Thoughts on Day/Swing Trading

[jallanankit]

Very rightly said... This can b understood and b believed very easily... but pointing it is not easy...!! BUt as its already done, u guys deserve sincere applaud... Nice going guys..

U guys are elaborating the simple ways of trading(the basic principles) which work more better than many combinations of indicators(even systems) put together.... PLs continue the good job guys..!! looking for more..!!


Trade Simple, trade better..!!
-Ankit

 

[poortrader]

Today's Day Trading Chart based on Pivot PA and stoch confirmed by Market Profile; seniors and experts plz add yr views

 

[Satyen]

Hi Dada and Others

I have a very Basic Doubt that is Why There Will Be Trend At All ?

Realise every method more or less does same thing , try to catch trend some catch it early with more whip some little late ..
they all make money if trend is there

Firstly was in misconception that its basic nature of finacial crowd
that it moves between trend to non trend and vice versa .

But later realize trend only depends on how strong is supply/demand .

A particular scrip or Index may stay in sideways or listless for months some cases for years .

So how we know in coming months /years particular scrip or index will have strong supply/demand and will be active

Like now we have a fall , so how we know particular sector is going to active , chose it to trade

Like if some body is trading different indexes across the world then how he will chose perticualr index to trade ?

Why Nifty why not HangSeng ?

Have seen Nifty gone for listless for months what is the guarantee that it will not go into listless/sideway mode for some years ?

There must be a Way to know how to chose perticualr index/scrip , but I dont know how , need to know all these .

Posting a Example below chart

Hope I am not bugging too much by my basic/silly Doubts

 

[hitesh]

Hi Dada and Others

I have a very Basic Doubt that is Why There Will Be Trend At All ?

Realise every method more or less does same thing , try to catch trend some catch it early with more whip some little late ..
they all make money if trend is there

Firstly was in misconception that its basic nature of finacial crowd
that it moves between trend to non trend and vice versa .

But later realize trend only depends on how strong is supply/demand .

A particular scrip or Index may stay in sideways or listless for months some cases for years .

So how we know in coming months /years particular scrip or index will have strong supply/demand and will be active

Like now we have a fall , so how we know particular sector is going to active , chose it to trade

Like if some body is trading different indexes across the world then how he will chose perticualr index to trade ?

Why Nifty why not HangSeng ?

Have seen Nifty gone for listless for months what is the guarantee that it will not go into listless/sideway mode for some years ?

There must be a Way to know how to chose perticualr index/scrip , but I dont know how , need to know all these .

Posting a Example below chart

Hope I am not bugging too much by my basic/silly Doubts

Hi Satyen,

I do not attempt to answer your question, but to share my thoughts.

In stock market, success ensured by doing what we are comfortable with and what suits ones personality. At the same time, to know your limitation and modify your behavior accordingly.

In the above chart, for four/five months the nifty was listless. There are traders in the market who makes money during such period also.

But I know my limitation. I prefer to stay away and not to do anything during such market. It requires lot of patience and practice to sit aside and just watch moment. But it is still better than burning figures. In the beginning I had a question: Am I right in not doing anything during such period? But invariably I will self-sabotage, if decide to trade. So better not to incur loss by not doing anything than otherwise.

How to overcome limitation?: Even if I decide to trade such market, I strictly do intraday and never carry my position to next day. I have not found any other solution to this limitation. And I know that I still lack patience and conviction required to do intraday trade.

How to know such market? When ADX starts down slopping and eventually drops below 20.

what is the guarantee that it will not go into listless/sideway mode for some years ?

Now I am not the only trader in the world who is comfortable to trade in trending market. So With regards to index, sooner or later it should trend. Because all the participant will gain something only if market remains trending.

It may happen for stock to remain in sideways for weeks / months /years. For me the answer at present is: Stay Away from such stock/s. At present, for me, I do not have better answer than this.

With best regards
Hitesh

 

[Satyen]

Thank a ton Hitesh ...... For your Reply , Want others openion About my Doubt

 

[HNI]

Today's Day Trading Chart based on Pivot PA and stoch confirmed by Market Profile; seniors and experts plz add yr views

helllo pt please tell me which software u uses for day trading. your PM is closed so i had to post there.
thanks

 

[respectinvestor]

@SMARTTRADE:
You have done a great job of keeping up the actual spirit of traderjee. This is one forum I find of real interest otherwise having gone through so many other discussions I had started feeling that traderjee had become a consumer grievance forum....Great work...adds real value to the trading community as some really knowledgeble people have been putting their views across...and thus benefitting others through their hard work..I also do expect to add meaningfully to this forum...Congrats

 

[Smart_trade]

@SMARTTRADE:
You have done a great job of keeping up the actual spirit of traderjee. This is one forum I find of real interest otherwise having gone through so many other discussions I had started feeling that traderjee had become a consumer grievance forum....Great work...adds real value to the trading community as some really knowledgeble people have been putting their views across...and thus benefitting others through their hard work..I also do expect to add meaningfully to this forum...Congrats

Thank you for the kind words, respectinvestor.....I am happy that the ideas shared here are helpful to you in your trading. Looking forward to inputs from you.

