How We Lost 10 lakhs in a Single Trade In June?
SM is filled with captions reading "1 lakh profit on 20k capital", "Made 65% ROI". "How I made 66lakhs in 1 day?".
We will Seldom Find People sharing about their losses!
Let's change dat. Let us tell you our Story of June!⚡️
SM is filled with captions reading "1 lakh profit on 20k capital", "Made 65% ROI". "How I made 66lakhs in 1 day?".
We will Seldom Find People sharing about their losses!
Let's change dat. Let us tell you our Story of June!⚡️
We are Primarily Positional Traders. We trade Index and Stocks both.
We had a horrible month in Index in June. This Thread is for you guys to learn from our Mistakes. We are not ashamed of admitting our losses, unlike other Fin tweets. Only Real Traders make losses ⚡️
We had a horrible month in Index in June. This Thread is for you guys to learn from our Mistakes. We are not ashamed of admitting our losses, unlike other Fin tweets. Only Real Traders make losses ⚡️
So what went wrong? Let's get into it. As you all are aware, we run mentorship courses on public demand from time to time. We have only done 2 batches, as we are more of "Traders" than "Trainers".
We always believe in our Mentor Kumar Abhilash Sir's principle.If you are doing something for the people you should always have your "Skin in the game". Hence,We trade live with our Mentees, We take Profits and Losses both wid them Live to maintain absolute transparency & trust.
So what went wrong in June ? We share a positional system with our Mentees where in we take trades with them live all are positional Trades. That system shared from March 2022 till May 2022 had captured 1874 Points in #Nifty Fut. Hopes were high, expectations were High.
Then came June 2022. We had longs in our system since 8th june 2022 at 16356 levels and we were the only few guys who were saying since May we might reach 15400 by June Last week.
We did some mistakes that even experienced traders sometimes fall prey to and we closed those Longs at 15340 on June 16th 2022. That's a loss of 1014 Points! in a single trade.
What lead to this big loss? We will give you 5 reasons/lessons that lead to this loss.
What lead to this big loss? We will give you 5 reasons/lessons that lead to this loss.
⚡️1.TIMING THE MARKET!
We were sure that 15400 might come by June End. Markets had a different surprise for us 15400 Came in a single day on June 16th,2022! Thus don't time the market, Markets have their own way of surprising you no matter how big/small Trader you are.
We were sure that 15400 might come by June End. Markets had a different surprise for us 15400 Came in a single day on June 16th,2022! Thus don't time the market, Markets have their own way of surprising you no matter how big/small Trader you are.
⚡️2.NOT FOLLOWING THE SYSTEM!
Our Systems gave an exit when the Day low of 15th Jun had broken around 15670 that was our SL for that trade. But we speculated that there are a lot of shorts in the system & it is expiry we can see a sharp short covering when they cover. Did they?
Our Systems gave an exit when the Day low of 15th Jun had broken around 15670 that was our SL for that trade. But we speculated that there are a lot of shorts in the system & it is expiry we can see a sharp short covering when they cover. Did they?
⚡️3.SPECULATING & NOT TRADING WHAT YOU SEE!
Short Covering never came till 3:29:59 PM. Full day what we saw was just Long Unwinding.Charts, System all had given an exit. This trade was an exit at 15670 & a new sell Trade was triggered.
Hence don't speculate!TRADE WHAT YOU SEE!⚡️
Short Covering never came till 3:29:59 PM. Full day what we saw was just Long Unwinding.Charts, System all had given an exit. This trade was an exit at 15670 & a new sell Trade was triggered.
Hence don't speculate!TRADE WHAT YOU SEE!⚡️
⚡️4.OVERCONFIDENCE & NEGAIVITY
When you give a system to retail traders, all is well & good as long as the profits are coming, but the moment losses start happening, there is a cloud of negativity that forms that overshadows all the other positive profitable trades.
When you give a system to retail traders, all is well & good as long as the profits are coming, but the moment losses start happening, there is a cloud of negativity that forms that overshadows all the other positive profitable trades.
