Best way of day trading - 2652 theory of trading

[dhiraj11378]

Dhiraj bhai, I have traded Nifty futures with your method for 5 days, with modified parameters. The method worked like magic on all 5 days - the .5% target was achieved before 1% stop loss. Thanks so much.

keep going

 

[amar_gr]

hope ur fine sunil,
and thanks for putting this querry
this applies only for modified orders
sell today was 2774 around ( as per nse futures values )
stop loss at 1 percent higher than sell was at 2801
now if nfity went to 2765 low , a new low
so modified buy order will be 2765 + 30=2795
now here modified stoploss buy is 2795 ,but here quantity of lots ( or shares in cash ) is important
suppose short sell 1 lot at 2774 ,
stop loss 1 lot at 2801,
if a low of 2765 is done , modfied buy is 2795 ,now here u must cancel ur stop loss order at 2801 of one lot
and u must modify ur stop loss buy order to 2795 with quantity of 3 lots.
1 lot for the stop loss of sell order of 1 lot at 2774 and 2 lot to buy when the price reaches 2795.
in other words here stop loss becomes 2795 for ur first trade .
so when price reaches to 2795 levels ur first trade is a loss trade , but at the same price ur second buy trade starts for the double quantity with a 0.8 percent enhanced target .
in these type of conditions there is only one advantage ur stop loss amount get reduced for the first trade ( less than a percent )
2801 -2795 = profit of six points .
for this type of conditions there are 90 percent chances of a profitable trade in a day.

hope u got it .
do write this in ur simple words so that more members can understand it better .

get fully fit ,
tk cre

Thanks Dhiraj for addressing this query, appreciate your reply and it is clear and simple to understand.

 

[dhiraj11378]

I got 100 satyam shares @ 57/- and opted for short sell on 2nd Feb (sharekhan). That very night I get a mail (mentioned below).


--------------------------------------------------
"The 100 shares of SATYAM respectively had been Short sold have neither been squared off nor available in your Demat account. We request you to have the same transferred to your DP account latest by 4th February ,before 9:00 AM for payin purposes.

Please note that failure in doing so would result in the trade going into an auction. "

--------------------------------------------------

So, I brought back the shares on 3rd @ Rs 53 at noon. (read mail which says that I havet to get the shares back on or before 4th Feb 9:00 AM which I already did on 3rd Feb.)

I had approx 6000 Rs in a/c. On 3rd night I get a ledger summary, that I have only 3500 (arrpx).

Today (4th Feb), I can see 0.0 (zero) in my account.

Please help me solving this puzzle.!

Advance thanks!
-Rgds, Sabs.

can anybody help him

dhiraj

 

[sunitas]

hi dhiraj/bandlab2,


i traded today in ril and jindal steel was good the first figure at 10:15 for ril was high = 1329 n 1298.35 and according to this one i thing the sell triggered immediately i think at 1296 and the tgt was 1290 was accomplished.

But then i thought of, can i again trade in taking the new highs and lows into consideration ?

and also would like to know that jahveri had mentioned the prices was that of future ril or wot?

moreover yesterdays ril high = 1337.5 n low was 1295.1 amd all i fed these figures into the website mentioned b4 and got

sell at 1296
tgt at 1290
sl= 1284

m i wrong somewhere ???????????????????
i used this website http://intraday.synthasite.com/ for calculation

thanx n regs,

sunita

 

[MINITRADER99]

can anybody help him

dhiraj

Dear friend,
In cash segment when we purchase a share delivery will be given on 3rd day means if you have purchased share on 3rd it will come to your demat account on 5th morning only. Since you have gone for short sale on 2nd you have to deliver the share to party on 4th. Shares purchased on 3rd will come to your account on 5th. Now broker will adjust this in auction being done on every saturday. Normally on that day prices will be high and the amount will be debited to your account. It is a loosing position but the system is like that and you have to bear it.
Regarding zero balance broker has debited cost of 100 share to your account at end of day.
Now either you sell these shares on friday so that your account remains in plus or deposite the cost of 100 shares plus 10-20 percent extra for auction price. Broker will purchase the share and debit the amount to your account which you have to clear within 3 or 5 days depending upon the broker.
In cash segment any short sale is to be squared off same day.
Hope it is clear. Have gone through this mental torture 3-4 times.

