Trading according to Karthiks strategy..
- Thread starter anup
- Start date
Hello All,
I have come across an old thread in traderji for an intraday method. I havent tried it. So reposting the rules of those. All the members can paper trade, plz dont ask me the doubts for this, as myself is having many doubts on this :
MORNING 30-MINUTES STRATEGY *
This strategy is based on understanding the moves of the BROKER. ( sentiments )
If you track the Close price you will wonder the Open price of the trade day is not always the same as that of the previous days Close price. It is because the major brokers (BIG TRADERS) according to the sentiments lay a trap in which small traders get trapped and run into losses. If we understand the brokers mind we can make profits 90 % times in normal market in the first 3 to 30 minutes of trading.( Remember you should close your positions in this time frame )
Take the following figures and trade plan with you on the basis of calculations given below. We will call it Brokers Strategy ( BS )
Difference between HIGH & LOW of previous day i.e.: D = ( H – L )
Now BS = D / 3
BUY PRICE = ( Pr. Close – BS )
SELL PRICE = ( Pr. Close + BS )
For understanding the BS one should understand the following……..
STRONG SHARE or STRONG CLOSE (close price is higher than previous close) &
WEAK SHARE or WEAK CLOSE ( close price is lower than previous close )
Now on the basis of above calculations you are ready with the figures i.e.: BUY PRICE, Pr. CLOSE & SELL PRICE of STRONG SHARE & WEAK SHARE separately.
Now on trade day if STRONG share opens anywhere between Pr. Close & BUY PRICE you can BUY first & keep for sell @ SELL PRICE as your target.
The Trap :- As the broker opens the share at a price lower than Pr. Close one gets the feeling as if the share has become weak and sells it, thus falling in the trap.
On trade day if WEAK share opens at or above SELL PRICE you can SELL first & buy later @ BUY PRICE as your target.
The Trap :- As the broker opens the share at a higher price than the Pr. Close one gets the feeling that the share has become strong and buys it thus falling in the trap.
Note: For this strategy Preferably take shares with high volumes & less volatility(not operator driven stocks). This strategy will not work in GAP OPENINGS. This strategy requires you to be very fast in taking decisions and accordingly positions. Furthermore One should compulsorily come out or close the position in the mentioned time frame. Life is not that easy and if you find that your position was wrong immediately square it ( close it)
REMEMBER TO CLOSE POSITION WITHIN THE TIME-FRAME MENTIONED
FEEDBACKS WELCOME
I have come across an old thread in traderji for an intraday method. I havent tried it. So reposting the rules of those. All the members can paper trade, plz dont ask me the doubts for this, as myself is having many doubts on this :
MORNING 30-MINUTES STRATEGY *
This strategy is based on understanding the moves of the BROKER. ( sentiments )
If you track the Close price you will wonder the Open price of the trade day is not always the same as that of the previous days Close price. It is because the major brokers (BIG TRADERS) according to the sentiments lay a trap in which small traders get trapped and run into losses. If we understand the brokers mind we can make profits 90 % times in normal market in the first 3 to 30 minutes of trading.( Remember you should close your positions in this time frame )
Take the following figures and trade plan with you on the basis of calculations given below. We will call it Brokers Strategy ( BS )
Difference between HIGH & LOW of previous day i.e.: D = ( H – L )
Now BS = D / 3
BUY PRICE = ( Pr. Close – BS )
SELL PRICE = ( Pr. Close + BS )
For understanding the BS one should understand the following……..
STRONG SHARE or STRONG CLOSE (close price is higher than previous close) &
WEAK SHARE or WEAK CLOSE ( close price is lower than previous close )
Now on the basis of above calculations you are ready with the figures i.e.: BUY PRICE, Pr. CLOSE & SELL PRICE of STRONG SHARE & WEAK SHARE separately.
Now on trade day if STRONG share opens anywhere between Pr. Close & BUY PRICE you can BUY first & keep for sell @ SELL PRICE as your target.
The Trap :- As the broker opens the share at a price lower than Pr. Close one gets the feeling as if the share has become weak and sells it, thus falling in the trap.
On trade day if WEAK share opens at or above SELL PRICE you can SELL first & buy later @ BUY PRICE as your target.
The Trap :- As the broker opens the share at a higher price than the Pr. Close one gets the feeling that the share has become strong and buys it thus falling in the trap.
Note: For this strategy Preferably take shares with high volumes & less volatility(not operator driven stocks). This strategy will not work in GAP OPENINGS. This strategy requires you to be very fast in taking decisions and accordingly positions. Furthermore One should compulsorily come out or close the position in the mentioned time frame. Life is not that easy and if you find that your position was wrong immediately square it ( close it)
REMEMBER TO CLOSE POSITION WITHIN THE TIME-FRAME MENTIONED
FEEDBACKS WELCOME
Hi Kapil,
Your first Long entry was too early and at High of the day till now. Of course, no one could tell it as high at that time. But Entry was too early. The second entry for short was correct but SL should have been at least 98.20 if not the high till then (which was 98.40). You just came out before the reversal occurred because of lower SL.
Unless a very strong move sets in in the beginning itself, wait for the stock to make a high and a low, then decide the entry, taking the high /low as SL for the trade.
Today SAIL is in down trend so far. It is making lower highs and lower lows.
-Anant
Your first Long entry was too early and at High of the day till now. Of course, no one could tell it as high at that time. But Entry was too early. The second entry for short was correct but SL should have been at least 98.20 if not the high till then (which was 98.40). You just came out before the reversal occurred because of lower SL.
Unless a very strong move sets in in the beginning itself, wait for the stock to make a high and a low, then decide the entry, taking the high /low as SL for the trade.
Today SAIL is in down trend so far. It is making lower highs and lower lows.
-Anant
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