Thoughts on Day/Swing Trading
- Thread starter Smart_trade
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Re: nac Calling JOBBERS/SCALPERS
Hi Nithin ,thanks for your kind words.
If one is trading intraday swings, the long trade shown by you is very much valid....I have posted a chart on this method ( one post before this chart post ) and we have taken the long trade .
This chart however is for the method in which we trade 5 min chart in the direction of 30 min visual trends and we dont take trades against 30 min trend. The visual trend on 30 min chart is yet to change to up and hence we have not taken any long trade at this place in this chart.We will take short trades only as long as 30 min visual trend is down and liquidate the short trade at 5 min pivot highs....but not go long........just a question of a trade setup.....
But taking a long thrade in intraday swing method is correct....you identified it well.....keep it up....
Best wishes,
Smart_trade
Hi ST ,
Have read a lot of posts by you ..,
Your explanation of De Marks method of Overbought ( 5 Bars) was very good ..., Do remember your post on the explanation of 60 minute flow & how it works ( Also remember your comparison to Spider and its Web.... )...,Have hard Bound copies of the same.
Now to My question on your 5 Minute Chart of BNF.., Why there are no long positions at the blue line(Horizontal) i have marked on Your Chart ...,
Moreover we see an aggressive pivot(Red bar) after the WRB ..., Is this NOT a confirmation that the trend is continuing...? OR was one suppsoed to expect a sideways movement after the WRB hence Long positions are not taken..
OR am i confused with my understanding of Pivots ..
Your reply for the above will be much appreciated.
Best Wishes...,
Nithin.
Have read a lot of posts by you ..,
Your explanation of De Marks method of Overbought ( 5 Bars) was very good ..., Do remember your post on the explanation of 60 minute flow & how it works ( Also remember your comparison to Spider and its Web....
)...,Have hard Bound copies of the same. Now to My question on your 5 Minute Chart of BNF.., Why there are no long positions at the blue line(Horizontal) i have marked on Your Chart ...,
Moreover we see an aggressive pivot(Red bar) after the WRB ..., Is this NOT a confirmation that the trend is continuing...? OR was one suppsoed to expect a sideways movement after the WRB hence Long positions are not taken..
OR am i confused with my understanding of Pivots ..
Your reply for the above will be much appreciated.
Best Wishes...,
Nithin.
If one is trading intraday swings, the long trade shown by you is very much valid....I have posted a chart on this method ( one post before this chart post ) and we have taken the long trade .
This chart however is for the method in which we trade 5 min chart in the direction of 30 min visual trends and we dont take trades against 30 min trend. The visual trend on 30 min chart is yet to change to up and hence we have not taken any long trade at this place in this chart.We will take short trades only as long as 30 min visual trend is down and liquidate the short trade at 5 min pivot highs....but not go long........just a question of a trade setup.....
But taking a long thrade in intraday swing method is correct....you identified it well.....keep it up....
Best wishes,
Smart_trade
Last edited:
Re: nac Calling JOBBERS/SCALPERS
Hello veluri,
Thanks for the kind words.
The moneymanagement and position sizing is very important in trading...more important than entries and exits in the final success/failure of a trader. I will post some thoughts soon probably in a separate thread .
ST
Thanks ST. Now Charts are clear and loud. :thumb:
When you get free time, please do write something about Position sizing at Initial Entry and subsequent ADDs.
1.Say for Rs.1 lac a/c, what should be initial size. What are Add sizes. How many Add can be undertaken etc. (ie in Cash Segment). Is it appropriate to unleash the power of margin for Adds.
2. What should be ideal a/c size for trading Futures/options (take into consideration effective Adds and M2M requirements).
When I read your posts, I can see your crystal clear mind without any clusters of doubt.
When you get free time, please do write something about Position sizing at Initial Entry and subsequent ADDs.
1.Say for Rs.1 lac a/c, what should be initial size. What are Add sizes. How many Add can be undertaken etc. (ie in Cash Segment). Is it appropriate to unleash the power of margin for Adds.
2. What should be ideal a/c size for trading Futures/options (take into consideration effective Adds and M2M requirements).
When I read your posts, I can see your crystal clear mind without any clusters of doubt.
Thanks for the kind words.
The moneymanagement and position sizing is very important in trading...more important than entries and exits in the final success/failure of a trader. I will post some thoughts soon probably in a separate thread .
