Trading as a part time profession.

[dnana]

thank u very much

 

[columbus]

Sailing on TWO boats each leg in one , is dangerous.Personally I feel
Trading should be taken as full profession.(Rather intraday trading)
Many people take it as a side profession ,that is way we see as many
as 90% day traders as losers.One can invest for long term ,in small lots
,if they have good jobs ,without aiming for millions or billions.If you have
INTRADAY-ITCH, and a posh job,then stop that ITCH and concentrate on
your job.

 

[rajendrani]

Sailing on TWO boats each leg in one , is dangerous.Personally I feel
Trading should be taken as full profession.(Rather intraday trading)
Many people take it as a side profession ,that is way we see as many
as 90% day traders as losers.One can invest for long term ,in small lots
,if they have good jobs ,without aiming for millions or billions.If you have
INTRADAY-ITCH, and a posh job,then stop that ITCH and concentrate on
your job.

I understand your concern, but still trading can be done having our regaular jobs too. Very well agreed on Intraday, it may not be possible. So avoid, but for other trading yes we can do it bro. And as what you said without amining millions very true, not aiming at millions or billions but we can actually make thousands, every little profits adds and every loss subracts, so why not add.

Thanks and regards,
Rajendrani

 

[avinashtiwari22]

I understand your concern, but still trading can be done having our regaular jobs too. Very well agreed on Intraday, it may not be possible. So avoid, but for other trading yes we can do it bro. And as what you said without amining millions very true, not aiming at millions or billions but we can actually make thousands, every little profits adds and every loss subracts, so why not add.

Thanks and regards,
Rajendrani

hi Rajendrani,

I agree to you. In todays Volatile environment one should always be aware of trading as an alternative profession. one can not get the whole experience in one shot. he or she needs to build this slowly and smoothly by pursuing there JOB.

Hence i really support in this cause. and please feel motivated towards this goal.

Thanks
Avinash

 

[kiranb]

Great going Rajendra, the way you kept the reality into words in introduction is good. This would defiantly help newbees and part time trades.

TRADING​

can u please mark the SL or SAR's for the trades in the above chart. so that new bees can understand the it easily.

Please carry on with your work and can u please through some more light on "Building your own strategy". That would really help me.

 

[niftytrader2]

Hi,
Since this is a learning thread, can you explain why todays gap down and then break of 5 min high+f was not a SAR ?
It was a visual gap of 60 points

Ofcourse the end result of not doing SAR was good, but I would liek to know the mechanics of the same.

tks

 

[rajendrani]

Hi,
Since this is a learning thread, can you explain why todays gap down and then break of 5 min high+f was not a SAR ?
It was a visual gap of 60 points

Ofcourse the end result of not doing SAR was good, but I would liek to know the mechanics of the same.

tks

yes ofcourse this the learning thread, but your question doesnt fit this category or thread, this thread doesnt deal with the 60 min flow, may be you can try the companion thread by samfisher or at the live discussion by srinishri.
Companion guide has a detailed information maybe if you go through that properly you may not need to ask any where.

Well I had recently started trading in 60 min, your question seems to be a valid one, but the solution for the same had been discussed in the live discusion thread and the solution for this kind of gap had been found long back.

Thanks and regards,
Rajendrani

 

[rajendrani]

Lets continue,
There was a short break in between,
Now lets move further with the topic

HOW TO TAKE TRADING AS PART TIME PROFESSION​

Here we assume that we are having a steady job and looking for trading to get some extra income. So we are not looking to make millions, billions like that, we are just trying to make some extra income for ourselves which will help us to enjoy our life.

I dont have to stress on the risk part, because we all know if trading not done properly our entire capital goes for a toss. And, with the limited knowledge we cannot expect to have unlimited profits. So how are we going to apply this method to actually trade and make some money?

Money Management
Money management is one important thing which we need to understand, we may not be in profit as soon as we enter, we might go into loss several times and then our profit will start coming in. So if we go in loss for the first time as we enter into trading, we dont want to get wiped out in one single loss, if we have to be in trading for long run then we need to risk less so that we can afford that loss and can still go on with the trading.
As per many books we need to risk only 2% of our capital.
For eg if our trading capital is Rs. 100000.00
Then 2% of 100000.00 is Rs. 2000
So Risk only Rs. 2000 only.


We actually need to know more on this part so we need to read more on this one to get a good insight of that.

Now I keep the Money management part with you, if you need to be in long run, keep your risk at 2%.

 

[rajendrani]

Strategy which I use, which will help you to make your own.
We will go with the simple strategy of Pivot high and Pivot low.

I will give you my example as to how I will trade, now you can actually make your own and decide what could be your best trading style.

I will be using daily charts for mininifty.
I will be entering trade with 2 lots of mininifty.
I will be booking or covering 1 lot of minifity at 100 point profit (if that is possible)
I will add 1 lot of mininifty only after I had booked/covered 1 lot before. So at any given time my lot size of mininifty will not be more than 2 lots.
I will be trading only the visual pivots, and once pivot broken with the filter will put me into reversal trade.

You can have your own style what suits your mentality, you can actually go for add instead or booking or covering 1 lot, you can exit the trade at your comfortable level and re-enter at the next pivot break. Do whatever suits your style, Do whatever, but make sure you are in profit and not in loss. Patience is a key for success.

Whatever strategy you use, make sure you stick to that.

Now lets start.
Go through the chart for understanding the trades,

For Pointing the Pivots go with the eye, go what is clearly visual.

When our short gets triggered, then we want the market to go down and we keep our sar to previous Pivot high, whenever we get a new lower PH we shift our SAR to this new lower PH. We can add more lot to this trade at the PL Add filter
Covering or Adding can be done as per individual choice
One can cover one lot at 50 points or 100 points or according to individual choice.
We have started with two lots, the rest of the lot needs to be covered only at the SAR level.
Individuals as per their own preference can exit all their lot before the SAR level is hit, and re enter when the SAR level is hit.

Same thing goes with the Long trade, once our Long is triggered, we want the market to go up and we keep our SAR at previous PL, whenever we get a new higher PL we shift our SAR to this new higher PL.
Adds can be done at PH + Add filter
Booking or Adding as per individual choice.


This method doesnt involve any other technicals, just visual pivots, which I think with experience every one would be able to do it. But keep one thing is mind, what the professional traders see, we may not be able to see that, because they have lot of experience and experience does matter. Dont be Greedy, and just take whatever profit you can make.

 

[rajendrani]

USING THE VISUAL PIVOTS METHOD, HOW WE MAKE IT HAPPEN?​

We will be using Daily charts only,
Every Evening at the end of the day, we check the point where we can enter at the next day, if the entry point is too far, we wait till that time and do not enter unless we have an entry. This has to be done on every trading day.
In morning at 10.00 am we need to place our order for entry, if already entered we put the SL or SAR order for our existing trade, and this has to be done on every trading day.
We just keep on marking our PH and PL on the chart and once our SAR get hits we reverse automatically as our SAR order is been placed in the morning.

It is absolute must that every morning you place your SAR order is already entered or place entry order is proper entry point is near.

If for any reason you are not able to place your order personally then do it through your broker. But make sure you do it without fail.