diary of a day trader

[SavantGarde]

TR,

Doesn't matter if the trade went against you... I would still like to see your Trade posted... Thanks

SG

 

[Smart_trade]

very good mantra...........:clapping:

bheje mein ghus jaye toh bhala ho jaye............

In 50% or more , of all the loosing trades , I was always in profit at some stage....but I let go profit and booked loss...yeh bheja bahut shore karta hai....

In day trading once the trade moves in profit....you must never take a loss on it.Your equity should be at stake only for initial few minutes. If the trade moves in profit and suddenly reverses, go ahead and grab some profits out of it....but never let it go into a loss. This one principle alone will save lots of money and heartburns for daytraders.

Profit taking in daytrading is a delicate balance between "let the profit run and add if the market is moving in your favour" and" Grab the profits before they evaporate" .

Smart_trade

 

[ryan4ucar]

ravi please take this as bible words. never short a defensive stock like ITC, sunpharma etc in a falling market. pls

you both gentlemen first decide , who is right..................

I don't know from where you guys learn these terms anyways here are the ITC results for the last quater on 20th may 2011.


" ITC beat analysts expectations Friday as fourth quarter (January-March) net profit surged 24.6% year-on-year to Rs 1,281.48 crore, aided by strong growth in cigarette sales and reduced losses in other FMCG business.
Its quarterly earnings were also boosted by robust growth in hotels business revenue.
Net sales of the company, which sells cigarettes and other FMCG products and also runs hotels, were up 15.5% to Rs 5,836.26 crore for the three-month period.
Analysts on average had expected ITCs fourth quarter net profit at Rs 1,229 crore on sales of Rs 5,626 crore, according to a CNBC-TV18 poll."


If you were tuned in or trade intraday ITC started selling off with large volume with this goodnews at 3 pm on 20th may the selling started at from 190 down to 184 the intrday high was 191 anhour before news.... now you have to learn some real trading by the pros , you have to remember this 190-191 level and when it approaches this level the next few days you have to watch what patterns are forming at this level.
The nextday on monday 23rd may11 it approached 190.3 and held there for a long time it couldnt go above 190.3 which means somebody was selling it... if it cannot go above 191 then you can go short at 190.3 with a target of previos days low of 184 and a stop of say 191.3... 1:6 risk reward , but it mad a low of 188.3 and was holding at 188.3 for a long time so you cover half your positions there because of risk it might come up and it did come back to 190 but then again never went back above 191 the next day on 24th you again get a chance to short it because for 15 minutes it was struggling to go above 190.5 so short again there , you have the same target of 184 and stop of 190.3 for a 1:6 risk reward.

It made a low of 186.3 and closed out at 186.7 giving you about 3.5 points of profit for.8 point of risk .

on 25th may at around 3 pm it again came to 189.3 and started struggling since it is not at 190.3 my original resistance i might trade half of my original size cause risk reward is not greater than 5x and it being 3pm ... but still it went down and closed at 188.6

on 26th may again it struggled at 189.60 but my level is 190 and above but it failed many times at 189.60about 4 times so it was time to short again for target of 184 and stop of 190.1 for half my position and 191.1 for the other half (hope you go this its to increse arror margin).
low made was 188 and closed at 189.5 now its consolidating in close range near 188 so i should be careful of shorting it so i changed my bias to go long when it crosses 191 and stays at 191.

But today it crashed again from 189.60 exact to 186.6 but i dindnt want to trade it cause i thought it would struggle at 188 and would not give me a good risk reward .

So all these days from 21st may to 31st may u shorted the 189-190 level with a stop above 191 you would have made money all days "Mr Bible". It has not a single day traded above 191.

This is not a story after the trade is over tommorow you yourself watch the 189-190 level in itc and watch who is selling when voulme pics up ... of course if it goes above 191 and stays there i will look to go long it is not ill be short. And please dont trade anything without a game plan.

I will not be responisble for any losses as i am not professing a long or a short i could be in and out position lasting seconds to several hours.
And ofcourse sorry for strong language used its only an expression to open peoples eyes.

 

[TraderRavi]

thanks ryan for detailed post...........:thumb:

 

[TraderRavi]

TR Bhai,

No Trade post today... !!!

SG

3 trades....ist winner 2 , 3 losers.....

Ist trade bot LITL @ 31.9, sold @ 32.3...
Reason.....I found out that LITL was biggest loser from NSE website in the morning..more than 6% loss...at that time....seeing a pullback in the chart I thought @ buying around 31.6 but waited and it jumped to 31.9, I thought there are buyers interested in this counter now, so bot....then it touched 32.45 but I did not sell it expecting it will go more...but then it again came to my bot price cause nifty slid from 5480 odd levels to 5460 levels....around 10.30 am.....then with nifty moving up it again jumped to 32.45, but did not cross it... and when came back, i sold @ 32.30...it gone down to 32 levels...then again to 32.45 levels.....so first trade in profit...

now seeing this ping pong between 32 - 32.45 level....I shorted @ 32.4....but it not go down from there, I thought of covering @ bot price, but stayed back...then nifty surged to 5488 level from 5465 odd levels and it jumped to 32.75 levels there I booked loss....

later I found out it was hovering around 33.60 levels......too good from my initial bot price @ 31.90.......

