downtrend and uptrend and if you buy at wrong price then the stock can fall and it may not come at your buy price for 2-3 years, yes , it can happen, and you will have locked money in your account for that stock for the trade to be profitable, so buy sensibly and then look for exit and also look for the cycles of the stock at least.
happy trade time to you


#4

If you want to go to Delhi and board whatever bus available in Station and expect it to reach Delhi.

You think stock always goes up only ?


#5

So how to know where my designated bus stop is?


#6

Bus stop is Zerodha.

But which bus (stocks) you chose and how and why?

Every Trader is Bus Driver. no Passengers.


#7

hmm, gud question! Insaan ke rasthe pe bus stop ke sign board tho rehtha hein, lekin trading ke rasthe pe koi sign board nahi rehta! Sign boards banani padthi hein!


#8

sign board toh door ki baat hai, kabhi kabhi toh aisa lagta hai ki bus naam ki bhi koi cheez hoti hai kya


#9

bhai, u r ON the right track! But, do not further try to find the answer for that, otherwise u will attain NIRVANA!!! :stuck_out_tongue_winking_eye: :grin:

Trading ke rasthe mein Gadhon keliye jaga hothi hein, koi aur logon keliye nahi. In that, ur goal shud be to become “INTELLIGENT Gadha”. Aise banne keliye #YAKEEN ke saath thume hona padega #TUBELIGHT.

Trading ke rasthe pe do not question anything, Either Assume or ReAssume!


#10

What you are talking off, that is buying at whatever price and place stop and 2 times of stop as target is a strategy in itself. Now you have to test whether it works or not. This strategy cannot be back tested, because you cannot decide in hindsight at which juncture you would have bought. So try it out for a month and see. If you ask the experienced traders who are also responding here to your question, it would be a clear no no. Without a back tested strategy, you are bound to loose money.


#11

can u share a strategy in which u have always lost money? may sound weird, but pls share if not in public atleast as PM. thanks


#12


#13

i have read at some place that risk management is supreme… that’s why i came up with this idea of simply buying at market with risk 1 and reward 2


#14

How can you simply buy at market and assume that you have a RR of1:2…reward risk ratio without a favourable winning ratio doesn’t mean anything


#15

yes, u r correct… its only an assumtion which i am testing. i don’t know what the result is going to be.


#16

This assumption is not bad and its worth a test. As per probability there are only two options for a stock, either you buy or sell and the result will be a profit or loss. If you do random trading for a long period of time, according to the probability you will always have 50% probability to either win or loose, when you enter a trade.

I would also recommend to read the book - “Fooled by randomness”. It is very much in line with what you are saying.


#17

You will actually make profit. This has been tested.

Check here https://www.youtube.com/watch?v=xnVVRGtVMLU