Some useful Psychological Tips for beginner Daytraders part-3

  1. When trade starts going against us, our first duty is to book calculated loss & not thinking
    about saving that trade by averaging down or looking at charts with different angles with
    the hope it may reverse. It may reverse or not but when our stoploss gets triggered, we
    must book it.

  2. Over a period of time traders tend to forget rules that they made in their well defined
    trade plan which must not happen. Rules are made based on all scenarios which don’t
    occur always. For example if your trade plan says 1 trade per day, why do you even think
    of second trade ? You have decided to take only one trade for some reasons for sure. If
    you say use Nifty futures chart & not nifty spot chart, it’s also for some reason.

  3. Once chart is completely formed after market is closed, it becomes so easy to find trade
    opportunities on that chart. You always find it so easy to make profit from it.But when
    you do real trading on live market, charts are being formed & not complete. That time
    you really don’t know what could happen next.

  4. Why chart timeframe is so important for you…? Different chart timeframes give different
    results on different days. What works today may not work tomorrow. If you keep looking
    for perfect chart timeframe, you would never trade because you would hesitate a lot.
    Hence select only one timeframe & concentrate on it. Feel comfortable with it & never do
    comparisons with anyother timeframe. Remember that what works for him, may not
    work for you. Find your own way. After all Every chart timeframe, be it 1 min, 2 min, 3
    min, 5 min, 10 min, 15 min, indicate same high/low & same Nifty moves. Just there is
    difference in number of candles.

  5. Instead of searching for perfect trade plan, try to improve your trade basics ( entry-exit
    execution, order window, chart planning, trailing position, setting proper stoploss etc)
    with average trade plan. That’s where you will make money. Deciding on a system is less
    important than gaining enough skills so that you are able to make trades without second
    guessing or doubting the decision.

  6. I can understand it really feels bad when your trading is over in the morning & as per
    your discipline you don’t have to take another trade even when you see so much good
    opportunities over chart. Again I say if I set a discipline not trade in the afternoon, it’s for
    a reason. I have seen so many days where for recovering my early losses, I have
    overtraded, not eating on time, stressed with fear, blaming myself ‘what the hell I am
    doing…?’ & I would never repeat this once I get out of this. Trading is not a whole day
    work where you come & take 4-5 trades, attending full hours. It may suit to scalpers but
    you are not a scalper. In fact consider that trading for you is your morning business.
    Once you get free out of it, you do other activities. Anything that might be related to
    trading indirectly or completely different. But it should not be taking live trades again
    even when your morning business is already over.

  7. Once you become Mechanical Trader, Trading becomes live performance. You come
    everyday, open terminal when market is open, take a trade as per your set up, close your
    position either with profit or loss, close your terminal, that’s it. & you repeat it over &
    over again without comparing, without doing post analysis on what should’ve happened,
    not reading charts for tomorrow, because all these stuffs are of no use to Mechanical
    trader. (Rule based Trader).

  8. Trading is about you, not the system. A trading strategy is not as important as the
    mindset you apply in it. You are what makes or breaks your trading. You need to be
    focused. This means picking a time of the day to trade where you can concentrate 100%.
    No distractions from family or day to day life.

  9. If you trade outside of your trading plan then it will more than likely be the wrong trade,
    & yes you may get some big wins but consistently over time you will not be trading & you
    will not be set free.

  10. Rules cannot be broken as broken rules will lead to losses, because you now know that
    these rules are in place to keep you safe from wild market moves, & more importantly
    from yourself. The rules you adopt will be the guides to make consistent results. But
    you need to be committed to not breaking them or trading outside of your trading plan.

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Thanks for sharing. May I ask what you imply here by " you will not be set free" ?

Glad you liked it…!!
Being a pro trader our ultimate aim should be to acquire a well defined Trade plan to make some serious money & set ourselves free from endless researches, analysis, comparisons between which one is better, repeating same trading mistakes over & over again, making false promises to not to repeat them ever. :slightly_smiling_face:
You know I spent years being cought into vicious circle of analysis paralysis, quest for perfection kind of things. But nothing worked. Eventually I realised that I must set myself free from such discretions & trade with rule based system.
Hope I could explain…

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You explained it really well. Please do Keep posting, you write nicely.

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Haha thanks man…I actually made some notes for myself based on what I did over these years. I thought to share them with ‘good hope’ that some traders might find them useful. I am glad that you like them. part-4 is my last one. :slightly_smiling_face:

Nice. Could you give us a background. Your trading journey, you earn your keep purely from trading or do you have a job alongside?

