By VIKRAM
MY 5 SECRET MANTRAS FOR SUCCESS IN DAY TRADING
I am wring this blog post on May 22nd 2019, decided to write this blog post after many of my twitter followers asking my secret formula for consistency in Day trading.
Day Trading is known to be toughest among all type of trading in stock market because one has to be very fast in decision in short time duration.
Day Trading is known to be most lucrative part of trading but most difficult to master it.
I am writing this blog post on May 22nd 2019, and my last trade which hit my SL was on May 9th, from May 9th to May 22nd I took around 13 trades in Nifty and Bank Nifty.
Overall Trades took 13, Trades in Profit 12, Trade in Loss 1.
Many traders were impressed with my consistency in my trades, but few were asking how it’s possible to have such a long winning streak? As per them hitting SL is a very common in Day trading, because SL is placed too close as compared to swing trading or positional trading.
So, I decided to write this blog post on what helped me to stay profitable trader and what you have to do to become one, though I am not going to share my all strategies here but I can give you a brief summary on my trading style and what helped to become a successful day trader.
I am an Intraday pattern trader
I have some 15 patterns identified over the last 15 years by watching end of the day charts of Nifty and Bank Nifty, so I am making a living only by trading those patterns and trading the opening of the day, if I don’t see those patterns or no opportunity at opening I won’t take any trade for that day, it’s as simple as this.
As they say, history repeats itself, so these 15 pattern repeats itself, over and over and over again.
Why these patterns repeats over and over again? Because patterns are created by traders who are a human being, and as they say, human nature never changes, so does patterns.
If you start to develop a passion for charts, over the period of time, you feel like charts start talking to you, kind of confidence builds in you and you enter the trade without any fear or inhibition.
Mastering chart reading is the first way to learn Day Trading.
If you are like me, who loves analyzing charts, then don’t waste time, from today onward start taking a screenshot of Nifty and Bank Nifty every day(in 5 min time frame), make a folder and save in it, mentioning dates and study their behavior.
From past few year, I made it a practice to save the charts in a folder and ensured that every week I go through it and watch those patterns so that it registers in my mind.
By now, I must be having more than 500 charts (of both Nifty and Bank Nifty put to gather) in my folder which subdivided again in different folders with those 15 patterns which I keep studying on regular basis.
I am a rule-based cum discretionary Trader.
I have set a strict rule in my day trading, like I take my trades only if it comes to my price or near to it, I will not take trade FOMO(Fear of missing out) trades rather I will miss that trade but won’t enter at the wrong price.
I see myself as a boring trader, I don’t look for action-packed trading day, my trades per day is just one or maximum 2, very very rarely I take 3 trades per day…..
Many day traders I see them taking 10-15 trades in a day,when they become full time Trader they think constantly they have to take trades, but that’s not true.
Trading is not like other profession, lesser the trade you take better it is, because when you take less trades you will be patient to wait right set up and don’t enter wrong trades….
Some time even I scalp for few points, in and out of trades within minutes, but still it won’t be more than 2 trades per day, over trading only drains me emotionally and make me indisciplined.
I don’t look for entertainment in Day trading, every day morning before the market opens I remind myself, Day trading is a serious business for me, and it’s my bread and butter, which is giving me these life of financial freedom, where I have no BOSS, No Customers, No weekly meetings, No monthly Targets and no one to answer( of course except my WIFE :D)
I am my own BOSS…I can live my life own my own terms…..so I need to respect my profession and not treat it as a Gambling den!!!
Everyday as soon as market opens I wait for that one opportunity in Nifty and Bank Nifty, and I draw a line on charts and patiently wait for that opportunity, when I see my pattern is taking place, I immediately punch my trades and make quick few points which is enough for me to stay profitable month after month.
I don’t believe in averaging losing trades neither adding on to winning trades, I buy full quantity once(most of the time) and exit at once, most of the time I ensure that my R: R is minimum or around 1.5 per trade or more.
I don’t believe in placing my SL to breakeven(most of the time) as price goes in my favour; I wait either it to hit my Target or hit my SL
Knowing the personality of the instrument gives me that Trading Edge
To be successful in Day Trading you need an Edge, my edge is trading the same instrument everyday.
If you have heard of world-famous Day Trader Oliver Velez and watched his videos on youtube, you keep hearing him saying his secret to become successful day trader is, he trades only 4-5 instruments (Google, Apple and Facebook being his favorite stock) for last 20 years, it made him so well versed with its movement that it became like his family members, where he knows them in and out.
Even I didn’t believe it first until I experienced it, trading in same instrument day in and day out can give you a great edge, you will be amazed to see how predictable its movement is, I have not traded anything other than Nifty and Bank Nifty for years now.
I Follow price Action and pivots, No Indicators
It normally happens when a new trader enters this business, he runs behind indicators thinking it gives automatic buy and sell signals and he can make a lot of money by just following those signals, and even I was not different, but its not true, indicators are lagging, price action is supreme.
If anytime you happen to see charts of most seasoned and successful Day traders you won’t see any indicators, except maybe couple of moving averages, you will only see support & resistance lines on the chart, even in my chart, you will see only lines and pivot levels, and one or two moving averages.
Over the years I have observed that if you combine pivots along with price action it can give a big edge in your trading.
When it comes to charting software I recommend Trading view charting software, it has very nice interface and very user friendly, it also gives you one month free trail where you can try it and then decide to take membership.
I changed my personality to become a better Trader
Actually, this should be on top of the list, they say, to become a good trader first you have to be a good human being, because your trading will reflect your personality.
I used to be a very egoistic, impatient, short-tempered person who would get angry if things are not going my way, if I look back at my previous trading losses, it was purely based on my behavior.
I used to get very angry if my SL hits, and I used to keep on adding my losing position to prove that I am right and the market is wrong, which ultimately proved very costly in the my trading career.
Greatest enemy in Day trading is your own emotion, you will exactly behave how you behave in real life, if you are egoistic person you won’t accept you are wrong and keep averaging your losses and ending up with big loss….
In real life, if you are short tempered or revengeful person, you will start over trading to cover your losses to take revenge as if market is your enemy.
Even I had all these weakness, and when I realized that until I improve on my behavior I can’t be successful, I decided to change myself, from egoistic to humble person, from short-tempered to calm person.
I could see a big improvement in my trading now, I don’t take it personal if my SL hit, I don’t get into revenge trading if I lost money in one trade.
I decided to remain calm,humble and down to earth person and it is showing in my trading performance.
CONCLUSION
If you follow steps which I explained above,then you are more likely to enter those elite lists of 10% successful traders club,sooner than later.
Make an honest self-assessment today on your personality and work on it, believe me, you will see a big improvement in your trading journey.
Thank you Mr Vikram for this wonderfully summed up blog post, brief and neatly written. God bless you.
Thanks, Dhanasekaran
Well written blog post.
Thanks a lot, will keep posting such articles in future
dear vikram,
Very nice blog. I too agree with you that personality is what reflects in trading. We should meditate and be humble. Get rid of FOMO and stick to the principals.
Request, if could share some of the chart patterns identified by you. This will definitely help other traders to improve upon skill set.
Hi, thanks for liking article, you can feel free to mail me pivotcall@gmail.com for details
Thanks for liking my post.
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