Underperforming recently? These are 2 mistakes you need to stop making right now.

Bad Market Timing & STS Mismatch

So the market is no longer a one-way straight-up highway to promise land.

Which was for long periods last year (periods marked on the chart).

And whatever you bought whenever during those periods, went rockets (rocket 🚀emoji check) along the highway. Yeah?

Well! Not anymore.

Right now, it’s an arduous journey to the top of the mountain.

The road has been bumpy and curved with ups and downs.

There is stomach upset, fatigue, and some occasional puking too.

So it’s natural that your journey has been rough.

But it could certainly have been better.

As a swing trader, if you are underperforming recently,

These are two mistakes that you should stop doing right now.

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Wrong Timing:

Mistake numero UNO.

Trading against the short-term market direction.

Trading when the market momentum is decreasing (and negative).

This will chop you to bits.

Below is a snapshot of my trading journal.

Notice that I strung a series of wins when the Market momentum was increasing and positive.

The next 2 losses were in trades made when the market momentum started topping.

N500 vs Market Momentum:

The image below shows the Nifty500 chart showing my trades marked.

Below it is the Homma ADX momentum indicator.

You will notice that the winning trades were initiated when the market momentum had bottomed (or started to bottom) before rising. In contrast, the losing trades were initiated when the marked momentum was topping (before going downhill).

You can read more on “Timing Market Momentum” here: (click the link to the article)

Also, watch a detailed video on the same topic here. (click the link to the video)

So, to conclude:

To improve your performance you have to improve your timing of the market.

Initiate longs (swing trade) only when the momentum is starting to rise.

Avoid longs when the momentum is sideways after a run-up.

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Setup-Timeframe-Stoploss Mismatch:

Too complicated a title?

Apologies. I made it up.

And I couldn't come up with anything better.

The title might seem complicated but the problem is only slightly complex.

Let me explain.

This is the second most important mistake you might be making.

First, there is a mismatch in the setup that you chose as a swing trader.

Example: Choosing a Big Base Breakout setup with no tight area.

This is a setup-timeframe mismatch.

Why? Because swing trades demand a tighter area. A tighter area presents a valid pivot that allows you to have a smaller stoploss (3-5%).

And because of this mismatch, there is a mismatch in the Stoploss you are using.

Below is a real trade of one of our HPA community members on RVNL.

Entry = PEAK (like honestly peak)

Setup = Big Base Breakout

Is a tight area present? NO

Therefore, Ideal for POSITIONAL Trade only.

But the trade that was taken was a swing trade,

With a Stoploss = 5%

This, my friend, is a Setup-Timeframe-Stoploss mismatch.

Had this trade been a positional one, with a Stoploss of 8–10% (and size adjusted accordingly), it would have been a beauty.

So,

If you are a swing trader:

Choose the correct setup. Look for a tight area. And set your Stoploss accordingly

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That’s all for today.

I will leave you with a couple of advice.

1. Use a trade Journal. And periodically analyze your trades.

   (I use a free online journal https://app.stonkjournal.com/)

2. Be methodical and data-oriented.

   Yes, people out there will romanticize trading to “feels” and ART and all kinds of abstract immeasurable obscurities.

   But if you are a beginner, you cannot reach that level without going through a rigorous method-oriented and scientific trading process.

3. Question everything (Start by questioning what you just read in this article).

& lastly, trust the process every day.

That is exactly what we do in Homma Private Access (HPA)

I show my data-oriented, easy-to-follow trading system day in and day out to >200 traders.

While also guiding the HPA members to build their own personal trading system.

Details of HPA and my beginners masterclass are below:

1. Join the Sakatas Homma TA masterclass for beginners:

   A complete course containing 8 Hourly sessions. Once a year.

   To register for the next live masterclass, please fill out this form.

   Watch the 1st session of the Autumn 2023 masterclass.

   To access the full 8 sessions, contact us via WhatsApp @ 9481506784

2. Homma Private Access membership:

   HPA is a subscription-based educational service (on WhatsApp). Benefits include:

   1. Daily Market Breadth, Momentum, Sector Rotation, and Relative Strength Update.

   2. Access to all my scanners including the BBB (buy before breakouts) scanner, and the Homma Khela Hobe 2.0 scanner.

   3. Access to my proprietary Breadth-Momentum-Relative Strength & Sector Rotation dashboards.

   4. Access to my Trading view indicators: Homma Khela Hobe, Buy before Breakouts (BBB), Homma Endgame, etc.

   5. Access to live Telegram alerts to Homma Khela Hobe, Homma Pullback, and TGP scanners.

   6. HPA Weekly: Hourly weekend deep dives and Q&A.

   7. 1-year access to The Technical Take premium.

   8. Live alerts to high-risk-reward setups breaking out.

   9. Live updates on my portfolio and the trading setup rationale.

   10. Access to my high probability watchlist.

Yearly membership of 15000/- INR only.

UPI payment & WhatsApp @ 9481506784.

Yours

Sakatas “Time the market” Homma.

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