There were instances many times since May 2022 where in we sometimes booked big losses there were a series of loss making days when a series of loss making days start retail losses hope immediately in the system and stop taking the next trade. What happens next?
System throws out that 1 big profitable trade that takes care of those small losses as it's a Trend Following based system. But retail after seeing a series of losses,doesn't have the heart or the emotional control to take all the trades that come. They miss some trades.
But we ended May 2022 by capturing +236 points in total. But some guys after seeing a series of lossy days, stopped taking trades and did not follow d system and then after missing that one big profitable trade, they again start following the system again but dis time after a..
Big profitable trade,then comes sideways days and the losses happen in those days, so the retail mindset again loses hope and again stops trading the system. This becomes a vicious cycle.
Negativity in our Mentorship Group was at an ATH in those days.
Negativity in our Mentorship Group was at an ATH in those days.
This negativity affected our minds to some extent as well, and every trader has those days where in he uses his past experience in some scenarios and comes out profitable. We have done that in that past and we have closed a loss making trade into a profitable one.
The same type of scenario was again forming on June 16th, 2022. We backed ourselves and rode the trade, but we were wrong. This time, it did not work. We did not follow the system & charts moreover got biased coz of our experience trading the same scenario in the past.
⚡️5.LAUNCHING PAID /TIPS GROUPS IN JUNE
Intraday Trading is not our forte, our forte is Positional. We grew because of our Cash picks and Positional trading style in Index. The constant urge to give a trade every day in the paid group affected our Trading style and psychology
Intraday Trading is not our forte, our forte is Positional. We grew because of our Cash picks and Positional trading style in Index. The constant urge to give a trade every day in the paid group affected our Trading style and psychology
Intraday trading is like itch trading requires a lot of screen time and efforts. We do intraday Trading only sometimes, but when we launched the Paid Group, it was a terrible decision as we kept on getting DMs, shud we book, shud we exit in live market.
That's why we stopped the Paid Group thing. Closed all subscriptions, as this was affecting our Trading Style and psychology.
We brought our drawdown of -1016 points back to -96 points in the matter of next week, but the last week again was bad and we ended June 2022 in -718 points loss. Once again the Negativity is at the ATH for this system let's see how we do in coming months.
So what do we learn from our mistakes?
1. Never Time the market.
2. Trade what U see, not what U think is going to happen in ur mind.
3.Mentorship business is a double-edged sword. Trading privately and Trading Publicly are poles apart.
4.CUT YOUR LOSSES SHORT.
5. Follow Trend.
1. Never Time the market.
2. Trade what U see, not what U think is going to happen in ur mind.
3.Mentorship business is a double-edged sword. Trading privately and Trading Publicly are poles apart.
4.CUT YOUR LOSSES SHORT.
5. Follow Trend.
We are going to bounce back strong no doubt about that. This is what Trading is.This is what happens in reality there are bad months, not every month you are going to end in green. How you end up at the end of FY matters.
No matter how experienced of a trader you are you will make such once in a year mistakes. The people you surround yourself with also affect your trading a lot. How you react and move on from the losses shapes your future trading career.
Try to surround urself wid positive people.
Try to surround urself wid positive people.
Never compromise on risk management. Smaller losses are much easier to take and manage than larger ones.⚡️
Be quick to forget losses, but never forget what they teach you.⚡️
Be quick to forget losses, but never forget what they teach you.⚡️
JUNE 2022 was horrible for Index but for our Cash Stocks it was like a big breakthrough. We captured some good returns in Cash stocks. Hence, it's important to just back yourself. Don't take losses to your heart. The reality of Social media is different than what it's portrayed.
We see many of our followers haven't joined our Telegram Channel yet.
We post some good trades with logic over there.
Head on over and join its Free! #chartians
telegram.me
We post some good trades with logic over there.
Head on over and join its Free! #chartians
telegram.me
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