iCharts Discussions

[RishiArora]

Today my this Post will be about breaking the myth of accuracy. There are so many website who are claiming 85 to 99 % accuracy. All is bullshit and waste of money and time.

I come across lot of new traders or traders who have burnt own trading accounts. All ask me sir, how much accuracy this software give , How much money i can make after 50000 or they ask so many beginner questions.

Nobody asks, what is profit factor?

So based upon my experience, i can say that profit factor is more important than accuracy. Accuracy is secondary thing.

Profit factor is Gross Profit divided Gross Loss. If your Profit factor is coming more than 2 or 2. I request you to please don't look here there . just try to follow your system consistently . Money will come automatically. It's easy to make money from trading.


System who has Profit factor above than 2 is considered as best system to trade.

Profit factor 2 means After a loss of 1 point We are making 2 Points
Profit factor 1.5 means After a loss of 1 point we are making 1.5 Points .
Profit factor 0.9 means after a loss of 1 point we are making 0.9 points so that's losing system.

Always consider your profit factor after brokerage paid.

Below i am sharing result of my last quarter ( jan feb mar 2015) in banknifty all intraday. You can see my accuracy i just 30% to 40%. But profit factor is good. More than accuracy or profit . i utilized my energy on consistency







This is reality of trading. Earlier you will accept it, earlier you will be on right path of trading

Stop making fool of your self by coming in trap of those tip selling and software websites . Stop thinking about 85 % , 90% 95% . Nobody can make that. No software can do that. No tip selling website can provide you that accuracy. All fake


Disclaimer : All results are my own and just for example. there can be traders who have profit factor more than my. I am nobody

Pardon me for ANY MISTAKE

[Atrader]

Rishi you are doing a great job

[Atrader]

I am sharing some of my own experience here for the new people.

When I started my trading initially I was so busy with finding a "holy grail" system that every now and then when I came across with any new indicator or new indicator settings or moving avg. combinations I used to get compelled and starts to back test the same. During that back testing I used to think of money(lots of money ) which I would have made if I have found that indicator earlier. But in actual that holy-goly indicator fails to make me rich. With my hands on holy indicator or crossover or candlestick when I used to take position in the market, due to my inner fear of loosing I kept switching time frames from 60 to 1 min and then position with 60min tf I use to exit with 5 min TF due to fear. This kept happening all the time.After blowing of my account several times I realize that the problem is not with the indicator or time frame, the problem is with my mentality of making every trade profitable.

The true fact of trading is losses are inevitable. Only thing is that how much you can bear or you can take.


The basic mistake of any new trader is that he/she tries to avoid the losses. "One often meets the destiny on the road which he takes to avoid it ".
The thing is that we should able to accept the losses and control them by controlling the inner demons (greed and fear) and it is possible only with implacable discipline ...

so we should remember only one thing DISCIPLINE, DISCIPLINE, DISCIPLINE


thanks

Atrader

[RishiArora]

[RishiArora]

Success in trading is neither magical nor mysterious. It is the natural consequence of consistently applying rules of Your system




It's easy to make money from trading but Your path should be right and actions should be disciplined.

[RishiArora]

When You start giving Importance to Discipline, Risk Management , Consistency and Psychology , Your Trading ledger Changes and Money Seems to come easy in your life.



Automatic Buy Sell Software , Tipper , Caller sab dokha e..agar trading se paisa kamauna e to apne ap ko badlo abhi bhi moka e ( Automatic Buy Sell software, Tipper, caller all are fraud, if you really want to make money from trading , Change yourself still there is chance)

[RishiArora]

I think here Almost everybody love cricket and almost everybody praise SACHIN TENDULKAR .

IF we can apply Legends psychology in our trading psychology wonders can happen in your trading account

In One of his interview SACHIN has made this statement


"I have never thought where I will go, or forced any targets on myself.""I am not thinking too far ahead, just want to take it one thing at a time."

Same think we can also apply on our trading carrier. We must not force our self with any weekly or monthly targets (like i want to make 200 points weekly, want to make daily profit etc. etc.) . We must take one thing at a time. Focus on process not result

We have to just concentrate on our rules which we designed. We have to just concentrate on executing the plan the which we have made.

