Teach A Man To Fish And.........

[Luckytrader]

Well done.....

Just something from my end...

All the best!
Saint

Hi,

I Missed this thread.....Oops.

Will Track from now.

I want to ask a question?
As I have never done day-trading, will do in future.
In this 5min nifty chart which m.a crossover did you use.

Thanks a lot.

 

[amitpethkar]

Hi Saint,

Last few days had been a mix bag, choppy and trending.

Could you please post the NIFTY future trades the way you did for other days? I think thats a really great way to learn trading. I personally learnt a lot just going through those snaps and benefitted from it. Moreover it really suits my style.

In one attachment you have used 2 bar low stop and other one it was different. Do you use different stop trailing mechanisms??

Also in other attachment you put a note that you usually put stop 6-7 points away, I did not get that. Sorry for not pointing out exact posts by date, but they are NF snapshots.


Thanks,
Amit

 

[Saint]

Hi Saint,

Last few days had been a mix bag, choppy and trending.

Could you please post the NIFTY future trades the way you did for other days? I think thats a really great way to learn trading. I personally learnt a lot just going through those snaps and benefitted from it. Moreover it really suits my style.

In one attachment you have used 2 bar low stop and other one it was different. Do you use different stop trailing mechanisms??

Also in other attachment you put a note that you usually put stop 6-7 points away, I did not get that. Sorry for not pointing out exact posts by date, but they are NF snapshots.


Thanks,
Amit

Good questions,Amit.......shall answer them later.Also,shall post a few charts....Nothing beats looking at the charts,but a bit later.

Saint

 

[Saint]

Hello Saint

Did complete the plan document with a streched deadline (wanted to finish by sunday, did it by early monday morning).

An additional benifit to creating this plan is that now we have few TO-DO lists based on the plan documents. These lists would help us go through the daily routine in a more systematic way.

1. Daily Pre-Market Checklist
2. Daily Post-Market Checklist
3. Weekly or Weekend Checklist
4. Monthly or Monthend Checklist
   

Now that the iniitial draft of the trading plan is in place, how often it needs to be reviewed? Maybe initially, till such time we can remove the tag of draft copy from it reviewing the plan document can be included in the weekly checklist. Once we have a final copy we can review it on a monthly basis.

Thanks
nb

Great going,nb!

Saint

 

[Saint]

gr8 thread,thanks for giving all this new info

Most welcome,Cjr..

Saint

 

[Saint]

Hello Saint,
As I mentioned before that up to 15/10/2007 Nifty made HHs and HLs. So I was keep watching for intra day levels and whenever the Nifty makes intra day low then I'll buy the Nifty futures with the SL as intra day pivot low.

Hi Sreeny,

Sorry for this extremely belated response.........bit of a dangerous strategy,the one described above.Buying at an intraday low presuming that we are headed back to new highs can be successful so long that happens........and with one clean swipe in the opposite direction will take it all away.

I entered most of the times with this technique and it worked well. Last week because of the P-Note issue I made the loss. But my worry is when I study the any charts (usually Nifty basket), all are very steep upwards and I don't want to miss this rally. Because of this reason I wanted to enter the Nifty futures when it makes intra day low then I can go long with the trailing SLs. The another reason is when I study the EOD charts even if I want to go long in the uptrend, the stop loss level is very high (previous pivot low).

The problem is in anticipating an intraday low to be the point where it turns around.......no harm in playing the intradays,no harm in putting stops on the intradays and trail stopping upwards....problem is in doing anything that involves anticipation/prediction/guessing.

As an example here I pasted today's Nifty chart.
Here my question is how can I act in that type of situation (P-Notes)?
How do we control our emotion in that type of situation?Awaiting for your valuable reply....

Regards!
Sreeny

Emotion plays no role once you have set rules and follow things mechanically each time.......as the dntrend starts,you are out of the uptrend and busy shorting the dntrend,and making sweet profits.If there is emotion,be it fear,hope,euphoria,sadness.......then something is wrong somewhere.

Have posted a few charts of late......do go through them.

All the best!
Saint

 

[Saint]

Hi Saint,
Now just see the today's Nifty intraday chart, it's going lower and lower once it makes the low when it bounces back, Is this type of situation is good to buy the Nifty futures?

