MY STYLE - BLOG
Continued correction in the markets even as the mainstream Nifty index losses further ground in a correction thats triggered by increasing attention to the US markets. The LiveScreen trading that we have been doing for four months has brought some key messages :
- Trade consistently - even if its a broken record! Thats the only way to make profits.
- Assess and accept trade drawdowns. These are part of the game. Sometimes the markets are smarter than your trading systems. Give it the long rope that it needs to get the winning trades.
- Your exit strategy can and should contain an exit that crosses your monthly target; at least conservative traders must follow this.
- And finally, so long as your trading system gives more profits in winning trades than the losses that it makes in stop lossed trades, you can accept trade success ratios of lesser than 50%.
Its a peaceful tension free time now. Automated systems generating trading signals that are tradable and consistent profits. Thats the game!
On a side note, today was also an expiry day for derivatives. So we had something like 28 symbols trading combinations, half of them being simply contracts for the next month.. Easy rollover for traders. Usually we trade with no more than 10-15 symbol combinations. Check this out on the performance page today..click here
Abnash Singh, Am a Trader helping small traders to realize their dreams.