Thoughts on Day/Swing Trading

[Smart_trade]

ST, Dumb question here again, sorry. In the third No Trade area, we have a higher pivot low and the previous PH is taken out by that long blue candle. Would we not have bought on that long blue candle after the PH was taken out? At that point how would we know this is a No Trade Zone?

It is a no trade zone till we pivot above/below the zone boundries shown in red and the pivot subsequently gets taken out.....

ST

 

[gsam]

It is a no trade zone till we pivot above/below the zone boundries shown in red and the pivot subsequently gets taken out.....

ST

ST, Forgive my ignorance please. How do we know that the No Trade Zone has started?

 

[Smart_trade]

ST, Forgive my ignorance please. How do we know that the No Trade Zone has started?

When neither high nor low of large range is broken in 8-10 bars we know that we are in no trade range.....No trade range is known after a few bars only not when it starts.....

But once we know that we are in sideways no trade range....better to stay away for the rest of the period till we break out of this range....

One reliable indicator is in upmove after making a new highest low which is higher than all previous 10 lows market does not make a new higher low in next 5-6 bars...there is a possibility that we are entering into a trading range....mirror image for downmoves....

ST

 

[gsam]

ST, thank you for your patience and clarity. :thanx:

 

[krish4166]

ST
plz explain was there any gap on 3rd june NF 5 min TF .

 

[Smart_trade]

ST
plz explain was there any gap on 3rd june NF 5 min TF .

There was a gap...but the middle portion of the move in both NF and Bank NF was so steep and without correction that by the time we had a gap...we came to end of the day and the move exhausted itself.

Don't use gaps as a stand alone trading system as they are not trading systems.....use them only as a additional tool....

Smart_trade

 

[Smart_trade]

Can We Choose Good Trades From The Bad/Marginal Trades

In trading we have to analyse the market environments and trade all the trades according to our systems/methods. Though we can avoid few bad trades by having a set up critaria but sometimes such set ups too gives us our share of bad trades

I have posted a Bank NF chart 5 min timeframe . Here the trades are taken in the direction of 30 min timeframe. Without going into specifics of entry critaria, we can see two days trades....one very choppy and small profits day and one very good big profit day..... The green line indicates long, red line short,dotted lines adds and black line profit taking levels.

On 2-6-2011 we had following distribution of trades :

1st trade small scratch trade,second trade a looser, 3rd and 4th small profit marginal trades...so end the day with small marginal profit.....

On 3-6-2011 , same method...just 1 trade and hugely profitable....such days give you enough to sustain 2-3 small profits/marginal days....

We do not know when we take a trade whether it will be a big profit trade or a scratch trade. Our method should be such that it gets us out of such trades with minimal damage.....and stay with our winners once we get one till the market shows signs of trend change, with proper MM and adds....

Our distribution of profits/losses should be a few small profit/scratch trades, a few small loss /scratch trades , a few big profits trades ...but NO big loss trades ( this our exits should ensure )

We should take all trades with the belief that they will be big winners.....but manage all of them with extreme care in such a way that any of those trades can loose and we don't want a single big looser.......

All the above is not easy....but we need to work towards achieving this goal....

Smart_trade

 

[munde_77]

St Da. Could you pls post your daily entry and exit points in NF AND BNF after market hours.

Do you watch 1 min chart and volumes
This will be of great help to learn for all here.

 

[timepass]

Our distribution of profits/losses should be a few small profit/scratch trades, a few small loss /scratch trades , a few big profits trades ...but NO big loss trades ( this our exits should ensure )

:clapping::clapping:

Good advice to everyone, specially newbies. Take care of the basics i.e. strict stop loss and target. Your win percentage will improve with time, and after long practice you will learn to ride your profits. But the first thing always remains minimising losses.

 

[Smart_trade]

St Da. Could you pls post your daily entry and exit points in NF AND BNF after market hours.

Do you watch 1 min chart and volumes
This will be of great help to learn for all here.

Dear Munde,

I have no issues sharing these trades but then I have to also discuss the method I trade on. Here too no issues but this method needs very strong understanding of trends and their interplay which has never been discussed in this forum.This subject cannot be taught in a few posts. Also as the methods I trade are proprietory methods of some other forum in which I am actively involved, it wont be professionally right for me to discuss them here. Hope you will understand this.....

I watch 5 min timeframe for trades and 30 min time frame for trade direction primarily but also watch 1 min time frame and volumes when I want to enter the trade ...and when the trade is in critical condition and still not moved in comfortable profits....

Through this thread I am trying to put forward the trading concepts which are common to all my methods ....and these concepts will be useful to anyone trading different methods.

Smart_trade