Best way of day trading - 2652 theory of trading
- Thread starter dhiraj11378
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great buddy,
i just request all the members using this method just to write in about ur gains so that a new reader whem reads this method is confident in using this method.
if have made a loss using this method then also do write (loss on average of three days , because as per this method u have to make up for the loss on a particular day on the next day )
i just request all the members using this method just to write in about ur gains so that a new reader whem reads this method is confident in using this method.
if have made a loss using this method then also do write (loss on average of three days , because as per this method u have to make up for the loss on a particular day on the next day )
I have been paper trading using this system for almost 2 weeks. Having found that the success ratio is excellent, I have strted trading in Nifty fut using this method and have made profits. Today, in addition, I made profits in SBI fut, too. And todays profits were before Satyam fraud broke out.
Many thnaks for the system, Dhiraj! It is an excellent system for consistent income from share market.
Many thnaks for the system, Dhiraj! It is an excellent system for consistent income from share market.
Hi All
I started paper trading based on the theory from today. The scrip I took is Reliance Industries. The details as per the theory are :
High of 7/1 - 1386
Low of 7/1 - 1175
High of 9/1 - 1210 @ 10:17
Low of 9/1 - 1145.20 @ 10:17
Diff @ 10:17 - 64.80
Level 1 - 91.36 (0.433 Factor)
Level 2 - 161.63 (0.766 Factor)
Level 3 - 285.91 (1.355 Factor)
The theory gave the following price points :
Sell @ - 1118.64
Buy @ - 1236.56
Sell Target - 1113.04
Buy Target - 1242.75
Sell Stop Loss - 1129.82
Buy Stop Loss - 1224.20
My queries / doubts are :
1. In the thread I read the the we should initiate the trade max by 10:45, not beyond that. Is that a correct understanding ?
2. If you notice that I have taken the High's & low's @ 10:17 AM today. is it a correct time to start taking the reading or we should wait for some more time. In case, this is not a correct time then suggest what should be the approx correct time to take the readings as the price keeps fluctuating.
3. Does this theory hold good on very volatile days as well?
4. As per the price points you shall notice that the theory suggests to sell @ 1118.64. I sold 100 Qty @ this price point with a SL of 1129. To make profit out of this trade I need to buy 100 Qty at any price below my selling price and buying above my selling price shall give me a loss. Price went down to 1095. I covered my qty and then bounced back. to 1128. (Earned profit).
5. Can I again initiate a sell trade @ 1128 with a SL of 1132 and then cover the same again @ 1118 ?
I would request the fellow members to please guide me with the buy & sell orders wih respective SL's so as to make my understanding clear & build confidence in this theory.
Please guide me.
Regards ... Jammy
I started paper trading based on the theory from today. The scrip I took is Reliance Industries. The details as per the theory are :
High of 7/1 - 1386
Low of 7/1 - 1175
High of 9/1 - 1210 @ 10:17
Low of 9/1 - 1145.20 @ 10:17
Diff @ 10:17 - 64.80
Level 1 - 91.36 (0.433 Factor)
Level 2 - 161.63 (0.766 Factor)
Level 3 - 285.91 (1.355 Factor)
The theory gave the following price points :
Sell @ - 1118.64
Buy @ - 1236.56
Sell Target - 1113.04
Buy Target - 1242.75
Sell Stop Loss - 1129.82
Buy Stop Loss - 1224.20
My queries / doubts are :
1. In the thread I read the the we should initiate the trade max by 10:45, not beyond that. Is that a correct understanding ?
2. If you notice that I have taken the High's & low's @ 10:17 AM today. is it a correct time to start taking the reading or we should wait for some more time. In case, this is not a correct time then suggest what should be the approx correct time to take the readings as the price keeps fluctuating.
3. Does this theory hold good on very volatile days as well?
4. As per the price points you shall notice that the theory suggests to sell @ 1118.64. I sold 100 Qty @ this price point with a SL of 1129. To make profit out of this trade I need to buy 100 Qty at any price below my selling price and buying above my selling price shall give me a loss. Price went down to 1095. I covered my qty and then bounced back. to 1128. (Earned profit).
5. Can I again initiate a sell trade @ 1128 with a SL of 1132 and then cover the same again @ 1118 ?
I would request the fellow members to please guide me with the buy & sell orders wih respective SL's so as to make my understanding clear & build confidence in this theory.
Please guide me.
Regards ... Jammy
Hi Dhiraj,
Thanks a lot for giving an excellent trading method. Thanks to Sunil, Sohan, Jhaveri for contibuting. It is nice to see that people are making profits by trading your method.
