My trading system

[XRAY27]

Golden words of ST da... on Chart reading

Trading is a performing art. There is big gap between learning basics and few systems and becoming a consistantly profitable trader. It is in every field...can we expect that a new learner who has learnt few dance steps to perform like Sanjukta Panigrahi or few new Music class students who have just learnt sur and taal to perform like Ud Amjad Ali Khan or Ud Bismillah Khan or Pd Jasraj and mesmerise a musical concert as these veterens do ??

It requires lots and lots more than knowing few charts and systems....it needs riyaaz or practice.

Smart_trade

Further to this , I have seen that there are some singers who are perfect in sur,taal,ragas,theory of music etc...and they have done their riyaaz or practice but still they cannot win concerts...their singing is perfect in all theory and science...but they cannot mesmerise the audience...same in trading...I have seen few traders who after years of learning and practice cannot become excellent traders....they cannot build wealth by trading...there is something amiss between them and excellent traders ,they keep struggling but with efforts still they can try and be profitable traders to certain extent.

This is hard reality in trading.And if a trader realises that in later age, it could be very painful and frustrating.

Smart_trade

 

[XRAY27]

HTF FOR 24-11-2014

 

[XRAY27]

HTF for 25/11/2014

LTF for 25/11/2014

1-3-5 are linear in time scale for -ww ...if NF trades above 8550..then this pattern is negated !!!!

 

[XRAY27]

HTF for 26-11-2014

No visual pattern in LTF..

 

[XRAY27]

Options trading rules by Larry McMillan


1.Trade in Accordance with Your Comfort Level and Psychological Identity

If you are not comfortable selling naked options, then don't; even though such strategies are nicely profitable for some traders, they should not be used if they cause you sleepless nights. If hedged positions drive you crazy because you know you'll have a losing side as well as a winning side, then perhaps you should trade options more as a speculator-forming opinions and acting on them accordingly. The important thing to realize is that it is much easier to make money if you are "in tune" with your strategies, whatever they may be. No one strategy is right for all traders due to their individual risk and reward characteristics, and accompanying psychological demands.

2.Always Use a Model

The biggest mistake that option traders make is failing to check the fair value of the option before it is bought or sold. It may seem like a nuisance-especially if you or your broker don't have real-time evaluation capability-but this is the basis of all strategic investments. You need to know whether you're getting a bargain or paying too much for the option.


3.Don't Always Use Options-the Underlying May Be Better (If Options are Overpriced or Markets are Too Wide)

This is related to the previous rule. Sometimes it's better to trade the underlying stock or futures contract rather than the options, especially if you're looking for a quick trade. Over a short time period, an overpriced option may significantly underperform the movement by the underlying instrument.

 

[XRAY27]

ST da.. 2 cents on swing trading

Simple thought process....in swing trades I follow intermediate /visual trends which is up...there is no sign that it has changed to downtrend. We get minor downtrends and uptrends every day...but our eyes for swing trades should be on visual/intermediate trends.

In swing trades in uptrend I buy the extreme panic, and sell the rallies to buy the dips again. But my overall holding will be long....I am fully aware and prepared for biting a bullet and take 40-50 points loss in a trade when the trend changes...but till then I will have plenty of points in my pocket ( in the current trade, half of my month's target is already done in just 1 day....so will be more than happy to take a 50 points SL in swing trade....as I have already pocketed many such 50-100 points moves already...

I dont predict the market ...how far it will go etc....but many will remember that when Combo hit its stoploss, I had posted that now after hitting 8300 stoploss, the market will not go up by 50-100 points but will do 300-400-500 points now...so that also is in the background though I cannot say where the current trend will end....all those channelling, Fibonacchi etc are just estimates...just be with the trend....and dont say "Market Topped Out " ,Negative Divergence etc when we see a minor downtrend.

The above is enough for being a happy trader.

Smart_trade

 

[XRAY27]

Difference between Analyst and Real trader..

Original post :Manishchan

Just came across your thread. Good start.

But after reading this post... my question is..

How can a level provider help you in learning ?? Level provider will just give you things like.. Buy @ 123.. Sell @ 789.. etc

Don't strive to become an analyst or level provider/seeker if you love trading... rather try to become a Trader !


Analyst :

Has loads of technical knowledge and can talk hours about what happened in the past and what can possibly happen in the future. eg : TV Analysts, TV Anchors, Some people who provide research based tips. But when it comes to taking real trade on their own money, not everyone is good at it. In fact this is one of the reason why many analysts who appear on TV don't trade for themselves.


Trader :

Trader knows technical and psychologies etc. A good trader not necessarily need to know all the micro tehnicalities of the market but he/she can trade well with real money in real time. A trader manages his/her psychology, capital, loss/win very well and therefore makes money from the market.

Learning curve

Original post :Manishchan

Take your time wave. No hurry. Also, as long as discussion is healthy there is nothing to be apologetic about. We all are learner no matter how far one gets in the world of trading.

Now coming back to your thought on "learning is a slow process.... how to start.. where to go etc.."

Let me give you an example.. Is becoming a doctor a slow process ? What about engineer, a CEO in a company, or a sceintist etc ? What about having an established business such a shop, mall, resturant, real estate business ? Nothing is fast right.. all takes its time and if one tries to hurry up, might fall flat on itz face.

So the point is that you have to consider Trading as any other profession in the world. It takes time.. trust me. I'm telling from my own experience as well as what I have heard or seen others doing. If one is starting from scratch, it will very easily take 2-3 years minimum to become consistently profitable.

If you want to become a doctor, you cant say dt it takes years of study and pratice.. I can just watch some youtube video on how to do heart surgery and read a few books and start operating people. You know what is the end result of it.. right. Similar is trading. Give it time.. take things slow and steady. Take one step at a time

Now how to go about it :

First step is dt don't get bogged down. There are tons and tons of things to learn and if you see them all as huge mt everst to climb, u will feel disheartened. Take one step at a time. There are many threads here in TJ itself. Go to basic section... read each of the starred threads first. Understand them apply them. Most of them are very basic foundation. Once you understand, you will know your next path. Just continue the journey and dont look back.

One thing I must tell you that don't be in hurry to make money (either by directly jumping to trade on your own or on someone els'es advice) because 99.9% chances are dt you will just burn a hole in your capital.

All the Best !!

 

[XRAY27]

Money management rules for options..

ST da !!

Are there any specific Money management rules ,we should keep in mind while trading naked options (stock and index) positional..

Please update when you are free

Same as futures...in intraday options trades, dont risk more than 2 % of your trading capital on any single trade. In positional trades. you can go as high as 5-6 % but do not exceed 10 %.

Smart_trade

 

[XRAY27]

For my record

Albrooks final flag in 5 mins..

In the words of albrooks :Final Flag, usually a horizontal pattern after a trend. The breakout often fails and reverses

Jai ho baba Brooks

 

[XRAY27]

Shortcuts in trading

Shortcuts rarely lead to trading success. Developing your own approach requires research, observation, and thought. Expect the process to take lots of time and hard work. Expect many dead ends and multiple failures before you find a successful trading approach that is right for you. Remember that you are playing against tens of thousands of professionals. Why should you be any better ? If it were that easy, there would be a lot more millionaire traders.

Patience

Waiting for the right opportunity increases the probability of success. You don’t always have to be in the market.
Guard particularly against being overeager to trade in order to win back prior losses. Vengeance trading is a sure recipe for failure.