General Trading Chat

[sana]

Regards.

 

[rahulmalik]

Are there any lessons in your entry? Was your short entry too early? What logic did you apply for that entry?

Thank you for a meaningful ques :thumb:

I will try to explain the logic, please fell free to ask me any further questions - it may help me getting another perspective.

What logic did you apply for that entry?

Please do refer my earlier posts for all the charts that i posted, whenever i felt contrary to nifty moves.

I initiate my trade based on what my oscillators show me, at likely resistance / support levels. Since my trades are usually contrary to nifty moves, i have tweaked my trade accordingly -
1. I trade only in options. My first trade is always shorting OTM options, so it takes care if nifty goes against my trade, with lesser MTM loss. This is usually the next expiry option, which gives me higher premium. I use nearly 50 to 60% of allocated capital for this.
2. If nifty goes against my trade i then start accumulated next expiry ATM options, and then i keep last 20% of my allocated capital to accumulate deep ITM option of current expiry (with minimum 10 days to expiry).

Without fail, ever hour i recheck my oscillators if the position i am in, is correct.

Was your short entry too early?

This is something we as traders can never know at the time of taking the trade. All historical analyses can go for a toss. The last 2 nifty dives were quick to bounce, this one was not. So effectively, we cant time the market, and we can never guess the lows and highs.

Are there any lessons in your entry?

Given what happened to this trade, I wouldnt say that i should not have taken this trade, but yes definitely I would tweak the % capital I allocate to trading spreads, as i explained above. This tweaking will ensure that my M2M is lesser. The holding time is something outside my control, if nifty is stuck in range, or not giving opposite signals.

It goes without doubt, that I will keep restructuring my trading system, as and when required

 

[wisp]

A couple of old posts by ST Da...a good reminder...

Yes, very true...we as traders should be trend followers....and not trend starters. So if the trend is down, we should train our mind not to entertain thoughts of being brave and do bottomfishing.

But people are never happy trading the current trend...when the trend is down, they try to buy and try to catch the bottom and when the trend is up, they try to sell every rally trying to catch the top.Why do they do so ? because they find excitement in going against the trend but that gives them large losses and then they get into hope mode that the prices will come back to their levels which never happens....then the losses finally become unbearable and then they book losses and the market reverses....and this continues ....

Smart_trade

Possible...but double bottom to be bought when the market is showing that it is holding the bottom.

I know people who are holding loosing positions from last many days and hoping that the market will come up...it might come up but they lost the opportunity of making money in the downturn.....they are holding loosing positions and adding to it and it affects the psychology so much that I am sure if at all market comes up, they will try to get out at minimum loss...but they could buy when the uptrend starts....why buy in the downtrend ? And if the market cracks further they will be miserable...so in the downtrend and then the uptrend ( which may or may not come soon ) what maximum they could achieve is breaking even if they are lucky and brave whereas the trend trader will make money in downtrend and the uptrend both....and will always be with the trend....

ST

 

[amitrandive]

The rich, even with Rs 10 and 15 crore investments, do not pay any tax on returns while the middle class individual ends up paying tax on even items like samosas and idlis in restaurants!

From Economic Times

http://economictimes.indiatimes.com...com&utm_medium=referral&utm_campaign=ETFBMain

 

[amitrandive]

Source:
http://www.tradingsetupsreview.com/3-useful-tips-intraday-price-action-trading/

 

[candle]

Originally Posted by Smart_trade View Post
Psychologically we as human beings are habituated to expect mercy and leniency right from our childhood. If we dont do our homework, teacher will punish us but not injure us....if we dont get good grades in school/college our parents will give punishment but will fergive us soon...in a job if we do mistakes, our boss does not kill us. All these things have mercies because we are dealing with living beings on the other side.

Market is a non living thing. It has no idea of your position, your loss, your hardships. So it has no mercy...it can ruin the life,families. Not respecting risk is like jumping in front of a running train and expecting the train to be lenient and not harm you much....

Smart_trade

for reference.

 

[rmike]

Imagine a situation that at 2:45 we get a signal to short and we take a swing trade.Market does not quickly move in our direction and at 3:29 it is 5 points above my entry level.If the trade is not in 25-30 points in profit, I exit the trade.It is telling me that the market is not going down.It may go down tomorrow but it may gap open against me.In most cases next day the market will gap open against me and carry on in the original direction.I am not prepared to take that risk though it is nowhere near my stops.So early exit and try to enter again tomorrow and don't be exposed to overnight position

A gem of a post! Worth mentally revisiting from time to time! Thanks ST!

Generally people tend to focus on 'systems' and kinda gloss over everything else This kind of outlook is the hallmark of a true blue trader and is worth cultivating! Thanks once again for the nice reminder of the underlying 'traders' essentials' to abide by, as we begin the new year!

 

[lemondew]

Something I read about exits

Mike Reed
“Never let a gain turn into a loss. This will mean getting out of most trades a little (or a lot) too soon. You just have to live with it. Swing for home runs (greed) will ruin your trading."

Larry Conners and Linda Rashcke, from "Street Smarts":
"The main goal of each trade is to minimize risk rather than maximize profit."

 

[lemondew]

Pratapji,

Looks like push to down is coming from higher to lower levels. At this rate we may further see downside on monday

NF 3min and 5min

vertical lines in lower pane are day changes
as TF is different hozintal scale not there

one can select the bar and see time and details in title or on mouse move tip

 

[TracerBullet]

Does the above meet requirement?

Then AFL is possible. Will share if this is what one is looking for

yes, do share.

Just for reference, i found couple of attempts to show multiple timeframes in one view in old tj threads. Havent tried them yet.

_SECTION_BEGIN("multiple timeframe");
n=Param("TM",1,1,60,1);
n_open = TimeFrameGetPrice("O",n*in1Minute,0,expandPoint); 
n_high = TimeFrameGetPrice("H",n*in1Minute,0,expandPoint); 
n_low = TimeFrameGetPrice("L",n*in1Minute,0,expandPoint); 
n_close = TimeFrameGetPrice("C",n*in1Minute,0,expandPoint); 


PlotOHLC(n_open,n_high,n_low,n_close,"TM",colorBlack,styleCandle);

/////////////AFL//////////////////////
_SECTION_BEGIN("HigherTFCandle");
timeFrame = 60 * Param("Time",30,9,200,1);
TimeFrameSet(timeFrame);

_N(Title = StrFormat("{{NAME}} - "+ Interval(2) + ", " + Date() + " - Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );

TimeFrameRestore();
_SECTION_END();