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

Wednesday, June 25, 2014

25062014


Nifty traded the entire day in a 15 point range. Attempted three trades. A BO and two BOF trades. Nothing worked. Stopped out in the first trade and scratched the other two trades. BOF trades are safer on range days than the direct break plays.

54 comments:

  1. ST Sir,

    Took risk in trading direct BO of range extreme.. both trades didn't work. finished day with 16 point loss.
    Also updated blog look n feel, do check :)

    http://onlyynifty.blogspot.in/2014/06/25-06-2014.html

    ReplyDelete
    Replies
    1. Rose Mary
      Nice. Go for BPB and BOF on these kind of days
      I too got trapped in the first trade
      Check 04062014,22042014,31012014,22032013,30012013,19122012

      ST

      Delete
  2. Hi ST

    A 'very happy broker' day!!!

    Thanks
    TBP

    ReplyDelete
    Replies
    1. Right
      Expiry game started?
      Fight is for 7600 it seems

      ST

      Delete
  3. Hi ST,

    Thanks for the post.
    I would like to know what NS RN and PP mean.

    Thanks,
    Allwin

    ReplyDelete
    Replies
    1. NS RN is the Nifty Future level correspond to option strike xx50
      7550,7650,7750 etc. PP is pressure play
      Kindly go through the glossary and important posts below the blog

      ST

      Delete
  4. The only good thing that happened today to me was 'control the itch to go short and long at every turn' and quickly scratching the trades. That's how I control as what would have been great loss day (in position trading with SAR at extreme ends).

    ReplyDelete
    Replies
    1. Risk control is very important in trading, especially in day trading
      Never lose more than 10 points on a single trade.

      ST

      Delete
  5. ST Sir, Is it advisable to trade on Expiry day , or it depends on initial move ?

    ReplyDelete
    Replies
    1. You can trade the morning session
      DPs may not work well if it chops in the afternoon

      ST

      Delete
  6. today very choppy day...!! did only one trade in the morning in REC Ltd which had a strong gap up. Entered @ 360/- exited @ 363/-. Was expecting 365 in the morning. but happened only in the afternoon. I was not interested to do any trade in this choppy market.

    ReplyDelete
    Replies
    1. Good. I have no idea about the stocks

      ST

      Delete
  7. ST sir,

    I took long at the same candle high where you stopped out in the first short trade but scratched later.
    Second long trade i missed.
    In the third trade i entered early below the BOF candle low and TP at range low.

    http://dpintratrading.blogspot.in/2014/06/25062014.html

    VKM

    ReplyDelete
    Replies
    1. Nice trades.
      Your last BOF candle looks shorter in My charts
      The high is 7594 in my charts. Manish Bharti asked about it

      ST

      Delete
    2. Yes sir, HOD in my charts is 7597.70

      VKM

      Delete
  8. Sir.
    In your chart the day high candle seems touching around 7594, while in my 3 min chart it is 7597.70.
    Do you use logarithmic scale? Please explain.
    Today I also traded as per rules but thinking of a a range bound day, I exited at 10 -15 point profit. I traded only BOF, BPB.
    Regards,
    Manish

    ReplyDelete
    Replies
    1. Ichart is not on log scale
      But it shows 7594 as HOD
      I do not know why the difference

      ST

      Delete
    2. In my icharts also, it was 7594. But in my trading terminal (zerodha), it was 7597.70.

      ST, by the way, I use the trading terminal numbers for calculating BPB, or BO. Do you use terminal numbers or icharts levels?

      Delete
    3. Hi ST,
      My charts too has a HOD of 7597.7 Perhaps tomorrow morning the value will be different in icharts. Though the reference page is refering to first last candles only, it could happen in the middle of the day too perhaps, not sure. http://www.icharts.in/faqs/icharts-faq/intraday-open-high-low-does-not-match-with-odin-terminal-data.html

      Delete
    4. Hi ST,
      icharts daily chart now shows 7597.7 as high for yesterday, though intraday is still the same. I wonder through who they are obtaining their data.

      Delete
    5. Dont worry too much about some minor data problems
      It is not going to make any difference in our trading results. URD trades with the MT4 charts with spread difference of 2-3 points always. We cant expect everything to be perfect.

      ST

      Delete
  9. ST, Please view today's USDINR chart and let me know if you can identify any good opportunity . I took one trade and it didnt work out. http://patrader101.blogspot.in/2014/06/25-06-2014.html

    ReplyDelete
    Replies
    1. PA Trader
      Both the major moves did not give any pull back
      Without some entry pattern, it is very difficult to enter

      ST

      Delete
  10. Hi ST,
    I am unable to concentrate and sit in front of the system on this kind of range market days, sometimes i will move away from the system when the market is in range but suddenly markets will gain a movement and move away from the DP's. So i will miss opportunities. Please advise how do you deal with this kind of situation.

    Thank you,
    Regards,
    Kiran.

    ReplyDelete
    Replies
    1. It will happen to all.
      It is very difficult to totally focus on something for hours together
      I concentrate only when price approaches a trade area. No need to analyze bar by bar

      ST

      Delete
  11. @ ST sir ,
    few days back you post article about procedural memory . then after that i am visitor of stockbee site .
    yesterday also they post one more good article ..about procedural memory ...please visit ..and if possible then post on your blog ...cause of other member also read it
    thank you

    ReplyDelete
  12. Hi ST,
    Nice dates, at what point would we know these are not days for BO trades?

