Closed Eye trading...why you should keep your eye close and how to trade with underfunded account
Your account size should be geared to support the strategy and the markets you want to trade.
If you trade with an underfunded account it makes you afraid to take entry and you are more likely to give up after a series of losses that always happen no matter how experienced trader are you or what strategy are you using.
With an underfunded account, you are more likely to gamble...you will not take every trade as per system and you will switch off and on and this way you will deviate the plan.
For example, let's say in our Jackpot day trade. It sometimes comes with 250 points of risk. Now, 250 points mean INR 5000 to put in stake.
Let's say you have 25K accounts this is 20% of your account in this way you can wipe out in a series of 5 consecutive losses and moreover after 3 losses your broker may not allow entering the trade because of low margin or you will not find confidence either.
But if you have 1 Lakh in your account the same risk of INR 5000 now is just 5%, and it will take 20 consecutive losses to wipe out your account
You already know that with our strategy in the last 7 years its never happen that it loses money 20 consecutive times and in a sample of 20 trades in any points your chance to come out net positive is almost close to 100%.
So what could be your GOAL?
See in my childhood and your too whenever we faced any scary thing we faced it with eye closed...suddenly we thought everything is ok because we are not seeing it.
Today also I trade this way...I put the trade and closed my eyes...close my laptop and I don't see it ( I can't watch it)
You know why? because my goal is to trade the Next 20 trades...because I know in the Next 20 trades my chance of making money is almost close to certainty so I closed my eyes and never open it until I completed 20 trades.
In between trade by trade things are so scary I afraid of seeing it...I still in my childhood in this business
And I back this "Closed eye trading" strategy with adequate capital, keeps me floating even in case of consecutive losses
Now here is what you should do
1. Play the test match instead of T20 game. In a test match, a batsman mostly doesn't attempt to hit an out of the off stamp ball to avoid being out giving a catch to slip fielder. Similarly if you underfunded and you find a trade comes with risk 200 plus point...leave it and wait for next low-risk opportunity
2. Accumulate 500-800 points trading with only BNFtradingpro 2.2 and then try Jackpot trading
3. You may choose to start trading in the stock, make some 20-25K and then utilize this cash to trade jackpot
Above is the exact plan I applied 7 years back when I started trading with BNFtradingpro 2.2, after trading in the cash market for a couple of the year.
I started trading future with Index future only and believe it or not the Bank nifty strategy...ditto you have today.
Now I have enough capital to back my trading business and I use "Closed eye trading"
I have no doubt that I will also turn you a "Closed eye trader" soon
Thank you for your time