Trading Strategies Using Technical Analysis

[DanPickUp]

I played the game on http://www.tradingsim.com/ today. Lost almost $10000 out of the $50000 I had.

Remaining balance...

Hi gauharjk

I guess, you will surely start to test your knowledge in the future with that tool and that will improve your knowledge immensely. You also will get more self confidence about trading.

It is not a perfect tool as we not can use options or more order types or a mix of different derivatives, which I love to mix . So, we can not test such kind of strategies or trades.

On the other hand it is a perfect tool to learn or to improve to trade with just the simplest indicators and only concentrate what is going on on the chart and only on the chart ! No TV, no tips, no fundamentals, no influence from any body, no input from outside. Pure trading decisions build on personal technical knowledge, real experience, coolness and knowledge about the different order possibilities on your brokers platform include the margins you need to have for any of this trades.

And that is one of the main points, witch makes the different between the successful individual trader compare to the holy grail searching traders or to the normal public traders.

I am clear, that in this simulation not real money is involved. So what ? We can use our imagination and experience we have with real money trades and trade in such a way, that it comes near to that reality. As the data in the simulation are real data from the past ( in my case from the 28 oct 2010 ), there is a good chance to make this like nearly real trades.

Use the same ideas from the past and find out, what was wrong with that idea in that moment or better, what was top in that situation to become an approval again of that

Take care

DanPickUp

Edit : By the way, here some more of such learning tools which I posted months ago : http://www.traderji.com/options/38596-games-about-how-trade-options.html#post414748. Maybe you want to try some of them.

 

[gangadharan]

I played the game on http://www.tradingsim.com/ today. Lost almost $10000 out of the $50000 I had.

Remaining balance...

Don't worry Gauharjk,

I made some $ 26000 buy playing here... more than 50% of the corpus.. I will give you $10000/- from that... but will you please tell me how did you posted the details of remaining balance here...

Thanks in advance.

Gangadharan

 

[gauharjk]

Don't worry Gauharjk,

I made some $ 26000 buy playing here... more than 50% of the corpus.. I will give you $10000/- from that... but will you please tell me how did you posted the details of remaining balance here...

Thanks in advance.

Gangadharan

To capture the screen, press the "Print Screen" button which is generally located beside the F12 key on the keyboard. Then, open any image editor, like MS paint or Irfanview, and paste the captured image which is stored in memory. Then, crop the desired area...

Cheers!

 

[stock72]

I played the game on [COLOR="Red"]Remaining balance....IMG][/QUOTE] nice word....................

 

[SwingKing]

Have taken Nifty 5900 CE @ 102.9

Lets see if this works. Options is not my forte.

*Correction*

Trade has actually been taken in 6100 PE @ 145

Sorry for the mistake.


Tc

 

[rrmhatre72]

As indicated earlier,

First lot of DLF was exited at 307 and second lot at 311.

Tata steel has been reversed. And now we are long in it.

First lot has been taken at Avg price of 626.5

Second set of lots will be added at 644 + levels (if we reach there)

SAR lies around 603-606.

No further position in DLF has been taken. Positions will be considered tomorrow.

Tc

Hi Raunak,

Taken the position in Tata steel today in Dec Fut @621.
Do let me know about DLF.
Today's DLF opening is showing LH & LL in 30m TF. In 5min chart also its LL initially & it seems it is getting stabilised @315. We have to wait till we get confirmation. I think crossing yesterday's high @321 should be good signal. Am I right in my understanding?

 

[SwingKing]

Have taken Nifty 5900 CE @ 102.9

Lets see if this works. Options is not my forte.

*Correction*

Trade has actually been taken in 6100 PE @ 145

Sorry for the mistake.


Tc

@Dan

This is regarding SL in options (intra day)

I executed a trade today @ 6100 PE at 145.

Now first it went to 135 and I exited at 140 as that was my SL.

Then, when it again moved towards my initial buy level (145), I entered it again at 144 and now exited it at 167.

What I want to know is that how much SL we need to keep on intra day basis on options so as to avoid some whipsaws. Rough idea in % terms would be good enough.

Let me know what you think.

Tc

 

[SwingKing]

Hi Raunak,

Taken the position in Tata steel today in Dec Fut @621.
Do let me know about DLF.
Today's DLF opening is showing LH & LL in 30m TF. In 5min chart also its LL initially & it seems it is getting stabilised @315. We have to wait till we get confirmation. I think crossing yesterday's high @321 should be good signal. Am I right in my understanding?

Rahul,

We are into very volatile phase now.

Hence my emphasis is now more towards forming bases rather than taking out highs. In volatile situations, high's are easily taken out and hence this should not be used as entry criteria.

Reversal for Tata steel is 604 - 606 zone.

Tc

 

[sidsup]

@Dan

This is regarding SL in options (intra day)

I executed a trade today @ 6100 PE at 145.

Now first it went to 135 and I exited at 140 as that was my SL.

Then, when it again moved towards my initial buy level (145), I entered it again at 144 and now exited it at 167.

What I want to know is that how much SL we need to keep on intra day basis on options so as to avoid some whipsaws. Rough idea in % terms would be good enough.

Let me know what you think.

Tc

Hello Raunak,

To answer your question on options I d like to make a few things clear.

1. Since your TA is so strong why are you trading options intra day ?? You will definately be more successful with futures. Trading options intra day makes little sense for someone who I ve noticed is very strong in technicals.

2. Regarding a stop loss , the option is only a reflection of the underlying. Hence your stop loss should be based on your underlying not the options itself. So like with any other assest (stock, future ) you can derive your stop loss which I m sure you re pretty great at.


Hope the above mentioned was of some use.

Regards

Siddharth

 

[SwingKing]

Hello Raunak,

To answer your question on options I d like to make a few things clear.

1. Since your TA is so strong why are you trading options intra day ?? You will definately be more successful with futures. Trading options intra day makes little sense for someone who I ve noticed is very strong in technicals.

2. Regarding a stop loss , the option is only a reflection of the underlying. Hence your stop loss should be based on your underlying not the options itself. So like with any other assest (stock, future ) you can derive your stop loss which I m sure you re pretty great at.


Hope the above mentioned was of some use.

Regards

Siddharth

Siddharth,

In my opinion, options is less of Technicals and more of Mathematics. Hence, normal TA principles do not work well when options are analyzed. If one is tracking the underlying asset, there is no guarantee he will make money in options despite being right on the underlying direction. This is just something I have observed.

As of trading intraday is concerned, we have observed some mathematical relationships which seem to work very well on intra day basis and hence at present I am looking for protecting capital in case trades go wrong. I have openly written many times that my knowledge in options is limited. But this is just temporary. My insatiable thirst of knowledge has attracted me to options now. Therefore, it is now only a matter of time when I start getting the hang of the same.

I agree I am well versed with stocks and futures. It is just that now it is time to explore options.

Tc