Thoughts on Day/Swing Trading

[ashwani chadha]

Popcorn is not a trading system. I just mentioned the way I trade on strong trend days. ((((The basic theme is to trade aggressively when the market is cracking /bursting like popcorns in the popcorn machine.....nothing more to it.))))

Smart_trade

thanks for the thought in brakets

 

[ashwani chadha]

Trigger Price and Limit price ? Means you put a stop order....not sure how this stop order was placed to Stop buy at 100 when price is above that....I am not clear on this. I dont think such order will be accepted by the system.

(((Always keep a difference of about 1.00 between trigger price and limit price in stock futures and 0.25 in Nifty Futures.)))

Smart_trade

at least this difference is a must requirement for stop loss if it is not on market price,if it is less then this ,in case of emergency when triger of stop loss was a must requirement ,stop loss will not activate due to at once fall and will give huge loss to trader ,thanks for your above though in brakets and every body must follow it

 

[ashwani chadha]

Hi ST Da ....

In My view By Following Condition We start a trend , And We Need a Common way to tackle All the condition ....

yes you are right(but common way is not possible)
various trader use various mechnical trading systems
but ultimate purpose of every body is to catch the breakout
with perfect discipline.,there are hundereds of different ways to catch the breakout or to leave it just with nominal stop loss triger

 

[krish4166]

A true teacher is like a candle that consumes itself while illuminating the minds of students.
Happy Teachers day to all seniors and juniors

 

[Bigbear]

First of all,

Thank you Smart_trade, .Pride., raghav and others who contributed here...:clapping::clap::thumb:

I have recently started my trading journey and have been going through many threads on this forum ..
Today i finished going through all the posts of this thread... I must say, It is a real GEM:thumb:

I have gone through many books at this learning phase and have come to a point where i will no longer use any indicators / oscillators to make my trading decision .. thanks again to .Pride and Smart_trade. :clap::clap::clap:Even though i "started" my learning by experimenting and using -> one indicator after another ...
Briefly,
I have come to a point where i feel probability and money management are more important than the system! along with position sizing!

Volume spread analysis book by Tom Williams - kind of "enlightened" me ..

Understanding the market is my main goal as of now..

I have some question om initial trading capital
is Initial trading capital of 1 lakh sufficient ? [ for learning]
I read through your posts where you said even 25 thousand is very less, which i agree... But books tell me optimal starting capital is 50,000$ which is almost 25 lakhs .. I am a bit confused here


It was a pleasure going through this thread..
Would like to actively participate with you all ...

Thanks

Nikhil

 

[murthyavr]

Volume spread analysis book by Tom Williams - kind of "enlightened" me ..

Nikhil:

You meant "Master the Markets?"

Karthikmarar also has done some extensive research into this topic here,
just in case you missed it:
http://www.traderji.com/advanced-trading-strategies/23128-volume-spread-analysis.html

 

[Smart_trade]

First of all,

Thank you Smart_trade, .Pride., raghav and others who contributed here...:clapping::clap::thumb:

I have recently started my trading journey and have been going through many threads on this forum ..
Today i finished going through all the posts of this thread... I must say, It is a real GEM:thumb:

I have gone through many books at this learning phase and have come to a point where i will no longer use any indicators / oscillators to make my trading decision .. thanks again to .Pride and Smart_trade. :clap::clap::clap:Even though i "started" my learning by experimenting and using -> one indicator after another ...
Briefly,
I have come to a point where i feel probability and money management are more important than the system! along with position sizing!

Volume spread analysis book by Tom Williams - kind of "enlightened" me ..

Understanding the market is my main goal as of now..

I have some question om initial trading capital
is Initial trading capital of 1 lakh sufficient ? [ for learning]
I read through your posts where you said even 25 thousand is very less, which i agree... But books tell me optimal starting capital is 50,000$ which is almost 25 lakhs .. I am a bit confused here


It was a pleasure going through this thread..
Would like to actively participate with you all ...

Thanks

Nikhil

Thank you Nikhil for these kind words. I am happy that the thread was of help to you ,so it has achieved the purpose with which this thread was started.

This thread is joint efforts of many who contributed their trading ideas . Apart from .Pride, Raghav others like EagleOne,PGDIMES,Vjay,AW10,Satyen,Anuragmunjal , Murthy ,ashwinichaddha and many others who contributed their trading ideas which immencely benefitted me in my own trading.....thanks to all of you.

