“I’m Parikshit and 22 years outdated. I began my inventory market journey 3 years in the past, and my progress chart is extra consolidating than some other chart on this planet. I’m an choices purchaser and have utilised all of the inventive concepts I can consider. I began by studying indicators and shortly realised inside 1-2 months that they don’t work. Then I discovered about setups and understood that merely following setups made by another person wouldn’t take me anyplace. I’ve developed greater than 10 setups utilizing totally different ideologies and understanding how different merchants are buying and selling, however I’m nonetheless not capable of turn into a worthwhile dealer.
I’m a sort of breakeven dealer, with nominal losses starting from 10-15k in costs. I began with 1 lot and am now buying and selling with 3 tons. Once I began buying and selling after forming a setup, I discovered about possibility behaviour, which reduces the sting of setups available in the market. I realised that to interrupt even, I’ve to make no less than a ten % revenue. When I’ve 30 trades in a month with 50 % accuracy and a 1:2 risk-reward ratio, the issue I face in executing setups is that typically the stop-loss (SL) is hit in choices however not within the index (1-2 occasions a month no less than), inflicting a 3-6% loss. If I don’t take possibility SL, it damages extra trades, and to take care of self-discipline, I imagine it is necessary. Typically, I don’t get correct risk-reward resulting from momentum decay (no less than 2-3 % a month). There are additionally 2 % costs. Typically, each possibility and index SLs will not be hit, however resulting from going near the SL (0.20-0.30 earlier than SL is hit), Zerodha exits the place resulting from no matter purpose (1 time in 2 months), inflicting a 1 % loss. In any case, if we make a mistake in a month by placing the SL within the flawed place or executing the commerce late or early, turning into worthwhile turns into a delusion.
I’ve additionally discovered on this journey of backtesting and executing setups that carried out in 2021 won’t carry out the identical in 2023 or 2024 due to volatility and momentum modifications.I’ve tried a number of setups and located that the accuracy of many setups has lowered over time. They could carry out when the identical sort of volatility comes again. Backtests of 2-3 years will not be relatable, I assume. Yet another factor I observed is that setups carry out on common from November to April, however I don’t know why not one of the setups I fashioned carry out from Might to October.
I’ve by no means made cash available in the market, and after the section has gone, I’ve discovered how this strikes, and I believed I used to be not on the proper place on the proper time, and this has constantly occurred for the previous 3 years. The one factor constant in my journey is that this.
So, my doubt is I don’t know the place I’m lagging. Do I’ve an issue in mindset, or perhaps I don’t understand how the market works? Now, I really feel like leaving buying and selling is the one possibility, however the time spent available in the market by no means appears like a waste, and I assume I’ll by no means remorse these 3 years. If anyone has an answer for me, then please assist.I’m additionally growing setups for swing buying and selling in shares. I’m so demotivated that I’m not in a position to consider something and simply working away from the chart resulting from concern of failing once more.”