A plunge in Indian Stock market

[sspms2002]

Today was a continuation of yesterday i didn't trade anything , but just kept watching ITC since morning till end...

It Opened at near my buy Price 374...and looked a little strong on open..went slowly till 377.50 but yes with lot of up and down...

then it started came down and even went below my entry price till 372..
But every time it was going in 372-373 range there was a sudden spurt of buying...So i had though of an exit only if 372 level breaks...

AT end it was trading at 375 odd...i as seeing an open Profit of 300+ at close...but i am again carrying it overnight to watch tomorrow..and gain little more confidence....

I did felt that in day trading we could capture many moves in a single stock too if we watch it carefully...

Also ITC seems strong...in a negative market today it held in green...


Stocks Traded: None (Overnight ITC position)
P&L : None

 

[sspms2002]

Yes , there is a good reason for it. It called a trap. Institutions do it all the time , otherwise they will not get their fill since they have big orders.

This is one of the fundamental difference b/n retail and institutional traders.
:thumb:

Yes i also feel that big player deliberately move it to our stop loss areas so they can accumulate more orders...so doesn't that mean we should not place stop order at very obvious areas...just like below the support lines..or above resistance...as there will definitely be one move when they will gulp our stop orders..

How do you guys handle it? Also doesn't it mean (if our stop loss orders are eaten) that we are actually in the right direction of market..?

 

[sspms2002]

The markets don't move in a straight line. It often appears that the market is conspiring against you. This is the reason why many traders do not undertake the full trade in one go, they buy incrementally - maybe 25% at a time. Like, buy TVS motors at 248, 247, 246, 245 etc.. stoploss at 242.

Yes Timepass..i also started to feel the same now...Many times the price came near my price again after going to high..i would have actually benefited if i would have exited at top and entered again at the bottom price..

Also i noticed that when it goes below the entry price it just goes to an area where most of the stop loss are kept ...and sweeps them..and then returns...if i would buy half at entry and then add another half at the stop loss area...it would have been a better off trade.....just trying to see the permutation and combinations...

 

[timepass]

Yes Timepass..i also started to feel the same now...Many times the price came near my price again after going to high..i would have actually benefited if i would have exited at top and entered again at the bottom price..

Also i noticed that when it goes below the entry price it just goes to an area where most of the stop loss are kept ...and sweeps them..and then returns...if i would buy half at entry and then add another half at the stop loss area...it would have been a better off trade.....just trying to see the permutation and combinations...

Not necessarily in the Stoploss area, but in the SUPPORT area, which may not be the stoploss. I don't know which indicators you are following for intraday, but can you post your charts ? You see Kiran_thiru's charts in his thread with all his thinking laid out for discussion.

VJAY also has some very good, disciplined trading. He posts his charts here regularly.

 

[sspms2002]

Thanks Timepass..I tried to post TVS Motor..todays chart...but it seems i am not allowed to open the Upload site from my office..

Anyways i will try to post it later...Also i am not using many indicators..just MACD & Stochastic....that too i have not used to time much...But i definitely found then useful....I also am trying to use Volume...i am starting to find it useful....

 

[sspms2002]

Today was a continuation of yesterday i didn't trade anything , but just kept watching ITC since morning till end...

It Opened at near my buy Price 374 again...and looked strong on open..went slowly till 378.50...and traded there till 12 PM..i was hoping it to break 380 level...i was seeing all greenery with 1200+ in open profits..

then it started came down slowly...but any downside was getting absorbed..by new buyers..

It came down to 374.50..yesterday's close and started trading there..it was finding it difficult to go below that...I realized the imp of yesterday's close as an imp level..

Then at 3 - 3.15 PM..there was a sudden heavy selling started...I didn't know what happened..something terrible must have happened...Very very large orders started getting executed on sell side..with heavy selling it broke its level and swiftly came down...to 371...370...369...369...369..368..and then back to 369..370..and finally settled at 371.50...but i was still seeing very large orders both on buy and sell side..

I will wait for one more day...as i saw that 368--369...was an area of very heavy buying...But nervtheless after seeing an open profit of 1200+ ..i did saw an open loss of -1800....at the end open loss was -1000...

I think i am overdoing it..but let me see a couple of more days...

Stocks Traded: None (Overnight ITC position)
P&L : None

 

[Jitendra Togadia]

Alright good luck paying huge brokerages.

Also they might shut down anytime since they are breaking the laws here. Once RBI comes down hard on them , they will vanish in a day.

Could you elaborate? It has been more than a couple of months since you posted this comment here

 

[sspms2002]

Could you elaborate? It has been more than a couple of months since you posted this comment here

Hi Jitendra..iam assuming you are expecting a reply from Throwawaycc123...

 

[agni123]

Yes. Do not use 1min chart. Use 5 and 15 min charts. If you need to use low timeframe then I would use 3 mins. Take trades on 3m chart based on 15m direction

Today was one of pathetic days of my trading..
I am disgusted...I could not hold onto good positions....and also played many stocks in search of a good one around 11-12PM (this is the time when my losses accumulate)

Got chopped multiple times..I would have to introspect my entries and exits...and also my many trades...

Stocks Traded: many
P&L : Red 983 after commissions

A few good things that happened today: I was long 300 shares in YESBANK at 692 and it looked like it may again touch 700..
But i was shaken up after it went to 694 and booked whatever it was showing..
I was again cursing myself when it broke 700 started trading around 704-705....

I am just getting a feel that i should not play according to 1 min chart...a 5 min chart would be better to play...
Any thoughts by other Traders??

 

[sspms2002]

Yes. Do not use 1min chart. Use 5 and 15 min charts. If you need to use low timeframe then I would use 3 mins. Take trades on 3m chart based on 15m direction

Thanks Agni123...i also realized that 1 min is not too suitable as any one big sell/buy order can make a negative candle there...i started using 2 mins now...but i will also try to compare 3 mins charts too based on your advise..Thanks again.