sm useful posts

[Satya.]

abt gud observtion wch can mk big mony-

Market action for last 3 days after the breakout indicates that. Observe that the small shallow dips are quickly bought.Market builds up trend bar by bar ,dips are in the form of shakeouts and the market buys them and goes above the high printed till then...these are the signs .One can get that if one observes how the market moves during the day....just good observation will reveal many important things about the market.

Smart_trade

 

[Satya.]

abt SL on bo-

ST sir,

when trading breakouts in long side, where should SL be preferably kept.. Waiting for the close of candle above ceiling makes price move further away. even in 1 min TF pivots are seen only withing the range. If we wait for a pivot to be formed after breakout, by the time the trending stops and goes into range.

Thanks

Try keeping it at low of breakout bar or the low of one bar before the breakout.The idea is if the low of the breakout bar gets cracked,then the breakout has failed so we quit the long position taken on breakout.

Smart_trade

 

[Satya.]

abt judging small moves vs large moves-

St,

GM. Wanted a feedback.

In swing trading I have been keeping a SL and no targets. Trailing. So this has lead to low hitrate but at times high risk reward when it works. Now this has lead to many small losses and some scratches and few home runs. Volatility generally stops all trend followers. Yesterday again my stoploss was at the high of morning. we hit the high of morning but never really stayed there and it came down.

So I thought just to change the MM a little. Have very high stoploss/ as good as no SL. Just for the adverse scenario. The right way for me yesterday was fold if we consistently stay around yesterdays high. So I thought to refine the exit. SL should be based on charts scratches with some losses.

Again for targets rather than holding till trailing SL it would serve better to keep booking small profits unless we can get a big move our way which makes a feeling there is still some move left. The flip some of those rare big moves may not be fully capitalised.

In all just asking your experience as I cant really mechanically backtest the same. The same I thought just out my experience with the markets. The system with few homeruns is still working. Though I would feel a little better with some continuous small profits to keep somthing going and avoid those huge drawdowns.

Hi lemondew....

If you keep booking small profits,then how will you get large runs when markets trend because there also you will take small profits...so the key is develop an ability to judge when the market is making small moves and when the market is going to make a large move...this can be judged from the market action. Example : Bajaj Finance I had posted that in a weak market the stock is closing at all time high so it will go through the roof once the market improves a little...and see what it is doing...

Though I trade based on charts,I also give lots of importance to how market reacts to various events,news,support /resistances .

Smart_trade

 

[Satya.]

occupational hazards-

Sir, regarding sequential stoploss hits and reversing view and position, recently there were many trades, which went back after hitting stoploss on closing basis.
That is trend_completed sequential_failed reversal_hitting stoploss_then reversing.
Such scenarios robbed me of ideas...

Vivek

These are “occupational hazards” of sequential followers like us who try to catch the top and bottom of any move.We have to be nimble footed to get out fast if it is not working.We have to pay more attention to what the market is saying .

Just to give you where to search trading ideas , some inputs :

Many will find it difficult to buy/ add when the market is hitting a 52 weeks high but that is the best place to buy.Also when nifty did not break its all time high,few stocks were making their all time high and these are the outperforming stocks which will go through the roof when the next upmove in index starts.Today nifty has closed below its open but Bajaj Finance has closed at the top and at a new all time high...this is very bullish and calls for buying the stock today .

Smart_trade