I can help you with stock chart reading
- Thread starter vvonteru
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Yes - If you make these kind of trades always
No - If you just see an opportunity and are making an exception for this trade
Trading is about making trades in same pattern again and again, using postion sizing and risk management. Don't make exceptions for 1 trade here and 1 trade there. Consistency is key.
Here are my reasons I wouldn't short:
1. Market is in general pull back mode. So, its a nice buying opportunity rather than selling (shorting).
2. Higher RSI doesn't mean you short. You have to look at the market, sector and stock trend. Given the upward trend in all the three, SHORT option is taken out. When the trend is up, high RSI means, bull power in the stock. Wait for RSI to come down for buying opportunity.
VV
No - If you just see an opportunity and are making an exception for this trade
Trading is about making trades in same pattern again and again, using postion sizing and risk management. Don't make exceptions for 1 trade here and 1 trade there. Consistency is key.
Here are my reasons I wouldn't short:
1. Market is in general pull back mode. So, its a nice buying opportunity rather than selling (shorting).
2. Higher RSI doesn't mean you short. You have to look at the market, sector and stock trend. Given the upward trend in all the three, SHORT option is taken out. When the trend is up, high RSI means, bull power in the stock. Wait for RSI to come down for buying opportunity.
VV
Last edited:
I am sure ABB will correct. I am saying this because it went out of the bollinger band. OBC (ORIENTBANK) is a good trade you made. I am not saying these are bad trades. As long as you have a plan for them and take those trades as part of your trading. For example, your trade plan for this trade can be:
Setup Condition:
Stock goes outside the bollinger band. You can make this more stringent condition if you get many stocks. Stock Open is above the bollinger band.
Entry Condition:
Days close of the tick which is above the bollinger band.
Exit Condition:
Days high + X
Profit Condition:
Trail the stop above previous day's tick high + x or 10% profit met.
The above is just an example and change according based on your liking and experience. This kind of trade is a CONTRA Trade. Going against the trend. You should be quick in either getting stopped out or taking profit. You will make lot more trades and will have lower loss and lower profits. Time frame for most of these trades can be 1 day to a week. Hope you are getting the point. Each kind of trade has a character to it. No trade is wrong or right as long as you have a plan as above. And you execute that plan to take those trades when you get them.
Good Luck
VV
Setup Condition:
Stock goes outside the bollinger band. You can make this more stringent condition if you get many stocks. Stock Open is above the bollinger band.
Entry Condition:
Days close of the tick which is above the bollinger band.
Exit Condition:
Days high + X
Profit Condition:
Trail the stop above previous day's tick high + x or 10% profit met.
The above is just an example and change according based on your liking and experience. This kind of trade is a CONTRA Trade. Going against the trend. You should be quick in either getting stopped out or taking profit. You will make lot more trades and will have lower loss and lower profits. Time frame for most of these trades can be 1 day to a week. Hope you are getting the point. Each kind of trade has a character to it. No trade is wrong or right as long as you have a plan as above. And you execute that plan to take those trades when you get them.
Good Luck
VV
D
thAnKS bUddY,..
It is definately a good suggestion,.. I'll try to go through it,.. My %profit ratio is normally 5-6% from the price I trade in any direction. I dont trade blindly. I strictly follow my stops & profits. And I do suggest everyone the same if u dont wanna ruin ur money. Thanx for ur kind concern.
Will definately msg here , when i wll place any new trade of mine. But i guess Markets r nervous right now ( dont know anything about fundamental ana., but atleast charts suggest that). So its better to wait till any directional breakout.
Regards...
Darsh
It is definately a good suggestion,.. I'll try to go through it,.. My %profit ratio is normally 5-6% from the price I trade in any direction. I dont trade blindly. I strictly follow my stops & profits. And I do suggest everyone the same if u dont wanna ruin ur money. Thanx for ur kind concern.
Will definately msg here , when i wll place any new trade of mine. But i guess Markets r nervous right now ( dont know anything about fundamental ana., but atleast charts suggest that). So its better to wait till any directional breakout.
Regards...
Darsh
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