#1 Traders feels that any amount of Capital is sufficient to trade.
Disadvantages: In the absence of sufficient trading capital, traders may not be able to take all the recommended trades and end up making losses by missing profitable calls.
Advantages : When Traders know about the capital allocation they are prepared to plan the risk amount and have the ability to take all the 10 calls. This increases the probability of success.
#2 Requirement of frequent calls.
Disadvantages: Low quality trades and very less probability of hitting the target and more brokerage generation. Risk reward ratio not at all favorable.
Advantages : Big money is made by giving the right calls and holding. If a call is held for more than 3-4 days then the profit target can be achieved. (Suppose we take 10 trades the maximum loss that we incur per trade is Re1 and min profit Rs2.Now if 6 calls are wrong and 4 are in profit the net profit is (-6+8)=2. Thats with a 40% Hit Ratio.
#3 Traders not maintaining the stop with the expectations that markets will soon reverse from in their favor.
Disadvantages: Will lead to development of bad habits of not cutting losses. This can lead to erosion of capital.
Advantages : The principle tells us that the stop exits.Hence, not maintaining stop can prevent from erosion of capital.
#4 Traders some times feels that stop loss is too big to hold the calls.
Disadvantages: Traders may feel that risk is big because of big stop exit, and may not take good trades
Advantages : No unnecessary loss due to wrong stop as per intraday levels. Better hit ratio in calls.
#5 Traders exits on its own and thus not hold or wait for exits on call given by TheNIFTYFeed Research.
Disadvantages: Traders earns small profit and exit in small loss and does not trade as per right entry and exit. Thus miss out on big profits.
Advantages : TheNIFTYFeed team may experienced that big profit can be made by holding trade for more than 5-6 days and with right stop loss capital will also remain secured. The purpose of the Technical Levels Ladder is to give a trader all the
I’m only rich because I know when I’m wrong… I basically have survived by recognizing my mistakes. – George Soros