How To Home Work for Day Trading?

[NOMINDTR]

Though I do my home work well before my trades, I find it comfortable to take decisions while the market opens or at a point of trend reversal..

Though it works good, I fail to feel comfortable when the market is volatile or I could "see" no trend..

I would highly appreciate your suggestions and home-work strategies that work for you and what kind of home work one suppose do for Day Trading, in your view.

Thanks in advance

 

[NOMINDTR]

the best way is to trade with stop loss.let me tell u nothing can be predicted in volatile market.best way is to calculate pivort S1 S2 S3&R1 R2 R3 FOR supports and resistance.u can also try live charts for more help.

Yes. Keeping stops strict and staying away seem to be good.
Thanks

 

[AW10]

What is the current coverage of your homework ?Can u plz share that with the forum.

IMHO, you can increase the scope of your home work to find out if tomrrow is going to be volatile day or trend less day or trending day. When entering the trading day, you need to know the key price levels for the instrument that u trade. It is upto you to decide which price level you believe in... It has to be specific to your way of trading.
eg - if you don't believe in Fib projection / retracement levels but other trader uses it, then he will find out fib levels for tomorrow whereas you don't have to worry about them.

At the minimum, we need to know the key support and resistence levels (S1/S2/PvtPt/R1/R2 give u one set of numbers).. but one can also include prev day H/L, key swing levels from yesterday, Moving average number etc as well.
The prepration can also involve taking a clue on Eastern and western market (atleast %change in them).

Successful professional in any field, know what is going to come and are well prepared for that in advance. Whereas majority of people react to the event. Same is true in Trading as well. We got to have game plan ready .. During the mkt hour, we just need to look for familiar pattern and take decision to either execute the trade or stay aside.
That is not the time to analyse the historical chart but to see the current state and take decision with least amount of analysis.

Happy Day Trading.

 

[the tape]

I would highly appreciate your suggestions and home-work strategies that work for you and what kind of home work one suppose do for Day Trading, in your view.

Thanks in advance

I watch charts ! question them, find the answers.

 

[AW10]

Sir,

How chart analysis is done.Where we put Stop Loss.

Miltu

Miltu,
Please visit "New members: Please read this" thread in Beginners Section of this forum.
There are many pointers that will help you understand reading charts.

Once you go thru the material and have specific question on any topic then feel free to raise that here.. and many experienced members on this forum will help you improve your trading. But first step needs to come from you.. by putting in effort to learn.

Happy Trading.

 

[NOMINDTR]

What is the current coverage of your homework ?Can u plz share that with the forum.

IMHO, you can increase the scope of your home work to find out if tomrrow is going to be volatile day or trend less day or trending day. When entering the trading day, you need to know the key price levels for the instrument that u trade. It is upto you to decide which price level you believe in... It has to be specific to your way of trading.
eg - if you don't believe in Fib projection / retracement levels but other trader uses it, then he will find out fib levels for tomorrow whereas you don't have to worry about them.

At the minimum, we need to know the key support and resistence levels (S1/S2/PvtPt/R1/R2 give u one set of numbers).. but one can also include prev day H/L, key swing levels from yesterday, Moving average number etc as well.
The prepration can also involve taking a clue on Eastern and western market (atleast %change in them).

Successful professional in any field, know what is going to come and are well prepared for that in advance. Whereas majority of people react to the event. Same is true in Trading as well. We got to have game plan ready .. During the mkt hour, we just need to look for familiar pattern and take decision to either execute the trade or stay aside.
That is not the time to analyse the historical chart but to see the current state and take decision with least amount of analysis.

Happy Day Trading.

Thanks AW.

I workout Nifty support, resistance levels. I do use Fib. ret. for index and for positional trades.

I work out strong and weak stocks based on the trend and strength (RS), work out pivot, support, resistance for them.

I look for break-outs, momentum during the day..

Still I have difficulties to correlate the scrip's trend to something like weighted avg. kind of things.. Do you think I miss something?

