Know When To Stop Trading !!!!🎯When to Stop Trading?
We have spoken up to now about when to stop trading on a particular day. However, it is important to know if you should stop trading altogether – in other words, quit. It is not simple to find the right time to quit because often people quit when the going gets tough, but this may be just before success arrives. However, there are times when quitting is important:
--You can’t see any possible positive outcome for a trading
--You constantly feel overwhelmed and negative about your trading
--Trading takes preference over your health or your family
--Your financial situation is negatively impacted by your trading so that your family is suffering or your mental health is impacted.
These are all red flags. At a minimum, take a break from trading in order to rest, relax and recharge. Save up some trading capital, assess your goals and reflect on your failures and successes. Use this to formulate a new trading strategy, while working on your perspective and objectivity. You may then be ready to try again. The markets are certainly not going anywhere if you need a break and quitting does not need to be forever.
Tutorial
How to trade based on Zones?This is an example of how I mark my charts while taking trades.
Defensive trading strategies are very good for sideways markets. The indices around the world are sideways and not making any fresh highs or lows.
The principle that I have explained on the charts is ideal for protecting your capital and has a higher chance of succeeding. When the price moves to either of the extremes, you should look at taking a trade on the opposite side.
This means that once the price approaches the higher boundary, you should be looking at selling and when the price approaches the lower boundary, you should look at buying.
This does not mean that you blindly set that marked price as the entry point, but you should wait for an extreme to be created and then take a trade only after the confirmation of your bias. Trading such markets requires patience and entries should only be made on the boundaries. If you enter a trade in any direction in the middle of the zone, you are likely to get trapped. What I mean by trapped is that your stop loss will become larger and probabilities are starting to move against you.
Trade only with capital you are willing to lose and maintain proper money management.
Feel free to ask questions, if you have any! :)
Intraday Triangle Breakout on BankNiftyExample of a bullish symmetric triangle breakout on BankNifty as observed on the 15 min charts.
As the price moves between the converging trendlines, the point closest to the tip of the triangle, presents a good entry point to go long. The stop loss for the trade was the previous swing low and the target was the day's high. Giving a good 80-90 point profit, with a risk of only 30 points. 3:1 RR ratio.