Change yourself, change your result, says market trader Shubham Agarwal

F&O Cues

• Traders must change their habits, not just strategies, for better results
• Analyze past trades, spot loss patterns, and set rules to prevent repeat errors.
• Reduce losses, backtest strategies, and build a disciplined daily routine.

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New year brings hope, energy, and the feeling that something good is about to happen. This hope is what keeps us going through difficult phases of life. In trading, it's no different.

Some traders are just starting out, full of optimism. Others are facing difficult initial months, getting hit by the market more often than not, yet hope keeps them going, hope that everything will change in the near term.

Then there's a third kind of trader. Someone who has been in the market for years, taking losses month after month, yet still hopeful. Hopeful that one day they'll discover that one strategy, one indicator, one algo, one mentor that will change everything. These traders have given the market their time, energy, emotions, and soul. After every painful session, they go to bed hoping tomorrow will be different.

Traders change strategies, asset classes, and study methods over the years. They go through courses, seminars, even consult astrologers to change their fate. However, all this effort doesn't change the results. Why? Because traders forget to change the most important thing: themselves.

It's easier said than done. To change years of habits and subconscious patterns, you need to step aside and get away from the market. Stopping is never easy. But if you want different results, you must do it.

First, pull up your last year's performance. You need to realize how deep the situation is. Then find out how you lose money. What are your patterns? Revenge trading after losses? Overtrading on winning days? Holding losers too long? While going through your trades, you'll figure this out. Develop rules to avoid these patterns. Remember, in trading you focus on reducing losses, not maximizing profits.

During this process, start exercising. Physical movement rewires the brain. New neural pathways form. Old trading patterns break.

Then come to that one study you know best. Price and OI relationship, PCR, IV, Option OI, anything you're comfortable with. Do proper backtesting for at least six months of historical data. Use hedged strategies: debit strategies, credit strategies, option writing, whatever you know best. Why hedged? It helps control losses. Once you know your maximum loss, you feel relaxed and can take right decisions.

After backtesting, understand your win percentage. You need at least 65% win ratio with 1:2 risk reward. Then do front testing for at least a month. Now you're ready for real trading.

Remember, do not predict the market, only ride it by analyzing derivatives data. This year through these articles, we'll learn different derivatives data and strategies that may be useful in your trading journey.

If you're still not motivated, then for 10 minutes just remember all the psychological hardships you went through over the years. Decide for yourself that you will not let yourself feel that way again. Then build a daily routine to incorporate these processes. Even if that means only two hours a day.

So gear up and let this year become the year of a new beginning.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.