A plunge in Indian Stock market

[throwawayacc123]

Today was a good trading day for me. I was disciplined and little research over weekend also helped me in getting perspective about different stocks.

I opened by having a LONG position of 300 in CIPLA at 683..The stock had not moved much compared to its counterparts and i was expecting it to move good and reach 700 level..

It started going up after retesting 682- 683 price level multiple times..

It moved 3-4 Rs in favour and then starting pull back..It was difficult to hold as there was urge to book profits based on some of my previous exp.

But i some how had patience till 690 level...then when it started moving in 687- 690 range..i booked at 690.

I made around Rs 2100 in that trade.

But indeed i should have had more patience or at least should have covered on half the size..As the stock went on to reach 700 level and then breach it and close at 716 by EOD.

I guess i could only book 30% of the move...that was very bad and i am really frustrated and looking at ways on how to optimize the exits..

Then i took short position in ZEEL at 345 level and booked around Rs 660 at around 342 price..

I also took a LONG in PFC but booked small as it was then not moving as much. I booked around Rs 300 in it.

The Good part about today was that i took position in the prevailing direction of the trend.

Stocks Traded: ZEEL , CIPLA , PFC
P&L : Green 3056 after commissions

Lessons learnt: Let the profits run..

I normally don't come in here to give advice to anybody, but i m seeing that you are making a earnest effort to learn. Below is a chart of cipla and as to why it moved crazy today...

http://prntscr.com/6brk3y

It has all the reasons to understand why it moved that way. But you have to put in the effort to look for it and understand.If i tell you right away you will not understand not appreciate the reason behind the move.

Some pointers for you.

1. Learn to trade PA on a clean chart. GET RID OF ALL INDICATORS.
2. Let profits run mantra is not suitable for intraday. There are many many trouble areas on intraday timeframes. you must learn to identify them and exit at the trouble areas.CIPLA ran today because it did not have any trouble areas. This will not be the case everyday. Most if your losses are because you ran into trouble areas which are easily seen on the charts. But i will let you figure it out.

I can tell you this , you have a very long and difficult journey ahead of you. Don't let a few good trades get to your head and think you will be consistent going forward.

Work harder...:thumb:

 

[sspms2002]

I normally don't come in here to give advice to anybody, but i m seeing that you are making a earnest effort to learn. Below is a chart of cipla and as to why it moved crazy today...

http://prntscr.com/6brk3y

It has all the reasons to understand why it moved that way. But you have to put in the effort to look for it and understand.If i tell you right away you will not understand not appreciate the reason behind the move.

Some pointers for you.

1. Learn to trade PA on a clean chart. GET RID OF ALL INDICATORS.
2. Let profits run mantra is not suitable for intraday. There are many many trouble areas on intraday timeframes. you must learn to identify them and exit at the trouble areas.CIPLA ran today because it did not have any trouble areas. This will not be the case everyday. Most if your losses are because you ran into trouble areas which are easily seen on the charts. But i will let you figure it out.

I can tell you this , you have a very long and difficult journey ahead of you. Don't let a few good trades get to your head and think you will be consistent going forward.

Work harder...:thumb:

Thanks a lot throwawayacc123... words of guidance and inspiration from Seniors helps a lot in boosting the confidence and i know that seniors can guide me but any spoon feeding will not help me in long term..

I will try to analyze the chart...Upfront i see that a little Higher time frame helps in smoothening the decision..

Also you rightly said there is no alternative to working hard ... and it drives you more when you are working hard for yourself rather than others(corporates)...

 

[onlinegtrash]

just curious... what happened in Cipla today? why such a rally? any special events? is it expected to rally today?

 

[sspms2002]

just curious... what happened in Cipla today? why such a rally? any special events? is it expected to rally today?

None that I know of...I only saw that it was up from last 2 sessions and had gained momentum and today it was not going below 682 level...i think 700 number would also be in market players psychology too...


I think there would be some news around it too...

Strangely , Market experts including Mr Sukhani had given a BUY call on it after markets hrs...I now see that why i used to go into losses after i relied on some of the market experts advice...There is 50 -50 chance of it moving up tomorrow..as after today's big gain it might correct itself tomorrow..

 

[sspms2002]

Today was a mixed day of trading. The second half kind of spoiled the work of first half of the day.

I opened with a SHORT Position in CIPLA but realized that it still is strong and doesnot want to go down yet..i closed position with a loss of Rs400.

Then i switched to TVS Motors , it had a gap opening of around 14-15 rs.
I was looking to short it as i was expecting it to fill some of the gap..But it also didn't wanted to pierce the gap..or to say the GAP was acting as a support area for it.. I reversed the position and took LONG 400 shares at 285...It started climbing slowly..

Again same feeling as yesterday..it was difficult to know where to book..till 290 it kind of smooth ...but then it started moving between 287--290...i kind of held it there ..once it broke 290 i booked at the next stoppage...at 292..

I booked around Rs 2800 in that trade..and i was happy..

I left trading then so see in afternoon...

i started looking at last hr...and TVS motors was still consolidating at 294 area..but as it was last hr i was expecting volume to come to push it to 300..

In that frame of mind i took a few LONG positions , but it kind of moved in range and i had to incur loss of around 800..

I also saw ADANIENT..i was the same story here..after being up it was kind of consolidating and trying to push up...I took LONG positions it kind of held for some time ..and just at the last 5 min it started a little down move and i incurred another loss of around 1000..

