Wednesday, August 1, 2012

Nifty nears the resistance zone "5258-5279" with intra corrections..

Have you ever asked yourself what is discipline in trading..??
What is your definition of discipline in trading??
Would you share your experience, the good, bad and the ugly.?

37 comments:

radesyam1 said...

dear ilango
how to get monthly ema/ and weekly ema any calculator?
thank u a lot
syamala

radesyam1 said...

dear ilango
how to get monthly ema/ and weekly ema any calculator?
thank u a lot
syamala

Vignesh said...

Adhering to the plan.
Place stoploss as planned and once stop loss given. do trailing but don't relax against the plan.

Piyush Sharda said...

i feel not mixing methods is discipline.
trading in itself is difficult. mixing methods
make it impossible to handle and one will miss out.. either entry or exit..

Bala said...

Dear Ilango Ji,

In my definition, Discipline - is to follow the rules that are set by yourself. It
should be a die die still follow...irrespective of whether make money or not.Each
one should have done their homework in terms of strategy, MM, backtesting etc.
before deriving the rules.

Any deviation from the rules, I call it INDISCIPLINE.

My own example, "Averaging down" in other words, pyramid down...which has killed me
few times before I got rid of it. My rule says, I am suppose to only average up to
a max of 6 lots...but I had averaged down to max my margin, ended up loosing my
entire capital.It has happened not just once but few times. I take it as tuition
fees paid to the market. One has to be in the market, trading live to develop the
discipline. It comes over the years like driving...after years, you drive, apply
break where required unconsciously.

Your kind permission, I have written my definition for "Getting Rich Slowly & Quietly" many months ago on http://coolsupertrader.blogspot.com/2012/02/getting-rich-slowly-quietly.html

This has to be read together with MYNAC comments which are very valid and relevant to discipline. Discipline comes on its own when you have the required confidence over your rules. Confidence gets developed when you practice your rules religously.

riteshanan said...
This comment has been removed by the author.
Rajan said...

Dear Ilango sir,
Trying to put it in few words.
Good - Follow trend like 5dema, jnsar etc. Take appropriate profits and stay put for another day and entry point.
Bad- Follow trend half heartedly. get in see your trade in profits for some time. do not take profits. see the market reverse. get out of a profitable trade with losses.
Ugly - Try to predict and get into a counter trend. sit on the trade with fat ego that u r better than the mkt watch the losses grow. Become ostrich and bury your head in the sand. get out with huge losses.
Thanks for putting the above into the minds and in practice.

suresh said...

sir ji,
if close is above 34/21 last hr sma,eod
then it acts as support:
then in such a case, what would be the
resistance.

suresh said...

sir ji,
when 34/21 last hr sma acts as resistance, then
where would be the likely support zone

Bramesh said...

Dear Sir,

Good evening. Hope you are doing well

Discipline to me from trading perpective means

1. Having a plan
2. Following/Executing the plan
3. Maintaining a trading journal to rate yourself for the day with constant improvement.

As Humans we are bound to move away from discipline and market kick us out with a loss making trade and thats the reason only 10% of trader can be profitable in Financial market.

Rgds,
Bramesh

sandeep said...

Sir in morning i will trade with discipline once profit My overconfIdence qty increase suffers loss bad Again i enter market with vengeance n ego to prove aim right again donot read market indicators now even bigger loss - now loss of confidence ashamed shocked then i used to look for guidance ugly. Faith - goes back to jn sees the tt charts relize my mistake then slowly n steadily faith n money

Parimal said...

My Dear Sir
very moot question indeed!
good: make a plan, follow it religiously with proper stop-loss. i have failed many times on this count and paid heavily. teel me when shall i learn???
bad: play halfheartedly on the chartered plan and also donot apply SL. this is still happening to me.
ugly: lousily enter a trade, and keep all staked on 'luck' or 'market mood' to turn in favour. if in profit due to sheer coincidence and conjecture, get the ego inflated and then enter another trade and incur a big loss. then blame, but whom???
"Market has nothing personal against anybody".
tell me what is discipline?
obliged

Amol Sharma said...

