New for day trading.

cccontrarian · #1 19th February 2008, 12:43 PM

hi,

i am new to this forum, i would like to start my day trading business. i have studied the market for last three months & decided to start my business only with 20000 capital. i have build a day trading plan including an entry level, exit level, position size calculation. i have also decided to avoid tips. my initial plan is to sell a stock (near resistance level) which is rising or buy a stock (near support level) which is falling. i would always maintain a stoploss above/below the resistance/support level. i would try to stick to my trading strategy. hope i will do it in a proper manner.

contrarian trader,

Saint · #2 19th February 2008, 02:32 PM

Quote:

Originally Posted by cccontrarian

hi,

i am new to this forum, i would like to start my day trading business. i have studied the market for last three months & decided to start my business only with 20000 capital. i have build a day trading plan including an entry level, exit level, position size calculation. i have also decided to avoid tips. my initial plan is to buy a stock (near support level) which is falling. i would always maintain a stoploss below the support level. i would try to stick to my trading strategy. hope i will do it in a proper manner.

contrarian trader,

Hi Contrarian,

Welcome to Traderji......

All the best!
Saint

biyasc · #3 19th February 2008, 03:53 PM

is it possible to earning money in day trading as a contrarian trader.

hari09omkar · #4 19th February 2008, 04:06 PM

Quote:

Originally Posted by biyasc

is it possible to earning money in day trading as a contrarian trader.

Very much.....

hari09omkar · #5 19th February 2008, 04:10 PM

Quote:

Originally Posted by hari09omkar

Very much.....

Specially on the short side.

biyasc · #6 19th February 2008, 04:33 PM

hari, i dont have very much practical experince in contrarian day trading. can you describe some more things about this.

hari09omkar · #7 19th February 2008, 05:56 PM

Quote:

Originally Posted by biyasc

hari, i dont have very much practical experince in contrarian day trading. can you describe some more things about this.

biyas,whatever short time I spent with my teachers,the one between them whom I liked more told something like this:.....95% of the traders are failures and out of the successful ones,95% are bulls(I can make some mistakes in quoting him as the time decay has taken some memory off my brain...)....so the remaining 5% are bears in the success terriotory.

He had been a great bear.A market takes a little percentage of time to go down in comparison to the time taken to rise that path.

U can watch that on ur screen any day.Now the question is how to play the contrarion bears' game? It is less risky than contrarion bulls' game!Well if someone reveals the system to trade counter-trends,he will not be doing any good to the others and not to himself also.
But in a forum,where Saint has made a himalayan effort to make people think on trends to earn a living,I can atleast give the thinking process to go for the working structure of counter trends.To implement it in practicality,three things are important:
1.Knowledge of indicators.
2.Intrinsic data of buying pressure and selling pressure,tick by tick.PIB,Sharekhan will not be of any help.
3.Multiple time frames.

Buy Martin Pring's 'Martin Pring on Market Momentum' for a general overview of indicators and their applicability.It was available here in kolkata at Rs.395/- when I bought it,may be the price is diffrent now(printed price,book seller will give u discount on that

).Then go for the advanced text of conceptual clarity.

It is tough,no doubt,to trade contra trends.But rewarding,specially south journey! But a caution is there: If money can be made trading trends,don't bother the contra trends and put off the computer after u make the most of the trends.

biyasc · #8 19th February 2008, 05:59 PM

Quote:

Originally Posted by hari09omkar

biyas,whatever short time I spent with my teachers,the one between them whom I liked more told something like this:.....95% of the traders are failures and out of the successful ones,95% are bulls(I can make some mistakes in quoting him as the time decay has taken some memory off my brain...)....so the remaining 5% are bears in the success terriotory.

He had been a great bear.A market takes a little percentage of time to go down in comparison to the time taken to rise that path.

U can watch that on ur screen any day.Now the question is how to play the contrarion bears' game? It is less risky than contrarion bulls' game!Well if someone reveals the system to trade counter-trends,he will not be doing any good to the others and not to himself also.
But in a forum,where Saint has made a himalayan effort to make people think on trends to earn a living,I can atleast give the thinking process to go for the working structure of counter trends.To implement it in practicality,three things are important:
1.Knowledge of indicators.
2.Intrinsic data of buying pressure and selling pressure,tick by tick.PIB,Sharekhan will not be of any help.
3.Multiple time frames.

Buy Martin Pring's 'Martin Pring on Market Momentum' for a general overview of indicators and their applicability.It was available here in kolkata at Rs.395/- when I bought it,may be the price is diffrent now(printed price,book seller will give u discount on that

).Then go for the advanced text of conceptual clarity.

It is tough,no doubt,to trade contra trends.But rewarding,specially south journey! But a caution is there: If money can be made trading trends,don't bother the contra trends and put off the computer after u make the most of the trends.

thanks hari for your advices.

CreditViolet · #9 19th February 2008, 08:09 PM

Quote:

Originally Posted by cccontrarian

hi,

i am new to this forum, i would like to start my day trading business. i have studied the market for last three months & decided to start my business only with 20000 capital. i have build a day trading plan including an entry level, exit level, position size calculation. i have also decided to avoid tips. my initial plan is to buy a stock (near support level) which is falling. i would always maintain a stoploss below the support level. i would try to stick to my trading strategy. hope i will do it in a proper manner.

contrarian trader,

If two contrarians agree with each other, does that make them conformist?

beginner_av · #10 19th February 2008, 08:41 PM

Quote:

Originally Posted by CreditViolet

If two contrarians agree with each other, does that make them conformist?

Ya and then there is a segregation of conformists till the time there is a reformist. Many unfortunately dont get time to reform!

btw CV, which doors shall I monitor to see your messenger bringing the good news? Eagerly awaiting!