hi i day trade in commodities
my strategy has been working very well nowadays not cause it’s a awesome strategy but cause the market has been moving very well and any one with a decent strategy can earn some bucks but I’m having trouble sitting on profits i mean as soon as i’m in profit i start panicking and every exit strategy or target goes out the window and as soon as market starts cutting away from my profit my body just reacts and i’m out of the trade and i’m super frustrated cause i have been out of some real winner traders, leaving alot on the table plus cause of this i think “okay i’ll just get out and get inside back when it breaks the support/resistance but i end up overtrading and giving away some profits” its only been few days since i’ve started trading with real money before that i was paper trading
so can someone please suggest any technique maybe of how to be under control while trading or how not to be a complete bitch of my flight & fight instinct or maybe is this something that will go away with experience? cause i feel like shit at the end of the day even when im in decent profit thinking of what could have and would have
I’ll really appreciate your input
There is no right or wrong answer to your question.
The issue is you do not have a professional approach to trading yet.
you must know when/where to exit even before you enter the trade. This depends ENTIRELY on your strategy and testing.
Default rule is you take profits 2 times the risk and get out if the trade works out or you let it run till end of day if its a trend strategy. It all depends on you.
If you have a process to plan -> execute -> exit and follow the process with DISCIPLINE , only then you can see how the strategy will work out,
I could write tons on day trading , but there is already enough material out there.
Trading is a personal journey, be it a institutional day trader or a retail.
There are no rights or wrongs but make no mistake it will take years to know how to trade.
@trader_dude thanks I’ve just started trading so hopefully with some more experience and refining my strategy and DISCIPLINE should do the trick.
@ja_wangana if you have just started then stick to crudeoil , copper, nickel, goldm, silverm … these are liquid … the movement of NG can be tempting to trade but restrain trading in it and observe the movement… avoid trading during Crude oil and NG inventory announcement …sometimes market reacts differently to data as market has already factored in that data… first look how market reacts then act on the signals market is giving you… Before MCX opens look how commodities performed overnight in US market…
Revenge trading and inability to let go can lead to overtrading …for example you entered position and booked losses when it went against you due to fear but later reversed to go in your intended direction which can cause you to enter again at wrong price and your profit potential goes down from such entry… trade in multiple lots and book profit partially if you think market is going against you and move ur SL to entry and when it goes in your direction book profit at much higher or lower level of remaining lot…
“It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.”
― George Soros
thanks i wish i had know this yesterday lol
i have posted my trading record of yesterday natgas i did all the things you said not to do
I trade in shares only so I don’t know whether this will help you or not but thought of sharing my experience with you.
I started with intra day trading in september this year only. I would have lot of stress when I see loss even as low as Rs. 500 and I would constantly think of getting out. In fact I did exit very soon and lost some money. Same goes for profit that how I could have made more. At the end of the day I would feel terrible and take it out on my family.
Every time I entered a position, I would start panicking and think of how I would lose money and this is not for me. This went on for about 20 days or so. But after that I deliberately started training myself to not take stress and not panic. Whenever I would start panicking I would remind myself that this is not what professional traders do and they do take a loss in short term. Also, I trained myself to not overthink on loss and profit. I created a defined strategy that I will take Rs. X as profit and if the price moves further, after I have booked the profit, and I would have had made Rs. X+2, I would not think twice about it. Same goes for loss. The position is closed and I cannot do anything more.
Also, being a software developer, I created a program which would take decisions based on maths and not emotions. I have coded that strategy and many times I don’t have to be in front of the computer also. This approach has helped me a great deal. Since, I am not in front of the computer through out to see the profit or loss, I am at peace and get on with my day. If there is a loss or profit, it is not because of my emotions but maths. This helps me in staying calm.
Just train yourself. If I can do it, you can too. And soon you will know that all the worrying you did was a waste of time.
bro just stick to ur sl n desired profit booking zone, take it n b happy with it, no one in this world can mint whole of the market, thats the beauty of it
@ja_wangana my simple way in equity intraday is i decide before hand wat is the profit limit and max stop loss. I enter these orders and log out. In cases when my stock is looking weaker sometimes in profit zone i make trailing stop loss. That’s it
@Gaurav_Chandra thanks of sharing that it definitely helps to know that watching charts all day in not healthy and @ksksat unfortunatly commodities doesn’t have trailing stop loss that’s why i’ve to observe the trades when im in them and while observing them the doubt creeps on with every candle going against me actually i’ve written a article in which i explain my step by step my decision making
http://www.turtleonsteroids.ml/blog/
I’ve gone thru the same phase. Develop patience…it will be worthwhile if you mandate yourself to write 4 points as to why you should take that trade. It applies to day trading as well. Good luck.
This is so common thing in the early trading life. Y r u fretting over it? With experience it will be overcome.
Many people have your problem. You need to be able to abstract from trade. It helps me to place orders in small amounts. If I lose, then I’m not very upset, as I did it on purpose.
When I lost several times, I am already switching to large amounts.
Clear frm your words tht u need to change ur strategy
Yes, very ironic and to the point, but you really need to get some grasp of that trading experience, unfortunatelly you are asking for shortcuts here anyway. Do what you really need to and that’s basically it no matter how you put it. Trade more and it will come.