no one going to earn even single rupee day trading

[SREENAN]

Dear Rajputz
Go ahead dear...Abhi and other Seniors will help to test and improve the same and we beginners can learn
great day to you
Sreenan

 

[abhiwhy]

For intraday i use a strategy with RSI, Stochastic and averages. if you want i can share it?????

please share

 

[nns6]

true !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
day trading is one of the toughest task in the world , most of the people specially in our country do not participate in stock markets ,most among them are very long term traders , among them very few are swing trader , even less people are indulged in day trading and what the real figures are 95% of day traders are losers .
every one considers himself among 5% , but what is reality we all know , so the simple question is who earns ? , most of the day traders who earns , belongs to
institutional traders and professional day traders .
i have a friend in institutional trading firm he actually works for a investment banker as a trader , he trades in uk markets .
he told me that , they are provided with access to unlimited capital and are
allowed to trade in any volume but their managers keeps a close watch on them
and does not allow them to hold any positions their main target is to earn one two or max 3 tick price movements . they actually use more than 200 million ponds per day and what the earn on an average about 100,000 ponds /day so that is called actual risk management , shorter is ur position lesser u face competition higher is the profit potential and that's the mantra .

think it indian context will be out of markets in a single day due to huge brokrage , transaction ,and stt charges .

so what to do .?
main problem with us is we are always in search of always earning system and we r the most greedy people .
you can earn more than 1 crore with one thousand capital only in just 98 days . figures are looking great like websites claiming such wonders .but here i don't have any profit making motive so u could have little bit faith on me .

now lets come to topic .
what we need is
1. Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline Discipline & Discipline.
2. avoid greed and applying your mind (must )

so ! what we have to do is not to apply our great minds here u can do what ever u like , trade ur way how u use to but just donate small part of ur traing a/c fund to abhi fund
means do what ever u like , just trade with rs . 1000 as i am telling ,

requirements:

1)select any stock of ur choice better if volatile scripts like tatamotors ,adlabfilms ,rcom etc.
2) open a account with farms with exceptional low brokrage and high exposer
3) use exposer of (8-10 )x indiainfoline , indiabulls or any of ur choice
4) maximum brokrage u pay should not exceed 2 paise in intraday basis .
5)order execution should be very fast means as u entered the order it should be executed as per my knowledge indiainfoline and indiabulls are better for these purpose.
6)u should have a trading terminal , avoid browser based systems .
7)broadband connection.

technique :
1. buy when 5 minute di+ ( pdi) (period 14) cuts 5 min di-(mdi 14)
2 short when just opposite as mentioned above

i know u all have tried this technique and have got losses
the ony difference with my technique is exit

set exit target as .50% of price of script in limit order terms (dont think when prices would come i will exit by market order )

it was the main theme of the system so never my exit rule .

if prices goes against u exit again when di+ and di- again cuts each other in opposite direction .

u will gain around .50% trade per day and
.50*10X=5% so in a single trade u are earning 5%
do it 2-3 times max 5 times try avoid trading in inside and choppy markets

your target is 10% per day
after removing expense u will be left with 7-8%
which is more than enough
add ur today earned capital to 1000 (base capital ) per day and increase ur no. of share and go on .
i m posting a possible results(if u not applied ur mind) here .




capital total profit/day 10%
1000 100
1100 110
1210 121
1331 133
1464 146
1611 161
1772 177
1949 195
2144 214
2358 236
2594 259
2853 285
3138 314
3452 345
3797 380
4177 418
4595 459
5054 505
5560 556
6116 612
6727 673
7400 740
8140 814
8954 895
9850 985
10835 1083
11918 1192
13110 1311
14421 1442
15863 1586
17449 1745
19194 1919
21114 2111
23225 2323
25548 2555
28102 2810
30913 3091
34004 3400
37404 3740
41145 4114
45259 4526
49785 4979
54764 5476
60240 6024
66264 6626
72890 7289
80180 8018
88197 8820
97017 9702
106719 10672
117391 11739
129130 12913
142043 14204
156247 15625
171872 17187
189059 18906
207965 20797
228762 22876
251638 25164
276801 27680
304482 30448
334930 33493
368423 36842
405265 40527
445792 44579
490371 49037
539408 53941
593349 59335
652683 65268
717952 71795
789747 78975
868722 86872
955594 95559
1051153 105115
1156269 115627
1271895 127190
1399085 139908
1538993 153899
1692893 169289
1862182 186218
2048400 204840
2253240 225324
2478564 247856
2726421 272642
2999063 299906
3298969 329897
3628866 362887
3991753 399175
4390928 439093
4830021 483002
5313023 531302
5844325 584432
6428757 642876
7071633 707163
7778796 777880
8556676 855668
9412344 941234
10353578 1035358


