My Trading dairy 01-02-2019 to 28-02-2019


#1

I did many mistakes in my intial days of trading and lost some amount due to many of my mistakes mainly because of the habit of exiting the trades too early when in profit.One good thing i had done is i lost only what i have and did not enter in to any debts.

I took a break of around six months and actually wanted to stop permanently but i don’t know why my heart keeps on telling me that i should be trading and should not exit the market like a looser.

I reviewed my mistakes and started fresh with fresh rules and checklist and spending more time to analyse the script while entering. I only paper traded and is profitable for the last three months.

I was actually interested in F&O segment and was aiming to arrange a capital of 10L before starting actual trading. In the mean while i thought i will start with initial capital of 10k and will do trading in cash market. My risk mangement strategy is max loss in a single trade shall not exceed 2 percent of my capitaland RRR should be above 1.5 to enter a trade. The thing is that i wont be able to do shorting in cash market even if my system generates a sell signal but aleast i can enter all longs to get the actual emotions which i will miss in paper trading.

I will be posting my trades here with screenshot just for my reference and learning purpose.

Today i enetered Heromotocorp at 2812. My target is 2925/2990 with SL at 2710.RRR is around 1.7.

Any suggestions are welcome and u may also post your own ideas/trades.

Thanks in advance.

P.S. : My system of trading is positional only and not intraday.


#2

How have you selected your target / SL?


#3

Based on support and resitance and also moving averages.


#4

You should exit the trade you have entered on big long candle day at highs rrr is not favorable for this trade support is around 2620 and resistance around 2870-80.


#5

Thanks for the advise.

On 02.02.19,there was heavy long buildup in heromotocorp with strong volumes and also the exemption of income tax up to 5 lakh invome will benifit the two wheeler industry. The stock should touch 2900-2915 in the next 7-10 sessions if there is no negative surprise from the market.

Once the stock moves 1% in my favour, i will trail the SL to cost price so that the trade should not be a loser once it enters in to profit. If the stock hits my SL with out moving in my direction i will take loss which is 2% of my capital and will move on to next trade.

Thanks in advance.


#6

Heromotocorp

Open 2800
High 2844.95
Low 2718.20
Close 2780.15

Price went up to 2844 which is 1% gain from cost price. Still holding the trade for the the target or SL to hit!


#7

Heromotocorp now trading at 2850 which is almost 1.5 % from my cost price of 2812. Revised the SL to 2826 to lock in at least a profit of 0.5%.


#8

Entered UPL at 799 for target of 820-824 with SL at 784. RRR is around 1.6.

Capital available: 10000-2812= 7188

Max loss allowed: 0.02*7188= 143/-

Bought 10 shares: Max loss = (799-784) * 10 = 150 /-


#9

Thanks for sharing :slight_smile: All the best in your endeavor.


#10

Heromotocorp now at 2885. SL revised to 2855 to lock profit of 1.5%.


#11

is it possible to trail stoploss in the system? Or do you have to do it manually by throwing a sell order with trigger price?


#12

u cannot put trailing SL for holdings in your d-mat account . You r allowed to put either limit order for target or SL order. SL is to be revised manually.

In case of futures position u can place both limit order and SL order at a time but trailing part i am not sure for positions held overnight.

Can some one please clarify. is it possible to put trailing SL order for futures position held overnight

@Nitin @siva can u clarify please.


#13

Not possible for any segment.


#14

Thanks for the early reply.


#15

Trailing SL hit in heromotocorp at 2855. Exited the position with 1.5% profit.


#16

UPL now trading at 807.5. Should i trail SL to 803 to lock 0.5% profit and also to make sure that trade once becomes profitable will not result in loss.

In case of positional trading, shall we trail the SL as above to lock some profit or we will be loosing big profits due to the tight SL. Can we trail the SL 1% above our original SL to reduce the risk?

If a position moves 1% in our favor shall we trail the SL above our cost price or shall we wait for the target with our original SL.

I need suggestions from fellow traders please. @Stark_Tony @Double_hammer @newbietrader @ManishAstral @Lets_Invest @Newbie420 @VelmuruganSengottai @Neha_Raghuraman and others . Please post your views.


#17

Hi @REVANTH,

This market is very fragmented and hence can not be relied upon. On the one hand, you have NIFTY breaking above 11,000 and on the other hand, you have mid-caps in the bear-market territory. Almost feels like the market is being managed by a handful of stocks. Therefore, don’t carry trades that you are not comfortable with.

Also, keeping in mind the volatility that would be caused by RBI policy meeting tomorrow, I suggest you lock in whatever profits you may have.

This is not a a view on UPL but that on the overall market. Hope it makes sense.

-Neha (vrdnation.com)


#18

Thanks for the reply.


#19

Better trail it to below 800 to avoid getting faked out. You seem to be swinging this trade so yes you could trail stop below 1% but also know when to get out and avoid seeing your profits getting totally eroded.


#20

Thanks for your reply. I will revise the SL by 1% above my original SL to stay in trade and to avoid getting faked out due to intraday volatility.

The same happened with heromotocorp today. My trailing SL has been hit at 2855 and price again went back to 2880.

Learning from above case today is we should not keep too tight SL. SL shall be flexible to avoid intraday volatility.