Besides, I think I need to learn to be religious in trading my plans. I do plan my trades, at times, I fail to trade my plans. Whenever it happens, I stay away..still, some time I try to figure-out things during market.

Though I use to educate people around me about psychology of trading, I must accept that I fail to practice that in rare occasions. No need to say that those "rare" occasions are enough to throw me out of the market.

Any suggestions my friend?

Thanks.

 

[NOMINDTR]

I watch charts ! question them, find the answers.

Tape,

You make sense...I just love that.

 

[NOMINDTR]

@ aw10

I am sorry.. i missed.. I don't take global cues much in consideration

 

[AW10]

Thanks AW.

I workout Nifty support, resistance levels. I do use Fib. ret. for index and for positional trades.

I work out strong and weak stocks based on the trend and strength (RS), work out pivot, support, resistance for them.

I look for break-outs, momentum during the day..

Still I have difficulties to correlate the scrip's trend to something like weighted avg. kind of things.. Do you think I miss something?

Besides, I think I need to learn to be religious in trading my plans. I do plan my trades, at times, I fail to trade my plans. Whenever it happens, I stay away..still, some time I try to figure-out things during market.

Though I use to educate people around me about psychology of trading, I must accept that I fail to practice that in rare occasions. No need to say that those "rare" occasions are enough to throw me out of the market.

Any suggestions my friend?

Thanks.

You seem to be doing right things. Keep it up.
It is difficult to suggest something to a person who know his stuff and is taking action to implement them.
Still let me mention few points from my experience.
- Keep your trading simple. Many successful traders say that trading is boring. Once u have successful strategy, identified pattern to trade then only job is keep looking for that and execute the trade.
- Don't over-complicate it by trying to do too many stuff. Be focused on your target and spend more time in improving trading by sharpening other parts of trading.
Eg.- Trade only indices so EOD study is focused on one chart. Look at various Option trading strategies around NIFTY to boost your portfolio performance. Finding right stock and entry is not more then 20 to 25% of trading.
- You can define decision matrix and come out with some kind of forumla to find out weighted average rating for each stock.. and pick the top 3 of that.. IMO, that will satisfy your intellectual need but does mkt really care if stock 1 has rating of 55 and stock 2 is rated 52 so lets treat them differently tomorrow ?
- Real benefit comes from EXITs, Psychology and Money management so focus on those points as well.

Hope this helps. All the best.
Happy Trading

 

[NOMINDTR]

You seem to be doing right things. Keep it up.
It is difficult to suggest something to a person who know his stuff and is taking action to implement them.
Still let me mention few points from my experience.
- Keep your trading simple. Many successful traders say that trading is boring. Once u have successful strategy, identified pattern to trade then only job is keep looking for that and execute the trade.
- Don't over-complicate it by trying to do too many stuff. Be focused on your target and spend more time in improving trading by sharpening other parts of trading.
Eg.- Trade only indices so EOD study is focused on one chart. Look at various Option trading strategies around NIFTY to boost your portfolio performance. Finding right stock and entry is not more then 20 to 25% of trading.
- You can define decision matrix and come out with some kind of forumla to find out weighted average rating for each stock.. and pick the top 3 of that.. IMO, that will satisfy your intellectual need but does mkt really care if stock 1 has rating of 55 and stock 2 is rated 52 so lets treat them differently tomorrow ?
- Real benefit comes from EXITs, Psychology and Money management so focus on those points as well.

Hope this helps. All the best.
Happy Trading

Dear friend.

I just want to master that "boring" strategies..
I just have psychology problems only when I trade equity on intra-day basis.

Besides the work and other intellectual stuff one suppose to posses, today I worked out rigid plan for myself.

1. Entering a trade on my own pre-defined signals.
2. Put a STRICT stop at once.
3. Ride the trend what I believe that exists, before my exit.
4. Restrict myself to 2 to 4 trades per day.

I understand the number of trades is highly subjective and relative. One must make use of "Big Days"...still these plan would give me an emotional strength and self-decepline I lack.

And I must inform you that I have been an analyst for past 3 years and have stared trading with real money recently.

Thanks