Losses, Losses, Losses.
That's all I have been encountering and the two reasons for that has been:-
1. Not sticking to a method.
2. Not sticking to a SL.
Every time money was put in the account, it went down faster than it went up. Tried day trading, tried swing but got the same result. The balance went up for few trades and then it started going down and the loop of repeating similar mistakes continued.
The trades started as a day trade and owing to no adherence to my SL, it became a swing trade and then the stock went so much down that it became an investment hence the balance got stuck and I kept on losing time to make any improvement.
Excused myself saying, "good that this has kept the funds stuck as that will prevent me from day trading".
However, deep inside I prayed, hoped, begged that the price goes up so that I can start making money. DID NOT HAPPEN.
I wanted to play just the Pullbacks (PB) but in live markets, entered before the PB happened or at a lower level thinking it will be a better bargain while not considering that the price has started reversing.
Then the averaging of the loser happened at regular intervals. Sometimes it paid off giving a false hope that yea this worked and when it did not, it took away all the profits. tsk. tsk.'
Price action is what I wanted to trade as have shunned indicators for a long time however the understanding was not being implemented.
Read Wyckoff, Stan Weinstein, a bit or Mark Minerveni, saw Linda Raschke videos and the list is long. Nothing worked because of the fact that I did not persist with anything for a long time. I jumped and hopped from one method to another, from one trader to another, from one author to another.
Gathered knowledge about price action, market profile, day trading, swing trading however the results were still poor.
On May 26th '20, while visiting one of the many Telegram channels I was part of, saw a message of a gentleman mentioning how he has been trading price action for the last 2 years and has been successful. He put up a link to his Youtube channel with a "Note: This is not at all promotional.. sharing here which is working for me".
As usual I got attracted to it and visited his channel, and boy was I surprised. He had posted the charts of his trades and explained the logic of why he took those trades. All were breakout trades and even though I avoided taking breakout trades as against PB trades I watched all of his previous videos.
Was hooked.
Send him a DM on Telegram and he responded. I kept of asking him queries and he kept on answering. Did backtest on stocks and it seemed great.
Started paper trading on live charts from Jun 1st '20, with a notional capital of 15k. Took two trades and made a gain of 4.9% before brokerage and govt. expenses.
Was so happy that it worked. Shot him many queries and he gracefully replied. He guided me when I made mistakes. He showed which trades he is taking live. He showed me the path. He became my mentor in a very subtle way. I kept bothering him and he kept responding.
From 1st Jun to 5th Jun, took 10 trades and 9 out of those ended in profits. Really.
One which ended in loss was a wrong selection as the support was very near and I shorted it. Yes, I started shoring which was a no-no for me.
A gain of 29% on those 10 trades is awesome.
Will post the charts of the trades I took and why.
This seems to be the beginning of new journey. How efficiently I handle it will define how I fare in this.
When I gain enough confidence, and that I will because I have understood the patterns and have been able to identify them in real-time, I will start trading with just 5k in equity only.
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