A plunge in Indian Stock market
- Thread starter sspms2002
- Start date
Then averaging gives you the flexibility of handling whipsaws, if you are sure of the direction. You can stagger your buys/sells - say buying 30% in the first trade, then buying some more at somewhat lower levels (but above the SL levels) etc.. Say, if you want to buy 1000 DLF cmp 115, you could spread your orders from 114-116, stoploss at 113 (or whatever). It's ok if only one order is executed and the scrip does not go down much, at least you are better protected, even if with smaller profits.
Edit : This will be called "adding", not "averaging".
Edit : This will be called "adding", not "averaging".
I am using IB TWS platform for trading. My Brokerage is 0.05 on buying leg.
I have plotted MACD & EMA on the charts..but when i am actually trading i am taking decisions to get into trades based on strong buying or selling based on Level 1 data.
I usually look for stocks that are having good volume and have good range..They can also be in news..
I think i am mostly looking for trending stocks or stocks that are in range and taking positions in anticipation of break outs..but on a range day , when stock does not break out soon and do multiple tests..i stop out as i donot have fixed stops..i will have to look into it more..
Your suggestions will be welcome..as i am still formulating my strategy...
I have plotted MACD & EMA on the charts..but when i am actually trading i am taking decisions to get into trades based on strong buying or selling based on Level 1 data.
I usually look for stocks that are having good volume and have good range..They can also be in news..
I think i am mostly looking for trending stocks or stocks that are in range and taking positions in anticipation of break outs..but on a range day , when stock does not break out soon and do multiple tests..i stop out as i donot have fixed stops..i will have to look into it more..
Your suggestions will be welcome..as i am still formulating my strategy...
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What are the Values you are using for EMA ?
The values depend on your trading habit. Intraday, Very short term, short term medium term, long term etc.
1) You need to have two EMA plotted. Fast & slow.
2) MACD
3) Another Indicator is RSI (Relative Strength Indicator)
4) Borllinger Bands
While MACD, RSI & Borllinger Bands are pretty standard, I would recomend 14 & 8 as values for EMA.
The simple strategy is to look when EMA cross each other. This is when you can Buy or Sell.
Study these indicators, look for patterns you can recognise easily and memmorise those patterns.
Pick one or two scrips (with good intraday volatility between High & low) and stay with that for the whole day. Do not add or change in between the trades. Study these scrips for a week or two. Paper trade with them based on the indicators I have mentioned.
You need to calm down and be patient. Filter out your earnestness to succeed and all the emotional noise you are generating.
Slowly you will know when to trade (Buy and sell). Never hesitate (you will and this is something you need to tame). Know that hesitation sometimes saves you too.
Most of the stocks may go up till around 9.30 to 10 and come down. From there the real trading starts. The price movement depends on the quality of the stock and the market sentiment about it, market trend indicated by Nifty and Sensex. American, euopean, asian markets and Value of Indian rupee against American Dollar etc. You need to keep a watch on these factors too and learn to factor them in your actions.
Check SGX (Singapore) exchange where Nify is traded at 8AM onwards and you will have some idea, how the market shall open that day.
Hope this helps you and happy deepavali.
The values depend on your trading habit. Intraday, Very short term, short term medium term, long term etc.
1) You need to have two EMA plotted. Fast & slow.
2) MACD
3) Another Indicator is RSI (Relative Strength Indicator)
4) Borllinger Bands
While MACD, RSI & Borllinger Bands are pretty standard, I would recomend 14 & 8 as values for EMA.
The simple strategy is to look when EMA cross each other. This is when you can Buy or Sell.
Study these indicators, look for patterns you can recognise easily and memmorise those patterns.
Pick one or two scrips (with good intraday volatility between High & low) and stay with that for the whole day. Do not add or change in between the trades. Study these scrips for a week or two. Paper trade with them based on the indicators I have mentioned.
You need to calm down and be patient. Filter out your earnestness to succeed and all the emotional noise you are generating.
Slowly you will know when to trade (Buy and sell). Never hesitate (you will and this is something you need to tame). Know that hesitation sometimes saves you too.
Most of the stocks may go up till around 9.30 to 10 and come down. From there the real trading starts. The price movement depends on the quality of the stock and the market sentiment about it, market trend indicated by Nifty and Sensex. American, euopean, asian markets and Value of Indian rupee against American Dollar etc. You need to keep a watch on these factors too and learn to factor them in your actions.
Check SGX (Singapore) exchange where Nify is traded at 8AM onwards and you will have some idea, how the market shall open that day.
Hope this helps you and happy deepavali.
One more thing. Once you are confident and got a good hang on the indicators and the price movement, you can start actual trading with just a couple of shares whose price is about 100/- thus the maximum you shall loose is the brokerage and taxes etc. You may not gain much during this period. But try not to loose. The more the no of winning trades, the better you shall be. The whole process of mastering may take a couple of months.
Once you are confident, you can trade more quatity or in futures.
Two things : Never put in any amount of money that you would not like to loose. Never borrow money (loans, advances etc ) for trading in stocks.
Once you are confident, you can trade more quatity or in futures.
Two things : Never put in any amount of money that you would not like to loose. Never borrow money (loans, advances etc ) for trading in stocks.
Thanks agsuresh for the valuable inputs which are required for a beginner..
I thought of Paper trading today but couldnot step away from real action..
