Thoughts on Day/Swing Trading Part 2

[Smart_trade]

I now remembered...it was Swift on 5 min with 2 adds.

ST

 

[poor_trader]

Where is angry young men........? DP wanted

 

[Smart_trade]

Where is angry young men........? DP wanted

I am neither angry, nor young ...( but am young at heart) .who is angry young man ?

Just joking......

Smart_trade

 

[Vertigo_1985]

..................................

 

[VJAY]

Dear Smart_Trade,

I have continued my paper trading. Attached is the summary.

1. Portfolio value continues to be Rs 1 lakh.
2. Risk per trade is 1% i.e. 1k Rs.
3. Max Loss per day is still less than 3% including adds.

I now feel confident to begin trading from Jan but I am a little scared since you have said that generally people make a lot of losses in the initial years of their trading career.

If I stick to the rules and dont let my mind overpower the rules, do you think atleast 50% of the performance can be achieved?

I plan to start doing it in Ranbaxy and DLF in cash segment.

Is it safe to keep the portfolio of 1 lakh or should I start small?

Your answers will be of great help as always.

Regards,
PTK

Dear ptk,
Nice .......Are you tested these cash scrips on 5 min TF?
Wish you best of luck in your start of trading....

 

[Gaur_Krishna]

Excellent PTK,

Keep up with nice work. :thumb:

Regards,
Gaur_Krishna

Dear Smart_Trade,

I have continued my paper trading. Attached is the summary.

1. Portfolio value continues to be Rs 1 lakh.
2. Risk per trade is 1% i.e. 1k Rs.
3. Max Loss per day is still less than 3% including adds.

I now feel confident to begin trading from Jan but I am a little scared since you have said that generally people make a lot of losses in the initial years of their trading career.

If I stick to the rules and dont let my mind overpower the rules, do you think atleast 50% of the performance can be achieved?

I plan to start doing it in Ranbaxy and DLF in cash segment.

Is it safe to keep the portfolio of 1 lakh or should I start small?

Your answers will be of great help as always.

Regards,
PTK

 

[ptk]

Very good, PTK....your performance shows capital doubled in most scrips in 6 months.

There will always be some difference between paper trades and actual trades but if you follow a method and have proper risk control, you will succeed.

Portfolio of Rs 1 L is ok I think as you have papertraded it for last 6 months.

I fergot the method...was it Swift intraday method on 5 min timeframe ? Can you post any typical days trades marked on chart for everyone to benefit ?

Great going ..

Smart_trade

Dear Smart_Trade,

Thanks a lot for your wishes and support.

Yes its Swift on 5 min TF with 2 Adds.

You will remember that I initially started only with Bank Nifty. It was working well but I soon realised that since I wont be starting in futures, I need some cash stocks as well. Thats why in the performance table, the cash stocks start from August.

In the initial period I was also maintaining the charts and trades shown on the charts. Later on, it was getting difficult to do it everyday for 6 stocks so I continued to maintain only the xls sheet and skipped saving the charts.

I will try to paste a few links to show the trades on charts like I had done in this post:-
http://www.traderji.com/day-trading/72827-thoughts-day-swing-trading-part-2-a-45.html#post833832

Regards,
PTK

 

[poor_trader]

I am neither angry, nor young ...( but am young at heart) .who is angry young man ?

Just joking......

Smart_trade

He is my American Boss...........DanPicup.........:lol:

 

[whisky]

He is my American Boss...........DanPicup.........:lol:

Big Boss Chahte hai ke Raj Green-Haryali Peace-Shanti banaye rakhe..or mere agle aadesh ki pratiksha kare:lol::lol::rofl:

 

[Smart_trade]

Friday 20-12-2013 was a big trend upday giving 125 points move in Nifty Futures.On such strong trend days if one can identify possibility of a large range day somewhere during the day, it is extremely profitable to take positions and hold till the end rather than trying to sell each rally and trying to buy each decline. This " fancy dancing " succeeds 1-2 times but it has a danger of loosing good positions and market running without us on board and we traders chasing the markets.In fact we not able to buy at lower prices and having to chase the market is also a strong sign that the market is in run away mode.

I have in some of my old posts mentioned tell-a tale signs which help us identifying a large trend day somewhere during the day. I have found that having an eye on Advance /Decline ratio and midcap index also is helpful on such days.On Friday, the A/D ratio was consistantly up from the beginning with more than 3 scrips advancing for every 1 scrip declining. I have not found A/D indicator useful as a stand alone indicator but coupled with other indications it is very helpful in giving us confidence for holding our long positions till the end and not selling them early.

Every trader must have few of such strong trend days encashed to the maximum to remain ahead in this game.

Smart_trade