New to day trading - appreciate help

#1
Hey guys,
I've been going through the forum posts and various threads and have come across some very useful information. However, I'm having some trouble assimilating it all as its all random. Could someone point me in the right direction? I have the following questions (and have included my current approach):

1. How do you start your day?
So for me, I start with watching the news, getting onto moneycontrol for further developments, going onto indiainfoline for more news. This is basically to keep track of news based triggers for stocks. I then look at the pre-market activity on NSE and see which stocks have volumes. I then proceed to start the day following the stocks i have shortlisted through the news and pre-market activity.

2. How do you keep track of stock that are gaining or experiencing high volume?
The only way i am keeping track right now is by getting onto moneycontrol and watching the top gainers and most active stocks.

3. What methods do you use to trade?
As of now i'm trying to trade only breakouts. However, i have a tough time becoming aware of stocks breaking out, and only come across these by luck. Or then i follow the tips of certain people on money control, however, i only act upon their tips when i see the moving average crossover and breakout happen on decent volumes. I follow my own stops as per my risk ability, focusing on recent pivot points.

4. What indicators should one use for intra-day trading?
As of now i am working with 8 and 13 period EMA, RSI and MACD. However, i find that RSI and MACD dont seem to be working too well intraday. I was watching the market depth alot, but apparently that doesnt have as much value as one would imagine due to fake orders etc.

So far, my trades haven't been too great and i've lost a fair amount. However, i'm up to the task of learning, but there's just so much information out there, i was wondering if someone could help streamline my approach. Also, please let me know if i am missing something important.

Thanks a lot in advance :)
 
#2
this might help you..

1. the more things you look at and think about the more confused you will be

2. the more stocks you look at the slower you will be be to react

3. the more people you listen to for tips the more money you will lose

4. all indicators are lagging price..it is better to read price action on a chart and act according to what price is doing in relation to what it has already done..volume can be very misleading at certain times of the day due to automated trading by large institutions and hedge funds

if you keep doing the same thing you will get the same results..in order to change your results you must change what you are doing

J_S
 
#4
Thanks J Smith, I've been getting a sense of that lately. So by price action on the charts you would mean studying candlestick patterns and keeping track of support and resistance zones? And maybe look at following one or two stocks and understand their price action dynamics?
 

mohan.sic

Well-Known Member
#5
Thanks J Smith, I've been getting a sense of that lately. So by price action on the charts you would mean studying candlestick patterns and keeping track of support and resistance zones? And maybe look at following one or two stocks and understand their price action dynamics?
See this idea of tracking just few stocks and understanding their price action is just nonsense.

Price action dynamics of a particular stock keeps changing as the price level changes or as the underlying fundamentals keeps changing or from time to time. ( Both technical and fundamental factors influence it ).
Price action ( behaviour) is not constant. Its dynamic.
 
#6
See this idea of tracking just few stocks and understanding their price action is just nonsense.

Price action dynamics of a particular stock keeps changing as the price level changes or as the underlying fundamentals keeps changing or from time to time. ( Both technical and fundamental factors influence it ).
Price action ( behaviour) is not constant. Its dynamic.
Yes that makes sense. So where should one begin?
 
#8
hello brother,
as you have said that you are watching charts which may give you support/resistance level but what time frame according to me if you take 15 minutes charts for behavior of stock price at support/resistance and act on 5 minutes chart but nowadays movements are so volatile it is impossible to judge the movement so the things remain only on news. pl. correct me if I am
wrong
amrit
 

mohan.sic

Well-Known Member
#9
Candle sticks: What is the use of candle stick charts ?

Problem is we misuse candle sticks.

What is the use of a candle.. By looking at a candle ( 1 mt time frame candle for example ) what we can understand is the price point at the starting of that minute, the high it touched, its low and its closing point for that minute.
So a candle is giving a black & white picture of price movement during that minute. This is the use of a candle.
But there is lot of unnecessary info on cadle stick patterns. Doji, hammer, etc etc... This is again trash for current generation trading.

A simple example: Lets say on a 1 minute chart you saw a Doji and lets say its a bullish sign. Now open a 5 mt chart and you wont see that Doji ..you may see a hammer which could be a sell signal.. Now open a higher time frame chart, say 15 mt and you may see a pattern like Bullish reversal.
So the same chart data is giving you different signals on different time frames.

Interpretations change as you blend more candles into data.
 

jahan

Well-Known Member
#10
About another day trading rule: You often read about Risk Reward ratio. This is one another nonsense.

Keep a stoploss of 1 point and a target of 3 points is trash.
That wont work.
Hello,
Yes ur absolutely correct, putting targets is nonsense,market doesn't care.

Regards