replying to post No 40 from Bala in "friends talk on my daytrading".Since I will not be posting daily from next week this one should act as a guide to your daytrading.Hence posting this particular reply in this thread.
Scaling in and scaling out is what comes from experience in trading.However it is not so tough if practiced relentlessly.
Scaling,scaling out,add ,partial profit taking,trailing the profit,entering with minimal risk all these more than that blending all of the above comes by many years of ex
perience in trading since its directly connected to our psychology.
If you practice What I have to say below ,it will really make difference to your trading.What I am saying may not be new,but I am putting it in simple words so that you can start practicing it from tommorrow.
Today's Nifty 5 Min chart.
Nifty has made a bearish engulf yday means bears have pounded throughout the day.Thats the background.Now unless until nifty proves otherwise we remain in downtrend in 5 Min TF.
Nifty opens with with a red bar then a inside green bar then a doji.
B.An agressive trader makes the short entry here at crack of doji downside..S/L-SAR high of day+3 points.Risk hardly 11 points.
A conservative trader goes short once it cracks the low of the day i.e:at the gap seen in between point B and C.
C. Nifty takes support at low of last day.
D. A swing high is formed.S/L-SAR is still at the high of the day.
E. a lower swing high is formed.S/L-SAR is still at the high of the day..
F.One more swing high is formed. At same time look at swing lows.It made lower lows before reaching point "F".S/L-SAR is still at the high of the day.
G.Cracks the major swing low.Add and bring the trailing stop to F.
H.Cracks both todays as well as last day low. Add.Bring the trailing stop above the high of breakout bar at G.
I.Intraday Gap/ST Bro gap between I and J.Ready for next wave of down trend.
J. Add .Trail the stop to Point "I".
K.Makes lower swing high.Trailing stop still at "I"
L.Add on crack of swing low.Trail the stop to K.
M.makes lower swing high.
N.Cracks previous swing low.Add.Trail the Stop to M.
O. takes out previous swing high .We are out. If you are aggressive ,you will get out here with all of your positions. Count your pips Smile all the way to bank..
P.If you are a conservative trader and trail the stops partially, then you are out partially at "O" and now at "P" you should be out with all positions as you do not want to give back too much to the market.Now count the pips and smile all the way to Bank just little behind that aggressive trader.
I personally would not like to take further trades as its already 2pm and going long will be against the trend.In case you feel going for it ,Its your choice.No hard rules.However be carefull while going against a trend especially when its already in to last session.Exception case is reversal.
Now out of entire move we could catch only 50 points max..With adds just count how much gains we could generate.We do not count money before 3.30PM..never never.Since last one and half year I have ,not even in a single post have counted money.We just try to do best at our job.Once you do that you need not count money..Once you are 100% in your job, money flows to your account like a corporation water dropping to overhead Tank in your house every day.
TRADING IS THE ONLY INDUSTRY WHERE THERE IS NO OFFICE POLITICS,NO NEPOTISM,NO FAVOURITSM.IT IS THE ONLY INDUSTRY WHERE REWARD IS DIRECTLY PROPORTIONATE TO YOUR EFFORTS.