 

[MINITRADER99]

I got 100 satyam shares @ 57/- and opted for short sell on 2nd Feb (sharekhan). That very night I get a mail (mentioned below).


--------------------------------------------------
"The 100 shares of SATYAM respectively had been Short sold have neither been squared off nor available in your Demat account. We request you to have the same transferred to your DP account latest by 4th February ,before 9:00 AM for payin purposes.

Please note that failure in doing so would result in the trade going into an auction. "

--------------------------------------------------

So, I brought back the shares on 3rd @ Rs 53 at noon. (read mail which says that I havet to get the shares back on or before 4th Feb 9:00 AM which I already did on 3rd Feb.)

I had approx 6000 Rs in a/c. On 3rd night I get a ledger summary, that I have only 3500 (arrpx).

Today (4th Feb), I can see 0.0 (zero) in my account.

Please help me solving this puzzle.!

Advance thanks!
-Rgds, Sabs.

Dear friend,
In cash segment when we purchase a share delivery will be given on 3rd day means if you have purchased share on 3rd it will come to your demat account on 5th morning only. Since you have gone for short sale on 2nd you have to deliver the share to party on 4th. Shares purchased on 3rd will come to your account on 5th. Now broker will adjust this in auction being done on every saturday. Normally on that day prices will be high and the amount will be debited to your account. It is a loosing position but the system is like that and you have to bear it.
Regarding zero balance broker has debited cost of 100 share to your account at end of day.
Now either you sell these shares on friday so that your account remains in plus or deposite the cost of 100 shares plus 10-20 percent extra for auction price. Broker will purchase the share and debit the amount to your account which you have to clear within 3 or 5 days depending upon the broker.
In cash segment any short sale is to be squared off same day.
Hope it is clear. Have gone through this mental torture 3-4 times.
Edit/Delete Message

 

[MINITRADER99]

Brilliant, Nifty Fut hits Profit Tgt.
Got my first profitable trade with Dhirajs System.
My sincere thanks to Dhiraj & to Rahul too for pointing out todays level.
I got todays levels wrong, am still trying to get the hang of this brilliant trading system.

BTW, forgive my very basic question, I want to know how I can post my thanks on a post or thread. I just cant seem to figure out where that option/button is located.

Amar

My dear, You have to complete 50 post on the Trader Ji forum to get the privilege of thanks button. You have posted 29 posts so 20 more post are required.

 

[bandlab2]

nifty , bank nifty, sbi hit target on 1st trade. grasim hit sl first and then hit extended target.

placing orders quickly with proper target, stoploss is the key to this method to derive maximum benefit. two options. trade more lots in nifty or trade in more stocks. i prefer 2nd as chances of ening the day in profits is high. but in any case from next month, lot sizes are increase , so cant aford to track many stocks

with 2lakh capital, trade in 4 nifty lots. aim to get 15 points per lot, so total gain in a day is 3000rs. out of 20 days, with 50% success rate, you can make 30k in a month

 

[columbus]

nifty , bank nifty, sbi hit target on 1st trade. grasim hit sl first and then hit extended target.

placing orders quickly with proper target, stoploss is the key to this method to derive maximum benefit. two options. trade more lots in nifty or trade in more stocks. i prefer 2nd as chances of ening the day in profits is high. but in any case from next month, lot sizes are increase , so cant aford to track many stocks

with 2lakh capital, trade in 4 nifty lots. aim to get 15 points per lot, so total gain in a day is 3000rs. out of 20 days, with 50% success rate, you can make 30k in a month

Hi bandlab2,

Nifty lot does take more than 20,000.Even with ONE lakh one can trade
with 5 lots. Keep aside Rs 20000 as for MTM requirement ,one can trade
with 4 lots with one lakh.

 

[yashodhan]

All members do read this carefully
suppose we are trading with nfty only
previus days high - low = 100 points suppose
0.4333 range factor 1f = 43 points
0.7666 range factor 2f= 76
1.35 range factor 3f = 135
this i sit and calculate on previous day .

