Lessons from losing almost all my trading capital



After a bit of going back and forth, I finally decided to write something about the biggest trading drawdown I have ever had. Should I share the quantum of loss? That was the question that was holding me back.
The question of expressing or not expressing often comes down to the inhibiting characteristic of the fine print and quantitative details.

I recently put a lot of constructs together to form a two step trading template in which one trading scheme, though independent of the other, acts as a precursor to the larger, more established system. Core price behaviour and basic nature of the indicator form the crux of this two step trading plan and it's one of the best plans that I have ever constructed or followed. 

Every available indicator available on Zerodha was reviewed and studied. The concepts that aligned with my psyche was put together with solid stand-alone chating tools. 

There was an element of pride involved in this, but I succomed to old falacies of not respecting market direction and holding onto the loser with the survival mindset and thus experienced my biggest Hope Trade ever. 

Letting "experts" colour my understanding of the market and thus overriding core understanding of market direction acted as the preamble to the epic loss. 

Following trades also went haywire, and further compounded the initial loss, as the survival and fightback mind kicked in. 

My mind has been in a state of flux since November, and this loss introduced an existential panic to my life and thus I am a very different person since then. I am now trying to function from the possibility of being a rule based trader and implement changes, both time tested and new. 

I have had to start afresh with borrowed capital and even as I have started to gain back a bit of the huge loss, stumbling blocks are still being encountered and being dealt with. 

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