Comment on Software Engineer up 400%
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25 Jul 2013, 05:19 AM
Here is How I used to think my early days of Day Trading :).. Sharing my Personal notes of my daily Observations about Nifty with all of you.. .This is just to show that keeping so many rules is not good.. Because at every price, few rules will saying you to go short, few would be saying you to go long.. and you will break your head and then market will move away and you will finally miss the bus.. Make your system as objective as possible, There should be either a Buy or Sell or Out from market. But again, what suits me may not suit you.
This is a draft copy which I am sharing you unedited. So please excuse me for bad writing. And Again.. Dont break your head too much for these observations.. Just read it for entertainment.
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When i say uptrend, it means 15tf is in uptrend.
1. when we are in uptrend try to find and trade bullish wolfe waves and vice versa.
important – Whenever I see +90 +100 in nifty spot, i should exit any long positions if any.. and exit short if vice versa… there is no point betting against it. i had observed it many a times and been punished many a times too playing against this.. If possible try to play contra against it with 10 point of stop loss.
When there is a old trend line coming, the best strategy is to assume that it will work atleast for 20-30 points and price will give a pullback for atleast few points, so stop loss of 20-30 points is not valid for such trades, better exit and then take a fresh call once that level is crossed.
2. Try to book profit fast for morning shorts/longs in contra trades .
3. if nifty comes down or up 30-40 points in just 5 mins. .try to exit the position fast .. because price can not be stable with such a fast move. [very important rule.], u will get a better chance to enter again
4 Sometime a price is moving 5-10 points in every 15 tf candle and nifty moved 50 points straight in one direction and suddenly there is a big point candle formed with good volumes…. No need to take an entry now because very good odds are there that this is the climax of the trend. But there could be 50 points move and then 25 points correction and then again 15-2- point candle is formed with good volumes.. this could be a safe entry.
5. mostly the third rejection on 15 tf fails, but before failing it mostly try to retrace 61.8% to its intraday move and whenever rejection fails there is at least 40 points move after breaking the fake rejection high/low. So use this info to catch more points than scalping for just 20 points.
6. Whenever 34 ema on 15tf starts turning flat , try to see price movement wrt 34 ema on 30tf and 60tf, it will guide the next move.
7. After a big move of 150-200 points , always buy or sell the first bullish/Bearish 15tf 34 ema rejection… it is bound to make a new high or new low and accordingly a new pivot, almost all the times. There are many participants who are looking for this pullback..So all big shots will push the price away from 34 ema.
8 . I have observed that i predict targets of the moves very accurately, but not using of it for exiting my position. so lets use my knowledge to exit at targets rather than just catching plane 20-30 points.. I can catch 35-40 points generally with my understanding of the price flow. so lets not settle for less and make more of nifty..
But again i m not in favor of TSL in my best trading system. because price has to pullback after massive moves….. So i will exit at targets without trailing TSL
9. Keep on trading every singal my system gives.. and be prepared to take profits any time after 20 points.. Generally price will give me second chance to enter again with the same stop loss..no harm in that but keep the same stop loss and dont take entry for the third time.. 2 times is enough.
Today i entered pretty late because my order didnt get executed.. so when near ur buying price always ready to buy at market price too
10. sometimes even after breaking new high price dont go up very fast.. its okie.. It doesnt mean that every new high will follow with big volumes….
11. Most of the intraday reversal comes from the three little indians.. So always watch out for those three little indians…. there would be a ww also along with three little indians.. but mostly point 4 of this ww is objectionable.. but three little indians are enough to exit position.
12. if market gaps up or gap down heavily, entering too early on OL or OH can be risky especially if going against the 15tf trend.. But can always enter if my jackpot system says…. Always wait for the ema’s to catch up , i.e 8ema on 15tf to short or long accordingly.. thats the best entry one can have. and it works almost all the time.
13. Dont demotivated by the loss.. take every trade as a fresh trade, if i see some good pattern and if i can get an entry with 5-6 point of stop loss go ahead i mean… only thing is the risk should not be increased.
14. Whenever RBI declares 25bps raise, people have divided opinions and we see the choppy markets.. . I traded on three RBI policy days and two times i lost heavily and once made moderate gains when it declared 50 bps. 50bps days are one way to the down and every one is a seller those days we can make tonnes of money, so dont exit early on 50bps days… 25 bps days are best to be ignored or play contra, means buy on weakness and sell strength with small stops..
15. if playing ww then respect its targets.. after reaching target there is no point entering without any proper signal..
16. Whenever a prior day is a compressed day with tight range, the breakout from that range is massive so make sure of this point to make maximum points of nifty..
17. very steep ww doesnt work…. on big bullish and bearish days.. WW are contra methods and when market is in steep trend, ww doesnt work.. so better not to play ww on such days and save ur ass..rather be with the trend and enjoy the big gains…… better to identify trending and trading days.. and dont trade wolfe waves on trending days.. keep it only for trading days.. with volume and the slope of TLs we can identify trading vs trending days.
18. Try to play every entry which i get, dont miss any valid entry just because i had made enough money.. at the max i can reduce the quantity by half if there is big stop required, otherwise play every entry of my systems… and try to get full points of nifty.
19. what i observe is I tend to book profits early sometimes even at less than 10 points…, but keep stop loss as more than 20 points for those positions.. This way even if i m wrong 1 out of 3 times i will give away all the gains.. I need to increase my risk -reward ratio.. without it its very difficult to survive in markets… I have to have make myself strong enough to resist my temptation to book early.. If i am trading a channel then until I am booking at the other side of the channel , there is no point trading..
20. playing wolfe wave – since ww entries are from the sweet zone and sweet zone keeps on increasing with the time , So i have to enter at the sweet Zone at the right point.. i can not enter my whole quantity at the trend line and then keep on going thru the pain till the price trades in sweet zone.
Good entry always keeps us at physiological edge otherwise we tend to book early and loose.
21. I haven’t taken big gain on such big bullish days. though i have identified it many a times…. So once try to eat up big by trailing stop loss….
22. Buying at pull back is very important because by this way because of the good entry i can have good stop and can have very good reward… Today on 3 oct, because i entered early without waiting for pullback and because of it my stop triggered a bit early and i sold at low… and then it make a new high.. my bad.. i lost 32 points of oppurtuinity…
23. when there is a huge gapdown of 80-100 points, then even though the first candle is a red one it will fail , because people tend to book overnight short positions especially when the prior day trend is -ve and people build short positions… for them buying twenty points costly is not a big deal and they can trigger my stop loss… The first point to short is 8 ema on 5tf, if that doesnt work, then 8ema on 15tf but with atleast 10 point stop and the best is 34 ema on 5tf……..
I hope you all enjoyed 🙂
Happy Trading
Pawan/Shahi
http://rideniftywithshahi.blogspot.in/