Made a loss of Rs.141 (LP)

Made a loss of Rs.1297

Made a loss of Rs.1267 (LPLLLPPL)

I must say it was a very exciting day. The market was flat for the whole day but I got 3 out of 8 trades right. Some were whipsaws and some went the other way.

In one of the trades the long entry bar was an Up outside bar and it confused me as to what should the stop loss be. I kept it as the low of the outside bar.

With Aban Lloyd my stop loss was skipped as the there was a gap down bar. I lost around Rs.1150 in that single trade. Among my profit ones, quantity for most of them were partially filled, so my profit was less. No excuses just retrospection!!!

Made a profit of Rs.557 (P)

The above trade was the solitary reaper for the day. Missed a couple of good trades, one was Renuka sugar which didnt retrace at all and other was Sesa Goa. Too fast for me.

Made a loss of Rs.974 (PPL)

Got scared and didn't follow the SBI trade till the end. I thought the market is turning and chickened out.

Al Brooks's book

I am reading Al brook's book to fine tune my entry. Also, watching his webinars. I will be doing that this whole weekend. Then I would be paper trading scalping until I fully understand. I would rather paper trade on Options (Nifty Put/Call). Just take either one put or call and keep buying or selling for scalping.

Made a loss of Rs.638 (L)

Nothing much I could have done.

Made a profit of Rs.613 (PP)

The first trade was breakeven because my qty was not filled. Both the trades worked though.

Made a profit of Rs.570 (PPL)

The loss trade was foolishness on my part. I waited for 3 hours for the stop loss to be hit. The scrip just went flat (barb wire) for 3 hours. I should have exited and taken other opportunities.

I will take care of that in future.

Probability and Success rate

Just some food for thought. If a trading system has to be successful, it has to atleast have a success rate for 70-75%. So for wave 3 trading system to deliver a fortune, in a month approx. there need to be 100 trades and 75 out of the 100 trades should be gainers.
For this month, i have 4 out of 11 trades which are gainers , so doing the math gives me 71 gainers and only 18 losers left. Also, given the fact that i play with a risk of Rs.600, if 75% success rate gets delivered I will be playing with Rs.60,000 (100 x Rs.600) and my gainers would be Rs. 45,000 (75 x Rs.600) and losers would be Rs.15,000 (25 x Rs.600). So net profit in a month would be Rs.30,000.

That is my monthly target.

Made a loss of Rs.870 (LLP)

Got three trades and two were losses. There were some setups coming up aftter 3.15pm some of them didn't complete and some were too risky as the end of the day was near.

The stuff in the parenthesis in the title are the Loss and Profits in abbreviated form.

Made a profit of Rs.216 (PLP)

Anil took a short intraday call for Reliance Industries and got a profit of Rs.700. I made 2 calls one was a profit and other a loss. The loss was 1000 and profit was 580. I miscalculated the number of shares for the loss scrip. I will take care of this in future.

Due to Anil's trade I escaped with a meagre profit but that trade was not according to wave3 rules. My short term goal is to increase the number of trades (max to 5) so that the sample size is considerable and the odds of winning over a large sample size will be higher.

Made a loss of Rs.1042 (L)

I shorted unitech at the vertical line above and was stopped out. Nothing wrong with the trade except that it was out of the trend channel parallel lines.

No Trading - Data feed server down Bought Market DP sub

I went for the Market DP subscription for 1999/month for exploration mode. I hope it works well from tomorrow. The guy from nselivecharts.com has his ISP down and doesn't respond at all.

No Trading - Data feed server down

Today was a boring day as the real time data feed server was down and I could not trade. I hope it is resolved by tomorrow. Meanwhile I have incorporated candlestick patterns in the wave 3 trading. They are not a part of the buying decision but an add-on to show whether any candle pattern exists for the entry signal. I have to get back to reading Trading in the zone book.

Made a loss of Rs.2660 (LLPL)

I didnt lack discipline the whole day and losses are part of the game. I wouldn't have done anything different in the loss trades. Let's see how the day unfolds tomorrow.

Made a profit of Rs.970 (P)

I waited for the whole day to get one setup. Scrip - Idea -13.39. Perfect wave 3 setup. There were other boundary calls which I didnt take. I should only take wave 3's with 61.8-78.2 retracement. I sticked to that the whole day. Need to be disciplined like this. I should continue reading the rest of the trading in the zone book.

Quest for a million begins

I cracked some numbers based on the compounding calculations and came to the conclusion that at the rate of 100%pa it takes an initial investment of Rs.4,00,000 a tenure of 4 years to compound to Rs.100,00,000 (1 Crore). Ofcourse there is no withdrawal of profit after every year and the profit is rolled into the capital. What I feel is if I keep myself disciplined, have a winning attitude, not bogged down by the intermittent losses and stick to my Wave3 trading system I can achieve that goal. I will be updating the progress on the right hand side box "Running total for a million" and "Trading sessions" everyday.

Nifty futures and Trading in the Zone by Mark Douglas

I started trading Nifty futures but identifying elliott waves and its numerous extensions and corrections certainly takes a lot of time. I traded based on the basic knowledge of elliott waves and found it difficult to trade futures. Also, the commissions and brokerages are high for intraday nifty futures. So I decided to go with trading wave 3 (the longest wave) for 1:1 risk in the beginning and then expand on the trailing stop losses technique when I get enough practise. I am reading "Trading in the Zone" right now and trying to understand the psychological aspects of trading. As they say, it is 80% emotional, money management and 20% trading system. So I need to stress more on the psychological barrier of risk management and losing trades.

For now, I will be trading Wave 3 on individual equity stocks for quite some time with lots of discipline. I hope I stick to my plan for long. After I get well versed with that, I plan to expand into trading the actual elliott waves and wedges. This is pure price action stuff and there is no need of any indicators. Indicators are liars!!!

Read a nice book on Support and resistance

Today I read a nice book on support and resistance named "Technical analysis and stock market profits" by Richard Schabacker. Chapter IX is fantastic. I will try to use it on weekly and then intermediate (daily charts) and not trade so soon but I will watch it.