Trading Strategies Using Technical Analysis

[SwingKing]

SIRJEE.......

DLF IS TOWARDS 302 AND MARKET IS TOWARDS 5970. TATASTEEL MAY TOUCH 640 TODAY... I MAY BE WRONG.. LET US SEE.

WITH REGARDS,
Gangadharan.

Gangadharan,

Good to see your opinion on markets and stocks.

Dont worry about being right or wrong. Just keep the posts coming.

Tc

 

[rrmhatre72]

Rahul,

As far as I can understand, you have initiated a Long and a Short position on the same price.

1. How's this going to affect your profitability? You haven't hedged. You have essentially taken a Neutral stance on the market by going short and long on the same level. Whatever gains you make will be lost due to losses in other. Hope you get it.

2. Never ever carry your position from one time frame to another just because you start 'worrying' or 'assuming' about markets. Unless your strategy says so, you must close out your position in the designated time frame. If it was intraday according to your strategy, why have you shifted that to EOD now?

3. Always have an idea of where the markets are heading. Now, somewhere in the forum, someone has quoted the above post of mine and said that I am short on the market and expect it to go down. However, if you read my post above carefully, I am actually looking for an opportunity to go long. Hence, when I have a rough idea of what daily time frame is indicating, I will never carry my trades from lower time frame to higher frame unless it is in the direction of higher time frame. For doing this, one must view the markets on higher time frame objectively (price structure) and not through some sell/buy signal through systems.

When you are using higher time frame,

a) Know the direction of markets on higher time frame
b) trade in the direction of higher time frame on lower time frame
c) a & B only fail when trends starts to change from lower time frame and eventually spread out to higher time frame.

Tc

Thanks Raunak,

I think, I have not posted query with all details.... Adding some inputs which were missing.....

I took position based on daily timeframe in the morning ~9.30am(in ICICI) & sold Nifty @6106..As indicated this is based on EOD hence I do not touch this position till I get EOD signal to square off or I get at least 100points.
(by the way still EOD today maintain sell signal. Also note this position is based on SH's 315 strategy.)

I do play in Nifty on 2min time frame. This has given me two short signal today which I executed & gained 20points both the time...
I got Buy signal at 2.30pm. Incidentally buy signal was @6105 (in RKG) & took the position for intraday & was expecting ~20points again... but rize was too fast & it took NF to 6145 in no time.... & it was getting held in the range of 6135 to 6145.... ( System was not giving any sell signal on 2min TF)
This was giving me hint that close will be at highest level of today & possibility of gap up opening tomorrow... if that happen then my EOD position will turn in loss....
So thought of carrying intraday position to next day to protect loss... again tomorrow I will monitor this intraday position on 2min TF & will sell it off as soon as system gives sell signal.... but this gives me piece of mind today.... I have already gained 40points today & whichever way Nifty opens tomorrow.... i will not be in loss & I can continue the same process....

I am not sure if it is trend change on lower timeframe (As indicated by you in point "c"). We will come to know about it only by EOD tomorrow.

I am trying to give you how thought process goes into the mind... perhaps it is not right for good trader.. & you are the best person to advice on psychology of trader.....

 

[SwingKing]

So thought of carrying intraday position to next day to protect loss... again tomorrow I will monitor this intraday position on 2min TF & will sell it off as soon as system gives sell signal.... but this gives me piece of mind today

I am trying to give you how thought process goes into the mind... perhaps it is not right for good trader.. & you are the best person to advice on psychology of trader.....

Rahul,

Let me answer this from a psychological aspect. Some parts may sound rude to you & others but I hope you guys know by now that I can never mean that. I have to write this way to get my point through.

If you were to allow me to judge what you have done, then I would say that what you did tells me three things.

a) You don't have faith on your Index EOD system - If you had faith, then you would have closed the intra day trade today itself and booked profits on it. You have not done so to get peace of mind today. Markets don't pay anyone for taking easy decisions. Just remember that.

b) You are not disciplined - You are a system trader and the one thing system traders don't do is they never break their rules. You have taken a intraday system and now turned it into a EOD trade. Stick to rules. Either be discretionary or be a system related trader. Don't mix both.

c) Learn to Embrace Pain - You need to learn to embrace pain. Fall in love with red and it will start ignoring you. Which means, you will start to see more of green in your account. This is the most difficult part in trading and is very very hard to practice.

For E.g. - You questioned me on Tata steel today. Despite of what was going on and despite of excellent results, I did not break my rules. Over the weekend, I did not anticipate, I embraced the "probable" pain and I am still in my position. This is because I don't mind losing 'N' % tomorrow.

How you need to approach the two time frames is something I have explained in the previous post and hence you can refer that.

Tc

 

[gangadharan]

Gangadharan,

Good to see your opinion on markets and stocks.

Dont worry about being right or wrong. Just keep the posts coming.

Tc

Raunak Sir,

Tatasteel disappointed everyone.

After having such a fantastic result the script didn't run........ One lesson from this is we have to stop depending on any news...... let us depend the chart only... It seems like chart knew all the news in advance.. In the case of tatasteel the chart knew about the result well in advance when the price was about 590 levels..