I traded a few stocks today with the help of EMAs...it works well with Trending stocks..but in case the stock is in sideways movement and it looking for break outs..the EMA cross over is also hazy untill it actually breaks out and forms at least one candle on a 5 min chart..
By that time i just think that its too late to get into a position as i think that the Risk Reward ratio becomes high....
Also i looked at Stochastics..but they also donot concur much...Only thing that i could correlate with Stochastics is that when sideways movement is happening the STK will be tending down..and during an Up move...the STK will move from oversold regions to overbought region... Need to see the STK behaviour for multiple stocks to come to a ground..
I am trying to take less size but i am usually provoked when a huge size bid or offer occur and it is been taken away...i also buy/sell there more..but just to see that price moves back there again...
I thought of Paper trading today but couldnot step away from real action..
I traded a few stocks today with the help of EMAs...it works well with Trending stocks..but in case the stock is in sideways movement and it looking for break outs..the EMA cross over is also hazy untill it actually breaks out and forms at least one candle on a 5 min chart..
By that time i just think that its too late to get into a position as i think that the Risk Reward ratio becomes high....
Also i looked at Stochastics..but they also donot concur much...Only thing that i could correlate with Stochastics is that when sideways movement is happening the STK will be tending down..and during an Up move...the STK will move from oversold regions to overbought region... Need to see the STK behaviour for multiple stocks to come to a ground..
I am trying to take less size but i am usually provoked when a huge size bid or offer occur and it is been taken away...i also buy/sell there more..but just to see that price moves back there again...
Today's trading brief:
I started looking at TATASTEEL , BHEL , DLF , ONGC.... after a positive start of Rs 250, i moved into losses till negative 600 and then came back to positive territory an stopped there to close the day.
Stocks Traded: DLF, ONGC ,TATASTEEL , BHEL
P&L : Green 55 after commission.
I started looking at TATASTEEL , BHEL , DLF , ONGC.... after a positive start of Rs 250, i moved into losses till negative 600 and then came back to positive territory an stopped there to close the day.
Stocks Traded: DLF, ONGC ,TATASTEEL , BHEL
P&L : Green 55 after commission.
Whether you use 1 mn or 5 mn depends on how fast you can react to the changes and what is the kind of qty you are dealing and profit you would like to take in each trade.
Say for ex: if you are trading in tatasteel furture (1000 nos = 1 lot) on most days 1 or 2 rs can be taken in a matter of minutes of those ema crosses. That can be considered good fast profit. Sometimes this will give far better profits also.
But if you do not want to trade as that fast, then you should look at EOD chart with the same indicators I described and decide how the next day is going to be unless there are other factors that could change what you saw from that chart.
You are driving too fast and through everywhere which you think is an opening. Accidents are most likely to happen. Usually when kids drive past like that, we shall pray that god save them - a normal reaction of experienced drivers.
happy trading as long as capital last.
Say for ex: if you are trading in tatasteel furture (1000 nos = 1 lot) on most days 1 or 2 rs can be taken in a matter of minutes of those ema crosses. That can be considered good fast profit. Sometimes this will give far better profits also.
But if you do not want to trade as that fast, then you should look at EOD chart with the same indicators I described and decide how the next day is going to be unless there are other factors that could change what you saw from that chart.
You are driving too fast and through everywhere which you think is an opening. Accidents are most likely to happen. Usually when kids drive past like that, we shall pray that god save them - a normal reaction of experienced drivers.
happy trading as long as capital last.
Thanks agsuresh..i also think iam taking too many positions too fast..
My Mindset as of now is of Scalper..so enter quick and if the price does not move in my direction at that point , i usually stop out..
I think i need to analyze the above situation a bit more..
I have kept the capital for my Market tuition fee..so i am ok untill i am improving...
I hope it lasts my learning curve..
My Mindset as of now is of Scalper..so enter quick and if the price does not move in my direction at that point , i usually stop out..
I think i need to analyze the above situation a bit more..
I have kept the capital for my Market tuition fee..so i am ok untill i am improving...
I hope it lasts my learning curve..
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Hi,
I am also new to trading, at present in nursery class. But I am doing paper trades on TISCO with the help of icicidirect using 2G tab.......height of obsolence.......
Anyway this has been a different kind of experience because my tab updates every 1m in real time I assume it can be 2m +/- and I am missing the real time action. However I have been able to make paper profit as my strategy is to short on pullback and exit. My target is to get 0.50p per share. I've applied for opening a/c with RKSV & ZERODHA, and hope to start trading soon after.
Well as a complete novice, and what I understand from your posts, I agree with "agsuresh" that you're driving a bit recklessly; you should concentrate on one stock; get a Indian broker. The basic idea is to be independent and earn money. Correct me if I am wrong.
I am also looking for a mentor who can really guide and steer me through.
I am also new to trading, at present in nursery class. But I am doing paper trades on TISCO with the help of icicidirect using 2G tab.......height of obsolence.......
Anyway this has been a different kind of experience because my tab updates every 1m in real time I assume it can be 2m +/- and I am missing the real time action. However I have been able to make paper profit as my strategy is to short on pullback and exit. My target is to get 0.50p per share. I've applied for opening a/c with RKSV & ZERODHA, and hope to start trading soon after.
Well as a complete novice, and what I understand from your posts, I agree with "agsuresh" that you're driving a bit recklessly; you should concentrate on one stock; get a Indian broker. The basic idea is to be independent and earn money. Correct me if I am wrong.
I am also looking for a mentor who can really guide and steer me through.