7 plus years I am in this trading world, started as Investor ( :stuck_out_tongue_winking_eye:), Found out that I lack patience. So converted myself into trader. I lost initially as almost everyone does right…?
I now prefer system trading over Discretionary trading. I get less ( as low as 2000 per lot per month) but usually trade with double digit lots. I attend morning sessions only ( mainly till 12 pm) & I am part time accountant as well.
In our initial years we need to lower our standard of living & save as much as we can to get a decent account size.
If you can do part time job, its good or else you need someone from home ( like father, spouse) who can help you till time you start making money from trading.

Cheers…

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For trading i personally feel you should have your own money …As i dont see anyone helping you financially in making your trading as a career

I agree. Indian society considers trading as gambling. Who will give you money to gamble…? I told my father that trading is a professional gambling which is approved by the Government & we pay huge taxes :stuck_out_tongue_winking_eye: for doing trading. I showed him contract notes & my live performances then he agreed to fund me on certain conditions. Trading with own money is possible if you have some good job where you worked for some years & made some good savings.
Its a hard fact that trading without decent account size doesn’t yield enough returns to make a living.

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Well i feel its sceince and a skill …Gambling is like where you dont have any control …Betting in any sports or playing cards is completely compeltely diff game comparing with stock market trade

haha…that’s why I said it’s professional gambling. I don’t think I have any control over market movements. Movements are uncertain. Same pattern gives you profit one day and next day you see losses. I know I can control my risk, my executions & my money management per trade. That’s what in my hand. Well sometimes it starts working when you begin to accept reality. There is nothing wrong considering trading as professional gambling and traders as skilled professional gamblers… :slightly_smiling_face:

So if you consider it professional gambling then do like your hobby not like a carrer brother

Making money from trading is a tough job infact very tough job ,
Lot of patience , time,hard work ,stress ,dedication required to make money in long term …

Does gambling require this kind of dedication or hard work ?

how long you took to be a profitable
trader?

Well I don’t know if trading is my hobby or my career. I only know that I love doing it & ultimately my aim is to make money & grow my account size. :slightly_smiling_face:

Right hitesh bhai…It’s very tough job.
But there is a difference between ‘just a Gambling’ & ‘Professional Gambling’. like there is a difference between ‘just a trading & professional trading’. Be it professional Gambler or trader both have to go through lot of hard work, patience, dedication…like
If you put such efforts on becoming IPS officer, there is some certainty that you would clear exams. But tell me is there any guarantee that you study hard about markets & become very successful trader…? ( I am not considering other aspects like technical analyst, portfolio manager or other fields. Just a day trading here…)
What is gambling…? for me it’s like you bet/risk something on future event whose outcome is unknown/uncertain.
You bet on horse riding, outcome is unknown.
You bet on cricket match, outcome is unknown.
You bet on coin flip, outcome is unknown.
You place an order in trading, are you sure about outcome…?
Trading itself is a game of probabilities. We bet on chances. If it works we book profit otherwise we have to book loss. Even when I study hard, I can’t make market move in my favor because market moves are uncertain…right…?
So it’s like I bet ( or trade) on uncertain market moves. But here is a twist. I study instrument, risk management, money management, some technical analysis so that I create a trade plan with positive expectancy & make odds in my favor in the long run.

I don’t think we should hate a word gambling. Not just trading, but there is a gambling everywhere. Biggest gambling that I feel arround is ‘marriage’. Do we know the person whom we have to spend rest of our life with…? It’s a gambling. If it works we see a beautiful couple together, if it doesn’t just ask a divorced person. He/she would say I gambled my life, time, money on this marriage and lost everything.
Even If I am a skilled bike rider, I have a control only on my bike not on other’s bike. What if I go for riding and some rider crashes hard with me…? It’s like I gambled my life by riding on roads which is full of uncertain people…

Instead of avoiding this word gambling, I want to ride with it… :wink:

You are right … Risk is everywhere … But no RISK NO REWARD …

as a beginner trader what should be the setup for doing day trade ?
i mean what system 1 shuld sit with … i am not asking for strategy …

hope you got my question

You won’t believe, I opened Trading Qna to ask traders to shares Psychological tips and booom and I see this first post.

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:thinking: I guess as many years as a student needs to clear his MBBS exams. LOL
well it’s like even after clearing my MBBS exam, I am still going through article ship for some more years :slightly_smiling_face:

For me Morning opening range breakouts work…

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