A plunge in Indian Stock market

[Sunnyraj]

Today was again a slow day or rather i have slowed myself as i am try to see things from different angles...

I traded a couple of positions all LONG in JET Airways , CIPLA , TVS Motors..

I followed a tight Money managment today and booked losses in range of 300-500..


Stocks Traded: TVS Motors, CIPLA, JET AIRWAYS
P&L : Green 481 after commissions
Winning trades vs Losing trades : 2:2

SSpms2002 , if time permits , plz post charts with trades taken, not necessary during market hours , but whenever you are free. It'll be a good learning experience.

 

[sspms2002]

Not Much trading yesterday and today...Took just one trade on both days..
Yesterday was loss of Rs 600 and today a gain of Rs 600...

I am going through different strategies posted by Seniors on this thread..viz by Smart_trader , Pride , Saint etc...

A lots of knowledge there ...

I also read Decision Point by Smart_Trader..it is a nice write and read...
It also talks about having trades based on decision points ie Support and resistance...

Thanks Smart_trader for that summary of you knowledge provided in that book.

I also went to YTC site as recommended by you, but it seems they have a paid material there..which i am avoiding of now..

I guess the main decision points are High of Day/Previous day , Low of day/previous day , Previous day close , Previous Swing High and Previous Swing LOW...

Its tough to assimilate so much knowledge...

But a peculiar thing is happening now to me....Previously i used to Enter on every second/3rd/4th green candle and and it would have reversed after showing me some profit..and i was not sure of cause...

Now i could visualize a little of the future price action or at least volatility at some levels..


But also i am finding it difficult to find good trading opportunities based on renewed understanding , as opposed to a week back when i could do many many trades in a day...

Not Sure if i am in right direction...

 

[throwawayacc123]

Not Much trading yesterday and today...Took just one trade on both days..
Yesterday was loss of Rs 600 and today a gain of Rs 600...

I am going through different strategies posted by Seniors on this thread..viz by Smart_trader , Pride , Saint etc...

A lots of knowledge there ...

I also read Decision Point by Smart_Trader..it is a nice write and read...
It also talks about having trades based on decision points ie Support and resistance...

Thanks Smart_trader for that summary of you knowledge provided in that book.

I also went to YTC site as recommended by you, but it seems they have a paid material there..which i am avoiding of now..

I guess the main decision points are High of Day/Previous day , Low of day/previous day , Previous day close , Previous Swing High and Previous Swing LOW...

Its tough to assimilate so much knowledge...

But a peculiar thing is happening now to me....Previously i used to Enter on every second/3rd/4th green candle and and it would have reversed after showing me some profit..and i was not sure of cause...

Now i could visualize a little of the future price action or at least volatility at some levels..


But also i am finding it difficult to find good trading opportunities based on renewed understanding , as opposed to a week back when i could do many many trades in a day...

Not Sure if i am in right direction...

This means you made an effort and you most certainly going in the right direction.

Do not worry the journey is long for you, learn as much as you can. Things will become clear in time...

 

[sspms2002]

Spending time off trading and on going through different strategies posted on Traderji..

I will start posting soon...

 

[sspms2002]

Manage Opportunity Through Price Patterns
1. Learn the classic patterns first to recognize them immediately on any price chart. These archetypes describe broad, predictable forces that print through all time frames and offer outstanding trades. Then move on to more original and complex patterns.

2. Trade patterns that match the current market phase and reduce size when forces are in conflict. For example, most breakout patterns will fail in a weak market, no matter how pretty they look on the price chart.

3. Patterns predict outcomes as they reveal the will of the crowd. They point to time and direction because herd behavior drives a common will at key market intersections. Patterns lose their effectiveness when the crowd finally catches up to the prevailing market theme.

4. Opportunity has many faces. Popular patterns, such as the head-and-shoulders top, capture the attention of traders, but charts show dozens of lesser-known predictive formations. Because these patterns avoid the crowd's interest, they're dependable over longer periods of time and are less susceptible to whipsaws.

5. Perfect patterns rarely appear in the modern market environment. Learn to execute comfortably in a debris-filled landscape. Alternatively, don't chase every moving average crossover as a major signal or see meaningless candlesticks as textbook trades.

6. Pattern recognition doesn't work for everyone. Some folks will find far greater success building trading systems or studying balance sheets. Avoid mixing systems and discretionary trading into one strategy because they don't mix well.

7. A good pattern never signals when to trade or when to stand aside. It points to a convergence of time and direction that should trigger predictable movement under the right circumstances. It's the trader's responsibility to formulate tactics that capitalize on a setup if it unfolds, and protect the trading account if it fails.

8. There is no single method to trade any pattern, and no setup will evolve the same way twice. The chosen trading strategy must capture expected opportunity while managing unexpected risk.

