This is not a question. I would like to share a specific moment of my trading experience which I hope will provide some useful hints for other traders as well. I have been trading stocks particularly FnO for the last 10 years. With Zerodha I am just 2 months old and I find great advantage in trading with Zerodha. Now coming to that specific moment : I generally have a tested methodology (using excel and sourcing data from bse/nse) for picking stocks for intraday trading. I usually do this procedure between 935am to 945am and initiate positions in stock futures around 945am to 950 am. Also I do the same procedure at 1130am to find out any new entrants in the model. As usual today based on my model output I went long on Sun Pharma, Reliance Capital and Reliance Comm around 950am. Around 1130am I exited Sun Pharma and Reliance Capital with a total profit of approx Rs 10k. I ran the model procedure at 1130-1140am once again and the output gave a new entrant, Reliance Power futures. I immediately went long on it. So at this point my positions were in Reliance Comm futures and Rel Power futures. I literally waited till 200 pm as it was hovering around my cost. I was pretty sure that both the stock had all the potential to go up based on a strong chart set up and the momentum it was having since morning. However at 200 pm both started falling by 0.5% to 1% and my EMOTIONS OVER-RULED MY MODEL ANALYSIS and I became a victim to something what the markets call it as fading out'. Yes the stocks fell for a brief moment, say, about 5-10 minutes during which lots of traders were forced out (faded out) including me. This is despite being trading for the last 10 years, albeit not full time. The loss on account of this process was at 20k, with my net loss for the day at approx 10k. After this process of fading out for 5-10 min, the stock pulled back and went up by another 1.5%-2% well above my cost and in the event of me not victimised byfading out’ I would have got a profit of Rs 30k for the day. A lesson to be learnt. See you in yet another post, just in case if I experience another specific moment in another format leading to a loss.
This has been closed as its not a specific question. However I do have to confess that I’ve been in similar situation couple of times. The only way to overcome this to automate as much as you can. Especially the execution part…and let the logic do the trading and not really the human emotions.
First , if u are trading for past ten yests, u should not have made certain mistakes: smart money never trades stock futures, do not depend upon charts etc, nobody can make profit in charts, smart money always remains in indexes and nothing else, i hope u will somehow listen me and do this thing for some time and will se the difference
Hi Nishant, with due respect to your trading experience, I defer with your views in this regard. I have had a decent performance trading stock futures rather than trading index futures. In fact the key component in trading stock futures is the identification of right stocks. I have had my own methodology of identifying the right stocks for intraday trading and / or positional trading on a daily basis. Once this is done, a major portion is solved. The rest is being right in the trade entry and exit, maintaining discipline and patience, controlling emotions, greed and fear.
I am not saying or doubting ur experience, i am just saying that as stock futures are more volatile , they can take ur whole profit which u esrned in a week, so better to stick with index future and thats only nifty
My dear friend, it is only during volatility a trader gets the opportunity to make money. Volatility is and should be trader’s friend.