A plunge in Indian Stock market
- Thread starter sspms2002
- Start date
I think that results of fundamental news can be seen over long run. Such news when released may cause sudden price moves , but its not guaranteed that prices move in the favour of the news.
When i started few months back and had no idea about TA , it was just news based trading. Sometimes i made profit , but most of the time i got stopped out.
Maybe that was bcoz good news are already discounted in the price before we come to know about it.
Regarding fundamental news , i guess earnings are to be watched for.
When i started few months back and had no idea about TA , it was just news based trading. Sometimes i made profit , but most of the time i got stopped out.
Maybe that was bcoz good news are already discounted in the price before we come to know about it.
Regarding fundamental news , i guess earnings are to be watched for.
Yes, as they say, "Buy the rumour, sell the news."
But small investors can never know about rumors. So they buy and hold, and keep hoping that some fundamental news will spike up their stock.
When I bought Max India last year, I was expecting that some day the insurance bill will be passed. So that news was priced in.
But the news of demerger into 3 companies was a surprise fundamental news and that powered up the stock more.
But small investors can never know about rumors. So they buy and hold, and keep hoping that some fundamental news will spike up their stock.
When I bought Max India last year, I was expecting that some day the insurance bill will be passed. So that news was priced in.
But the news of demerger into 3 companies was a surprise fundamental news and that powered up the stock more.
I was away from Market from last couple of months...mainly due to high work pressure...
So unable to keep up with intraday , but want to do positional/swing trades...as and when i see good opportunity...
I had one in this month..I had bought KITEX 150 shares at 810..and saw that it reached 1000 around 10 days back , but i did not booked profit and it came back to 850 area on a single day fall..
But my price was good enough to have a little more patience..
Today i sold it off at 1010 and realized a good profit of around Rs 30000.
This is my biggest profit realized so far....
I am finding it tough to know when to Exit..need to find ways to devise it..
Although i am still Bullish on KITEX as it closed on its 52 week high today and has potential to go more...
Stock Traded: KITEX (Positional)
P&l : Green 30000 after commissions
So unable to keep up with intraday , but want to do positional/swing trades...as and when i see good opportunity...
I had one in this month..I had bought KITEX 150 shares at 810..and saw that it reached 1000 around 10 days back , but i did not booked profit and it came back to 850 area on a single day fall..
But my price was good enough to have a little more patience..
Today i sold it off at 1010 and realized a good profit of around Rs 30000.
This is my biggest profit realized so far....
I am finding it tough to know when to Exit..need to find ways to devise it..
Although i am still Bullish on KITEX as it closed on its 52 week high today and has potential to go more...
Stock Traded: KITEX (Positional)
P&l : Green 30000 after commissions
Also on a good note...I completed YTC book series...and now trying to read AL Brooks books...
YTC/Lance beggs reading of Candle sticks and strategies for Trapped traders is very good to know..
Now i realize that why a stock goes up fast after it has gone a little down....
the LONGS are stopped out..and SHORTS have entered...and at this point if a big player can drive the price a little up then SHORT covering would happen and new LONGS would join back...assuming the stock is in neutral to Uptrend here..
many similar insights...
I will also share my thought process after i go through AL Brooks's books
YTC/Lance beggs reading of Candle sticks and strategies for Trapped traders is very good to know..
Now i realize that why a stock goes up fast after it has gone a little down....
the LONGS are stopped out..and SHORTS have entered...and at this point if a big player can drive the price a little up then SHORT covering would happen and new LONGS would join back...assuming the stock is in neutral to Uptrend here..
many similar insights...
I will also share my thought process after i go through AL Brooks's books
Very difficult to Sit tight when money is free to day trade again..
I couldnot resist the temptation...
Did 4-5 day trades although with only 100 shares and booked only Rs 200-Rs 300 per trade...
Stocks Traded: ITC , SUNPHARMA , YES BANK , KITEX etc..