some detailed explanation to directional movement

Directional Movement

The Directional Movement System is a fairly complex indicator developed by Welles Wilder and explained in his book, New Concepts in Technical Trading Systems.
Most indicators have one major weakness - they are not suited for use in both trending and ranging markets. The key feature of the Directional Movement System is that it first identifies whether the market is trending before providing signals for trading the trend.

Directional Movement System measures the ability of bulls and bears to move price outside the previous day's trading range.

The system consists of three lines:
The Positive Direction Indicator (+DI) summarizes upward trend movement;
The Negative Direction Indicator (-DI) summarizes downward trend movement; and
The Average Directional Movement Index (ADX) indicates whether the market is trending or ranging.

Trading Signals

A number of different trading systems have developed around Directional Movement. The following rules are based on the system presented by Dr Alexander Elder in Trading for a Living:
Go long when +DI is above -DI and either:
ADX rises while +DI and ADX are above -DI; or
ADX turns up from below +DI and -DI.
Exit when +DI crosses below -DI.
See ADX below for further details.
Go short when -DI is above +DI and either:
ADX rises while -DI and ADX are above +DI; or
ADX turns up from below +DI and -DI.
Exit when -DI crosses below +DI.


ADX:


Declining ADX shows that the market is losing direction. When ADX falls below both +DI and -DI it signals a lifeless market. Do not trade with DMS until ADX has clearly turned off the bottom. Dr Elder suggests waiting until ADX rises 4 steps off its low (e.g. ADX rises to 19 from a low of 15). The longer that ADX has remained below both +DI and -DI the stronger the subsequent trend is likely to be.
When ADX rises above both +DI and -DI it signals that the market is becoming overheated. Take profits when ADX turns downwards from above +DI and -DI.


1. -DI crosses to above +DI so trade only short.
2. Go short when ADX rises above +DI.
3. Take profits when ADX turns down while above +DI and -DI.
Exit short trade and trade only long as +DI has crossed to above -DI.
4. Go long as ADX starts rising while above -DI.
5. Take profits when ADX turns down while above +DI and -DI.
6. Exit long trade and trade only short as -DI has crossed to above +DI.
ADX continues to fall so there are no trades.
7. Trade only long as +DI has crossed to above -DI.
ADX turns up while below +DI and -DI, but does not rise by the recommended 4 steps, so no trade is entered.
8. One view is that you should go long whenever ADX rises above -DI, but ADX has remained very low and flat and it would be advisable not to trade until ADX has risen by at least 4 steps above its recent low.
9. Trade only long as +DI has crossed to above -DI.
10. Go long when ADX rises above -DI.
11. Exit long trade when +DI falls below -DI.


best of luck and once more maintain descipline .
happy trading
abhi:thumb:

Hello, Trading with the help of ADX indicator has become very old fashion. It does not give returns. My suggestion is to use 'LEADING PREDICTIVE INDICATOR' and take position well before the price movement. Wait for your expected target for a day or two by taking a calculated risk. Finally come out of the market with AMAZING PROFIT as a swing trader. Never trade the market every day because market does generate proper trend every day. For successful day trading, you need a FULLY TRIED AND TESTED TRADING TOOL which can forecast you the day when to go for day trading with its direction, trading range for the day, danger zone for the day & volatility range for the day. It is my practical experience which has given me success upto 80%. You can also try but improve your trading skill first and equip with proper trading tool which has evidence that it works. If it has worked earlier, it will work in future also. Regards.