Regards!
Sreeny

No,my friend.........dangerous!!

Look at the chart below.

The problem is:We look for a change in trend,and we buy on confirmation......Buying a dip just because it dipped is gonna hurt your psyche and your account.Buy/Short that change of trend...

I don't think I have convincingly explained the above.......Posting more charts,plz go through them.

Saint

 

[Saint]

Hi Saint....
This has been one of the most influential threads i have ever visited. This would help me understand the trade Jargon and more over boost the confidence needed to venture into the unpredictable stock market.

Thanks a lot....

Thank you for your warm remarks,my friend...

Saint

 

[Saint]

Hello Saint

I will be completing 3 weeks of paper trading tomorrow. Maybe its too early, but i have planned to review the trading experience by analyzing all the trades taken. Would be around 75+ signals

I am also planning to update my Trading Plan, based on this review. I would have many queries, but I need to ask you 2 now.

Hope you get some time this weekend to answer them.

Think I should reduce the number of trades; the obvious solution would be to change the timeframe setting of the chart from 1 minute to 2/3/5 minutes. I am reluctant to do so as I have developed a comfort level with taking entries on these current settings, its the exits I am having issues with.

The solution I can try out is stay with the 1 minute (or 2 minutes) for entries but use 5 min candles for defining exit. May be the whole idea is too stupid and you could save my 2 weeks by pointing it out. I plan to implement whatever fine tuning I can think of and continue the mock trading / forward testing for 2 more weeks.

Time frame discipline is vital in trading.......If you play the 60min charts,your stops are as per the 60min charts.You could look at the daily thereby making a clear assessment of the ongoing trend......but the trade is off the 60min charts.You could however fine tune your entry as per the 15min charts,etc.

I presume from the above paragraph that you basically like to trade the 5min charts,fine tuning your entry as per the 2min charts.No problem,go ahead........but do not,DO NOT,switch your time frames if you are losing.Meaning your entry is at 5820,your stop is at 5800......don't let price blow right past 5800,pull out the 15min or the 60min and comfort yourself.So be very clear abt the time frame of that particular trade......So too,you have wisely raised stop losses to the previous pivot low and adhered to your discipline.Now that trade is up nearly 70pts......and then cracks that pivot.Don't go pulling out your long term intradays and then say that I will sit through this pullback for huger gains.Follow the plan.Get out as planned.Reenter if need to.....Don't worry abt your broker friend making a tiny bit more.Important to ALWAYS follow the PLAN.

The beauty in having a plan and following it to the tee is that the mind plays no role ..........it is not given the opportunity to panic,to get upset etc

All the best!
Saint

 

[Saint]

My second query is regarding the way we define swing highs and lows

Suppose we are having a nice uptrend with Pivot Highs and Pivots Lows showing a nice uptrend, at some point after a Higher High is established we get a Lower Low, which is very deep and cuts below the previous 2/3 Higher Lows. The SL would be executed and we will be out of the trade, my question is should we not reverse on this kind of move?

What I am trying to understand is should we also be looking at the amplitude / range of the swing (pivot points) rather than only the relationship in terms of greater than or less than.

Sorry for the poor language, I know by now my query has itself become a query

Will try to illustrate it

                                  HH 
                                  |
                                 | |
                           HH   |   |
                 HH        |   |     |
                  |       | | |       |
                 | |     |   |         |
                |   |   |    HL         |
          HH   |     | |                 |
          |   |       | __________________|____Stopped Out
   HH    | | |        HL                   |    LH 
    |   |   |                               |   |    
   | | |    HL                               | | | Trend Sideways 
 |    |                                       |   |   or Down??
|     HL                                      LL

Thanks
nb

Hi Nb,

As you are a 1-5min chart trader,yes,by all means do so.......Play the 5min uptrend.Pivots crack.Reverse short the dntrend.Out when pivots crack.Go long the uptrend again.So on so forth.Adhere to your stops.....Some days,fake outs are gonna mess with your head.But all part of the game.Get out by the end of the day even if all going to plan.........

And yes,there are other things other than just pivot levels before making a clear cut decision...will be clear as you go along.

Just for clarification........the stop in your diagram above would be the pivot low above where you drew the line.Breaking that,you are short the stock/index.

All the best!

Saint