It has been around 1 year since I started trading Equities, Future n Options and Derivatives. I had kept aside some capital to start with my trading journey. Initially, I saw both profits and loss, but the profit amount was a bit on the higher side. This kept me moving with my trading journey and explore currencies market as well.
Soon, my loss component in FnO trading of Indices was higher, which made me step away from it and fully concentrate on Currency Derivative trading, to use it as a source to recover losses encountered in the FnO segment. Soon, with better risk management, I was able to take small steps and cover up the losses of FnO and start building profits.
Alas, the profits were not that high yet, and came the Covid-19, which shattered all markets. The currency trades went against my profits and I was again into losses, more than what I had seen previously. It was time to take some break, sit back and relax before entering again into the trading.
With my journey still in progress to recover my losses, more patiently and diligently, I have made some rules that I would want to follow strictly to avoid losses these huge and recover the past ones.
- Fixed Capital Amount- There have been several instances where I was out of margin and added more funds to meet the margin requirements or get into trades that looked more profitable. But, what happened was that I not only lost what was already in there, I even was losing the newly added capital.
Hence, I plan to only reserve a small amount for trading every month and add it under my trading account. Also, strictly follow not to add more funds to get into new trades. - Strictly Follow Stop-loss- No matter if the trade turns out to be profitable in a later stage. I need to strictly follow a stop-loss and exit trades before its too late and they become Zero. Once exited a trade, I don't want to keep looking back into it and repenting in case it turned out to be a profitable one later.
- Learn Technical Analysis- Till now I have been following multiple traders and executing trades which were common from multiple sources and targets were high. But, moving forward, I plan to start learning Technical Analysis more religiously and plan entries and exists in a better manner.
These were my learnings. Do you also have some learnings that you feel like sharing? Let me know in the comments below.