There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Tuesday, April 1, 2014

01042014



First trading day of the financial year ended up as too choppy. Did not attempt any trades till the RBI announcement is over. There was no way to capture the TST down move.Price hit PDL and bounced. Second push down ended as a BOF. Long when price re entered the range. Quick up move through the fluid. Could not exit at RN as my trading terminal froze. Exited when price fell inside the range. Price consolidated near NS BRN. Attempted a short on break of this range. Thought it will go to PDL,but had to reverse it above the entry bar. No other trades attempted.

32 comments:

  1. Sir,

    I took the the BOF of PDL Long. But made a premature exit due to improper trailing.I hurried up things, when the second attempt to take the price above failed.

    Did you keep the trailing Stop loss at the low of 1.18 Noon candle? If so, how many points below the low of this candle?

    This candle looked very much like a swing pivot till 1.27 Noon candle made a lower low.

    Thanks,
    S.Karthikeyan

    ReplyDelete
  2. Sir,
    The place where you entered your second trade was a TRAP, w.r. to 2.18 Noon candle low?
    Thanks,
    S.Karthikeyan

    ReplyDelete
  3. Hi ST,

    Aren't these choppy days good for day trading? Today was a good day for trading with two successful trades at range extremes, TST and BOF.

    For third trade, first there was a WRB breaking range high, PDC and RN. Then price pulled back to bottom of WRB MC, consolidated and then gave BOF. Can we enter on BOF in such situation?

    ReplyDelete
  4. Hi ST,

    After 2.30 PM price action seems like flag formation layer over layer even yesterday the same formation. So shall we predict market will gap up to PDH tomorrow.
    Thanks
    Suresh

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  5. KS
    Initial stop was below the BO bar
    Then raised to pullback red candle low.If there is a round number near, keep SL beyond this. Here below 6720

    http://niftynirvana.blogspot.in/2012/09/round-numbers.html

    It is not a TRAP. More of a range BOF

    ST

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  6. URD

    How do we know the market is going to chop? No way.We can be a little more careful on announcement days.
    Once we get stopped out and feel the market behaviour confusing, stay out

    ST

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  7. Suresh

    I do not hold any overnight positions and not bothered about where it is going to open.
    Let it gap up 6000 points at 12760.
    Then there are 2 DPs RN 12750 and DO. soon market will create IR. Then it is business as usual

    ST

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  8. Thank you Sir for the guidance.
    S.Karthikeyan

    ReplyDelete
  9. Hi ST
    Did not follow the market today.
    Regarding the third trade..
    Why didnt you take the trade a bit earlier below MC or a swing low just after the MC

    ?


    rgds
    Kishore

    ReplyDelete
  10. Kishore

    When I too the short Market had created a new range. 6732-50
    Went short on break of range low
    There was too much of chop and congestion in 6232-40 area and I wanted the price to move away from this area

    ST

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  11. Sir good evening ,sir in 5 min t/f the 1.25 pm candle be taken as trend change candle and stop loss can be at its low,kindly update thnx

    ReplyDelete
  12. sorry ST,
    I have seen you taking trades using MC
    .
    I didnt get from your comment why you didnt short the MC

    Please see the image
    http://tinypic.com/r/2md5jif/8

    thanks n rgds
    Kishore

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  13. Amber

    12.45 candle in 5M cracks MSP and trend changes

    ST

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  14. hii

    sir ,

    can i use DP method for small price stock .i am free after 4 pm every time . i think i will track and trade in mcx through this method , but apply only for LEAD,ZINC,COPPER and NICKEL only . not for crude and gold ,silver .

    actually base commdity price around 120,130,400 and 950 rs Respectively .

    is any any issue for price is small as compare to nifty . i think NO .
    but i want to sure from your end .

    i am tracking since 2 week and now think to trade with mini lot .
    before that ..i think ask to you .

    thank you sir

    ReplyDelete
  15. Kishore

    I have written it in the original post. Price was chopping around NS BRN and I wanted it to move away.
    Look at the left. Price respected the 6730 area many times
    When price failed to breakout to the upside once again I went short expecting a lot of stops below the range low.