ST
I am starting this thread to put togather few of my recent posts on day trading. These posts were posted on some other thread and I thought it is only fair to keep that thread free from noise and hence shifted all the posts in this thread.
I will be posting my thoughts/views on day trading and the way I day trade. This is by no means a claim that this is the only way to trade....there will be 1000 ways to trade ...various methodologies, different traders with different mindsets ,only price,trendlines,oscillators ,scalping,quants and I respect all ....but there will always be a common thread which all successful traders have.....this is an attempt to bring out that common thread....
This thread will not be very well organised ...I am here to learn from interactions from other traders and I will be putting various ideas as and when they come.....I will also not be very regular in posting but will try to post a few posts every week......
Best wishes to all.....
Smart_trade
I will be posting my thoughts/views on day trading and the way I day trade. This is by no means a claim that this is the only way to trade....there will be 1000 ways to trade ...various methodologies, different traders with different mindsets ,only price,trendlines,oscillators ,scalping,quants and I respect all ....but there will always be a common thread which all successful traders have.....this is an attempt to bring out that common thread....
This thread will not be very well organised ...I am here to learn from interactions from other traders and I will be putting various ideas as and when they come.....I will also not be very regular in posting but will try to post a few posts every week......
Best wishes to all.....
Smart_trade
hi ST
I have found ur posts to be very informative for the simple reason that even I trade in a somewhat similar manner, although I do not look at pivots and charts while trading, the basic essence is the same. ie. I trade on volatility based Sar with adds if the positon goes in favour.the basic principles... trade what u see... no prediction as to where the price would go, tade with the trend, add to a winning position and cut ur losses short.... remain the same. I have always wanted to try ur system, but could not do so because of lack of time as I follow several different instruments and mkts. simultaneously... added with the jobbing/scalping bug that keeps on biting me frm time to time.
I have a query..... obiviously the mkts off late have been quite good fr both these systems... but an extended range bound mkt will definitely result in losses fr ur system as well as mine..
as of now I just treat those times as a normal 'business loss' and move on..
what do u do when the mkt goes range bound...do u cut back on size, or do u switch to a different instrument and if so do u have a set criteria for entering a new instrument.
do u have any criteria to decide which instrument would have a higher probability of trending.....or do u also treat it as a 'normal occurance' and live with it....
I hope I am not asking fr too much... but since u have always been forthcoming with the way u trade.... hence also added a small discription of the way I trade.
regards
I have found ur posts to be very informative for the simple reason that even I trade in a somewhat similar manner, although I do not look at pivots and charts while trading, the basic essence is the same. ie. I trade on volatility based Sar with adds if the positon goes in favour.the basic principles... trade what u see... no prediction as to where the price would go, tade with the trend, add to a winning position and cut ur losses short.... remain the same. I have always wanted to try ur system, but could not do so because of lack of time as I follow several different instruments and mkts. simultaneously... added with the jobbing/scalping bug that keeps on biting me frm time to time.
I have a query..... obiviously the mkts off late have been quite good fr both these systems... but an extended range bound mkt will definitely result in losses fr ur system as well as mine..
as of now I just treat those times as a normal 'business loss' and move on..
what do u do when the mkt goes range bound...do u cut back on size, or do u switch to a different instrument and if so do u have a set criteria for entering a new instrument.
do u have any criteria to decide which instrument would have a higher probability of trending.....or do u also treat it as a 'normal occurance' and live with it....
I hope I am not asking fr too much... but since u have always been forthcoming with the way u trade.... hence also added a small discription of the way I trade.
regards
Smart_Trade,
Thanks for starting the thread .I would learn a lot from this thread.
I had tried scalping 2 months back in options and use to only trade options when I was sure that particular CE is moving quickly but what I found out that before I took profit the price immediately use to fall down.
Was impressed by KAIZEN.
I use to trade with 1 min chart.But didn't had chart of any CE.Was using yahoo for charts intending to take quick profits and run.
Currently trying Cash - day trading with low volume following system and stop loss.
Raju
Thanks for starting the thread .I would learn a lot from this thread.
I had tried scalping 2 months back in options and use to only trade options when I was sure that particular CE is moving quickly but what I found out that before I took profit the price immediately use to fall down.
Was impressed by KAIZEN.
I use to trade with 1 min chart.But didn't had chart of any CE.Was using yahoo for charts intending to take quick profits and run.
