System Hopping and trading

psychology
 One problem that we have noticed among the learners is that the keep on
hopping from one system to another
 The major reason for system hopping is that a person is not aware about
the strategy and also emotionally traders when they learn something ,
their expectation to come out profitable each day increases even further
 The major reason for system hopping is that a person is not aware about
the strategy and also emotionally traders when they learn something ,
their expectation to come out profitable each day increases even further
 Habib this turns out to be the biggest enemy of any trader
 In the search of a perfect trading system a trader just keeps on hopping
and stays in a vicious cycle
 And his fourth even though you have learnt quite a few things I want you
to do a simple mechanical exercise
How to avoided it ?

 In order to avoid it , we will follow a simple

thing
 Simple thing will ensure that you put least
effort’s in analysing , and hence forth you
have least expectations from the trading
exercise.
 Further , simple things are easy to do in the
longer run
“ 20 Day Exercise ’’
 Pick one stock WHO’S RSI on a daily TF is above 60 , that you’re
going to be trading over the next 20 days ( you’re suggested to do
this , until unless you have a profitable month with your active
trading strategy )
 In case a stocks RSI FALLS BELOW 60 ON A DAILY TIMEFRAME ,
then you can move to another
 Focus on Opening Candle Breakout on a 5 minutes TF
 Wait for candle to close above / below the hgh / low of opening 5
minuets candle
 EXIT – “ Half qty , exit at 1:1 , and remaining let i t be open till day
end by movig the stop loss to entry / cost “
 Active trade management – “ learning to book trailing stop loss ,
partial profit booking , risk management , position sizing )
TRADING JOURNAL
WHY THIS EXERCISE ?

 Trading journal will reveal a lot about your

emotions when you trade with a system , and
when you trade with your learning.
 For the next 15 day’s you’ll be only doing
random trading , and then you’ll be trading a
strategy along with this random trading and
you’ll journal the difference in your emotion’s
OUTCOME

 You’ll learn trade management

 You’ll learn to accept loss.
 Stop overtrading
 You’ll learn how to punch orders in the live
market
 Once your risk is managed , you;ll be ble to
take a trade