 

[abhiwhy]

Dear Abhi
You have said
"now what we have to do is to select sectors such as banking , pherm, it, metal , automobiles , engineering, etc , which of the above or other sector is bullish iun short and intermediate term ."
Where do you get sector wise information? are you talking about any indices.....I use PIB and Icharts?
Thanks
Sreenan

nse and bse have sectoral indices which tells about the overall sectoral growth by just looking at them , if u found that auto and it are most bullish and real state is most bearish , then try to find out which particular scripts are most bullish and leading the rally , or the crash , suppose u got tatamotaor and maruti , infosys ,and tcs most bullish and unitech and dlf most bearish .

so we
have got a good set of stocks to trade , when nifty is positive in daily and intraday chart we will pick buy signals in most bullish scripts and if it is bearish in daily and intraday chart we will try to short all bearish scripts

it is because if u will observe above mentioned result minutely u will find ur selected most bullish scripts are among top 10-20 gainers and most bearish scripts u selected are coming in top 10-20 losers in a bullish and bearish day respectively , and on any falling day minimum fall would be there in bullish scripts and maximum fall in most bearish scripts , similarly on any bullish day bullish scripts will record new highs where as bearish scripts will be unchanged or slow movers.

never think that if nifty is not moving then no script is moving , they are moving but there are some scripts which are retarding the speed of main indices .

there are several sectoral indices on bse and nse for example bse have following sectoral indices .

BSE Auto Index
BSE BANKEX
BSE Capital Goods Index
BSE Consumer Durables Index
BSE FMCG Index
BSE Healthcare Index
BSE IT Index
BSE Metal Index
BSE Oil & Gas Index
BSE Power Index
BSE Realty Index

u can download FREE data of nse , bse scripts and indices , using Heman's get braviacopy (if u don't want to pay money ) . also i don't think either pib or the i chart is sufficient to serve ur purpose , why not u download the amibroker unregistered verson (its also free) and use that data for more studies .

regards

abhi

 

[abhiwhy]

Hello, Trading with the help of ADX indicator has become very old fashion.

It does not give returns. My suggestion is to use 'LEADING PREDICTIVE INDICATOR' and take position well before the price movement.

Wait for your expected target for a day or two by taking a calculated risk. Finally come out of the market with AMAZING PROFIT as a swing trader.

Never trade the market every day because market does generate proper trend every day.

For successful day trading, you need a FULLY TRIED AND TESTED TRADING TOOL which can forecast you the day when to go for day trading with its direction, trading range for the day, danger zone for the day & volatility range for the day.

It is my practical experience which has given me success upto 80%. You can also try but improve your trading skill first and equip with proper trading tool which has evidence that it works. If it has worked earlier, it will work in future also. Regards.

thanks for sharing ur views and experiences with us but as per my think , u have have given both some very valuable and true ideas but including some worthless ones .

1) u can not call any indicator or technique as old fashioned , there are people who are making hundreds of times more money than we are making with almost same capital , but just looking at markets , following only trend lines and chart patterns(oldest technique in technical analysis) , so nothing is
old fashioned in the market , thing is what suits to a specific individual . some may play moving average better than any million $ software and charting packages . thing is how much u have mastered anything .

2) its very good to listen about this indicator LEADING PREDICTIVE INDICATOR' from u , i have no idea about it but i will definitely try to learn it .

3) u can not call swing trade better than day trade in any sense both have their own positive and negative sides.

4) asper my knowledge there is no holygrail system so far which can pridict future with 100 % accuracy , i have hundreds of super performing expert systems , but nothing can predict with complete accuracy .

