Trading Strategies Using Technical Analysis

[SwingKing]

Hi Mr Raunak,
Nifty is now at 6230. How much downside do you expect from here?. I am having long positions in ITC &Bajaj hindusthan.
Thanks.

PShirurkar,

I don't know by what quantum Nifty is going to go down.

But, I can say with some certainty that for the next 45 days, we will definitely be witnessing some trading action. Action is more likely to be on the down side. There is too much of money waiting on the side lines and hence too much down side is not expected. But I see no reason why levels of 5700-5800 cannot be attained. In the end, trade with the markets and don't predict.

Tc

 

[SwingKing]

If anytime in next 30 min, DLF retraces to 350. Exit it.

Short it then.

Tc

 

[praveen taneja]

I am back on 3I train at 68.25 God is gr88888888888
Obama, Korean Counterpart failed to reach free trade aggrement, fall in their mkts. Nothing to harm us. Hold Longs. choice and money still urs

 

[spatch]

Hi Raunak,

So are you by any chance in Mumbai?? Because then I might drop in your classes? What all do you teach in your classes.

I have a lot of questions, Let me ask a few right now:

Swing trading is when you hold shares for a few days right? Now tell me something, is it preferred for a swing trader to watch the market from beginning till the end in the trading hours??

Which trading style do you think is more profitable (when the capital is limited, say, 100 grands) I know it depends a lot on the personality of the trader, but still if it is possible to answer this question...

On an average I am able to find out profitable shares, but am very bad at exiting... so far I have exited from about 3 stocks after taking 2% profit and they went on to increase about 11% - 16%.. Any advice on it??

How long is your average holding period? And how long have you been trading? (asking this to figure out how long did it take you to become this good )

 

[SwingKing]

Spatch,

Answers are written in Bold.

Tc

Hi Raunak,

So are you by any chance in Mumbai?? Because then I might drop in your classes? What all do you teach in your classes.

I am located in Pune Spatch. And please don't mind, I don't do business through this forum and hence would not like to reveal any details.


Swing trading is when you hold shares for a few days right? Now tell me something, is it preferred for a swing trader to watch the market from beginning till the end in the trading hours??

It completely depends on your swing trading style. For any new trader, I would definitely advise watching the markets tick by tick. Just increases one's trading intelligence.

Which trading style do you think is more profitable (when the capital is limited, say, 100 grands) I know it depends a lot on the personality of the trader, but still if it is possible to answer this question...

If you were to take my opinion, then let me tell you that under capitalized accounts blow off too easily. Hence I would not trade with small accounts. Still if you want to know, then stick just to Mini Nifty.

On an average I am able to find out profitable shares, but am very bad at exiting... so far I have exited from about 3 stocks after taking 2% profit and they went on to increase about 11% - 16%.. Any advice on it??

You need to have a clear trading plan. When to exit, when to enter, when to scale in and when to scale out. You are lacking a plan. Start working on it.

How long is your average holding period? And how long have you been trading? (asking this to figure out how long did it take you to become this good )

It completely depends on Market conditions. Sometimes it spans to few days, whereas other times it is held for just 2 -3 days. Success in markets does not depend on number of years spent. It depends on your understanding of yourself and the markets. Some do it in one year, whereas some cannot do it for lifetime.

Tc

 

[Sureyes]

I am back on 3I train at 68.25 God is gr88888888888
Obama, Korean Counterpart failed to reach free trade aggrement, fall in their mkts. Nothing to harm us. Hold Longs. choice and money still urs

Praveen Bro,I entered 3I at 72.35 FUT (breakout point) what is your target any way?
Suresh
.. 'you are dancing in the rain.. & I am waiting for strom to pass..'

 

[stumper]

Hi Raunak,

So are you by any chance in Mumbai?? Because then I might drop in your classes? What all do you teach in your classes.

I have a lot of questions, Let me ask a few right now:

Swing trading is when you hold shares for a few days right? Now tell me something, is it preferred for a swing trader to watch the market from beginning till the end in the trading hours??

Which trading style do you think is more profitable (when the capital is limited, say, 100 grands) I know it depends a lot on the personality of the trader, but still if it is possible to answer this question...

On an average I am able to find out profitable shares, but am very bad at exiting... so far I have exited from about 3 stocks after taking 2% profit and they went on to increase about 11% - 16%.. Any advice on it??

How long is your average holding period? And how long have you been trading? (asking this to figure out how long did it take you to become this good )

Hey Spatch

Sorry to barge in.

Just my 2c on the exit part of your question.

What is your current exit strategy? ... There is nothing wrong in having a fixed percentage or fixed price model. If your strategy suits it, so be it. The way i trade, i need to rely on S/R zones for my exit (or if see pressure building up -- using TA).

I believe, all trades are different with different reasons for me to enter the trade ... so i cant possibly have same exit strategy for all. But then, thats for my strategy. You can very well choose your comfort level. The only thing common in my strategy is to ensure i dont keep my Exit and Stops at the MOST OBVIOUS S/R level or where the crowd is most likely to keep their's (its like keeping a bulls-mark board at top of my head saying -- HIT ME). None the less, it would be interesting to hear your view on fixed percentage model.

 

[Sureyes]

Praveen Bro,I entered 3I at 72.35 FUT (breakout point) what is your target any way?
Suresh
.. 'you are dancing in the rain.. & I am waiting for strom to pass..'

Raunakji,
Pl suggest the SL/Strategy tomorrow for 3IInfotech?
Regards
Suresh

 

[spatch]

Thanks for your inputs Raunak & Stumper.

A Few follow up questions :

If you were to take my opinion, then let me tell you that under capitalized accounts blow off too easily. Hence I would not trade with small accounts. Still if you want to know, then stick just to Mini Nifty.

Why do you say that about under capitalized account?? Is it because their risk taking capacity is small, but can't it be overcome by risking a small %age of the capital per trade?

Also, mini nifty is Futures trading, right? Right now am just trading in equities. I don't know much about futures, except for some basic information.

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Again, thanks a lot for investing your time in answering my queries

Hi stumper,

Actually, am still discovering a style that suits me, so tentatively I try to get about 1% of return daily, if I see that happening I exit the trade. Needless to say it has not worked out perfectly, but I won't say its a failure because I've not yet ironed out the chinks in it.

The biggest disadvantage is, as I've mentioned in my previous post, that I am unable to ride the whole trend. As they say cut your losses and let your profits run. In my case I am cutting both the profits and the losses, which is not good.

Even I try to employ s/r levels, but the thing is there are so many ways one cay figure out the S/R (SMA, EMA, Price levels etc...) that sometimes I get confused...
But other times I've seen that S/R levels work beautifully.

The only thing common in my strategy is to ensure i dont keep my Exit and Stops at the MOST OBVIOUS S/R level or where the crowd is most likely to keep their's

That's a nice strategy, I remember watching a video online few days back, in which the expert was saying the same thing.



One question I'd like to ask people who have succeeded is that what are your strategies to find the stocks to invest in.

 

[gangadharan]

If anytime in next 30 min, DLF retraces to 350. Exit it.

Short it then.

Tc

RAUNAK SIR,

I am not sure what will happen with DLF tomorrow. But I shorted it at 357 because of 2 reasons.

Reason 1. It crossed down 38.20% retracement line.
Reason 2. 3ema crossed down 15ema.

Even if I am making an intra-day profit of 10 points (which is as good as 200 points on NIFTY).... I didn't cover the positions for 2 reasons.

Reason 1. Today it crossed down 50% retracement level and heading to 61.80 % level.
Reason 2. It also crossed down the bearish trend line.

Hope I am on the right path.

With Regards,
Gangadharan.