Intraday Indicators

i am sorry for taking this liberty to express my views :

during my tenure of life in share markets, i dont remember any intra-day trader who has shown profits in his books of accounts under the head "profits from intra-day trading"....based on my experience, i would advice friends to restrain from such addiction of intra-day trading..

Hi! surenktr
I appreciate your advice in good faith.
But as I've said before, I intend not to get addicted to intra-day trading, as you have rightly said.

Regards

i wish you all the best trader9

Thanks for the bset wishes surenktr
Have you indulged in intraday trading or do you restrict yourself to short term trading.
What has been your experience, if you don't mind revealing.
(I need all the help I can get)

Regards

to be very true trader9,

i have tried all the aspects of the market and have reached to a conclusion that whenever i get into intra-day trading i tend to lose my profits of other tradings...i dont know is this intra-day trading is bad or i dont know/follow the principles of intra-day trading....anyways, whatever may be the reason, now i do intra-day trading only in the scrips which i hold with me....i sell them first and then try to buy-back them, if at all they come down, otherwise i leave the delivery....one thing more, i do intra-day trading only in my holdings which are in profit....otherwise, no i don't....

Its nice to know that you do make consistent profits by trading intra-day. It means that you have a good risk and trade management strategy in place. Then you are more than three-quarters up the way to your goal.

I would suggest volume, a trend identifier, and a momentum indicator. Too many of them clutter up the screen and at times thoroughly confuse one.

Regarding the exact indicators, I believe its best selected by you through trial and error as I have found that people have their own ways with little subjective nuances while interpreting an indicator. I, for one, feel an inexplicable sense of dissatisfaction when reading the MACD tool even though its among the most popular indicators used worldwide. Use any that you are comfortable with.

With best wishes.

pksam.

What do you mean by risk and trade management here.Could you elaborate?

CV

Risk management unlike trade management covers a broad spectrum, right from the vagaries of the weather to political uncertainity, from a company's Q results to macro-economic performance, from a crashing hard-disk to a dead phone.

All of the above pose risk in some way or another to the investor/trader. While powerless to avert any of these, we can still have a disaster-mangement strategy in place, by way of back-ups, arrangements with brokers, alternate means of contact, and of course, stop-losses. Above all it is absolutely necessary to be aware that every next day can be totally unlike anything that we have experienced till today, ie., not to become complacent.

Risk management and trade management overlap in some ways, mainly stoplosses, position-sizing and exposure limits.

One has to decide as to the maximum amount one would risk on a single trade. Then, to decide if it would be the same for all trades at all times or would be reduced as circumstances warrant. Also to decide the number of trades one would enter into concurrently, ie., how much would one's total exposure be at any time in the market as a whole.

If one does day-trading and also holds positions in the F&O or goes in for delivery-based trades too, the capital has to be apportioned accordingly. With margin, this has to be doubly so. Emphasis is on preserving capital even if one were to suffer a long string of losses without any reprieve.

Under risk management one has to always consider the risk to reward ratio of any prospective trade. One could decide that one wouldn't trade any setup that has a ratio less than 1:3 or 1:4 or something similar. One could also decide that one would exit a trade, especially options, that hasn't moved as expected within a certain period of time.

By trade mangement, I mean determining the kind of order, the entry point, a viable stop-loss (including if one should let the SL trigger into the market or only within a fixed price), deciding on partial booking of profits or going in with a trailing stop, moving the stop-loss constantly as the market favours our entry, and above all to revise plans and even make a speedy exit if one is convinced that market conditions are turning unfavourable.

It is gratifying that a senior member has sought elaboration on these issues which is the foundation for an aspiring trader's career. Hope I have made myself clear, CV.

pksam

Dear pksam,
My perception of Senior ,Member, Junior,in this forum is perhaps decided by the joining date&number of posting offered& active participation,by the suprt moderator.
But,i also concur that without any exception,all the senior members are exceptionally good,be it technical analysis,sharing of knowledge,encouraging new members,timely warning to fakes,variety of topics,etc.
Fact remains that i read this forum atleast twice a day & enjoy myslf.Above all,profit & materialistic returns iare not the criteria of any of the members, when they post their opinions & share their wisdom.
Coming to you,my compliments to you for starting a lively one on yr own & the way you had expressed yr experience coincides with many of us.Yr fluency of expression shows yr maturity & i am sure this forum would benifit.Many times,it is imperative to ask inteligent questions to extract equally inteligent & lively replies from forum members,for all our benifit.
ranga

Hi CreditViolet,

For intraday stochastic, what's the typical values of %K & %D do you prefer to use?

Thanks,
TkM