You may think that why are you reading something about Trading on Equity Research Blog? It’s because trading is a part of my journey in the market. I will share my learnings from trading the markets.
As an every new guy in the market, I was also overly optimistic. I was also dreaming of making income through Trading and investing those proceeds into the market for longterm. I still have that dream!
To fulfil such dream, I had to test my feet in trading.
It was April 2013, One of my friend had his Axis Direct account ready with him. I sourced some funds from 3 other friends and sourced one call from another friend. It was UCO Bank. The stock was trading at 65. It was a JACKPOT Call! The stock was to shoot up to 80. The stock didn’t went there and I end us loosing close to Rs. 2000.
This was enough to make me invest for longterm. I was’t trading for a year and a half because of this incident. Then comes December 2014.
It was December 2014, and I started trading through my fathers ICICI Direct Account. This time, learning from my past mistake, I wasn’t working on others call. I developed my own basic system for Nifty Futures Trading.
I lost around Rs. 5462 there. I paid roughly Rs. 2600 in brokerages. So I had to move to a cheaper option Zerodha. 🙂
I have been trying out various trading methods to learn few things. In this journey, I have tried Nifty Futures Positional Trading, Nifty Futures Intraday, Equity Intraday, Event Based Trading and Jobbing(accidentally).
I may have made 90-95 trades in total. Made money in some case and lost in many.
Total loss in Trading stands at Rs. 12,562.
I learnt certain things & I want to document before I forgot or repeat those mistakes again. Public declaration holds you accountable for the things you said & Psychologically It forces you to walk the talk. So here it is.
Learnings from Trading the Markets
- Know Entry, Exit, SL, Qty & Script before you place a Trade.
- Have a System, Backtested, Favoured Ratios and Drawdowns
- Don’t do Price Action Trading
- Don’t do things in Hurry
- Mistakes will be made. You will Buy instead of Sell! Happened!
- Always Place Limit Order
- Document Your Trade, Maintain a Journal
- Stick to the System & Stay Disciplined
- Follow Money Management Rules
- Not more than 3% of Trading Capital on a Trade
- Loss should be comfortable
- Always Take Loss if SL hits
- Don’t be oversmart, Market will screw you!
- Avoid Calls & Tips
- Only Trade if you have Proper Time to do it
- Specially Intraday, Avoid Multitasking
- Try to be Less Active in the market
- If doing Intraday, 3 trades a day is more than enough
- Stop Trading if Mentally not stable
- You will do blunders, I did! Made 18 trades in Nifty Fut in a day!
- Fix your Daily Loss Limit
- Stop trading if Loss hits.
These are the things I want to read before I start trading anyday in future if I do. My own Manifesto. My own Learnings from Trading the Markets.
I will remember this money lost. I already lost an opportunity to learn this thing vicariously but I will not be an ass-hole who can’t learn through his own experience as well.
Things will unfold soon. I am determined to make money in Trading 😉