9. Categorize each pattern as original or classic. This predicts the level of public participation and potential whipsaw. Shift strategy to a more defensive posture when a large crowd trades a popular pattern. Consider going the other way if it fails, or standing aside and letting other traders risk their capital first.

10. Enter a pattern before it breaks whenever possible. Risk remains low until price finally expands or reverses, setting off signals for all of the other players. Early entry lets traders execute several low-cost positions while waiting for a bigger move to unfold.

11. Always keep one eye on the clock. Time eventually turns against a pattern if price just sits there. Technical indicators start rolling over and the pattern can morph into an unpredictable mass of price bars. Choose entry levels wisely and exit immediately if the pattern deteriorates.

12. Exercise patience after the pattern breaks out or down without you. Shift attention to pullback entry and be willing to stand aside if the market starts to run. The pullback trade must stand on its own merits after a pattern breakout. Keep in mind that many patterns predict only one price swing, and profit potential evaporates after the initial move begins.

13. Align setups to natural time tendencies. Watch out for options week, turnaround Tuesday and the midday doldrums. Think contrary during the holiday season and don't get caught with the crowd when the market opens on Monday morning.

14. Patterns should correspond with well-established support or resistance levels. Use multiple time frames to confirm that larger market forces align with the current opportunity. Check the major averages and technical indicators to uncover divergences that could undermine the trade.

15. Define a low-risk entry, the profit target and a stop-loss for each pattern. Consider the impact of pattern failure on every new setup. When price goes the wrong way, it can produce better profits than the expected outcome.

 

[Prataap_2013]

Entered trading after booking big profits in my portfolio early in this month.

I keep making the same mistake. Big trades and no stop loss.

But this week was good. I made money shorting BPCL and Glenmark Pharma.

 

[sspms2002]

I am going through Price action and so doing pretty less trades of now.
Today i did 2 trades but i think i committed a few mistakes and would like seniors views on them..

Trade 1: LE - Long entry Mastek at 387 *200 shares

Stock was very quiet after a god move yesterday and i saw that although the stock was down but there was no downward momentum at all...

I should have waited for upward momentum to build , but i took at position at 387...it was doing nothing and peculiarly its volume till that time was just around 90000 against an average vol of more than 750,000. I was just waiting for big boys to enter...

It flew in a flash and before i could sense anything it was around 400, i though that it might be a spike and 400 would also offer resistance so i got out..but now i see that i shouldnot have...made around 2k there though...around just 25% of the actual move...

Question to seniors: where would you have entered/exited based on price action for the first break out at 390 level..

Are the potential entry points i have mentioned good entries?

 

[sspms2002]

Trade 2:

LE - LONG Entry in SKS Micro : 455.50*200

I was not in a mood to trade in afternoon , but then i saw a value trade in SKS, it had fallen from its high..all day it was trading above its previous day close...

As it fell around that previous day close i entered LONG in anticipation that it would not break that... Price action also was behaving in that fashion..
But just then as it was deciding to start a move up..it suddenly went down to 451 , although closed the candle at 454...then it started kissing the previous day's low and that was a good sign...but i reckon the move would have happened in either direction from there..or does the seniors think that it would only have been upmove??

it broke that PRev Day Close , and i booked small profit at 460 (LC - LONG COVER)..But it was a tough trade as i had not waited for confirmation candle for my entry...or ??

QQ: How should have seniors traded such move and where would they think should be a good entry for either LONG or Short?

 

[starzz]

Just like we have access to the data related to Shareholding pattern for individual stocks,similarly,is it possible to know the quantity of nifty held by public(maybe in forms of its futures or options)?
Any such links please?

 

[throwawayacc123]

I am going through Price action and so doing pretty less trades of now.
Today i did 2 trades but i think i committed a few mistakes and would like seniors views on them..

Trade 1: LE - Long entry Mastek at 387 *200 shares

Stock was very quiet after a god move yesterday and i saw that although the stock was down but there was no downward momentum at all...

I should have waited for upward momentum to build , but i took at position at 387...it was doing nothing and peculiarly its volume till that time was just around 90000 against an average vol of more than 750,000. I was just waiting for big boys to enter...

It flew in a flash and before i could sense anything it was around 400, i though that it might be a spike and 400 would also offer resistance so i got out..but now i see that i shouldnot have...made around 2k there though...around just 25% of the actual move...

Question to seniors: where would you have entered/exited based on price action for the first break out at 390 level..

Are the potential entry points i have mentioned good entries?

Dunno why you decided to trade this particular stock. But anyway , here is my take on it. Tomorrow we could expect a nice reversal at the highlighted location of 440. Nice confluence. Price action will show if we can get a reversal.

Don't see any good setups on SKS as of now.

http://prntscr.com/6np0mh