Smart_trade

 

[respectinvestor]

Thank you for the kind words, respectinvestor.....I am happy that the ideas shared here are helpful to you in your trading. Looking forward to inputs from you.

Smart_trade

Well, I am more than sceptical on this front: if you look at daily charts today it has made a bearish harami pattern which may be precursor to an impending downtrend in the stock.....next...Reliance has been consistently facing resistance at around 850-860 levels....if you draw the long term trendline for the stock it is around the same area...so trendline resistance is there...again from a low of around 710 Reliance has rallied around more than 20%..which at least in the last two years it has been never able to sustain.....well this is regarding the current technical structure of Reliance...add to it some fundamental factors like an impending CBI chargesheet against the company which may or may not happen...but the sentimenta are seriously affected at least of players who have the money to move the markets ...add to it a recent notification by Reliance to NSE.....Reliance Industries Ltd has informed BSE that the Company is planning to take Maintenance and Inspection (M&I) shutdown of Light Cycle Oil hydrocracker (LCOHC) and Vacuum Gas Oil hydtrotreating unit (VGOHT) of SEZ refinery at Jamnagar refinery complex from 19th and 23rd September 2011 respectively. These maintenance shutdowns will be for a period of approximately 4 weeks.

The routine shutdown of these units is being planned for the first time since commissioning.
this is definitely going to affect its bottomline as well....
I prefer to bet on the short side...sell it and enjoy it.....
@SMARTTRADE...This was my post in traderjee on 21 sep.....u can see my previous posts...it was posted as a reply to someone who was being bullish on Reliance...I am writing this encouraged by your good words and after seeing the quality and nature of discussions I am convinced that as a trader this forum is where I add value to myself as well try to be of some utility to members who are already there..Keep up the good work..:clapping:

 

[Smart_trade]

Originally Posted by Niranjanam View Post
Hi

I would like to advice all traders to prepare two annotated charts everyday. One is for the actual trades taken and another one is for model trades. Compare these two and find out what went well and what went wrong .Learn from it.

Skill learning is not possible without trial and error. Correction process should go on till successful performance is achieved .Once this success is achieved you will forget the errors and remember only the successful action that will be imitated and initiated automatically by your brain.

Watch a baby trying to grab a toy. His brain has no stored information what to do for this . He has no proper control over his muscles .So his hand will move somewhere else and he will try to correct the wrong move. This goes on for many days and finally his brain will store the right move and he starts doing it without any difficulty

Remember how you learned to drive the car. How difficult it was to coordinate your eyes, hands and foots.How long it took you to handle the steering properly.
But once you master the right moves by trial and error these actions are taken over by your brain.

All the knowledge necessary to trade profitably is available in the posts of Saint, Raghav and ST. What we need is deliberate practice .

All the best

Here is a Model chart , I use a free software to annotate my charts. It is called Jing. Click on the chart for a detailed view

With assumed permission from Niranjanam , I am quoting an excellent post he posted in Vjay's thread and my post on that as under :

I agree with you Niranjanam......one can learn any amount of theory but the trading profits come by actually pulling the trigger, taking the trade, deciding right quantity, adds,stops, profit booking ,monitoring the trade and finally cashing out and putting money in our pockets...and this process requires tremendous practice. It is a great idea to prepare a model trades chart by EOD and compare your actual trades performance with the model trades. It may be possible that you skipped some trade, booked profits early on some trades, did not take that add.......and if you achieve 65-70 % performance ( trades wise and profit wise ) then you have traded well......pat yourself on the back.

If the model trades have profits of 70 points and we have made 35 points...then our performance is not upto the mark and we cannot live in comforting thought that the day was profitable.....and we certainly need to improve. This is how we compare our performance everyday and start on the road of perfect execution and profitable trading.

I find that going above 75-80 % mark is very difficult.....but that is how one improves, we have to set the bar a bit higher to achieve good performance everyday.

Even if it is repeating the post....I am quoting both the posts here as I think this is a great idea to improve our skills and practice in execution of trades. I have been doing this for sometime and the benefits I got are huge.....I claim no credit for this idea, this idea was picked up by me from Saint who does this excercise everyday at the end of the day and when I read it again in a brilliant post be Niranjanam.....thought of sharing the same for the benefit of all our friends here......

Best wishes,

Smart_trade