P&L : Green 980 after commissions
Day Traded after many days so i was cautious and didnot hold profits longer...But i guess after the first hr , stocks were just moving in range and it was difficult to make money...
Sunpharma i was long at 851 and it went till 858 in that move but then moved back again to 852...and kept doing that...i had to book conservatively... i felt not a day for big moves....
I couldnot resist the temptation...
Did 4-5 day trades although with only 100 shares and booked only Rs 200-Rs 300 per trade...
Stocks Traded: ITC , SUNPHARMA , YES BANK , KITEX etc..
P&L : Green 980 after commissions
Day Traded after many days so i was cautious and didnot hold profits longer...But i guess after the first hr , stocks were just moving in range and it was difficult to make money...
Sunpharma i was long at 851 and it went till 858 in that move but then moved back again to 852...and kept doing that...i had to book conservatively... i felt not a day for big moves....
Summary of DAY TRADING - first 6 months
I have started day trading around 6-7 months back in Nov 2014 and i want to summarise my learnings/observations..
I used Candlestick charts + stoch + MACD + EMA 20 + EMA50 for 1 min chart
I started with a capital of 1 lakh and as it goes i hit beginner's luck and made a few thousands in the first month...Basically i was taking positions just when the momentum was highest..like at hugesize bid/offers , even numbers , high speed moving stock and use to enter and exit just after seeing 400-500 rs profit..that was when when i was satisfied with small profit..
Then the next stage came when i was not satisfied with Sub 500 profit and wanted to have more and i entered the loss making stage..
i was not entering at specific levels , but entering anywhere based on momentum and i was not aware of any Support , Resistance concepts..
so if a position would have gone in my favour and say it was around Rs 500+ profit..I would not have booked profits as i wanted more...but as i see it now it would have hit resistance and started journey downwards...and in most cases i would have held the position and would have booked the loss when it reached my pain limit..
So After 3 months time i had wiped off all my beginner's profit and was in loss..
Then i started doing one more bigger mistake..i started taking position for delivery without thinking much...and as it turned out i burnt myself with those Delivery positions...Infact those delivery positions gave me more loss than my day trading...
Mean while i was also studying various threads here and at elite trader..and trying to find the holy grail..
I was studying how traders have used MACD/STOCH to enter or exit...but i was not able to get something conclusively...they work good on trending days but not otherwise..
So i started to ignore them and only look at them after a trade goes in my favour..
I also started accumulating trading books...but didnot read them...its tough to read ebooks..
Then i saw SMART_TRADER's thread and saw that he recommended YTC lance beggs ..i downloaded his books and read them and learned the concept of Support/Resistance..and realized the importance of ENTRY and EXITS..
at this point i realized that a plain simple candlestick chart is good tool rather than having a cluttered chart..
I changed my chart to basic candlestick and now watch 2 mins and 5 mins chart...apart from a 1 day chart
I feel a little confident now...Now i am up to read AL Brooks books and need to apply these fundas regularly to ingrain them in my mind...
I particularly feel a little more confident on ENTRY but not on EXITS..
(thinking about experimenting STOCHASTIC for EXITS)
mean while i also got a good positional trade and got off all my losses back and now stand at break even...
I have started day trading around 6-7 months back in Nov 2014 and i want to summarise my learnings/observations..
I used Candlestick charts + stoch + MACD + EMA 20 + EMA50 for 1 min chart
I started with a capital of 1 lakh and as it goes i hit beginner's luck and made a few thousands in the first month...Basically i was taking positions just when the momentum was highest..like at hugesize bid/offers , even numbers , high speed moving stock and use to enter and exit just after seeing 400-500 rs profit..that was when when i was satisfied with small profit..
Then the next stage came when i was not satisfied with Sub 500 profit and wanted to have more and i entered the loss making stage..
i was not entering at specific levels , but entering anywhere based on momentum and i was not aware of any Support , Resistance concepts..
so if a position would have gone in my favour and say it was around Rs 500+ profit..I would not have booked profits as i wanted more...but as i see it now it would have hit resistance and started journey downwards...and in most cases i would have held the position and would have booked the loss when it reached my pain limit..