Any way i came out of DLF shorts at 320.... who knows what happen tomorrow.

Thanks to SBI and TCS..........

Raunakjeee..... Sugar is always sweet.......... but at balrampur it is not that sweet I think (at least for the short term).. But I entered it in equity @86.25 with the suport of 85 put option at. 1.65..

With regards,
Gangadharan.

 

[gangadharan]

Rahul,


a) Know the direction of markets on higher time frame
b) trade in the direction of higher time frame on lower time frame
c) a & B only fail when trends starts to change from lower time frame and eventually spread out to higher time frame.

Tc

Raunak Sir

Excellent advice... Even I had some doubt but it is cleared now by you.. by the below high lighted sentence I will concrete my rules with this now.

b) trade in the direction of higher time frame on lower time frame

Thanks a lot

Gangadharan

 

[VJAY]

Rahul,

There was some visible accumulation going on in the counter. A new base around 612-614 has been identified. I still haven't changed my trades. I'll do it tomorrow once it closes above 633 on Futures.

Tc

Dear Sir,
Please give some guidance to identify theis visible accumulation part..
Hope you are looking 30 min chart....How we findout accumulation & destribution seing chart....

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[MurAtt]

Dear Sir,
Please give some guidance to identify theis visible accumulation part..
Hope you are looking 30 min chart....How we findout accumulation & destribution seing chart....

Hope this gives you your answer ..... and hope I am right

 

[gangadharan]

Raunak Sir,

Why is it and what is the reason behind 5700-5800 and 45 days...... Will you please clarify it?. I have long positions in TCS 1052 and SBI 3210 shall I come out of that?

Please advice.

With Regards,
Gangadharan

Raunak Sir,

This is something regarding hedging and stop loss. Take your own time but please reply it.

Sir, It is not even 3 months that i have joined Traderji and I did not knew anything about TA before I join here. But even before I join here i use to trade and invest ........ ha yes earned also.
And I have a habit of spending an extra 5% onmy investments to hedge.......and keeping SL on my trades.

Ok, now the benefit to me for being in Traderji is............

1. Now I have an increased confidence level with the abcd...... of TA.
2. the percentage of income from my trades are increased.
3. I can some how select some good scripts now for investment and trade.

Now with my habit of spending 5% of my investments for hedging, recently I bought 100 equities SBI at 3210 imagining that the script can touch a 4000 level in short term which is a clean 25% margin. and hedged with 4 lots 3200 put at 34.

on friday I came out of my puts at 190.. and kept the scripts because I loved it.
Today it started loving me and I am happy.

I explained the entire story because I need to take a firm decision after your advice.

I told you I am hedging my investments and keep SL for only intra-day trades.

My query is to you are..........

1. Do you think my way of hedging only investments.......Do trade with SL. are a completely fool proof way here?
2. Apart from hedging of 5% an additional SL is required for investments?
3. With the SL, Is it required an additional hedging for my trades?
4. Shall I completely avoid SL and go for hedging in trading also?

let me make it clear that what I understand about hedging and Stop lose.


Hedging............
1. By spending an additional 5% on our investments you are insured for minimum loses and have a chance of earning even if our trade go negative.
2. If our trade go positively you will not loose the entire 5% hedging fund. you will get a chance to cut it down to 3% in between.
3 Yes If our script did not move to either side till the expiry you may loose up to 3% or even full and you will have to find another 5% for next month (But here we have solutions...... we can go for scripts with momentum).
From my experience I believe that we will get enough bonus as in the case of SBIN to cover this types of loses

Stop Loss

1. You can only control your lose and it will be a sure shot (minimum)lose in case you script moves against your view.
2. You do not loose an additional percentage if your view go positive.


Now I think you got my query and expect an advice please.

Thanks in advance,

With Regards,

Gangadharan.

 

[gangadharan]

Hope this gives you your answer ..... and hope I am right

Thank you very Much SM Sir,

Visible accumulation is a new knowledge to me.

Thanks a lot.

Regards,

Gangadharan.

 

[SwingKing]

Raunak Sir,

Tatasteel disappointed everyone.

After having such a fantastic result the script didn't run........ One lesson from this is we have to stop depending on any news...... let us depend the chart only... It seems like chart knew all the news in advance.. In the case of tatasteel the chart knew about the result well in advance when the price was about 590 levels..

Any way i came out of DLF shorts at 320.... who knows what happen tomorrow.

Thanks to SBI and TCS..........

Raunakjeee..... Sugar is always sweet.......... but at balrampur it is not that sweet I think (at least for the short term).. But I entered it in equity @86.25 with the suport of 85 put option at. 1.65..

With regards,
Gangadharan.

Gangadharan,

I do not like to second guess price movements. But, if I have to take a shot, then Tata steel should move into a buy zone tomorrow or day after. Once it does that, we can witness some significant action. One day's price movement has nothing to do with future price movements.

Ocean's are always calm before the storm arrives.

Tc