Dear All,

“Finding the center of strength within ourselves is in the long run the best contribution we can make to our fellow men.”

discipline focus said...

@Ilango,

Just one line


"not being emotionally attached to being right."


still fault at times...many times......it has got quite ugly......when have fooled myself on that line (intraday loss nearly equal to 10% account equity)


regards
discipline

Dinesh Rishi said...

Rajan & Bramesh

I appreciate your comments

tom I'll take your leave

Plz keep me in your prayers, I want your help
so I return back with good NEWS day after tom.

Its regarding litigation

Dinesh Rishi said...

Sis

Tom u can send me this

http://www.commentsyard.com/cy/01/6404/happy-raksha-bandhan-3.jpg

but let me see what sweet dish you attach with it

SJkolkata said...

Sorry state of affairs. New home minister welcomed with serial blasts in Pune.
Are all Pune followers safe and sound. Pl mark your presence cause now it's more of a family than anything else.
Regards

Crorepathi said...

When I did not have plan or stratergy and was totally controlled by greed and fear that was the ugly part, took 2 PL and lost totally and still repaying the EMI.
When I had learnt many things to form a beautiful plan or stratergy after burning cash But still failed to stick to plan and lost even more that was bad.
Then I learnt discipline to trade my plan and started to make profit and now it feels good to follow price and be peace with market.

Controlling fear and greed is discipline

J.R.Julius said...
This comment has been removed by the author.
J.R.Julius said...

what is discipline in trading..??
Not breaking our own trade rules
with emotions & sticking to the trade plan
whatever happen.

what is trade plan?
Well - Backtested strategy which mostly
suits to the individuals mindset & capital.

Would you share your experience, the good, bad and the ugly.?
The Bad : Changed trading strategies too many times.

The Ugly: Not understood several years, how to
trade/pause in Rangebound Market, too many
wrong stoploss intraday. Not had clear idea
about exit strategy. Non stop search for a
good strategy.

The Good: Time taught when to scalp, when to
hold, when to exit, apart from all understood
one can win with any strategy with proper money
management rules. My family supported me in my
craziest times & decisions which gave more
responsibility in trading.

Thanks to the Masters Mr.Dinesh Rishi,
Mr.Illango, Mr.Damodaran, Mr.Abnash Singh,
World class traders Mr.Nial Fuller, Mr.Larry
Levin and Mr.Lance Beggs, family members, God
and Time.

SMART Trader said...

IMHO, Discipline in trading involves behavior modification to suit our trading method.For behavior modification we need to train our mind, and all training involves rewards,or punishments,or some combination of the two
If we are getting a reward for behaving in a desired manner and feel pain if we are not, we will automatically start sticking to the rules.
Unless we are getting a reward for behaving properly , we are not going to be disciplined.In other words we need a trading method with an edge which will give us profits,if traded properly.
If you have an enduring edge in Market,discipline will follow automatically, otherwise we will never become disciplined in Markets.
Infact discipline is not the problem for many, but the absence of edge

ST

sandeep said...

i feel aceepting the wrong/ fault is the biggest winner what say all

anmpatel said...

@master
very good question, self awakening. to me discipline is take 4 lots in direction of JNSAR when hit. keep 20 point SL, book profit at every 50 point in 2 lots and just sit tight for remaining 2 lot until GREAT JNSAR hit.
just simple emotion less technique without fear and greed. thanks for being there.

Jiignesh said...

Plan your and trade your plan
That's it for me

Sujatha said...

Hi pune-walas - all are safe??and praying for the same. so people are not leaving the "garbage" also see how and what for they r using??? :(

Happy Rakshabandhan to all and special wishes to brother Dinesh-ji.

Hi maharaj - GE and GN :)

Sir - i am unfit to answer unless i "learn" something about that in "trading"

Good - I am rightly calculating and thinking

Bad and Ugly - still doing mistakes learning and learning and learning and learning keep on learning the "discipline" donno when i will settle down like my "brother" ??

shriram said...