    ReplyDelete
    Replies
    1. I never attempted BO trades before. I traded the three setups

      http://niftynirvana.blogspot.in/2012/04/my-trading-revolves-around-trader.html
      Later I found I was missing some explosive moves after BO.
      So started trading BO selectively IR BO and PP

      http://niftynirvana.blogspot.in/2013/05/pressure-plays.html

      I have written so many times to stay away from BO trades if you are not well experienced to manage risk
      Breakouts are easier to trade but a lot more easier to fail

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


      ST

      Delete
    2. Dear ST,
      Thanks a lot. I will keep this in mind and avoid BO trades in future.

      I was trying to understand the charts in the dates you gave rosemary, but somehow it got posted in a different place, sorry about that.

      Delete
    3. You need not avoid BO altogether. Trade very selectively and carefully
      Should never attempt without a clear exit plan

      ST

      Delete
  13. Come on Guys, Grow up. Watch carefully whats happening in market. Who are you set.define the DPs ?

    ReplyDelete
    Replies
    1. Anandha,
      Welcome. Its not us who define the DPs, its the market. Even Lance uses previous day high/low etc. :)

      Delete
    2. Anandha

      Decision points are markets own levels. They are time frame indicator independent levels
      That is why they work reasonably well in markets.This journey started with the same question you asked now and the answer you have given for that
      Who are we to dictate the market? How can we expect the market to respect our calculated levels?
      So watch carefully what is happening in the markets and start trading markets own levels. We feel we are growing up since then.

      ST

      Delete
  14. I was waiting for BPB of 7550 to short the market as the fluid zone was attractive to me. But it seems that it was attractive to many other sellers also. Could not short the market. Now waiting for BOF of DL (7511) or BOF of BRN (7500) to go long. BPB of 7500 is little risky to me as market is already down quite a lot. let us see....

    ReplyDelete
    Replies
    1. I wonder why you waited for BPB of RN when market gave a BPB of PDL trade
      Price escaped out of the day long range and gave a nice opportunity
      Be careful . today is expiry day

      ST

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    2. ST, where was the exit for that short?

      Delete
    3. I missed the trade too. Actually I hesitated to short on direct BO of IRL, as I feared another rangebound day. How do we ascertain whether there are enough SL orders below IRL, especially within first half hour of the trading day? Or do we compulsory trade direct BO of IRL, as there was BOF of PDL above (in this case) ?

      Anyway, thanks ST for the efforts you are taking. This is really wonderful.

      Delete
    4. Thank you ST. Usually my exits are too soon or too late. For once I have exited at the right place, am happy :) https://www.youtube.com/watch?v=y6Sxv-sUYtM

      Delete
    5. Zoom out your chart and see what has happened
      IR low is the lowest low of last two days after the up move from 7470. Same as the after noon low of day before yesterday.Where else can we expect stops of positional longs?Then a Fluid below.
      Two layers of defense with IRH and PDL above the entry. On a normal day it would have fallen much more

      ST

      Delete
    6. Oh, yes. Wonderful thinking. Another lesson.
      Thanks a lot.

      Delete
    7. ST Sir,

      I took PDL as 7573, avoiding tail... it seems u considered yesterday tail at 15:17 candle (7567)
      I hesitated to short below IRL, went short below FTA.. BRN.. n exited at swing high.. just as you did.. :)

      Waiting for next pattern at 7550 or 7500.. lets see

      Delete
    8. Hi ST,
      Please can you post today's range markings after the fall?

      Delete
    9. S Roy
      The entire fall from PDL to LOD is the current range.
      Another inside range is likely to form 7520-7540 area

      ST

      Delete
  15. Actually IRL was at 7558 and was very near to RN and so I avoided keeping short trigger at 7558. Now waiting patiently for next entry.

    ReplyDelete
    Replies
    1. Think about order flow. If there are thousands of SL orders to trigger short RN won't stand
      Levels are not brick walls they are make or break levels

      ST

      Delete
    2. thanks for clarifying the thought process... I guess, now to control the itch to trade, I am being extra cautious...

      Delete
  16. i have a problem with my entry i mean how to enter.
    1 feed limit order before price come there(by visualisation) or
    2 enter limit order when price reached where we decided to enter or
    3 use market order when price reached where we decided to enter?
    help me to decide and how you enter a trade i mean in terms of order filling?

    ReplyDelete
    Replies
    1. chandra mouli,

      say, u wanted to short below IRL (7558) today, you can place Limit - SL order like below
      SL at 7557
      Limit at 7556

      Delete
    2. Enter with SL Limit order
      For example 7568 is IRL and you want to short below it
      Enter a SL order with 7567.50 as trigger and 7566.50 as limit well in advance
      If you expect an explosive move increase limit to trigger gap a little in order to avoid order jumping
      Otherwise you will never get a good fill

      ST

      Delete
    3. rose mary
      do u mean trigger price 7557 and price as 7556 ? and at what price our order fills ?

      Delete
    4. yes chandra mouli.
      order fills any where b/w 7557 to 7556

      Delete

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