Learning to catch High Probability Breakouts

[amitrandive]

A Chinese proverb is particularly insightful as applied to trading: “He who blames others has a long way to go on his journey. He who blames himself is halfway there. He who blames no one has arrived.”

http://financetrends.blogspot.in/2012/01/zen-and-art-of-trading.html

Schwager asked this trader for permission to anonymously publish one interview excerpt, which he found particularly insightful. Here's a sample:

"...I still don't understand your trading method. How could you make these huge sums of money by just watching the screen?

There was no system to it. It was nothing more than, "I think the market is going up, so I'm going to buy." "It's gone up enough, so I'm going to sell." It was completely impulsive. I didn't sit down and formulate any trading plan. I don't know where the intuition comes from, and there are times when it goes away.

How do you recognize when it goes away?

When I'm wrong three times in a row, I call time out. Then I paper trade for a while.

For how long do you paper trade?

Until I think I'm in sync with the market again. Every market has a rhythm, and our job as traders is to get in sync with that rhythm. I'm not really trading when I'm doing those trades. There's trading being done, but I'm not doing it.

What do you mean you're not doing it?

There's buying and selling going on, but it's just going through me. It's like my personality and ego are not there. I don't even get a sense of satisfaction on these trades. It's absolutely that objective. Did you ever read Zen and the Art of Archery?..."

Sharing my post in other thread about art of trading

 

[vikas2131]

Booked !!!

Relinfra/rcom/relcapital/rpower futures shorts.

Booked Maruti/Tatamotors/TVSmotors futures shorts.

Booked Banknifty futures shorts

Booked Nifty/Axisbank/yesbank Puts.

Out of all positions.

Searching for re-entries/ fresh trades now !

**Tvsmotors didn't gave any returns.** rather a loss of 1 Rs *lot size** some misreading/wrong judgement/wrong trade

i feel u are out early ...

 

[amitrandive]

2) Big red bar then a few small bars in the belly of the red bar and again crack of red bar's low is a great pattern to add/initiate short positions. It shows the market has no strength. This may not show as a mpl if you go by the defination of mpl..that is why dont go with too much theoretical approach..there were 3 places for adding on the chart.

3) After a few large and steep bars, the market stops falling steeply ,here look for taking profits because by now good profit is accumulated.

Smart_trade

ST Sir on adding and profit taking.
:clapping:

 

[amitrandive]

Do you try to find better entries and more accurate signals all the time?
Ask yourself: how often did you have the right idea but you lost money?
Take profit, stop loss placement and trade management is what makes or breaks a system - not entries.

--Tradeciety

Million dollar advice

:clapping::clapping::clapping:

 

[nitingosavi]

i feel u are out early ...

true. possible. but so many positions..
but this kind of gap downs many times leads to corrective bounce/fall or consolidation phase.

And frankly speaking... though I don't have any exit rule. I generally trade sup/resistance and I think its there @ 7605(nifty fut).a major one I guess.

lets wait for some time or till day end as many of my trades based on EOD, we might have a clue. or in between I can opt for options of next strikes as trend is still down!

 

[nitingosavi]

Gold Daily live - as of now,
near resistance if manages to cross with volume.. may be I will be correct.
RSI showing momentum.
MACD showing unconfirmed positive divergence.
volume not supporting.. may be Christmas holidays is the reason.

Nifty kahan jayegi ? cant say.. if gold goes up, USD index might correct. may be INR will appreciate, and BNF may gain.
looks like a rare possibility to me. USD INDEX may fall and may be INR against USD too. and gold might shoot up !
This chart giving me a little more confidence in Nifty sell trade. though not initiated yet.

Somewhat similar chart of silver also targeting near 36000 zone.

Update

Had a Nice trade in Gold mini(s). still holding :clap: :clap:

ADX helped.
the first chart I posted which was marked with possible double bottom It was prior to ADX discussions started in our thread.
Hrly given a clear entry.

Gold Daily as of now

Gold Hrly as of now

 

[nifty trade]

i dont have spot charts and future charts of SBI are broken due to splits and bonus , may i request guys to please post SBIN spot chart and its analysis , i want to buy its futures for 10-20 days , its at all time lows i guess

thanks

 

[nitingosavi]

sold 7700 Put @ 158 1st ever option writing trade of life.
bought 7650 call @ 111
Nifty Spot daily as of now.

7580-7611 looks like a support

 

[nitingosavi]

i dont have spot charts and future charts of SBI are broken due to splits and bonus , may i request guys to please post SBIN spot chart and its analysis , i want to buy its futures for 10-20 days , its at all time lows i guess

thanks

if you need todays till now chart, posting fut chart as of now.
you can analyse. I could not find much.

 

[nitingosavi]

Looks like a good short term Buy.

INFY fut daily as of now.