Stocks Traded: CIPLA , TVS MOTORS , ADANIENT
P&L : Green 680 after commissions

Lessons Learnt: Reduce size if trading stock which already had given
move..so as to protect against any whiplashes.
Money saved from losses is equivalent to Money gained..

 

[sspms2002]

Hey Seniors...

I wanted to know your feedback on one of my problems:

I usually get conservative after i make profits and i let go many good trades where easy money could have been made just because i already made some little decent money..

But on Other hand...when i make losses i get aggressive..tend to revenge the market to make back by money...

I feel the thinking pattern is just reverse , or is it normal? How to optimize it?

 

[timepass]

Hey Seniors...

I wanted to know your feedback on one of my problems:

I usually get conservative after i make profits and i let go many good trades where easy money could have been made just because i already made some little decent money..

But on Other hand...when i make losses i get aggressive..tend to revenge the market to make back by money...

I feel the thinking pattern is just reverse , or is it normal? How to optimize it?

This is normal, would take years to not let the profits/losses affect your trading. Nothing wrong in cooling off after a profitable trade. Better to welcome it. Also practice cooling off after a losing trade. Sitting it out is one of the biggest mental hurdles to overcome in day trading.

 

[sspms2002]

Some more of my personnel stock picks These are just daily graphs to get a general feel of the direction and no recommendations as such to others.

Having graphs in one place will help me in picking/looking right stocks easily.

ASIANPAINTS

RALLIS INDIA

KAJARIA CERAMICS

WIPRO

HAVELLS INDIA

CESC

MARICO

ICICIBANK

 

[throwawayacc123]

Today was a mixed day of trading. The second half kind of spoiled the work of first half of the day.

I opened with a SHORT Position in CIPLA but realized that it still is strong and doesnot want to go down yet..i closed position with a loss of Rs400.

Then i switched to TVS Motors , it had a gap opening of around 14-15 rs.
I was looking to short it as i was expecting it to fill some of the gap..But it also didn't wanted to pierce the gap..or to say the GAP was acting as a support area for it.. I reversed the position and took LONG 400 shares at 285...It started climbing slowly..

Again same feeling as yesterday..it was difficult to know where to book..till 290 it kind of smooth ...but then it started moving between 287--290...i kind of held it there ..once it broke 290 i booked at the next stoppage...at 292..

I booked around Rs 2800 in that trade..and i was happy..

I left trading then so see in afternoon...

i started looking at last hr...and TVS motors was still consolidating at 294 area..but as it was last hr i was expecting volume to come to push it to 300..

In that frame of mind i took a few LONG positions , but it kind of moved in range and i had to incur loss of around 800..

I also saw ADANIENT..i was the same story here..after being up it was kind of consolidating and trying to push up...I took LONG positions it kind of held for some time ..and just at the last 5 min it started a little down move and i incurred another loss of around 1000..

Stocks Traded: CIPLA , TVS MOTORS , ADANIENT
P&L : Green 680 after commissions

Lessons Learnt: Reduce size if trading stock which already had given
move..so as to protect against any whiplashes.
Money saved from losses is equivalent to Money gained..

From what i am reading about your experiences. Below are some points you should consider

1. firstly you have no edge and a trading plan. If you don't have a edge and trading plan there is no way you will be consistent. you will get stuck in an endless cycle of breakeven and losses.

2. Secondly you are trading for the sake of trading and your decision are based on your "feelings" as to where prices is headed. This is no way to trade as your feelings has nothing to do with where prices is going. Learn to read how price moves and where its headed from the current position. This is how you will start to build and edge and gain confidence reading markets.

3. Based on point 2 - you need to learn and identify high probable setups based on your research/study and plan and then take ONLY the best setups. you don't have to trade everyday just because you are a day trader. Learn to be patient and wait for the best possible setups and learn to discipline your self to follow your trading plan.

If you trade the way you doing now, you will only make the broker and govt richer, at best you will be break even or in losses at the end of the year.

you have a lot of work to do my friend....:thumb:

 

[sspms2002]

From what i am reading about your experiences. Below are some points you should consider

1. firstly you have no edge and a trading plan. If you don't have a edge and trading plan there is no way you will be consistent. you will get stuck in an endless cycle of breakeven and losses.

2. Secondly you are trading for the sake of trading and your decision are based on your "feelings" as to where prices is headed. This is no way to trade as your feelings has nothing to do with where prices is going. Learn to read how price moves and where its headed from the current position. This is how you will start to build and edge and gain confidence reading markets.

3. Based on point 2 - you need to learn and identify high probable setups based on your research/study and plan and then take ONLY the best setups. you don't have to trade everyday just because you are a day trader. Learn to be patient and wait for the best possible setups and learn to discipline your self to follow your trading plan.

If you trade the way you doing now, you will only make the broker and govt richer, at best you will be break even or in losses at the end of the year.

you have a lot of work to do my friend....:thumb:

Thanks Throwawaycc123....I get you what you kind of pointing me to...

Frankly I think i am more of momentum trader than price action of now..
But i have been using some candle stick knowledge recently and they have improved some of my insights..

Also frankly i don't know what is meant by an Edge and a Trading plan?


Does Edge means to use some specific set ups that also make you profits?

Does Trading Plan means ...i am unable to think much here...???

Finally , i also am not sure what Price action is? I just think that candle stick can help in knowing price action or what price is doing?

Can you guide me on above if you have get any spare time?