Day Trading with Pivot Points and MACD Indicator

A

AW10

Well-Known Member
#11
#11
Veluri, chk out NR7 thread where Rohan posts the stocks that have seen contraction today. As per market price behaviour, these stocks are ready to explode in next day..

chk it out if it helps in stock selection.
Focusing on right stock is one of the key ingredient for successful STOCK daytrading.

happy trading
 
bunny

bunny

Well-Known Member
#12
#12
veluri1967 said:
I read somewhere that until and unless we actually trade with actual money we donot get the actual feel of the trading. Hence, this trial with Rs.5000/-. We have not yet mastered the market pulse. We are still learning.

Sure....munnabhai....i will update everyday...about my trades.:)
Click to expand...
Was this your first ever trade? I though you were trading for quite some time now.
 
veluri1967

veluri1967

Well-Known Member
#13
#13
AW10 said:
Veluri,
Just few question..
1) Have u backtested / paper traded this method with ZERO money.. or not.
Or are u testing the strategy with 5000 Rs. marked as donation to market.

2) Today, u have lost 350 rs on 5k account whcih is 7% of capital.. This is bit too much of risk from money mgmt perspective. If you want to ignore it, fine.. Nobody can stop u from that.. cause it is your money. Hope this does not train your mind with wrong trading practice..

My suggestion will be to treat each Rs with same seriousness (that shows our belief/attitude about money..and if that is not right, it is very unlikely that u will be able to make those Crores in this mkt)..

If I were to trade 5k acct, I will go ahead with 1% risk on each trade ..yes that turns out to be 50Rs. Not loose more then 150 rs in a day.. i.e 3% of my acct..
With stock, if I might buy 1 qty.. or 2 qty.. if thats what i can afford in 50Rs of risk.
My intention is not to make 1 lac with 5k..but to learn trading.. So better to learn RIGHT trading, rather then gambling with my money.

I believe stock trading gives u that flexiblity to buy 1/2 stock and still follow all the rules of trading that a professional trader will follow.. No need to run behind that home run in 1months time.. If you continue to take this much of risk, in 4 to 5 loosing days (and it is quite common in the market. We have to be prepared to take upto 20 loosing days in a seq to comeback and fight the next day in the market), you account will be down to half . Moreover it will leave very different mark on your trading psychology which you will have to correct/overwrite later.

One thing that I have learnt after paying huge price to the market - if you cann't reinforce right trading behaviour to your brain, then atleast avoid feeding it with wrong behaviour. This just makes our task lot more tough, when we get awareness of what trading is..
Might seem like gyan at this stage.. but just my experience is telling it.
That doesn't mean that u can't have different experience.. so feel free to do what u DECIDE to do.

hope this helps.. Happy Trading
Click to expand...
Dear AW10,

Today...i will try to correct the flaws mentioned. Paper trading not done. Backtesting not done.
The beauty lies in restricting our losses to 3% in a day. I will trim my position accordingly.
Thank u.
 
veluri1967

veluri1967

Well-Known Member
#15
#15
My apologies to AW-10 for not trimming my position today. But, I will definetely do it in due course. I failed to resist my temptation to trade with maximum possible trade.

Todays pick also Ambuja Cements. I thought of drawing a mid point line between PP and S1 by observing yesterday's chart pattern. But for today's trade I dropped the idea. I thought of considering it due to heavy loss yesterday.

PP - 89.85 s1 -88.85 already drawn on the chart.

Trades done.
At 11:20, as the price approached PP from below, MACD is already crossed up by then, I have gone long for 500 shares @ 89.90. Booked profit at 90.40. I could control my temptation to book my partial profit at 90.15 ps.

Again at 12:35, the price approached PP from above, MACD is already crossed down by then, I have gone Short for 500 shares @ 89.80. In this case, neither stop loss hit nor profit target is reached. Just before 3 PM i squared off the position @ 89.55.

Todays profit is Rs.181.50 on first trade (500x.50 - .137x500)
Rs. 56.50 on second trade (500x.25 - .137x500)
Todays total profit is Rs.238/-

Now my capital is raised to Rs.4919.50 which will be my capital for tomorrows trade. (When I find time I synch actual balance of trading account, for now there may be some difference between my balance what I mentioned here and my trading a/c. For sure, my balance in my trading a/c will be more than what i projected here because I calculate the brokerage at a bit higher rate. I request all to bear with me...I am short of time).
 
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veluri1967

veluri1967

Well-Known Member
#20
#20
Hi...to all

Again Ambuja Cements for today.

Trades are as follows :-

All trades are done for 500 shares on MACD signal.

10:30 AM - Gone SHORT @ rs.88.15. Unfortunately, the order did not get filled. Missed a GOLD mine.

11:00 AM - Gone LONG @ 88.30. Booked profit @ 89.05

11:35 AM - Gone SHORT @ 88.15. Bad Luck. STOP LOSS hit @ 88.65.
No worry....its all in the game.

01:50 PM - Gone SHORT @ 88.15. Booked profit @ 87.40.

02:50 PM - A signal came to go LONG for which I have not gone as Indiabulls goes to stall the trading by 03:00 PM.

Total profit = 306.50 - 318.50 + 306.50 = 294.50

My capital, thus, rose to Rs.5214 which will be my tomorrow's capital.
 
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