    ST

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  16. Vishal

    I stopped trading Commodities long back as I am not interested to sit in front of the terminal till midnight.
    Watch live market and ensure the method is working well on them before committing money

    ST

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  17. thanks ST got it

    rgds
    Kishore

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  18. Sir thnx and your simple method of teachings r very very help full thnx very much

    ReplyDelete
  19. Hi ST,

    I was going through some old charts. I would like to bring your attention to the post dated 15032013. I liked the way you put your thoughts creating a real picture of trader's mind through the trading day.

    "Yesterday was a reversal day. Usually after a reversal day there will be some follow up in the same direction. My bias is bullish.. Nifty opened near PDC. First bar attempted to go above PDH but got rejected.I am feeling bearish now. Will short below point A. Why it is not going below the first bar ?. A breakout above PDH.. Hey I am bullish again. Will try to go long. There could be a channel move in the morning session..."

    It is fantastic. Nowadays your daily posts are very brief, to the point.

    Would love to see the posts that way....believe me it would be more educative and in benefit of others.

    Thanks

    ReplyDelete
  20. Sir,
    Since two month I am in the zone of No Profit No Loss ( promoted from the zone of only loss , thanks to my procedural memory). Group of Small losses are eating away big profits and that losses occurs mostly when the market starts trading in the zone of 10 to 12 points .I start selling Range low extreme which result in Bof & vice versa. No sign of improvement sir, so thought of taking your help.I went through your posts but not sure which post deals this problem.
    Kindly help.

    Thanks
    Arvind

    ReplyDelete
  21. URD

    It is too tiresome a job to type all the thoughts. I will think about pod casts.Not a video but a recorded sound track.
    Little busy with my daughters education plans. She has written her Plus Two exams and awaiting results

    ST

    ReplyDelete
  22. Arvind

    Path to profitability is very slow
    You need to analyze what is going wrong and correct it

    1.If you are losing trading BO avoid it. Trade only BOF.
    2.If you are losing trying to trade 10 point range. Don't trade such narrow ranges
    3.If you lose trading counter trend avoid it and focus on trend trades.
    4.Do what works well and avoid what is not working for you

    You are well aware of what is going wrong and you are not taking corrective action. Then how can you expect improvement?
    Nobody can help you if you are not willing to help yourself

    ST





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  23. Good Morning ST

    Thanks. Please do it per your convenience.

    I wish her all the best and a very bright future.

    ReplyDelete
  24. Hi ST

    Took a trade as BOF here

    http://www.mql5.com/en/charts/1678404/nse-nifty-m3-gci-financial-ltd

    After 45 minutes into the trade, as it was getting support at PDH, scratched it. Hope it was a wise decision. Lets see what happens next.

    Thanks

    ReplyDelete
  25. Sir,
    Thanks for your valuable advice.
    You are absolutely right I very well know what is going wrong and what right ,but was just reluctant or lazy to act on them.
    Thanks
    Arvind

    ReplyDelete
  26. Hi St,
    can now bo below range be shorted.
    Thanks

    ReplyDelete
  27. ST,
    I shorted IRL and got stopped out.
    I am now hesitating to trade. I am asking only if due to revenge ( previous sl hit) I am thinking of short it now.

    ReplyDelete
  28. nirtos

    http://niftynirvana.blogspot.in/2013/10/breakout-blues.html

    You are attempting a counter trend breakout in an extremely bullish market. That too to RN 6750. If you are afraid to miss a momentum move down use some filter for the entry say 4-5 points

    ST

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  29. ST

    Now it seems like pressure play at PDH/PDC/LOD. What do you say?

    ReplyDelete
  30. Thanks ST, I did not play breakout, instead I went long on bof of range low. Lets see
    thanks again

    ReplyDelete

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