Probability, Risk comtrol, Money Management & Position sizing are as important as a good method is for trading success. The method must have an edge otherwise with MM you can only prolong the death of your account....and with bad system traded with confidence, one can "systematically and confidently " blow off his trading capital. So when good method, Risk control,MM,Discipline all come togather that is a recipie for trading success.

Regarding trading capital , I would like you to work backwards....if you need say 40,000 per month from trading , a good trader can target to make between 15-20 % of his trading capital per month. I have seen traders making much more than that every month but that requires lots of experience and screen time so let us not take those percentages into our calculations. So assuming that one makes 10 % per month , you need a trading capital of about 4 to 5 Lakhs.....but 25 K capital is ok to learn,where you dont expect to make your living on it.....with 25 K capital you will make 2500-3500 per month during your learning period and that should be ok if you have other source of income to run the house.....

I hope I have answered all your questions.... Best wishes for your trading success !!!

Smart_trade

 

[ashwani chadha]

Thank you Nikhil for these kind words. I am happy that the thread was of help to you ,so it has achieved the purpose with which this thread was started.

This thread is joint efforts of many who contributed their trading ideas . Apart from .Pride, Raghav others like EagleOne,PGDIMES,Vjay,AW10,Satyen,Anuragmunjal , Murthy ,ashwinichaddha and many others who contributed their trading ideas which immencely benefitted me in my own trading.....thanks to all of you.

(((Probability, Risk comtrol, Money Management & Position sizing )))are as important as a good method is for trading success. The method must have an edge otherwise with MM you can only prolong the death of your account....and with bad system traded with confidence, one can "systematically and confidently " blow off his trading capital. So when good method, Risk control,MM,Discipline all come togather that is a recipie for trading success.

Regarding trading capital , I would like you to work backwards....if you need say 40,000 per month from trading , a good trader can target to make between 15-20 % of his trading capital per month. I have seen traders making much more than that every month but that requires lots of experience and screen time so let us not take those percentages into our calculations. So assuming that one makes 10 % per month , you need a trading capital of about 4 to 5 Lakhs.....but 25 K capital is ok to learn,where you dont expect to make your living on it.....with 25 K capital you will make 2500-3500 per month during your learning period and that should be ok if you have other source of income to run the house.....

I hope I have answered all your questions.... Best wishes for your trading success !!!

Smart_trade

thanks for your above use full post

 

[poortrader]

Thank you Nikhil for these kind words. I am happy that the thread was of help to you ,so it has achieved the purpose with which this thread was started.

This thread is joint efforts of many who contributed their trading ideas . Apart from .Pride, Raghav others like EagleOne,PGDIMES,Vjay,AW10,Satyen,Anuragmunjal , Murthy ,ashwinichaddha and many others who contributed their trading ideas which immencely benefitted me in my own trading.....thanks to all of you.

Probability, Risk comtrol, Money Management & Position sizing are as important as a good method is for trading success. The method must have an edge otherwise with MM you can only prolong the death of your account....and with bad system traded with confidence, one can "systematically and confidently " blow off his trading capital. So when good method, Risk control,MM,Discipline all come togather that is a recipie for trading success.

Regarding trading capital , I would like you to work backwards....if you need say 40,000 per month from trading , a good trader can target to make between 15-20 % of his trading capital per month. I have seen traders making much more than that every month but that requires lots of experience and screen time so let us not take those percentages into our calculations. So assuming that one makes 10 % per month , you need a trading capital of about 4 to 5 Lakhs.....but 25 K capital is ok to learn,where you dont expect to make your living on it.....with 25 K capital you will make 2500-3500 per month during your learning period and that should be ok if you have other source of income to run the house.....

I hope I have answered all your questions.... Best wishes for your trading success !!!

Smart_trade

ST
agree with you, whatever the trading capital it is risk that matters, on 25000 risk should be 1-2% max meaning rs 250 to rs 500 max per trade, IMO

 

[Bigbear]

Thank you ST.. It is really helpful for me, will keep following this thread..

Till then take Care of your back ST ji..
As i read before, When we have health ,we go after wealth without giving much attention to health... And once at a particular stage when we have wealth, It would have been too late for wealth..
health always comes first Then wealth.. Without health, no use of wealth

Get well soon:clap:


And Ofcourse how can i forget the contributions of AW10 , EagleOne, PGDIMES, and many more who spent time here improving themselfs and some of the beginners here like me !!
I want to thank them all ! BUT the thank button is disabled after some time HEHEHE !! so mentioning them here :clapping::clapping:
Cheers :beer::beer::clap: