General Trading Chat

[monkeybusiness]

MB bhai, although I have read most of ST sir's posts couldn't relate to "P1 entries and ST gap", can you explain what they are?
Is ST gap vwap gap?
Is it different nomenclature.

Vivek Sir,

Please download from this dropbox link. Lemondew has already provided his collection of posts by Sir, still there will be some usefull post by STda, Subhadip sir and dissection of IDF by You.

https://www.dropbox.com/s/yoyz6equ8... and Explanation of IDF by Dr.Vivek.docx?dl=0

https://www.dropbox.com/s/9xmdqydr6fcg0a3/ST Sir Swing Trade with smaller stoploss.docx?dl=0

 

[vivektrader]

I am nowhere near market wizard .I am just another trader like any other trader.My journey in trading and investing has been very satisfying and rewarding and I keep answering traders questions based on my experience and understanding...but a project like what you suggested is strict no no....I don't need any publicity,attention,hatred,criticism which comes with such a project.So I respect your intention but I don't think I am qualified or/and willing to do such a project.

Smart_trade

ST sir, in your vast experience, how do you compare day trading in morning session vs afternoon session.
Comparison with regard to:
Durability of trend
False starts/failures
Strength of trend
Holdable position to EOD
Risk reward ratio
Success rates
And anything else you find prudent.

 

[Smart_trade]

ST sir, in your vast experience, how do you compare day trading in morning session vs afternoon session.
Comparison with regard to:
Durability of trend
False starts/failures
Strength of trend
Holdable position to EOD
Risk reward ratio
Success rates
And anything else you find prudent.

I had read somewhere that morning moves are caused by amatuers and afternoon moves are caused by professional traders.While this could be a matter of debate but I find some truth in it.

Market normally gives two good moves in a day,one in the morning and one in the afternoon.Both the moves are profitable but I like the afternoon move more because of the following :

1) Morning moves are caused by reaction to overnight news,Dow,Nasdaq,European markets closing,international financial and political news,economic numbers which came after the market closing the earlier day.These are many times knee jerk reactions by the market participants.Against this the afternoon moves are caused after considering advance/decline,3-4 hours of market action,European markets opening etc and the real trend is likely to manifest in the afternoon moves.

2) Afternoon moves are much more durable with less false starts and whipsaws.

3) Reward to Risk ratio is better in afternoon moves.

4) Afternoon moves more likely to be of durable trends which could well go into the next day.So we can consider keeping part of the position for overnight hold.

5)Afternoon moves are fast dut to less time remaining for covering losing positions of traders on the wrong side of the move.

6)FIIs and professional traders are more likely to be participants in the afternoon move.

I trade both the moves but my preference is for afternoon move.

Smart_trade

 

[vivektrader]

I had read somewhere that morning moves are caused by amatuers and afternoon moves are caused by professional traders.While this could be a matter of debate but I find some truth in it.

Market normally gives two good moves in a day,one in the morning and one in the afternoon.Both the moves are profitable but I like the afternoon move more because of the following :

1) Morning moves are caused by reaction to overnight news,Dow,Nasdaq,European markets closing,international financial and political news,economic numbers which came after the market closing the earlier day.These are many times knee jerk reactions by the market participants.Against this the afternoon moves are caused after considering advance/decline,3-4 hours of market action,European markets opening etc and the real trend is likely to manifest in the afternoon moves.

2) Afternoon moves are much more durable with less false starts and whipsaws.

3) Reward to Risk ratio is better in afternoon moves.

4) Afternoon moves more likely to be of durable trends which could well go into the next day.So we can consider keeping part of the position for overnight hold.

5)Afternoon moves are fast dut to less time remaining for covering losing positions of traders on the wrong side of the move.

6)FIIs and professional traders are more likely to be participants in the afternoon move.

I trade both the moves but my preference is for afternoon move.

Smart_trade

Makes it crystal again, thank you.

 

[vivektrader]

I had read somewhere that morning moves are caused by amatuers and afternoon moves are caused by professional traders.While this could be a matter of debate but I find some truth in it.

Market normally gives two good moves in a day,one in the morning and one in the afternoon.Both the moves are profitable but I like the afternoon move more because of the following :

1) Morning moves are caused by reaction to overnight news,Dow,Nasdaq,European markets closing,international financial and political news,economic numbers which came after the market closing the earlier day.These are many times knee jerk reactions by the market participants.Against this the afternoon moves are caused after considering advance/decline,3-4 hours of market action,European markets opening etc and the real trend is likely to manifest in the afternoon moves.

