Need Help from Seniors for a serious student on DAY TRADING

#1
Hi,

It's one and half year I came to stock market as day trader. At the beginning I knew nothing, my broker's(IIFL) RM used give me tips and I traded, profited few times and LOST several times. Then I understood that I need some knowledge about this thing, It sounds simple but it's difficult to do. Then studied from some books, applied those theories few worked for few times but later I understood that it was really a sheer luck of mine, that those worked. I didn't do anything with a clear view, I didn't got idea why I am selling or buying. Then started reading again, whole process started over again. At the end I was lost, can't remember the book names. I started with small capital of 20 thousand, I lost nearly 20 thousand in first 1 year. Then I transferred some to keep 20k in my account, then I started loosing less money because of stop losses. I read technical analysis, charts (candles and bars), indicators nothing actually worked very well for me. But I made some profits also and loss also so my 20k is 20k still now.

My question to me was and is, that I have to get a clear idea or view where the price will move up or down. From charts or indicators I didn't get a clear view. Two months ago I read Richard d. Wyckof's 'Day Traders Bible', which is on tape reading. Then I followed it, no charts some times, few times chart just get previous action view, and I followed Tape(price and volume) and bids/asks. I must admit that it helped me lot to get a view. But I am still not so Profitable.

Here I need help from seniors who follows price action, please give some idea that how should I follow it. I can get a view that the price is ranging, about to break or trending some times, but my entry is late some times or some times I am wrong with my anticipation, Bid and Ask list also confuses me, what I look into BID and ASK.
Please give some light and tell me the way, Which I should follow.
Thanks
 
#3
day trading is not easy as we think.do not try do intraday daily.you have to scan a lot of stocks for brk out condition exist.(shorting is too much risky,if total traded vol is less than 10 lacs per day).you must know the nifty trend if slected stock is corelated with nifty/sensex.Wait 45 -60 min till the market stablise.select 5 stocks but play with only two,always put S/L,square off if tgt is achieved my field is F&O with Gann tech,i will give some hints but not daily,2 or 3 times in month


rbaiga
 
#4
day trading is not easy as we think.do not try do intraday daily.you have to scan a lot of stocks for brk out condition exist.(shorting is too much risky,if total traded vol is less than 10 lacs per day).you must know the nifty trend if slected stock is corelated with nifty/sensex.Wait 45 -60 min till the market stablise.select 5 stocks but play with only two,always put S/L,square off if tgt is achieved my field is F&O with Gann tech,i will give some hints but not daily,2 or 3 times in month


rbaiga
Thanks for your suggestion, and it's truly true.As I mentioned that I follow Richard D Wyckoff very much, because of that I think I am getting better in stock selection, as for an example, my this week's watch list for this week is as below:

I follow Nifty to judge market condition as everybody do
1) Reliance (it reflected better than others in prev week so I chose it to get trend)
2)DELTACORP
3)DLF
4)EDUCOMP
5)GRAVITA
6)HDIL
7)JETAIRWAYS
8)LOVABLE
9)RELCAPITAL

except reliance all of them were and are 10 lacs or little less than 10L volume everyday.
I chose them because of volume and volatility, specially DLF, EDUCOMP, RELCAPITAL, DELTACORP gave good moves but I was unable to catch those, it was my bad.

That is why I am emphasizing on Price action because I missed those and need some guideline on it. With ur suggestions and help I will surely some day.

If any suggestion rbaiga, please tell me.
Thanks
 

praveen98

Well-Known Member
#5
Hi,

It's one and half year I came to stock market as day trader. At the beginning I knew nothing, my broker's(IIFL) RM used give me tips and I traded, profited few times and LOST several times. Then I understood that I need some knowledge about this thing, It sounds simple but it's difficult to do. Then studied from some books, applied those theories few worked for few times but later I understood that it was really a sheer luck of mine, that those worked. I didn't do anything with a clear view, I didn't got idea why I am selling or buying. Then started reading again, whole process started over again. At the end I was lost, can't remember the book names. I started with small capital of 20 thousand, I lost nearly 20 thousand in first 1 year. Then I transferred some to keep 20k in my account, then I started loosing less money because of stop losses. I read technical analysis, charts (candles and bars), indicators nothing actually worked very well for me. But I made some profits also and loss also so my 20k is 20k still now.