Disciplined trading to me means:

1. Being ur WORST SELF-CRITIC & accepting SL when it pops!

2. Being Humble & following TREND using a SYSTEM

3. Staying consistent in doing steps 1 & 2 :-)

cheers

Smita said...

Goodevening Sir !
Disciline to me is ,
1) Take a trade only if you have studied the charts and have done your HW .
2) Execute it , Come out when SL hits ,IF your study is right and trade moves well trail your SL.

It seems to be long , that I am away from trading , A few more days till I am back.I keep myself updated with JN as much as I can. Enjoying the time with my parents during this festive season.

sanjay said...
This comment has been removed by the author.
sanjay said...

Dear sir thank you for this Fantastic question.
plz share your valuable opinion. good night all is well

numchar said...

I have always thought who eventually makes money in long run in stock trading and why ?

I don't have the right answers but reading and learning makes me realize that trading domain has always been versatile and dynamic not bound by any rules..and that the beauty of stock market.Eventually people have defined many trading techniques since ages and all have some flaws .And still the quest for ideal trading technique continues and may be always there because the gap in the every trading plan will make people search for the ideal one ..which will never be found . The collective conscience of people will outsmart every trading plan in totality.
My experiment with trading discipline is about sticking to the trade plan which is JnSar for me ..Enter the trade with ease and trust me its not easy always ..mind plays games sometime ..asks to wait for one more candle ....one more indicator confirmation ..and the mean time price has moved ...I think I will be more disciplined when I can win over the mind playing games .
The fight continues with self ...balance the greed and fear .
That's why its said emotional traders looses to mechanical(disciplined traders ).
It good to be here so that first can learn discipline following you and others seniors and slowly hone the trading skills.
Goodnight and God bless all.

Dhirendra said...

Good evening Illango Ji,
Discipline to me is consistently keeping my focus on my expectation or analysis trajectory.
Discipline in trading to me is trade only when you feel confidence because of your information not because you know the rumor.
My experience in my three years of trading is as follows
Good: I do not overtrade, do not average out my losing position, Stop loss is my friend now

Bad: I am still doing trading on everyday, which I want to stop. Trend is still not my friend.

Ugly: I am still in a habit of putting 100% of my funds at risk.

durga said...

master,it is an elusive thing.we got to seek it in every act we do .then we will be able to apply in trading.you got to find it every day and define it to the situation.
quite analytical answers from fellow bloggers.thank for the nice koan.good night.

u.k.Raj said...

"We are what we repeatedly do. Excellence, then, is not an act, but a habit."
-Aristotle
Discipline in trading
“Selecting one single suitable trading system, plan and execute as per that system”.
Before 16th August 2010, there was no trading system and plan in my trading. Trying to execute what are all I read hear in real market. Mixing up everything like pivot, emas, support and resistance, camarilla and ORB. My trading was full of greed, fighting and fear. Net result was - fund transfer always in one way - from my savings a/c to trading a/c. Ugly part of my trading.
Sir introduced SAR from 16th August 2010 back tested by Dear mok. With out trust and consistency I followed JNSAR. Hesitation to enter and right time, entering 50 points and 75 after sar hit, not part booking and not holding position till SAR. Net result was - fund transferred in both ways - from and to my savings a/c. Bad part of my trading.
It took more than six month to get confidence and consistence to follow JNSAR. Nowadays pre entered SAR value orders in my trading software. Pre entered part booking orders. Very importantly at least one lot I am holding till SAR. Now my trading is without greed, fighting and fear. But I am struggling to reenter in the direction of JNSAR and lot to learn from sir. Net result is - fund transfer in one way - from my trading a/c to savings a/c. Good part of my trading.
Now JNSAR trading is one of my habits.

San said...

Disciplined trading is the most important stage in a traders career But sadly many doesn't make it. Most of them are fooled by the randomness of the market before they reach there.

My bad days were when i was trading without a system. The losses were big.
System trading is also difficult if you don't understand the randomness of the market. One has to select a system which is suitable for his or her personality.

Thank you Sir for your guidance

Post a Comment