I started trading one year back and started with option buying.
And lost 6 lakhs in 9 months.
Issues with me was no proper knowledge of stocks, option , strike price or even basic knowledge
Then after gap of few days I started option selling and was going very good made almost 80k in span of 40 days. But never knew or did not give attention to fact that loss in selling ce or pe is unlimited and profit is limited so some spike or drop can affect your trade badly.i used to make 3-7k very easily almost every day but due to heavy averaging, no stoploss, not knowing point where to stop and using all margin and main thing was for profit of 1-5k lost 4 lakhs again in 15 days.
Not sure what to do now…
Trading without knowledge is like gambling
Zerodha varsity provides all the required knowledge for free of cost
don’t focus only on profit, focus on how to manage your risk
Protecting your capital should be your first priority
don’t do averaging just accept your losses (this is just the game of probabilities) try other trade, also it is not necessary to trade every day, not taking a position is also a position.
Thanks brother I am already doing job and in lost 2 months 70 percent of my trades are positive but profit is upto 15k only but when in loss i do averaging n loss keep on increasing no proper risk reward cause big loss for 5k I am loosing big amount and today first time loss went to 2.7 lakhs
Take your losses as your fee that you paid to the market .
If you are selling options and benefiting out of time decay , now have a fixed SL.
Today is an exceptional day , both iv and delta hit the sellers .
Many option sellers lost today and nothing can be done .
Infact past 3/4 weeks are not good for the sellers .
Go through ur successful trades and Bad trades. Analyse what u made mistake at that point of time and write it all in a paper because lost money is lost but at least u should not do that mistake again.
Later on go through the Varsity of Zerodha and gain sufficient knowledge in Options and Option Strategies.
After acquiring sufficient knowledge do paper trading for at least 2 months if everything goes well then come to Market again and do with small Quantity to know how ur Strategies working.
Market is a ocean dude Please play with it properly if not u may end up with burning hands.
Sure friend thnx.will do it.
Need to work very hard on risk reward also it is not necessary to trade everyday and I need to avoid trading every day.
I used to make 3-6 k easily but greed , heavy Trading n making more mistake in urge to get profit in every day
Thanks friend absolutely right just main reason of my losses are only averaging and not maintenaning stoploss. If I had cut losses quickly I would have recovered my all losses or say have made good amount in lost 2 months. But due to bad risk mngt instead of having 85 percent profitable trade I am in big loss
If you aren’t a full time trader, I would suggest you follow few telegram channels. Take some paid advisory. I know many people advise against this but if you are making money nothing matters.
I started a couple of months back and made a loss of nearly 3 lakhs and recovered 80-90k. but most of it was by luck and few googled methods. Started following telegram only for trading purposes and over a period of 2 months filtered out unnecessary channels. I now follow two of them for trading calls even though I paid for three. Stay away from those who only market their profits. Made this mistake while I paid for one channel and stopped following their trades.
Been making around 40k following these channels, and also learning the ways they trade, analyzing myself so that I can trade on my own sooner.
Absolutely right that’s major thing I am not following other is averaging.
And main reason is greed to get millionair in day.
I need to understand that for most of successful traders 10+ percentage in months and I was making that amount easily and could do that if I follow strict stoploss and avoid averaging. Thnx brother
But after 3 years now, I’m seeing myself with some better knowledge than yesterday. Now, by considering years of failures now, started seeing some results positively.
@Vikii If you still want to learn. This subject and place will take longer time than expected. I decided to die into this, after 2 years, Seriously depressing, disappointment much more lower shit. Today, I can breath well. Days are better than yesterday.
Take some steps back. First off you need a break from trading. After few days of break come back with proper knowldge best is learn from some mentor… And then start with small capital and prove to yourself that you can earn money over a period of time then only scale in… Other wise thinking that its a get rich quick scheme wont work in your favour ever. In market it seems like money is flying and u can get it easily but thats not the case! Without proper knowledge and discipline you wont make it ever! And
Yes focus on r:r , if you have 1:2 r:r even 50 percent accuracy will give you profit at the end. I work on that, this month till now im at 48percent accuracy still i have 10R plusin my account. So always work with stoploss and fixed risk on each trade. This is the key.
Thanks friend. It’s only greed and wanting to see every trade in positive causing issue.
If I strictly decide my max limit for day and avoid using extra margin then I guess I can make atleast some money from trading.yes taking losses quickly is major thing and only thing bcoz of which I am in loss today.
Thx for your kind words.will work on how to make sure one bad trade will not affect much…or it should not be more than 2 percent of capital or trade
I am worst in risk to reward ratio. Inspite of 70%+ trades I m big loss almosy lost years income.If I stop any trade at max 5k or work on loosing trade and closing it quickly or not to average I m sure I will do good. need to work on closing loosing trade quickly n not to average any loosing trade plus proper entry point for sell n avoiding trading if it does not for all criteria.
