My attempts at daytrading stocks

i am learning daytrading & will post my trades so that Pros can help me out
I will post my stategies i will be paper trading & everything else i do

My current strategy is very simple
Look for very high volume consecutive upbars/downbars with no followthru & then price rejection in that direction i.e. this is a reversal strategy

i trade with real using this strategy
Here are todays trades
http://bp2.blogger.com/_2dzJJqfPriE/...-h/trade+1.png
http://bp3.blogger.com/_2dzJJqfPriE/...-h/trade+2.png
http://bp3.blogger.com/_2dzJJqfPriE/...-h/trade+3.png

Naveen

First one is base i.e a stock is stuck in a narrow price range for a long time 7 then breaks out in any direction then we take trade in that direction
I saw two bases today
one in SAI &other in JP
http://bp0.blogger.com/_2dzJJqfPriE/...-h/JP+base.png
http://bp1.blogger.com/_2dzJJqfPriE/.../SAIL+base.png

Hi,
Which is the software you are using

Umesh

Hi Naveen,

Just my opinion. See whether it helps. I am commenting on Suzlon chart only. Do not accuse me of hindsight analysis.

1. I understand your entry tactics as stated in your post. But where is the stop and what is the exit strategy? Especially I have failed to understand as to why you exited at the bar marked by you. I donot know whether you were using any other indicator for exit strategy. If you were trading on the basis of that chart alone (which you have posted), then IMO that was not the right place to exit. Again, I get a doubt as to whether your attempt is to make a quick scalping trade. If your attempt is to scalp, then ignore what I am saying here.

2. I have drawn a few more line and text boxes to the chart posted by you. See whether it helps. Basically in my opinion, your initial stop should have been just below the selling climax and subsequent trading range. That is the better stop.

3. With that stop, your risk might have been slightly wider, but that could be managed with proper trade size. But with that stop, your chance for success would have been more. Well now this may be in hindsight, but in realtime also that would have been the better option.

4. With regard to the particular chart posted by you, I notice that the bar rounded off by you was a test bar, but I also notice that the very next bar is a very narrow range bar, which will put me on guard. Because, after successful test I am expecting price to move away in the direction of breakout with higher volume. You will notice that the volume in this narrow range bar is not at all inspiring. Again, this you can say, with hindsight benefit.

5. A total disregard to higher timeframe is not adviced even in daytrading also. Before attempting an entry it would have been better if a higher timeframe chart is consulted.

6. But if you had decided to trade on that chart and on that timeframe alone, then your stop should have been where I indicated and you should have given some more time for the trade to work out (either to run in to profits or to hit SL). Once the price made a higher pivot low after breakout and test, stop can be moved to just below the higher pivot low. Until then stop should be at the place indicated by me. If you feel risk is bit more, then adjust trade size as indicated by me above.

7. If you or anyone has different opinion, please post here. Let us device a proper working strategy.

Hi RSI,
thank you for ur insightful reply
1.yes normally i would have placed my stop at the place u indicated, what happened on this case was that bar i exited on first went higher then came down , normally i move my stops to BE by that time but as i was moving my stop price kept falling & i decided to exit at my entry price, i also employ a timestop of 15 mins.i circled the bar to show what u have shown

2.Your point regarding disregard for higher timeframe is pertinent one, my problem is this when i switch to 15,30, 60 min time frame volume looks pretty much same on each bar
Here is suzlon 15 min chart till today
http://bp0.blogger.com/_2dzJJqfPriE/...ime+frame.pngi

Exits or trade management is a big problem with me , i will post about it on subsequent posts, right now its more like hit or miss

My idea is also same to develop a working strategy

I am using the writings of DbPHOENIX to guide me
thanks for reading & commenting

Naveen

PS: software is reuters Quotecentre, charting is very basic

is it possible to buy a stock at the opening price

Naveen,

I rarely post on TL. If you are interested, you can go through a few posts made by me there. See whether it helps. It is quite possible that my posts will be ignored in TL as many stalwarts are posting there and their posts are much more insightful than mine. But problem here in Traderji is that majority does not believe that trading can be done without complex indicators. Yes I admire DB more than any trader here. I follow him closely. I suspect that many Traderji members are following him very closely. If you see many of my posts here, you can notice hint or two of DB here and there. To confess, I have even copy pasted some of the very useful posts made by him elsewhere. It is dream to reach his caliber and his stature in trading and understanding the market.

Just seen higher timeframe chart posted by you. Alas. Had you seen it before trading, you would have noticed that the price has just broken down from an immediately earlier trading range, that too in the form of a WRB and what will happen next? Quite simple. Test of the range and then another move down. Had you seen that, then you would not have gone long. Reread the lessons once again. You will get ample clues there.

Naveen,

Answer honestly. Have you ever taken a stoploss hit? I want a honest answer for that. If the answer is no, then tell me why?

Almost impossible.