A plunge in Indian Stock market

[amitrandive]

Yes you are right....I am not looking much at the charts...and during that moment's order flow may be strong on buy side for that stock...and it may go up in that very time frame....but i am not seeing the big picture to have a logical entries..

So order flow is getting me into a stock and i am seeing a profit for that minute or 2....But than the over all big time frame comes into pictures which is down and i forgo my profits and the stock slides in negative territory...
and on losses i tend not to BOOK...another blunder...

One question to you: Are you looking at 2-3 days of charts on a 5 Mins TF...it seems only that way we can make rational decisions...

I most of the time only see that very 5 mins to 1 min chart and get caught on wrong side on higher TF..

Daily Chart of Reliance,

How can you go long in this stock with a big size.Continuously downward sloping?
Stocks in downtrend are always short on rallies.

 

[Riskyman]

Yes you are right....I am not looking much at the charts....

Just out of curiosity... I see you but 200-300 shares so im assuming this is in the cash segment. Question is how do you short in the cash segment?? Unless its a margin trade. Am I missing something here?

 

[sspms2002]

Just out of curiosity... I see you but 200-300 shares so im assuming this is in the cash segment. Question is how do you short in the cash segment?? Unless its a margin trade. Am I missing something here?

Hi Riskyman...yes it is in Cash segment..equities..
The account is margin account...but what i meant to say was that i only use the money which i have deposited in my brokerage account and do not use any extra money/leverage which most brokers provide.....

 

[sspms2002]

Yes , I do look at the previous 2-3 days of price action and also the daily charts.

How do you decide the order flow?Is it on the basis of bid/ask quotes?
If it is ,those quotes can change in a fraction of a second.Also does your broker provide you more than the best 5 bid/ask quotes?

Yes it is based on level 2 data...my broker provides me with best 5 bid and offer as given by others too..

I get a feel of the pressure when i continuously watch the Level 2 for a particular stock..

But when i flip stocks regularly..i guess it does not help as i do not get to see the over all picture for the stock...

But today as you suggested i tried to look at the charts and it helped me not getting into a few bad positions...

 

[Riskyman]

Hi Riskyman...i only use the money which i have deposited in my brokerage account and do not use any extra money/leverage which most brokers provide.....

Good to hear that. I have some great experience Margin trading. Made over 2 lakhs in a 20 minutes and have lost 2 lakhs in under 20 minutes. Now i tell people to stay away from Margin trades unless they are damn sure of what they are doing.

Why not trade in futures? At least, you are not forced to cover your positions by 3:15 pm...

 

[Riskyman]

But today as you suggested i tried to look at the charts and it helped me not getting into a few bad positions...

Sorry to butt in to your conversation with someone else. Why not just download amibroker. Its free. And you can buy a data feed for as little as 800/- a month. You have have chart on all time frames and that will help your trades immensely. Charts/Pictures speak a thousand words and they are anytime better than watching 5 best ask/bids.

 

[amitrandive]

Yes it is based on level 2 data...my broker provides me with best 5 bid and offer as given by others too..

I get a feel of the pressure when i continuously watch the Level 2 for a particular stock..

But when i flip stocks regularly..i guess it does not help as i do not get to see the over all picture for the stock...

But today as you suggested i tried to look at the charts and it helped me not getting into a few bad positions...

Level 2 data is most useful for scalping and freely available for around 50 quotes for US markets.In India I do not know of any broker who provides that kind of data.

Also Level 2 data can be easily manipulated by Algo's and HFT traders by putting in phantom orders(fake orders)which are easily cancelled by the press of button.

In US Markets there are many brokers who even provide Level 3 data.
But the main question is that ,has it really helped Traders?

Read the book , "Flash Boys " by Michael Lewis about manipulation of quotes in the US Markets.

http://www.amazon.in/Flash-Boys-All...scsubtag=0ba99f4f-abd2-c4c9-825d-0000119c0c16

 

[sspms2002]

Sorry to butt in to your conversation with someone else. Why not just download amibroker. Its free. And you can buy a data feed for as little as 800/- a month. You have have chart on all time frames and that will help your trades immensely. Charts/Pictures speak a thousand words and they are anytime better than watching 5 best ask/bids.

Thanks Riskyman for the advice...i presently have an trading account with IB..which itself provides very good charting and on multiple time frames..

Its just that i wanted to trade on first hand information thats why i was not using charts till now..but now i think i need to/will look at combination of both Charts and Order flow...

 

[sspms2002]

Level 2 data is most useful for scalping and freely available for around 50 quotes for US markets.In India I do not know of any broker who provides that kind of data.

Also Level 2 data can be easily manipulated by Algo's and HFT traders by putting in phantom orders(fake orders)which are easily cancelled by the press of button.

In US Markets there are many brokers who even provide Level 3 data.
But the main question is that ,has it really helped Traders?

Read the book , "Flash Boys " by Michael Lewis about manipulation of quotes in the US Markets.

http://www.amazon.in/Flash-Boys-All...scsubtag=0ba99f4f-abd2-c4c9-825d-0000119c0c16

You are just at my nerve..i feel i can scalp small profits easily..based on Level 2 ..But now i am in a mindset to let the profits runs...and thats where the dilemma has come...

on level 2..scalp would be profitable...but i could be in a wrong position as per the charts...

e.g. for Level 2 data is showing that there is high pressure on up side..and i go long...but on a 5 min charts...the momentum may be down...so i can see the scalping profit but let it go as i now look to let profits run rather than book small..

I guess i will try to enter based on 5 min/30 min charts direction and than utilize the order flow along with it..

 

[sspms2002]

Today was an Ok day as i was down on last few days and it was hitting my mindset and i just wanted to close green today...


I started with LIC Housing fin...i took 200 at open and then added 200 more at just Rs 1 up...it went Rs 3 in my favour...but it started retreating...

I booked around 700 on it after seeing 1400+...

Then i just watched and i was finding ti difficult to find good stocks today as stocks were choppy and moving both ways.....Got caught there in a few stocks but hit out swiftly..

At near end i took 300 LONG in ZEEL...it was showing an open profit of Rs 350..
I have taken a profitable position on delivery for first time...last few months i had always taken losing position on delivery.


My Target for ZEEL would be 359 and stop loss at 349...My BUY price is 351.50...Lets see how it turns out..


Stock Traded: ZEEL, LIC HSG FIN...etc
P&L : Green 460 after commissions