Q & A with Traderji

[hasobha]

Dear Traderji

I want more information for putting stoploss order.

In online trading through broker, I dont allow to put only stoploss order, I will only allow to place stoploss order along with fresh buy or sell order. In such case how to place stoploss order into system, so that even we are not infront of screen but my capital will become safe due to stoploss order. For placing fresh order for buy/sell broker also need margin amount.

I think you understand my point.

Thanks in advance.

Hasobha

 

[shamim]

This is the most interesting thread that I have come across so far.
The most intriguing and also the most important aspect of your trading is absence of any indicators. Keeping it simple.
I was wondering about one thing though; why you prefer trading equities when you are allowed to trade only from the long side. How do you keep yourself busy in bear market?

 

[shantanu10]

Agreed with you Shamim.

I also felt the same. I got fascinated by reading the simplicity in the approach and less reliance on computation.

The thing is, its all about the probability.

I feel people make the things more complex.
One should try to keep the things simple, fix the strategy, more importantly follow it.

The most imp part in trading is money management, psychology, exit, entry.
People waste years in concentraing on the entry part.

Traderji, I am having question.

Do you trade in futures? I suppose yes (by seeing the e.g. of Nifty trade).

My question is after reading the chart, what other things do you consider? e.g. do you consider sector, volatility of the stock, volume?
How do you place trailing stop loss?

 

[Traderji]

Dear Traderji

I want more information for putting stoploss order.

In online trading through broker, I dont allow to put only stoploss order, I will only allow to place stoploss order along with fresh buy or sell order. In such case how to place stoploss order into system, so that even we are not infront of screen but my capital will become safe due to stoploss order. For placing fresh order for buy/sell broker also need margin amount.

I think you understand my point.

Thanks in advance.

Hasobha

Please contact your stock broker regaring this. I cannot help you in this regard.

 

[Traderji]

This is the most interesting thread that I have come across so far.
The most intriguing and also the most important aspect of your trading is absence of any indicators. Keeping it simple.
I was wondering about one thing though; why you prefer trading equities when you are allowed to trade only from the long side. How do you keep yourself busy in bear market?

I trade equities both in the spot market (cash market) and in the futures market. I never once mentioned that I trade only on the long side. I wonder what gave you that impresion? If you read the anatomy of my recent trade you will notice that it was a short sell trade on the Nifty. In fact it is important for any successful trader to trade both from the long and short side.

 

[Traderji]

Traderji, I am having question.

Do you trade in futures? I suppose yes (by seeing the e.g. of Nifty trade).

My question is after reading the chart, what other things do you consider? e.g. do you consider sector, volatility of the stock, volume?
How do you place trailing stop loss?

Yes I do trade futures.

The other things that I consider apart from price trends is volume ( I prefer to trade large & mid cap high volume stocks) and most important ERS.

I select sectors with the highest ERS and then stocks within that sector with the highest ERS. This helps me select the best performing stocks within the best performing sectors. Most amatuers make the mistake of selecting stocks that have fallen the most and are cheap. However to be successful in trading one should buy into stocks which have the HIGH ERS readings and short sell stocks with LOW ERS readings.

Volatility is important for intra-day traders and not for medium to long term position traders. In fact do you know that stocks in strong trends have low volatility.

 

[jaideep]

Fascinating journey into your mind Traderji. Really generous & honourable on your part to share so much of your inside stuff with all of us.

Thank you.

 

[kuldeep49]

Yes I do trade futures.

The other things that I consider apart from price trends is volume ( I prefer to trade large & mid cap high volume stocks) and most important ERS.

I select sectors with the highest ERS and then stocks within that sector with the highest ERS. This helps me select the best performing stocks within the best performing sectors. Most amatuers make the mistake of selecting stocks that have fallen the most and are cheap. However to be successful in trading one should buy into stocks which have the HIGH ERS readings and short sell stocks with LOW ERS readings.

Volatility is important for intra-day traders and not for medium to long term position traders. In fact do you know that stocks in strong trends have low volatility.

Traderji,

How does one calculate the ERS? Where would the relative data for, say, Nifty stocks be available?

Kuldeep

 

[shantanu10]

Yes I do trade futures.

The other things that I consider apart from price trends is volume ( I prefer to trade large & mid cap high volume stocks) and most important ERS.

I select sectors with the highest ERS and then stocks within that sector with the highest ERS. This helps me select the best performing stocks within the best performing sectors. Most amatuers make the mistake of selecting stocks that have fallen the most and are cheap. However to be successful in trading one should buy into stocks which have the HIGH ERS readings and short sell stocks with LOW ERS readings.

Volatility is important for intra-day traders and not for medium to long term position traders. In fact do you know that stocks in strong trends have low volatility.

Thank you Traderji.

You said, you do not use any technical indicator, oscillators. Chart says it all.

But still I would like to know:

1. Do you use MACD, MACD histogram? If yes how do you apply for your anatomy?
2. Do you use ADX?
3. Do you look for divergence?
4. Do you look for any warning signals on charts once you are in the trade? If yes, how?
5. Do you look for overbought/oversold signals in your plan?


6. Also as per your anatomy, you plan the trade and trade the plan. Do you trade in any other ways?

With Regards,

Shantanu.

 

[Traderji]

Traderji,

How does one calculate the ERS? Where would the relative data for, say, Nifty stocks be available?

Kuldeep

For more details on ERS visit http://www.tradersedgeindia.com/external_relative_strength.htm

ERS is a ranking system of the weighted performance of stocks over a constant time period.

The TradersEdgeIndia.com Trend Trading Picks Newsletter and the Trend Trading Picks Weekly Newsletter provides the external relative strength rankings of most of the stocks listed that are constituents of the NSE Nifty, NSE Nifty Junior and the CNX MidCap 200 Index.