2) Afternoon moves are much more durable with less false starts and whipsaws.

3) Reward to Risk ratio is better in afternoon moves.

4) Afternoon moves more likely to be of durable trends which could well go into the next day.So we can consider keeping part of the position for overnight hold.

5)Afternoon moves are fast dut to less time remaining for covering losing positions of traders on the wrong side of the move.

6)FIIs and professional traders are more likely to be participants in the afternoon move.

I trade both the moves but my preference is for afternoon move.

Smart_trade

ST sir quoting one of your old posts about system selection on a particular day based on ADX , is it relevant even in today's market conditions (in Nifty)
"The level of ADX can help us to decide which system to use at a given point of time.

Now let me explain you how to accomplish this goal.



PLOT ADX(14) ON CHART FOR YOUR CURRENCY PAIR.



IF...

1)ADX is below 20 - USE OSCILLATOR BASED SYSTEM(RSI,STOCHASTIC ETC.)



2)ADX is above 30 - USE TREND FOLLOWING SYSTEM(MOVING AVERAGE,MACD ETC.)



3)ADX is at 45 or above it - BOOK PROFITS.(Wait for new entry)



4)ADX IS RISING FROM LEVEL BELOW 18 AND THEN GOING ABOVE 23 - USE TREND FOLLOWING SYSTEM.



5)ADX DECLINING FROM LEVEL ABOVE 30 AND THEN GOING BELOW 27 - USE OSCILLATOR BASED SYSTEM.



The above mentioned method will help you select right system at right time

This system selection technique works very well according to my experience.

I want to tell you again that this technique only helps to select right system at right time and it is not a holy grail.



I hope everyone will like this system selection technique and use it to improve their tradingI use this for trading in stocks and hope it will work well in the forex market.

A GOOD SYSTEM NEVER FAILS IT FAILS ONLY BECAUSE IT IS USED AT A WRONG TIME".

 

[pravi_kanth]

All who are in full time trade or making consistent profits, this is regarding the tax returns.
Are you filing as an individual?
Did you create any asset management company as 'RARE' enterprise and managing the portfolio as a partner. Then I think from tax perspective it will be company filing for the trading account and which brings advantage of claiming expenses from business which is not possible if you are filing as individual. Ofcourse, individual tax filing as the recipient of profit will be there.

Anyways, tax paid as solo individual will be more than asset managment company + individual filing.

Seniors, please throw some light on this.

 

[mudraatrader]

Markets seems very evenly poised between bulls and bears, as of now.
It seems action of Monday (or Tuesday max) will be the decider for next few days.

NF decider should be 7875 and 7800
BNF decider should be 16800 and 16650

Happy Trading

 

[XRAY27]

All who are in full time trade or making consistent profits, this is regarding the tax returns.
Are you filing as an individual?
Did you create any asset management company as 'RARE' enterprise and managing the portfolio as a partner. Then I think from tax perspective it will be company filing for the trading account and which brings advantage of claiming expenses from business which is not possible if you are filing as individual. Ofcourse, individual tax filing as the recipient of profit will be there.

Anyways, tax paid as solo individual will be more than asset managment company + individual filing.

Seniors, please throw some light on this.

First of all if you are trading under future and options segment which is covered U/S 44 AD of Income Tax Act'1961 will come under business income and we can claim all the expenses related to trading ,also the benefit tax slab will be there for individual.

i'm full time trader from 2007...my age is 35 now and i'm filling income tax return as individual claiming all expenses...as i only do F and O

But if you are doing trading in cash market then forming company is the best option ,as trading in cash market is not covered as business income

Company is must for portfolio management and venture capital because these are prescribed under law (SEBI and IT ACT )...

 

[LoneWolf]

First of all if you are trading under future and options segment which is covered U/S 44 AD of Income Tax Act'1961 will come under business income and we can claim all the expenses related to trading ,also the benefit tax slab will be there for individual.

i'm full time trader from 2007...my age is 35 now and i'm filling income tax return as individual claiming all expenses...as i only do F and O

But if you are doing trading in cash market then forming company is the best option ,as trading in cash market is not covered as business income

Company is must for portfolio management and venture capital because these are prescribed under law (SEBI and IT ACT )...

What if one is doing trading in cash and derivative both ??

 

[XRAY27]

What if one is doing trading in cash and derivative both ??

First part cash goes to speculation income provided it is trading (intra) or else covered under short term capital gains and derivative segment is covered under business income..