5) good to hear about success and will be very pleased and obliged to u if u want to share some of ur great techniques and tools with us .

looking forward for ur replies suggestions and great ideas and techniques .

regards

 

[rajputz]

Hello, Trading with the help of ADX indicator has become very old fashion. It does not give returns. My suggestion is to use 'LEADING PREDICTIVE INDICATOR' and take position well before the price movement. Wait for your expected target for a day or two by taking a calculated risk. Finally come out of the market with AMAZING PROFIT as a swing trader. Never trade the market every day because market does generate proper trend every day. For successful day trading, you need a FULLY TRIED AND TESTED TRADING TOOL which can forecast you the day when to go for day trading with its direction, trading range for the day, danger zone for the day & volatility range for the day. It is my practical experience which has given me success upto 80%. You can also try but improve your trading skill first and equip with proper trading tool which has evidence that it works. If it has worked earlier, it will work in future also. Regards.

you are totally wrong....this method works for you then it is fine...every one has his own strategy to work...some people dont even watch the charts or any other indicator...they just know the price fluctuation and know when to exit and enter....that is the real swing trading when person knows when to enter and exit without indicators.

these indicators are just an extra tool to enhance your decision either intraday or swing trading. each and every indicators work as extra bonus, but then said that every thing should be in limit. Use limited indicators only not too much that it creates a mess. two three at max acording to me other wise there are countless indicators.

and working intraday or swing trade is totally based on personality of the trader. i prefer intraday the most. my father does swing trading. there are more positional traders who buy IPO's. so figure out whats best for you.

here everyone is trying to make trading better by contributing some thing, making the existing system better. it suits you, then accept it, doesnt suit you dont work on it, got an idea share it with everyone....but dont contradicts some ones method.

 

[rajputz]

My strategy works mainly with stochastic. I use RSI as an extra factor to identify the trend of the market and the particular stock.
The setup i use for both the indicators is:-
1. Stochastic 10,3,3 S(simple) with upper average line (overbought at 92) and lower average line (oversold) at 8.
2. RSI 14, E(exponential) with single average line of 50 only.
In my 1st opinion 1 minute chart is best to trade for intraday as it has short entry and exit for both buy and sell trades. I use 5 minute chart once in a while to check if the share is going to move north or south according to stochastic. And the entry time should be 10:30 so that trend can be clear. According to 5 minute charts, the time is 11 onwards.

And in second opinion, I have observed that most of the breakouts occur when the stochastic is in 60-85 regions and 40-15 region, either upside or downside. The chart is in document provided at the bottom


The upper shoot occurs most of the time when stochastic enters in 60-80 region from below and downside shoot occurs when it enters from above in region 40-15. Now I dont say that shoot will occur most of the time. But it is possible that shoot occurs in this region.
Now if you consider the market up or down then act accordingly. For the up trending market the buy should be made when the stochastic is below or at 8(oversold region) and for the sell it should be above 92 or at 92.

In a fluctuating market we can trade buy and sell for the same share.

Green was my buy, red exit and blue was stoploss(everybody defines his own stoploss)

RSI -I use RSI when I check the chart in 5 minutes candle sticks. If the stochastic are moving up with rsi above 45 entering from below then it is uptrend. And if RSI is below 55 entering from above and stochastic are moving down then its downtrend.

Any queries or modification then please tells me. Other thing I do is I select my own stock on historic data and determine their trend.

The above method is working for me for last 1 month. I dont prefer RSI much in it, rather then only determining the trend. I buy when stochastic crossed 8 and sell when it is on 92.

to see the chart also...download the attachment.

 

[rajputz]

nse and bse have sectoral indices which tells about the overall sectoral growth by just looking at them , if u found that auto and it are most bullish and real state is most bearish , then try to find out which particular scripts are most bullish and leading the rally , or the crash , suppose u got tatamotaor and maruti , infosys ,and tcs most bullish and unitech and dlf most bearish .

so we
have got a good set of stocks to trade , when nifty is positive in daily and intraday chart we will pick buy signals in most bullish scripts and if it is bearish in daily and intraday chart we will try to short all bearish scripts

it is because if u will observe above mentioned result minutely u will find ur selected most bullish scripts are among top 10-20 gainers and most bearish scripts u selected are coming in top 10-20 losers in a bullish and bearish day respectively , and on any falling day minimum fall would be there in bullish scripts and maximum fall in most bearish scripts , similarly on any bullish day bullish scripts will record new highs where as bearish scripts will be unchanged or slow movers.

never think that if nifty is not moving then no script is moving , they are moving but there are some scripts which are retarding the speed of main indices .

there are several sectoral indices on bse and nse for example bse have following sectoral indices .