Focus on trading the plan. REST WILL HAPPEN AUTOMATICALLY.

Sachin and kambli got same opportunity both were having same talent but today everybody knows SACHIN but not Kambli. What differentiate both is consistency.

Create your own tricks to fool the emotional mind. I have shared few which i use. Request you to share yours as well

[nilu_dpak]

truely said
nice

[Atrader]

One of the great mistake done by newbie trader is watching the quotes continuously ( was one of the biggest obstacle of my trading carrer some how I got rid of it ).

Some trader earlier in their carrer develops this habit of sitting in front of trading platform continuously and watching price quotes.When new trader places a trade his objectivity gets lost and emotions starts override, at that time he start to look at the price quotes and he think that if I stay in front of screen I can avoid possible loss if any or I can book profit at the top. The trader don't want to lose part of move so tide himself with the screen and keep watching it like a mad.

So If one want to success in trading he must able to avoid this bad habit.
AVOID CONTINUOUSLY WATCHING AND SITTING IN FRONT OF QUOTE SCREEN

Atrader

[prabit]

Rishi,
Thanks a lot for starting the thread and your contribution. In your result why the profit factor showing minus figure?

[RishiArora]

[AMBY]

Today Feb Crude. Expiry.

[AMBY]

Sorry for wrongly Posting "Today Feb Crude. Expiry."

[RishiArora]

This psychological thing which i am talking about today is called Comparison i have faced it this month during live trading. Based upon this month experience i came to know that not doing Comparison is also very important in trading.

First i will narrate what mistake i have made and how it had affected my psychological thinking and made me more better trader.

Earlier i was not coming in Shout box due to my other website work and trading was going very well disciplined but from jan i started to join shout box during live trading jan went fine all was completely disciplined than feb started first few days went all disciplined but as second week started just because i was looking at other traders position and their commentary in shout box i took 2 to 3 emotional trades. and these emotional trades has taught me very good lesson(however none of them was out of my risk management but also none of them was as per my plan ). so second week went like this and i was very upset. just because i didn't follow my plan. Because My only moto is to follow my trading journal, if i am doing trading as per my trading journal i am ready to take even 10 losing trades in row but all trades should be disciplined.

so on 2nd week weekend came, I was very upset.
So i went in park , Closed my eyes as i wanted to rewind everything. Why did i become emotional ? i wanted to know my mistake. I wanted to know which thing has affected me.

As i closed my eyes and was rewinding whole trading week, after about 10 min, I came to know which thing has affected my trading psychology , that thing was COMPARISON So Now i had to avoid this thing , To avoid i needed to find out which thing had caused me to do COMPARISON. I found that i was watching Shout box live trading discussions. which made me emotional and i slipped from my plan So from that time onward i decided to not to look at Shout Box during Live trading. I mean Continuous looking.
So last week i didn't came to shout box during live trading and again all went fine and i was executing my plan

There are only three things you should ever do about a mistake: Admit it, learn from it, don’t repeat it. – Bear Bryant

Disclaimer: I am not encouraging anyone to not to participate in Shout Box. You have your own choice.whole moto is to share my live experience of live trading and live psychological mind of trader. In some sense Shout Box is very help full also.

Thanks
Rishi Arora

[raj1377]

hello rishi just was gng thrugh thread some interesting experiences u shared well done keep on gng good job
BUT brthr last post i read,, its my views if wrong correct me,, its human nature or u can say psychology whnevr somethng gng in oour favour v never look fr reasons,,,,, bt wwhnever -ve happening arnd us v try to find faults starts balmegame i thnk v shud better chk wthin ourself, problem is lying there wht v did ,why v did , no faith on system etccc(NOT IN CONTEXT WTH UR ) some lines r -WHEN V COMPARE AND COMPETE WTH OTHERS, V CREATE FEAR,INSECURITY,JEALOUSY,STRESS AND this DEPLETES our ENERGY. LET US focus on ourselves and USE ALL OUR ENERGY TO PUSH OURSELVES FORWARD.