Come into the Trader's Den

Hi

Sorry, I did not have time to post. I was in East-Germany and it was quit interesting. First Berlin and then in the really country side. Wow, what a different to West-Germany.

I have read all the post and I want to say thank you for all the input you people have given in this many post since I was asking this little things about Swing position sizing. ( I know it is not my thread, but every body deserves a thanks for taking time and writing down his ideas which can help to clear others thoughts)

To give a deeper inside look at my idea in the last post, I will explain it again with more precisely words:

I have a currency chart in my head which shows a few times ranges on different levels. The chart can have a time frame of 60 min or 15 min or a few hours. I do not know, if this can happen in Nifty, but I know it happens in the currencies markets.

The idea is different to the one TT mentioned and may adapt more to the last post of AW10. I may not understood every word of AW10 post and so point to the word I have to interpret for my self again.

The range is traded with options. After the first two clear signals ( support and resistance ) I buy a call ( any like otm, atm or itm ) at support and I sell it at resistance. I then have a profit from this call. Now I double my risk and at resistance I short two calls like atm or itm. Time has not really an effect on that options because of the short time frame.

After the market touches again resistance, I buy back the two sold options.

I then have a profit from tree options.

Now comes the second part in question, which is for me the important question.

Should I now just add one more option to the two I already traded, means : I will go long with tree options or should I again and again double my risk and trade with four options, then with eight options and so on until the range changes to an other level and I will start again with one option and build up as shown.

Any comments on such ideas or is this some thing crazy ?

DanPickUp

to me entry is very important. if i get a quick move just after the entry then i can surely exit 50% position and make my stop loss to b/e. now i am free to apply any kind of exit method depending on the market situations.

Biyasc,

I appreciate your conviction and thoughts regarding Entries of trades. However, let me tell you something.

Entry and Exit always go hand in hand. In my case, Exit comes even before I enter. I always have an objective before entering the trade. Without knowing the appropriate exit level, how can you calculate the Risk/Reward. IMO, calculating Risk/Reward is of utmost importance. Tell me, Does Usain Bolt prepare/enter the race without knowing the destination (200m, 400m etc)?
Certainly not!! He very well knows where he has to stop, hence he alters his initial outburst (entry) accordingly. For a 100 m race, he will start off quickly whereas for the longer version, he might conserve his energy initially.

If you simply undertake a position, keeping in mind the entry, I think you are loosing out on a very important aspect of measuring your R/R ratio. Look at your trading record to see if this thing is working for you. If it is, then continue with it, else alter your concepts and techniques.

Tc

Biyasc,

I appreciate your conviction and thoughts regarding Entries of trades. However, let me tell you something.

Entry and Exit always go hand in hand. In my case, Exit comes even before I enter. I always have an objective before entering the trade. Without knowing the appropriate exit level, how can you calculate the Risk/Reward. IMO, calculating Risk/Reward is of utmost importance. Tell me, Does Usain Bolt prepare/enter the race without knowing the destination (200m, 400m etc)?
Certainly not!! He very well knows where he has to stop, hence he alters his initial outburst (entry) accordingly. For a 100 m race, he will start off quickly whereas for the longer version, he might conserve his energy initially.

If you simply undertake a position, keeping in mind the entry, I think you are loosing out on a very important aspect of measuring your R/R ratio. Look at your trading record to see if this thing is working for you. If it is, then continue with it, else alter your concepts and techniques.

Tc

Hi All,

I need help in getting some basic thumb rule for defining stoploss for day trading
e.g. Today I had plan to go long if market goes above 5153(50DMA) OR short if it was unable to go above that level. Today market went above 5153 & it remain their for more than 15minutes. hence I took decision after crossing 5160 to enter in NF. I entered at 5162. After entering into this position, I put stoploss below 50DMA at 5150. But this stoploss got hit middle of day & market went down till 5141. Then again it move up & went to 5200. So end of the day my position went into loss instead of going in profit due to improper stop loss.
I observe such cases with myself many times. So just wanted to know your opinion on this.

1. Am I defining stoploss correctly or there is any method to define it? ( I know it is based on my risk appetite. but if ideal stoploss would have been 5140 then I could have gone for that & in worst case could have bared that loss also)
2. Daily we know some support & resistance. whenever nifty comes to that point it may move in that range for some time. How much time we should observe before getting into trade?

Hi Dan. Thanks for sharing the links.

The list that i put up in the previous post was a result of some observation from last 1-2 months. I have been following the announcements on Forex Factory very closely however all these announcements are not catalysts. But some of these announcement create extreme levels of volatility and volume.

Surely most of the drastic price movement can be attributed to the difference between forecasted data and actual data. But i just want to look at those catalyst which already have a lot of importance prior to the announcement , irrespective of a huge/less differential between forecasted data and actual data.

Cheers And Happy Trading