BSE Auto Index
BSE BANKEX
BSE Capital Goods Index
BSE Consumer Durables Index
BSE FMCG Index
BSE Healthcare Index
BSE IT Index
BSE Metal Index
BSE Oil & Gas Index
BSE Power Index
BSE Realty Index

u can download FREE data of nse , bse scripts and indices , using Heman's get braviacopy (if u don't want to pay money ) . also i don't think either pib or the i chart is sufficient to serve ur purpose , why not u download the amibroker unregistered verson (its also free) and use that data for more studies .

regards

abhi

Rightly said abhi....

every stock has its weightage in some indeces....

like in nifty the highest weightage is of reliance of 16-17 % i think so....so if the reliance is in uptrend the nifty moves uptrend....

but on the contrary there are other major shares like SBIN, ICICI, HDFC, INFOSYS, BHEL etc with low but comparative weightage. reliance has highest.
so if reliance is moving up and say infyys and icici are going down the nifty does not vary much and vice-versa...

same is right for other indeces also

 

[abhiwhy]

didnt know how to upload image or doument. so am posting the mediafire link of my method of stochastic, rsi
My strategy works mainly with stochastic. I use RSI as an extra factor to identify the trend of the market and the particular stock.
The setup i use for both the indicators is:-
1. Stochastic 10,3,3 S(simple) with upper average line (overbought at 92) and lower average line (oversold) at 8.
2. RSI 14, E(exponential) with single average line of 50 only.
In my 1st opinion 1 minute chart is best to trade for intraday as it has short entry and exit for both buy and sell trades. I use 5 minute chart once in a while to check if the share is going to move north or south according to stochastic. And the entry time should be 10:30 so that trend can be clear. According to 5 minute charts, the time is 11 onwards.

And in second opinion, I have observed that most of the breakouts occur when the stochastic is in 60-85 regions and 40-15 region, either upside or downside. The chart is in document provided at the bottom


The upper shoot occurs most of the time when stochastic enters in 60-80 region from below and downside shoot occurs when it enters from above in region 40-15. Now I dont say that shoot will occur most of the time. But it is possible that shoot occurs in this region.
Now if you consider the market up or down then act accordingly. For the up trending market the buy should be made when the stochastic is below or at 8(oversold region) and for the sell it should be above 92 or at 92.

In a fluctuating market we can trade buy and sell for the same share.

Green was my buy, red exit and blue was stoploss(everybody defines his own stoploss)

RSI -I use RSI when I check the chart in 5 minutes candle sticks. If the stochastic are moving up with rsi above 45 entering from below then it is uptrend. And if RSI is below 55 entering from above and stochastic are moving down then its downtrend.

Any queries or modification then please tells me. Other thing I do is I select my own stock on historic data and determine their trend.

The above method is working for me for last 1 month. I dont prefer RSI much in it, rather then only determining the trend. I buy when stochastic crossed 8 and sell when it is on 92.



Download Intraday method using Stochastic and RSI

i will test and tell u about Stochastic later but i use rsi indicator in similar fashion so got easily what u were trying to tell , so i m sharing my rsi set up .


ok now test this setup

use rsi (30) i.e., 3o period relative strength index and buy when rsi(30) > 55 and exit when it comes below 55.i.e., rsi(30)<55

similarly short when rsi( 30) < 45 and exit when rsi(30) >45

believe it or not it works fantastic and is suited to all time frames , u can use it in 1 minute 2minute , 3,4,5 ................ as well as in daily and weekly time frames .


i have made this setup by continuous testing and experimentation only .

 

[rajputz]

i will test and tell u about Stochastic later but i use rsi indicator in similar fashion so got easily what u were trying to tell , so i m sharing my rsi set up .


ok now test this setup

use rsi (30) i.e., 3o period relative strength index and buy when rsi(30) > 55 and exit when it comes below 55.i.e., rsi(30)<55

similarly short when rsi( 30) < 45 and exit when rsi(30) >45

believe it or not it works fantastic and is suited to all time frames , u can use it in 1 minute 2minute , 3,4,5 ................ as well as in daily and weekly time frames .


i have made this setup by continuous testing and experimentation only .

thanks buddy...will test that too