Thoughts on Day/Swing Trading

[sanjay346]

Re: nac Calling JOBBERS/SCALPERS

Hi Smart_trade,

Thanks a ton for sharing your experience.

Just had a thought and hence would want to know a opinion as i also would like to carry out scalping/jobbing above in Nifty options.

Considering that ATM and ITM tend to move nicely with the trend and can easily give 5 - 6 points in seconds, would you define them as your targets i.e. have a pre fixed target in your mind that when i acheive 6 points i will exit irrespective of the move by keeping a stoploss of 3 rs..(1:2) risk reward ratio. I am also using a broker which results in high brokerage for options and hence tends to create doubts in my mind about the exit.. and as the lot increase so does the brokerage so is there any tendency to tingle with the stoploss in case of trend not being in favour? (Applied for zerodha so hopefully brokerage will be no problem as such for future)

Finally would you prefer cash or options for scalping, just a thought as the moves in ATM or ITM options can be caught easily as compared to cash positions.

I am just a novice trader just trying to understand the nitty grittys of trading and trying to create a simple system

Regards,
Pranay

I am new year I dont know how to post message so used reply mode. If I start Amibrokera at say 11.15 a.m. on a working day will it catch intraday data lost in last two hours? I am ready to subcribe to paid service.
Sanjay Mehta

 

[sanjay346]

Hi I am new dont know how to post reply if I start my PC at 11.15 a.m will Amibroker catch lost data of last two hours? I am ready to subcribed good paid service.
Sanjay Mehta

 

[sanjn84]

yes u can do backfill for 1 day and that option is with any paid service.

 

[kumarvar1122]

Dear All,

I have been a silent reader of Traderji for quite a few months. Have been reading a lot about TA and PA in traderji and other forums.

This thread has been a great eye opener for me, ST sir you are great in explaining things.

Your modesty speaks of your sound knowledge. I have never asked you a question, I had many but most of them have been asked by some one else, and the way you answered them really great, I just couldnt think any one explaining simpler than the way you do. Not to let others down, all of you guys are great, thanks to all.

I have not started real or paper trading yet, still sharpening the swords and tightening the shields for real time (or TV) battle, hope it goes well.

Can someone please advice how to start day-trading or positional trading, i.e. what should be the capital, how much should risk (so my confidence isnt crushed), and how long should I trade like this before entering big trades.

By the way I just think this thread should go as a bible for any beginner intraday (or any for that matter) trader. I created two part PDF documents of this thread which can be downloaded via link below . ST sir and mods, Please pardon me if it is not permitted to post such docs here. In that case please delete the link or let me know how to properly post it.

Thanks to all for contributing to this great great Forum, Traderji Rocks! Sharing is caring!

Links below,

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_1.pdf

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_2.pdf

Thanks
Kumar

 

[champ]

Dear All,

I have been a silent reader of Traderji for quite a few months. Have been reading a lot about TA and PA in traderji and other forums.

This thread has been a great eye opener for me, ST sir you are great in explaining things.

Your modesty speaks of your sound knowledge. I have never asked you a question, I had many but most of them have been asked by some one else, and the way you answered them really great, I just couldnt think any one explaining simpler than the way you do. Not to let others down, all of you guys are great, thanks to all.

I have not started real or paper trading yet, still sharpening the swords and tightening the shields for real time (or TV) battle, hope it goes well.

Can someone please advice how to start day-trading or positional trading, i.e. what should be the capital, how much should risk (so my confidence isnt crushed), and how long should I trade like this before entering big trades.

By the way I just think this thread should go as a bible for any beginner intraday (or any for that matter) trader. I created two part PDF documents of this thread which can be downloaded via link below . ST sir and mods, Please pardon me if it is not permitted to post such docs here. In that case please delete the link or let me know how to properly post it.

Thanks to all for contributing to this great great Forum, Traderji Rocks! Sharing is caring!

Links below,

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_1.pdf

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_2.pdf

Thanks
Kumar

Links are not opening

 

[Smart_trade]

Dear All,

I have been a silent reader of Traderji for quite a few months. Have been reading a lot about TA and PA in traderji and other forums.

This thread has been a great eye opener for me, ST sir you are great in explaining things.

Your modesty speaks of your sound knowledge. I have never asked you a question, I had many but most of them have been asked by some one else, and the way you answered them really great, I just couldnt think any one explaining simpler than the way you do. Not to let others down, all of you guys are great, thanks to all.

I have not started real or paper trading yet, still sharpening the swords and tightening the shields for real time (or TV) battle, hope it goes well.

Can someone please advice how to start day-trading or positional trading, i.e. what should be the capital, how much should risk (so my confidence isnt crushed), and how long should I trade like this before entering big trades.

By the way I just think this thread should go as a bible for any beginner intraday (or any for that matter) trader. I created two part PDF documents of this thread which can be downloaded via link below . ST sir and mods, Please pardon me if it is not permitted to post such docs here. In that case please delete the link or let me know how to properly post it.

Thanks to all for contributing to this great great Forum, Traderji Rocks! Sharing is caring!