3rd trade was bakwas trade.. in relmedia...It moves like hu - hu , i need video game fingers for this counter...shorted @ 134.9 , covered @ 135.15.......

so except 2nd trade, I was in profit in most of the time in ist trade and booked profit..and in profit for a brief period of time in 3rd trade, booked loss there, ...
overall profit of ist trade = loss of 2nd & 3rd trade...brokerage pocket se diya....

 

[SavantGarde]

Hi Ravi,

Thanks A Ton for posting your Trades and the reasons.....

It seems a lot better.....we really want you to have consistent winners.

...and a suggestion stay away from ADAG garbage....while they look cheap considering where they were in the past.. market in its wisdom can make things even cheaper than where they are.... key to have consistent winners...starts with Scrip selection....

All The Best for the Day

SG

 

[ryan4ucar]

3 trades....ist winner 2 , 3 losers.....

Ist trade bot LITL @ 31.9, sold @ 32.3...
Reason.....I found out that LITL was biggest loser from NSE website in the morning..more than 6% loss...at that time....seeing a pullback in the chart I thought @ buying around 31.6 but waited and it jumped to 31.9, I thought there are buyers interested in this counter now, so bot....then it touched 32.45 but I did not sell it expecting it will go more...but then it again came to my bot price cause nifty slid from 5480 odd levels to 5460 levels....around 10.30 am.....then with nifty moving up it again jumped to 32.45, but did not cross it... and when came back, i sold @ 32.30...it gone down to 32 levels...then again to 32.45 levels.....so first trade in profit...

now seeing this ping pong between 32 - 32.45 level....I shorted @ 32.4....but it not go down from there, I thought of covering @ bot price, but stayed back...then nifty surged to 5488 level from 5465 odd levels and it jumped to 32.75 levels there I booked loss....

later I found out it was hovering around 33.60 levels......too good from my initial bot price @ 31.90.......

3rd trade was bakwas trade.. in relmedia...It moves like hu - hu , i need video game fingers for this counter...shorted @ 134.9 , covered @ 135.15.......

so except 2nd trade, I was in profit in most of the time in ist trade and booked profit..and in profit for a brief period of time in 3rd trade, booked loss there, ...
overall profit of ist trade = loss of 2nd & 3rd trade...brokerage pocket se diya....

LITL you saw buyers coming in right , the stock is testing its all time low so there will be lot of bargain hunters coming to buy ... but you should be careful and only trade for a large risk reward , normally when i trade if my risk is say 100 rs to dont trade all in one go ... ill put 1/4th or 1/3rd or 1/2hf my risk on so say 25 rs or 33 rs or 50 rs and then when stock trades in my favour i put the rest of the risk or a major portion trading this way helps cover risk , so when at 31.6 you could have bought 1/2 ur original position , it went to 31.9 and came back to 31.75 and holding u buy other halfe. when it approches 32.4 u have to sell atleast half ur position cause that was a previous swing low , this helps u protect ur profit and 32.4 obviously someone will sell because results are bad , even if ir rises u have the othe half ... now u have to watch the stock if u planning to stay in it it means ur target is the gapfill when it crossed 32.5 and went to 32.7 after that u get a small pull back to 32.5 buy ur remaining half back now u have ur full position back on and have eliminated risk totally , now have a target for gap fill of 33.8 and stop below 32.5 ... If you traded this way all your risk would have been covered and it would have been as if u traded it free.

Your thinking was right on the stock but u had poor execution. What do you think ?
Next time dont write i was in profit X points ..... if ur risk is R the say i was in profit 2R or .2R will give you a clear picture about risk .

 

[ryan4ucar]

LITL?? you saw buyers coming in right?? , the stock is testing its all time low so there will be lot of bargain hunters coming to buy ... but you should be careful and only trade for a large risk reward , normally when i trade if my risk is say 100 rs to dont trade all in one go ... ill put 1/4th or 1/3rd or 1/2hf my risk on so say 25 rs or 33 rs or 50 rs and then when stock trades in my favour i put the rest of the risk or a major portion trading this way helps cover risk , so when at 31.6 you could have bought 1/2 ur original position , it went to 31.9 and came back to 31.75 and holding u buy other halfe. when it approches 32.4 u have to sell atleast half ur position cause that was a previous swing low , this helps u protect ur profit and 32.4 obviously someone will sell because results are bad , even if ir rises u have the othe half ... now u have to watch the stock if u planning to stay in it it means ur target is the gapfill when it crossed 32.5 and went to 32.7 after that u get a small pull back to 32.5 buy ur remaining half back now u have ur full position back on and have eliminated risk totally , now have a target for gap fill of 33.8 and stop below 32.5 ... If you traded this way all your risk would have been covered and it would have been as if u traded it free.

Your thinking was right on the stock but u had poor execution. What do you think ?
Next time dont write i was in profit X points ..... if ur risk is R the say i was in profit 2R or .2R will give you a clear picture about risk .

Sorry for mess in previous reply din know how to edit

 

[TraderRavi]

Nifty prediction , for 14th june :

High : 5519.6

low : 5459.8

banknifty :


High : 10808.1


low : 10666.7

 

[TraderRavi]

Nifty prediction , for 14th june :

High : 5519.6

low : 5459.8

nifty high was..5520.15............!!!