So After 3 months time i had wiped off all my beginner's profit and was in loss..
Then i started doing one more bigger mistake..i started taking position for delivery without thinking much...and as it turned out i burnt myself with those Delivery positions...Infact those delivery positions gave me more loss than my day trading...
Mean while i was also studying various threads here and at elite trader..and trying to find the holy grail..
I was studying how traders have used MACD/STOCH to enter or exit...but i was not able to get something conclusively...they work good on trending days but not otherwise..
So i started to ignore them and only look at them after a trade goes in my favour..
I also started accumulating trading books...but didnot read them...its tough to read ebooks..
Then i saw SMART_TRADER's thread and saw that he recommended YTC lance beggs ..i downloaded his books and read them and learned the concept of Support/Resistance..and realized the importance of ENTRY and EXITS..
at this point i realized that a plain simple candlestick chart is good tool rather than having a cluttered chart..
I changed my chart to basic candlestick and now watch 2 mins and 5 mins chart...apart from a 1 day chart
I feel a little confident now...Now i am up to read AL Brooks books and need to apply these fundas regularly to ingrain them in my mind...
I particularly feel a little more confident on ENTRY but not on EXITS..
(thinking about experimenting STOCHASTIC for EXITS)
mean while i also got a good positional trade and got off all my losses back and now stand at break even...
I had taken a positional trade in KITEX again as i still was convinced that it would move up..
I entered with 150 shares at 991 a couple of days back...and it made a high of 1026 yesterday , but i couldnot book the profit...it fell to 988 at the close of yesterday...
But i was convinced that it should make a new 52 week high soon...and booom....today it opened strong and i could book profit at 1041 price...it made a 52 week high of 1050...
Still seems more steam left..but must wait for a good pullback to enter..
Stocks Traded: KITEX (positional + day trade)
P&L : Green 7902 after commissions
Some new observations: If a stock opens gap up or down...say rs 5-10 gap...
it should get closed soon and then a position can be taken as per price action
there...mostly on same direction of gap..
a bigger gap may not close soon and it may take hrs/days to close it..
a smaller gap on the other hand..say on upside of rs 2-3....as per my observations will drive the price down/opposite side... (i think it as a strategy by big player to set the mood at open and then get rid of their shares)..
Above are my observations....and not a fact.... Senior can chime in...
I entered with 150 shares at 991 a couple of days back...and it made a high of 1026 yesterday , but i couldnot book the profit...it fell to 988 at the close of yesterday...
But i was convinced that it should make a new 52 week high soon...and booom....today it opened strong and i could book profit at 1041 price...it made a 52 week high of 1050...
Still seems more steam left..but must wait for a good pullback to enter..
Stocks Traded: KITEX (positional + day trade)
P&L : Green 7902 after commissions
Some new observations: If a stock opens gap up or down...say rs 5-10 gap...
it should get closed soon and then a position can be taken as per price action
there...mostly on same direction of gap..
a bigger gap may not close soon and it may take hrs/days to close it..
a smaller gap on the other hand..say on upside of rs 2-3....as per my observations will drive the price down/opposite side... (i think it as a strategy by big player to set the mood at open and then get rid of their shares)..
Above are my observations....and not a fact.... Senior can chime in...
Today many stocks gave a good move and senior traders would have made a killing today...
i just did a few trades , but couldnot make good money compared with opportunity provided by market..
Stocks traded: NBCC , KITEX
P&L : Green 2870 after commissions
I also saw ISFT but couldnot trade it as it was already high...but it gave some very good move....
i am expecting a big move from Sunpharma soon too.
i just did a few trades , but couldnot make good money compared with opportunity provided by market..
Stocks traded: NBCC , KITEX
P&L : Green 2870 after commissions
I also saw ISFT but couldnot trade it as it was already high...but it gave some very good move....
i am expecting a big move from Sunpharma soon too.