Hurrah!!
Today is the first day when I did my first trading independently.
A professional trader plans his trade before market opens. I did that yesterday.
A professional trader trades based on confirmation. Based on market sentiment I decided to place sell order for all counters.
I expected a gap up movement but market opened with a high bearish tone. In this scenario, I waited for 15 minutes to understand the market. I changed my entry levels based on behavior of stocks this morning.
For a trader execution of the trade in the most important not the result. I placed the trade and check the result now i.e post 6 PM.
My sell order of 500 quantity of Reliance capital executed @411 which was the low of first 15 minutes. Trade closed at 3:20 and incurred total loss of Rs. 515. Total loss includes trade loss, brokerage, taxes and all other government charges.
No other trades triggered today.
Why my trade went wrong?
Script had gap down so I could not place the trade @413 as planned.
Is this the real reason?
Should I do this analysis at all?
Can I prevent this loss?
Can I force market to follow my desire?
As a trader I have to remember that I do all analysis based on data point which are nothing but human emotions frozen in past. I can follow a high probability trade set up.
Actual reason for my loss
There were traders who aggressively placed sell orders on Reliance capital in morning and after some time another group of traders’ put counter buy orders in same counter which lead to pull back. At the end of the day, bears overpowered the bulls with a small amount. I have no control on this process.
I am a retail trader I can execute the trade and manage the maximum loss amount. I can put the trade as per my plan and rational. I expected price will go down farther from first 15 minute low and market did not behave as per my expectation. That’s all.
I am happy I able to close the day with a loss of Rs. 515 for an investment of around Rs. 20k.
Will publish my tomorrow’s trade plan in the night.
Initial capital: 200000
Current value: 199485
Tomorrow will be a new day. New hope.
Let’s see how market rewards me tomorrow
No comments:
Post a Comment