Magic of compounding and consistency - Here I'm sharing my trading experience and insights from data perspective since I started trading full time.
I'm attaching 2 images with insights into my monthly returns and their fluctuations with time and capital. (1/n)
I'm attaching 2 images with insights into my monthly returns and their fluctuations with time and capital. (1/n)
1. I used to more intraday trading in initial months. It helped me in growing capital but as you can see in the chart there was huge deviation in the returns. It was mentally tiring and not very sustainable. (2/n)
2. Over the time as capital grew, started doing more positional trading reducing dependency on intraday trading. Anyhow, Intraday trading also becomes difficult to be managed with higher capital (3/n)
3. Since, last 2.5 years thankfully there hasn't been a single monthly loss
4. Now %age returns are reducing but the standard deviation of monthly returns has also reduced significantly which is good for a trader.
(4/n)
4. Now %age returns are reducing but the standard deviation of monthly returns has also reduced significantly which is good for a trader.
(4/n)
5. It implies returns are being more consistent which should be the goal of every growing trader
6. Now I'm doing intraday trading only on expiry days but over the coming years I want to reduce dependency upon expiry trading as well (anyhow SEBI will ensure this 😀)
(5/n)
6. Now I'm doing intraday trading only on expiry days but over the coming years I want to reduce dependency upon expiry trading as well (anyhow SEBI will ensure this 😀)
(5/n)
7. Over the 3 years compounding and consistency has helped me gather profits of more than 10 times the initial capital.
(6/n)
(6/n)
Learnings -
- Trading is more of psychological than any strategy or system
- Consistency is the key
- Both luck and hard work play a part in your initial success but over the time, luck factor diminishes.
- Market is the best place to pay the fee and learn from it
(7/n)
- Trading is more of psychological than any strategy or system
- Consistency is the key
- Both luck and hard work play a part in your initial success but over the time, luck factor diminishes.
- Market is the best place to pay the fee and learn from it
(7/n)
Goals for coming years -
- Be more consistent and disciplined
- Diversify into other strategies and markets reducing overall risk
- Manage more capital and provide employment opportunities to good traders
- Be more consistent and disciplined
- Diversify into other strategies and markets reducing overall risk
- Manage more capital and provide employment opportunities to good traders
Loading suggestions...