My question to me was and is, that I have to get a clear idea or view where the price will move up or down. From charts or indicators I didn't get a clear view. Two months ago I read Richard d. Wyckof's 'Day Traders Bible', which is on tape reading. Then I followed it, no charts some times, few times chart just get previous action view, and I followed Tape(price and volume) and bids/asks. I must admit that it helped me lot to get a view. But I am still not so Profitable.

Here I need help from seniors who follows price action, please give some idea that how should I follow it. I can get a view that the price is ranging, about to break or trending some times, but my entry is late some times or some times I am wrong with my anticipation, Bid and Ask list also confuses me, what I look into BID and ASK.
Please give some light and tell me the way, Which I should follow.
Thanks
hi sam,
i dont know about wyckof method but i do use point and figure charts built in wyckof method to plan my trades, which involves no bid/asks or volume indicator...i would suggest you to make things simple you also try this method for starters and see the results .....just paper trade this system...and see if it caters to your need...
by the way where did you get that book of wyckof method?
all the best
regards
praveen:thumb:
 
#6
Hi Praveen,
Nice to hear from u, I actually do p&f charting method in wyckoff's style (which is 1box reversal) and it's good but while doing that on paper by myself it takes time and have concentrate on only one stock so many things can be overlooked in the mean time that's why I try to keep the p&f in my mind. But there is some overlooked aspect in reading price which i have to find out. Thanks for reminding about P&F charting.

About the book, I will give the link very soon.
 

praveen98

Well-Known Member
#7
Hi Praveen,
Nice to hear from u, I actually do p&f charting method in wyckoff's style (which is 1box reversal) and it's good but while doing that on paper by myself it takes time and have concentrate on only one stock so many things can be overlooked in the mean time that's why I try to keep the p&f in my mind. But there is some overlooked aspect in reading price which i have to find out. Thanks for reminding about P&F charting.

About the book, I will give the link very soon.
hi Sam,
i do nifty futures charting on realtime intraday data and its a working fine for me. If you are margin trader in Cash market you need to track stocks , but if you are a derivative trader try this one...chart mininifty on realtime data with wyckof method and scale , time frame as per your convenience. i prefer index fut over stocks because to a reasonable extent stock prices move will be influenced by index movement, so to trade in stocks or stock futures we need to keep in mind index movement as well as stock price action....
in my opinion you should put the chart on graph sheet rather than in mind..i am using 1 sideruled graph paper book so that we can study the charts aftermarket hours also ...just to analyse....
In my opinion whether we make money or not is the question , we can be successful traders tracking single instrument or stock also....our success will not dependupon how many instruments we are tracking ...but how good we are executing our plan as per our trading methodology .....this is my opinion only....
all the best and wish you a very successful trading career,
regards
praveen:thumb:
 

Giraffe

Well-Known Member
#9
Regarding your tape reading and bid/ask query.
The books available are:
Tape Reading and Market Tactics - Humphrey Neil
Wyckoff's Book you already mentioned.
(Both these are pretty old, so you may read it for general concept, but you need to correlate with modern time and sales windows, no bid/ask in this)

You may also want to read all the manuals of MarketDelta Software. They are gold mines of information regarding modern time and sales windows and contain information regarding bid/ask.

BTW, the more accurate term is "Order Flow Analytics/Analysis" rather than tape reading. You will find much more matches in googles using this term. You can find lots of discussion on tape reading and bid/ask on non-Indian forums.

Best of Luck in your quest, Post the links if you find anything new.:thumb::thumb:


Important::mad:
Techniques-Tape-Reading - Vadym-Graifer : THIS BOOK IS NOT ON TAPE READING
The title is misleading, so don't bother reading it for tape reading techniques.
 
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