Trading Strategies Using Technical Analysis

[stumper]

Stumper,

Risk/MM/Position Sizing ... Everything is structured. My way may not be as most text book advise it to be .. But it works for me and hence I use it. Its not fancy enough to intimidate most users, but it works just fine.

If you Could be more specific, I could well give you an example.

Tc

Sure. I was'nt talking about Position Sizing exactly.

Im basically a day trader, just trying to get a hang of swing trades.
I have seen couple of traders mitigating risks by hedging (using exotic options strategies). Lets say they have a short position on certain stock futures ... They balance risk by using options strategy - taking opposite stand.
Some balance it by buying futures in a peer company, etc.

So i was curious, how do you insure your trade position.

 

[SwingKing]

Raunakji, Titan just jumped 170 points in 1 hour. I was short it at 3950. It is now at 4000+. How is it that bad luck always strikes me? The market is completely flat...

Who told you to short Titan ??

Gauhar, you are trying to run before you learn to walk.

My answer to you remains the same.

Just follow that.

Tc

 

[gauharjk]

Who told you to short Titan ??

Gauhar, you are trying to run before you learn to walk.

My answer to you remains the same.

Just follow that.

Tc

Only a few days ago, we were staring at 5800 Nifty. I thought after Diwali, markets would cool off. Titan had risen very rapidly from 3200 to 3800, and then stalled there. I thought it might retrace a couple of hundred points by the end of the month.

 

[SwingKing]

Sure. I was'nt talking about Position Sizing exactly.

Im basically a day trader, just trying to get a hang of swing trades.
I have seen couple of traders mitigating risks by hedging (using exotic options strategies). Lets say they have a short position on certain stock futures ... They balance risk by using options strategy - taking opposite stand.
Some balance it by buying futures in a peer company, etc.

So i was curious, how do you insure your trade position.

Stumper,

Now I understand what you mean.

As far as I am concerned, my SL is my risk management as far as Swing trades are concerned. I am not a defensive trader and hence I don't worry about the 'what if' factor. If I am in a trade, I constantly monitor it. The kind of swing trading I do, it requires more of visual approach. Hence, when I spot pressure shifting down wards, I immediately begin scaling out. I keep marking pressure points on my charts and I keep scaling in and out.

As far as options are concerned, I don't feel options hedging is the right strategy for Swing trades. By nature, Swing trading is relatively short term trading and my belief is that the shorter time gets, the more difficult it is to judge options and its movements.

Again its not text bookish, but it works for me. I am no expert in options and hence I keep away from things I don't understand.

Tc

 

[SwingKing]

Update on DLF trade

This is where trade was taken

Current Picture

Monitoring levels of 362 and 360 to lock in some profits. Trade overall remains positive.

EOD SL moves to close below 358.

Tc

 

[stud]

Dear Raunak,
can you let me know what do i do with tata motors nov futures - bought at 1342-5 lots ?

kindly advice whether i should hold or exit ?

I also bought the nov call 1300 at 70 ? Should i hol the option or exit ?

 

[stumper]

Stumper,

Now I understand what you mean.

As far as I am concerned, my SL is my risk management as far as Swing trades are concerned. I am not a defensive trader and hence I don't worry about the 'what if' factor. If I am in a trade, I constantly monitor it. The kind of swing trading I do, it requires more of visual approach. Hence, when I spot pressure shifting down wards, I immediately begin scaling out. I keep marking pressure points on my charts and I keep scaling in and out.

As far as options are concerned, I don't feel options hedging is the right strategy for Swing trades. By nature, Swing trading is relatively short term trading and my belief is that the shorter time gets, the more difficult it is to judge options and its movements.

Again its not text bookish, but it works for me. I am no expert in options and hence I keep away from things I don't understand.

Tc

And i bother you again. But First, thanks for your honest response.

By pressure , believe you meant change in demand-supply. Do you incorporate volume(and book) or just price action analysis to ascertain this shift.

In my day trades, i use WRB for checking on this shift (ofcourse its not the only criteria). For me, i rely on certain candle formation in my S/R zone to determine the shift. Hammer is one of my Fav pattern.

Thanks Again.

 

[sadiq]

Raunakji,
I made a request to give access to your google sheet. kindly approve.

 

[trader_man]

many queries now being posted at Savant's thread as well as Rounak's thread simultaneously OR if answer is un-favourable to recepient from either thread ...

I asked SG about Powergrid FPO and Glaxo, and didn't get a proper response. I am certainly not expecting SG to take time and answer each one (or any) of my queries. Then, why is it wrong to also ask Raunak ji who I would also regard as an expert just like SG?

People are obviously wanting opinions form both and the only way to get that is to post on their threads. Just like, when you go to a doctor but are not happy or want to confirm, then you might seek a second opinion. :argue:

 

[SwingKing]

And i bother you again. But First, thanks for your honest response.

By pressure , believe you meant change in demand-supply. Do you incorporate volume(and book) or just price action analysis to ascertain this shift.

In my day trades, i use WRB for checking on this shift (ofcourse its not the only criteria). For me, i rely on certain candle formation in my S/R zone to determine the shift. Hammer is one of my Fav pattern.

Thanks Again.

Stumper,

I don't monitor Volumes and Book on tick by tick basis. But they do form a part of my analysis. I rely more on Price structure and S/R. In price structure I like to see WRB, Bar patterns and Candlestick patterns. Whereas S/R is similar to what I have marked on DLF (Pivot points)

Tc