Now on trading day
market opens at 9.55

note the high at 10.15 suppose high = 2856
low = 2821
here range is 35 points at 10.15
here 1f =43 is not broken
so my buy will be 2821+43= 2864
my sell will be 2856- 43 = 2813

now suppose a new high is made at 10.20 of 2860
then as my rule u should change the sell order at that time
sell order will be 2860- 43 = 2817 ( which was 2813 earlier )
but this is possible only if ur tracking a single stock .if u have five stocks , then doing calculations , placing orders take time so if ur tracking more than one stock , place ur buy , sell orders , before 10.35 and then just look for any high or low is made in ur stocks so that u can modify ur orders .

But here we are tracking only nifty so at 10.20 high 2860, low 2821
buy will be at 2864
sell at 2860- 43 =2817


now suppose at 11.30( this can be at 12.00 or 1.30 or 2.00 , do not go beyond 3.15 ) buy order triggers buy at 2864
goes at high of 2875 and is trading at 2860 presently
now here 43 range is broken , but no profit is made nor stop loss is hit . The trade from here can earn a profit or hit a stop loss
now here ur sell will be new high 2875 -43 = 2832
as our buy order is already triggered so we do not have to change our buy order .
Now from 2860 levels if nifty hits profit target then we must cancel oders or other side ( sell side , as the day is in profit after first trade )
now if suppose fron 2860 stop loss hits at 2836 ( buy was at 2864 - 28 , which is on percent around ) and is trading at 2835 levels
now here our highs and lows are the same 2875 and 2821
our sell order is modified to 2832 ( which was earlier 2813 starting at 10.15 ).
Now as for buyorders stop is hit we must put a buy orders again at 2864 ( low of 2821+43) as there are chances of nifty going up again.
But as stop loss is hit in first trade we must enhance our profit target to 0.8 percent both on sell side and on buy side
at this time sell will be at 2832 target 2809 levels around
buy again will be at the same price of 2864 but target will be at 2887 levels around

hope u got it now .

Why i choose time from 10.15 to 10.35

at 10.15 there is some settlement in volatility of prices
i took the range from 10.15 to 10.35 , because it gives me time for my calculations of my lists of stocks for trading , suppose i finish my orders for 5 stocks at 10.25 then have a look at the highs and lows at that time for any modified orders .
The range is same for the day till it gives u profit for the day .


This is applicable to for other two factor ranges aslo.
70 percent chances are there 0.433 range is not broken in first 15 minutes .


Now here i am explaining one rare condition that may arise
suppose high at 10.15 = 2860
low = 2805
now here range at 10.15 is 55 points
now 0.4333 range is 43 points + profit of half percent 14 point around makes it to 57 points
this suggest that 0.4333 factor is broken but not with a profit .
But as u are starting fresh here u must take 0.766 facotr for ur buy and sell values and keep the same until it breakes and gives a profit .

In other words from 10.15 to 10.35 the range difference should be stricly within 0.4333 factor range or 0.7666 range or 1.35 range . (this is given by excel sheet exactly) for a particular range to be used for trading .

Hope all cleared , i have it all in my first post clearly.
Dhiraj

Dhiraj,

I am a little confused about shifting buy and sell orders as the time passes. Let me explain by giving an example.

Let us say factor 1 = 40, factor 2 = 60 and factor 3 = 80 for the day.

Now, at 10.15 high /low is 2800 and 2770. So, factor 1 is applied and I get buy trigger at 2770+40 = 2810 and sell trigger at 2800- 40 = 2760.

Now, at 10.35 high / low is 2808 and 2765, so no order is triggerred and diff. being 43 which is greater than 40. Now my buy / sell orders, shud I use filter 1 or filter 2.

As per filter 1, buy trigger will be 2765 + 40 = 2805 and sell trigger will be 2808 - 40 = 2768. As per filter2, buy trigger will be 2765 + 60 = 2825 and sell trigger will be 2808 - 60 = 2748. Which set of orders will be correct?

I will appreciate if you throw light on such a scenario.

BTW, I generally follow Nifty, Bhel Hdfc, RIL, SBI ( All futures) and I made profits in all the scrips. Many thnx!

Yash



Yash