Day Trading A Single Stock

newtrader101

Well-Known Member
Feeling a bit constrained by trading only one stock. However this experiment which ended today imparted many lessons:
  • It is possible to sync with a stock by trading just that one. This is like a subconscious 'feel'
  • It is a challenge to stick to one stock
  • More challenging (and important) is to stick to one strategy. And unless one keeps to one strategy, no real study can be done.
  • The dangers of over-trading were revealed. A daily cap on the number of trades is necessary.
  • It'd be ideal to take up various aspects of trading one by one and practice them for definite periods and note the effects- like keeping records, reviewing a trade, stop loss, risk reward, money management etc.
  • Other traders' inputs are very valuable because they are not attached to your trade, and have more experience; but think and take your own decision.
  • It made me rethink my entire approach.
  • Trading in minimum quantity is enough to learn the strategy. However, to acquire the habit of money management, one needs more quantity.
  • It was seen that if the stock opens and moves towards a Gann level (1 min chart), it will usually go past it and hit the next one as well. This happens generally within the first 45-50 minutes. Not sure if other stocks also behave like this.
  • This stock seemed to range for most of the past month.
 
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newtrader101

Well-Known Member
Tracking AXIS BANK for this month. But what if Asian Paints exploded after a long congestion? So keeping an eye there as well.
 
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newtrader101

Well-Known Member
Today began as a down trending day for both AXISBANK and ASIAN PAINTS, but I was late. Thinking it'd continue, I joined in, w/o waiting for the pull back. Luckily exited with a 5% margin loss. Rest of the day I was distracted so stayed away.
 
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newtrader101

Well-Known Member
Isn't it funny--
How our delusions and pretensions are stripped off? I used to think day trading the 10x margin stocks was the most 'elite' way to go-that too only on 5 min TF- nothing larger. Used to scoff at swing trading and buying and keeping stocks. However, one by one, my erroneous ideas were smashed- I accepted larger TFs gradually --15 mins and 1 hour, then swing trading, and then longer term positional.
Now I'm ready to accept whatever provides an opportunity-even lesser known stocks.

When I started focusing on one stock only, it alone seemed capable of providing enough returns.
 
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