Currently trying Cash - day trading with low volume following system and stop loss.
Raju
Dear SM Ji,
Thanks a ton for this wonderful thread.
Seconding Anurag ji's opinion with an additional
Request to take few charts of range bound day as a case study and please explain
1. How to Trade on that day or Not to take those trades ?
2. What is a counter trend trading ? Pls explain us with few chart set ups.
TIA.
Best regards,
JK
Thanks a ton for this wonderful thread.
Seconding Anurag ji's opinion with an additional
Request to take few charts of range bound day as a case study and please explain
1. How to Trade on that day or Not to take those trades ?
2. What is a counter trend trading ? Pls explain us with few chart set ups.
TIA.
Best regards,
JK
Thanks for the kind words, Anurag.
Very important question for every trader...let me share my views here .
1) Trends and rangebound markets are cyclical....after the strong trend expect the market to be rangebound before the trend resumes or the reversal takes place....excepion is V shape reversal which is rare in any case. So after trend move, be ready for a sideways move and after sideways move be ready for a trend move.
2) Volatility is also cyclical and mean reversing...so after volatile markets expect calm markets and after calm markets the volatility is waiting to return...this is much more predictable than the price direction.
3) For we intraday and swing traders 3 trends exist on every timeframe....they are a) Major Trend b) Visual Trend and 3) Short term trend....these 3 trends at any point are influencing the markets and when all 3 trends are in phase, we get a trend move......once 1 or 2 of them get out of phase, we get sideways moves.....
4) First indication that sideways move is a about to come is when one higher degree trend fails to make new high/low....we in daytrades trade short term trend...so when we see market is not making new high/low in visual trend, we should expect sideways phase to set in.
5) In the initial period of sideways move the maket still trends ok.....but at later stage the market goes flat....but by that time we know that it is entering a sideways phase....here too you will get a trend on smaller timeframes....so in sideways move find out which timeframe gives us trends and trade that timeframe.....market may not be trending on 15 min timeframe but it may be trending on 1 or 3 min timeframes.But trading becomes tough in this period and the moves smaller...
6) In sideways markets the quantity automatically goes down as the supports/resistance do not get broken and our adds are restricted.
7) In sideways market we need to trade on selling near the resistance and buying near the supports....I have a few methods which I monitor in such phase.....
Problem of sideways phase can be tackled in the above manner.....we cannot totally eliminate this problem.....we have to live with it....that is the reason we should add and make maximum in trends so that we can take these sideways periods in our strides.
Hope I am able to add some value to your thought process....
Smart_trade
Very important question for every trader...let me share my views here .
1) Trends and rangebound markets are cyclical....after the strong trend expect the market to be rangebound before the trend resumes or the reversal takes place....excepion is V shape reversal which is rare in any case. So after trend move, be ready for a sideways move and after sideways move be ready for a trend move.
2) Volatility is also cyclical and mean reversing...so after volatile markets expect calm markets and after calm markets the volatility is waiting to return...this is much more predictable than the price direction.
3) For we intraday and swing traders 3 trends exist on every timeframe....they are a) Major Trend b) Visual Trend and 3) Short term trend....these 3 trends at any point are influencing the markets and when all 3 trends are in phase, we get a trend move......once 1 or 2 of them get out of phase, we get sideways moves.....
4) First indication that sideways move is a about to come is when one higher degree trend fails to make new high/low....we in daytrades trade short term trend...so when we see market is not making new high/low in visual trend, we should expect sideways phase to set in.
5) In the initial period of sideways move the maket still trends ok.....but at later stage the market goes flat....but by that time we know that it is entering a sideways phase....here too you will get a trend on smaller timeframes....so in sideways move find out which timeframe gives us trends and trade that timeframe.....market may not be trending on 15 min timeframe but it may be trending on 1 or 3 min timeframes.But trading becomes tough in this period and the moves smaller...
6) In sideways markets the quantity automatically goes down as the supports/resistance do not get broken and our adds are restricted.
7) In sideways market we need to trade on selling near the resistance and buying near the supports....I have a few methods which I monitor in such phase.....
Problem of sideways phase can be tackled in the above manner.....we cannot totally eliminate this problem.....we have to live with it....that is the reason we should add and make maximum in trends so that we can take these sideways periods in our strides.
Hope I am able to add some value to your thought process....
Smart_trade
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