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1/n
Momentum Trading Experience:
Last 8 months have been phenomenal if you're a positional momentum trader. The entire system got tested, right from extreme pessimism in March where all the trailing SL got hit to the current frenzy!
Momentum Trading Experience:
Last 8 months have been phenomenal if you're a positional momentum trader. The entire system got tested, right from extreme pessimism in March where all the trailing SL got hit to the current frenzy!
2/n
Portfolio is up ~40% [End of April 2020 to today]
Stats:
# of trades: 44 [7 open]
Breakeven: 14 [2 open]
Wins: 19 [4 open]
Avg Win %: 18.9%
Loss: 11 [1 open]
Avg Loss %: -5.8%
Win %: ~58%
Portfolio is up ~40% [End of April 2020 to today]
Stats:
# of trades: 44 [7 open]
Breakeven: 14 [2 open]
Wins: 19 [4 open]
Avg Win %: 18.9%
Loss: 11 [1 open]
Avg Loss %: -5.8%
Win %: ~58%
3/n
Goal #1: Save Capital [If you want to stay in the game and trade consistently]
Goal #2: Make Affordable Mistakes [Best way to learn, but be wary of 'risk of ruin']
Goal #3: Learn from those Mistakes [Have a mistake journal]
Goal #4: Profit??
Goal #1: Save Capital [If you want to stay in the game and trade consistently]
Goal #2: Make Affordable Mistakes [Best way to learn, but be wary of 'risk of ruin']
Goal #3: Learn from those Mistakes [Have a mistake journal]
Goal #4: Profit??
4/n
Mistakes happen because of:
1. Fear of Loss
2. Fear of Missing Out
3. Deviating from your system because of 1 & 2
Mistakes happen because of:
1. Fear of Loss
2. Fear of Missing Out
3. Deviating from your system because of 1 & 2
5/n
These are some of the mistakes I've made in the past 6 months:
1. Not adhering to SL/TSL because you're certain the price will go up eventually.
2. Buying before the pivot anticipating the breakout.
3. Putting more effort on buying than selling (which is way more important)
These are some of the mistakes I've made in the past 6 months:
1. Not adhering to SL/TSL because you're certain the price will go up eventually.
2. Buying before the pivot anticipating the breakout.
3. Putting more effort on buying than selling (which is way more important)
6/n
4. Social media = Noise. "Suno sabki, Karo apni"
5. Focusing too much of my time on 1 trade because I really want it to succeed.
6. Pyramiding when the rules say otherwise.
7. Getting scared by M2M intra-day when it is clearly a positional trade.
4. Social media = Noise. "Suno sabki, Karo apni"
5. Focusing too much of my time on 1 trade because I really want it to succeed.
6. Pyramiding when the rules say otherwise.
7. Getting scared by M2M intra-day when it is clearly a positional trade.
7/n
8. Over diversification - making it difficult to manage trades and risk. Control the FOMO and do not chase every breakout. [Very crucial]
9. Position Sizing Error - too big or too small.
10. Not holding the winners and booking profits soon.
8. Over diversification - making it difficult to manage trades and risk. Control the FOMO and do not chase every breakout. [Very crucial]
9. Position Sizing Error - too big or too small.
10. Not holding the winners and booking profits soon.
8/n
Be a prudent capital allocator.
Position Sizing > everything else.
Realize the opportunity cost of idle capital at all times and only trade the best setups with favourable RR.
In the end, the only thing that matters is portfolio returns.
Be a prudent capital allocator.
Position Sizing > everything else.
Realize the opportunity cost of idle capital at all times and only trade the best setups with favourable RR.
In the end, the only thing that matters is portfolio returns.
[9/n]
Learn to manage risk. The best feeling is when because of enough profit cushion, I move my SL to cost. I know I cannot lose money in this trade!
Never exceed total risk on portfolio beyond 5%.
Learn to manage risk. The best feeling is when because of enough profit cushion, I move my SL to cost. I know I cannot lose money in this trade!
Never exceed total risk on portfolio beyond 5%.
[10/n]
Pullbacks > Breakouts (too obvious)
Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!
![[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!](https://pbs.twimg.com/media/Ee0C89sUwAE8j8K.png "[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!")
![[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!](https://pbs.twimg.com/media/Ee0DKHyU0AE0xfH.png "[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!")
![[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!](https://pbs.twimg.com/media/Ee0DSUUVAAYkxd4.png "[10/n]Pullbacks > Breakouts (too obvious)Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!")
Pullbacks > Breakouts (too obvious)
Most of these trades were taken with a 4-5% SL. Combine that with a 1-1.5% risk on PF [average up!] - that is about 25% allocation. That's how you make it big!
[11/n]
Journal all your trades, visually [charts] and psychologically [what you were thinking at entry/exits will be super helpful when you review the trades later in hindsight]
This is an example of my CDSL trade: https://www.notion.so/saumil25/CDSL-5d29eb10c48a49a282533037fde3324f
Journal all your trades, visually [charts] and psychologically [what you were thinking at entry/exits will be super helpful when you review the trades later in hindsight]
This is an example of my CDSL trade: https://www.notion.so/saumil25/CDSL-5d29eb10c48a49a282533037fde3324f
[12/n]
Mindset:
In the end, 1 trade is insignificant in the grand scheme of things.
What matters is consistency and how you follow your process day after day!
As Naval says, "Working with who you want to work with, on what you want to work on, is actually just play."
Mindset:
In the end, 1 trade is insignificant in the grand scheme of things.
What matters is consistency and how you follow your process day after day!
As Naval says, "Working with who you want to work with, on what you want to work on, is actually just play."
[13/n]
Do 1 thing and be consistent.
Be patient and let the system work for you!
Aim to refine the process and the money will follow!
Be a learning machine!!
Thank you for reading
Do 1 thing and be consistent.
Be patient and let the system work for you!
Aim to refine the process and the money will follow!
Be a learning machine!!
Thank you for reading
