iCharts Discussions

kashidun · White Belt Joined: 01 Aug 2011 Posts: 48

Bear market,Things are quite bad brokers are tensed they are not able to reach their respective brokerage targets,Traders are feeling the heat no easy money by trading in out.

Is there any way to survive Bear market!!!!

Of course easiest would be not to trade:).

Well that's not possible.
Trader will trade

Many Traders or investors have one thing in common in thinking.
Bear market good for investment...
buying in falls would fetch good return...

Now here few valid points to discuss
how long you ready to wait..
A trader who sits in front of live charts would he be able to see his holding getting ripped off 50-80%.
Secondly,How to analyze which fall is good to buy,and which is not.

Answer would be not an easy task.
With the kind off falls we are witnessing in individual stocks Its a daunting task.

Atleast we can figure out how much we are ready to loose if the trade goes against us.
In more technical terms we need to define risk appetite.
There's a very catchy saying "A trader with out risk is like a nude girl in a boy's hostel"

You just cannot risk more than you ready to loose
Also cannot hold on to it as it keeps your money stuck in a bad trade discouraging to to get into a new trade and of course Capital gets eaten up its a cascading effect .
Lets take an example say a trader gets into a trade he makes 2k loss a amateur trader would
risk double capital to recover 2k loss+ 2k profit and may end up losing 4k.
Some one so rightly pointed out
Trading is serious Business.Accept it or forget it:)

Stop loss is best tool to define ones risk,Without stop loss its kind off gambling or wishful thinking
I came across many traders who say every time we put stop loss it gets hit.
Take this with a pinch of salt if your sl hits in more than 50% of your trades think about something else trading is not your cup of of tea.

vinay28 · Black Belt Joined: 24 Dec 2010 Posts: 11748

Another good one. Are you an author?

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

kashidun · White Belt Joined: 01 Aug 2011 Posts: 48

I think most of the so-called legendry do not tell the truth or lots of fictitious stories are there about them. I believe what I do or common trader does. For example, I also trade for 20 points in Nifty Future, means my target is also 20 points from entry and stoploss also 20 points. Follow only one type of trade system and keep it very simple. If its success rate is above 70, you can easily make around 15-18% minimum profit after brokerage and other expenses.

Instead of being theoretical in this market, we must be realstic and practical.

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

I accept with you . But Theory is Theory . That is a science.

We also should realise that every one can not be a legendary.

even while searching for a strategy I back test for sucess rate and try to adapt a strategy which is having high sucess rate.Eventhough there is no gurantee that this strategy delivers you the same sucess rate in future--- again that depends on so many factors.

I think all theese are stages-- traders/investors should go through.

Incase , our target and sl is also 20 points naturally we will be broken if sucess rate is not 70 %. Here even 55 - 60 % sucess rate also will not work as you know.

Theese are all intial days.

But I would like to here from our Icharts experts --what are there sucess rates?. Is it true if your Method is sound even you can get profits with 35 % sucess ratio?. What is your experience?.

Come on Seniors , please enlighten theese Novice Traders! including me.

kashidun · White Belt Joined: 01 Aug 2011 Posts: 48

I am following only one system and I don't count it by points gained in a month or week, rather I calculate it in percentile with invested money. My lowest profit in a month is 15% and highest is 42%. I am following this system since last November. It depends what you follow and howmuch u believe in the system, frequent changes in systems and without backtest is suicidal.

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

Good going Kashidun ! I sincerely wish you keep going !

casper · Green Belt Joined: 02 Oct 2010 Posts: 1315

rk_a2003 · Black Belt Joined: 21 Jan 2010 Posts: 2734

Thanks Casper!

Got you Laughing

RK

amitkbaid1008 · Yellow Belt Joined: 04 Mar 2009 Posts: 540

For traders all markets except tight ranged and volatiles markets are good. When you say Bear markets good for investment you are talking about investors and traders.

Traders never get ripped off 50-80% as a trader you must use stop loss. There is no need to analyze which fall is good to buy and which is not at least from a trader’s point as in a fall you may already short and unless you decide to book profit there is no need to buy.

Regarding how much you ready to loss is not decided by you. Loss or Initial Stop Loss should be decided before you enter the trade and also at the same time you should check the Risk-Reward Ratio; and trade should be taken only and only if RR ratio suits you.

Hitting of stop loss is not a criteria to leave trading. As a trader as we all know and observe 2 good trades can give you huge profits even after offsetting losses in 8 bad or not so bad trades. You just need to let your profits run and cut your losses short.

Regarding your view about legendary traders it’s up to you to form your opinion whatever it may.

But what I am talking is about just common traders and you may be confused between investors vs. trader vs. sheet gamblers.

Regarding your system this arbitrary system of +20/-20 is not a system for trader whatever the success ratio it has. These numbers which are not based on trade data or charts will not let you to earn big profits. That’s why you say if your SL hits in more than 50% of your trader think about something else; trading is not your cup of tea.

There are traders who earn huge with highly negative success ratio and there are traders who earn very little with very high success ratio.