trading both ways

hmp · #1 11th October 2004, 09:21 PM

can somebody explain me how to daytrade both ways? i mean suppose i want to keep long position as well short position which way market goes.in the morning i ll keep sl. for one and buy/sell position in second and trade in both ways and cut short my losing position while maintaing proffitable position.
how i can trade better by using this method? pl. suggest

Traderji · #2 12th October 2004, 08:07 AM

One can do this by going long/short in the direction of the main trend and going short/long in the direction of the short term trend (intra-day or 1-5 days) which is contra to the long term trend. For example a correction in an uptrend.

jaideep · #3 12th October 2004, 08:35 PM

Traderji,

Please explain. Am too confused as I am a little non-tech in Stock Analysis.

Thanks for your patience, in advance.

hmp · #4 12th October 2004, 08:44 PM

thanks traderji

Traderji · #5 12th October 2004, 09:04 PM

Quote:

Originally Posted by jaideep

Traderji,

Please explain. Am too confused as I am a little non-tech in Stock Analysis.

Thanks for your patience, in advance.

If for example you were currently long in the recent uptrend (bull market) and think that the market is over priced and due for a correction, you continue holding your long position and short the futures or take a short position in the cash market for a intra-day trade.

jaideep · #6 13th October 2004, 07:39 PM

Thanks Traderji,

Understood. I also assume I can go short during a correction in a market uptrend, not only intra-day but perhaps also very short-term.

Anyway, I have the gist of it & thanks again.

stpmds · #7 17th October 2004, 08:47 PM

i wish to share my way of handling this.

i get daily a list of shares with trend value, support prices, resistance prices. normally when the trading starts, within 25 mins. the graph either shoots up or falls down. i allow this time and just watch. then watch for the scrips that are in negative and the scrips that are in positive. along with previous days high and low and volume. 5% up or down.

select some five scrips. if the scrip is in negative i go short for just one share. same manner where the scrip is in positive, buy just one share and watch. aided by the trend values, sup & resis. levels i keep adding the number of shares buying or selling. once i am happy with the profits i have made i close the trade and book profit.

for a beginner it is very difficult to keep watching more than 5 shares at a time.

i found that whatever may be value of the scrips the dif. between bought and sold price is the criteria. for a given amount at your disposal, it is better to go for a small value share and buy more number of shares, and the gain will be more.

as i am a novice, i am experimenting. i consider the loss is the tution fees i pay.

hmp · #8 17th October 2004, 09:12 PM

good way dear STPMDS. however u have not mentioned whether u buy/sale shares after buying/saling one share after position turns into ur favour?
and how about stoploss?
if u dont mind i request u to give us actual example of one of ur recent trade
just to give us an idea so that we can also try.
with regards
hmp

bojjasivakumar · #9 26th January 2005, 08:45 PM

In trading both ways by selling and buying we cannot reach our target destination.
In day trading market both ways are very difficult to trade in falling market, short and long will effect.A single man cannot sail in 2 boats, we should select in one way ie
positive way for profits, our concentration in one way our eyes are not having front and back, in day trade we should trade in less scrips to concentrate more sight, for earning profits.

sh50 · #10 27th January 2005, 07:12 PM

This long-short trade in the direction of main trend has been best explained by Alexander elder. If the MACD weekly histogram is up, wait for the daily stochastics to go below 20 and go long though theoretically it should turn around and go above 20 to be doubly safe. It goes without saying that price patterns, trendlines, MAs are more important and should be the final parameters for decision making and if any brekaout happens on more than 20 days average volume, ideal situation. Always keep stop loss because even if the signal is hit what happens after that has a lot to do with luck.

Similarly for short-long, weekly histogram down and stochs up above 80.

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