Links below,

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_1.pdf

https://dl.dropbox.com/u/11691665/Thoughts on Day_Swing Trading_2.pdf

Thanks
Kumar

Thanks for your kind words, Kumar. All posts in this thread are based on my own trading experience and observations.

Posting the links is ok as this is the material which is prepared from what is posted in this thread , in this forum and it has no commercial interest....so it is fine as per the rules.......

Regarding starting daytrading, let us see if anyone else posts few posts...else I will write a post for you.

Best wishes to your successful trading....

Smart_trade

 

[kumarvar1122]

Links are not opening

Dear Champ,

Can you please tell me the error you are getting while downloading the files.

Just checked the link on my mobile and it is working fine.

Thanks
Kumar

 

[DanPickUp]

Can someone please advice how to start day-trading or positional trading, i.e. what should be the capital, how much should risk (so my confidence isnt crushed), and how long should I trade like this before entering big trades.

Kumar

Dear Kumar

Big trades on volume or what do you mean by that? The amount of futures you want to trade with or what is it?

If it is the amount of naked futures, say 25 or 50 or even more, you need enough money for your margins.

It also depends on the market you want to trade. Some markets have huge volume. As an exotic example: 300'000 options in US 30 year bonds are nothing special. If you place there a quick order of 10'000 options, that will be big and need big money.

Good trading

DanPickUp

 

[kumarvar1122]

Dear Kumar

Big trades on volume or what do you mean by that? The amount of futures you want to trade with or what is it?

If it is the amount of naked futures, say 25 or 50 or even more, you need enough money for your margins.

It also depends on the market you want to trade. Some markets have huge volume. As an exotic example: 300'000 options in US 30 year bonds are nothing special. If you place there a quick order of 10'000 options, that will be big and need big money.

Good trading

DanPickUp

Dear Dan (et All),

Thank you very much for taking time and responding. I am sorry for not being clear with my queries.

I intend to trade on daily charts to begin with, as I can't afford to quit my job which pays me handsomely. When I get right experience I would want to do it full time including day trading.

So I need advice from all of you, on how to start trading with small volumes and how long should I be trading with small volumes before I can enter with big volumes to make trading as my profession.

I understand these are subjective matters and depends on individual's skills, but I think guidance from you guys could empower my own instincts and do it the right way.

Gladwell hypothesizes that it takes on average 10,000 hours of practice to master a skill. For me, I go by the words of experts on a skill, so I seek guidance from you the experts.

Type of trading - I wish to be positional trader holding trades for 2-5 days, as I cant spend much time during day.
Initial Capital - Need your opinions on this. I prefer to start with small amounts. I prefer cash segment.
My character - Very emotional (I am trying to learn how to control it to a certain extent) and quick learner.

If any of my intentions towards trading is wrong please correct me. Thanks in advance for trying to assist and guide me.

Thanks
Kumar

 

[DanPickUp]

Dear Kumar

" So I need advice from all of you, on how to start trading with small volumes and how long should I be trading with small volumes before I can enter with big volumes to make trading as my profession. "

First of all: One mistake nearly all beginners make when want to start trading: They assume that they will make money from the begin they start trading. Reality shows that this is very unlikely. It is exact the same situation when you started in your new job after finishing your education for it. At begin you acted like a beginner and only after time you started to understand what is going on in dept in that specific business.

Before even thinking about when do I trade big, double once your account with a lot size which not expands your maximum risk of less than 5% per trade. Some say 2% is the holy grail. But it also depends on the market conditions, that at least is how I value it. If market is extremely low volatile, then there is possibility to think a bit different compare to extreme high volatile markets. Those % you take as risk have to bring a reward. This is called risk reward and when you take a trade, you should be very clear about that. One simple rule for small accounts: First double the account and after that double your size of positions. If you have a losing row, go back to one position until your account is again on the amount it was when you doubled it.

Example in $ as I trade in $:

If you take a trade with a risk of 250$ you should have a clear plan how much this trade should bring in profit. This should be defined by you before starting trading. One good way is to take a risk reward of 1:3. Means you risk 250$ to make 750$. If you do not see this change when entering a trade, you not will take this trade. The 250$ are your stop loss you risk. If a stop loss with small risk % not works, do not make the mistake to think that a stop loss with big risk % will work.

Next point: An other mistake which is in the head of beginners is the amount of positions token in any trade.

You do not need big amounts of positions to be successful. I know retail traders which never took more than between 5 and 10 positions at the time, depending on the market conditions and how they valued it. They now trade for years very successfully and have a nice live, they can sleep at night and they know the size with which they feel comfortable.

If you take trades, some will be losses and some will be winners. With a RR of 1:3, the winners will accumulate your profit side. As you are any way more in emotions: At the moment you have your own money in the market, you will need a system which is very well defined when it comes to risk taking in trading and trading is a risk taking business.

Really big amounts of positions are in general only traded from institutions or from some very rich individual traders, which have through there connections to the exchange extreme low commissions and margins.

Good trading

DanPickUp