I have understood your method but there are some querries. If you along with the other seniors (who understood the method fully) can clarify these, it would be a great help to me and others who are learning. ( Though some of my querries may be answered- may not be fully understood by me -hence I will request you to clarify again.) Sorry for troubling you for explanation. Please take you time to explain.
1) Which values we should take into consideration while taking high & low of previous day and current day at 10.15 am to 10.45 am? Is it market watch value as appered on NSE or the value which we see actully on the graph? Because many time we observe that what we see on NSE market watch as high & low never appears on graph.
2) Please correct my understanding of the method......we start at 10.15 am taking high & low values (Graph/NSE?) & place orders accordingly as per the method outlined.As we proceed further after 10.15 am onwards ,these orders remain valid till the high / low values of 10.15 cross on either side. If they cross, we go on modifying the orders till 10.45 am or till any placed order hits. After 10.45am we do not take into consideration chage in the high/low value (which are there at 10.45am.). 10.45 am onwards, we wait till closing of the market for the placed order to hit on either side. This is what I understood. Is it correct? If wrong, please pinpoint where I am wrong.
3)For the strategy to be effective, is it necessary to trade in 15-20 stocks every day. Will the strategy be effective if we trade only 1-2 stocks per day with an amount eqivalent to 15-20 stocks ( taking into consideration money management). Why I am asking this is because it is not possible for everyone to trade in 15-20 stocks at a time ( i.e placing approximately 40-60 orders at a time and monitoring them continiously for hits), especillay for those who are comfortable for 1-2 stocks but not for 15-20 stocks)
4)Are the factors (0.433/0.7666/1.355) are constant for all stocks/futures?
5)Generally how much time ( 1min/2 min/ 5 min etc) it takes to reach target price after hitting our SL buy/sell orders? Knowing this, if it exists, one can develop time stop loss strategy.
6)What are the expectional situations, if any, when this strategy does not work or we should not trade?
7)Will it be right to trade only failure trades next day with big amounts( permitting MM) ( that is on first day take 20 stocks not for trading but only to observe from them that which are failure or loss making trade. Say out of 20 stocks 2 are loss making so on next day trade only those 2 stocks. but still observing the 20 stocks to find out the loss mkaing stocks to trade the next day. Continuing the same every day)as theory say that on next day we are 100% sure that the trade will work in our favour so that we rarely have any losing trade. This will be specially usefull for those ( like me) who are not comfortable trading 20 stocks at a time. Is this logic correct and practical?
Sorry for asking so many questions at a time.
Thanks & regards.
Manoj
Thanks a lot for giving an excellent trading method. Thanks to Sunil, Sohan, Jhaveri for contibuting. It is nice to see that people are making profits by trading your method.
I have understood your method but there are some querries. If you along with the other seniors (who understood the method fully) can clarify these, it would be a great help to me and others who are learning. ( Though some of my querries may be answered- may not be fully understood by me -hence I will request you to clarify again.) Sorry for troubling you for explanation. Please take you time to explain.
1) Which values we should take into consideration while taking high & low of previous day and current day at 10.15 am to 10.45 am? Is it market watch value as appered on NSE or the value which we see actully on the graph? Because many time we observe that what we see on NSE market watch as high & low never appears on graph.
2) Please correct my understanding of the method......we start at 10.15 am taking high & low values (Graph/NSE?) & place orders accordingly as per the method outlined.As we proceed further after 10.15 am onwards ,these orders remain valid till the high / low values of 10.15 cross on either side. If they cross, we go on modifying the orders till 10.45 am or till any placed order hits. After 10.45am we do not take into consideration chage in the high/low value (which are there at 10.45am.). 10.45 am onwards, we wait till closing of the market for the placed order to hit on either side. This is what I understood. Is it correct? If wrong, please pinpoint where I am wrong.
3)For the strategy to be effective, is it necessary to trade in 15-20 stocks every day. Will the strategy be effective if we trade only 1-2 stocks per day with an amount eqivalent to 15-20 stocks ( taking into consideration money management). Why I am asking this is because it is not possible for everyone to trade in 15-20 stocks at a time ( i.e placing approximately 40-60 orders at a time and monitoring them continiously for hits), especillay for those who are comfortable for 1-2 stocks but not for 15-20 stocks)
4)Are the factors (0.433/0.7666/1.355) are constant for all stocks/futures?
5)Generally how much time ( 1min/2 min/ 5 min etc) it takes to reach target price after hitting our SL buy/sell orders? Knowing this, if it exists, one can develop time stop loss strategy.
6)What are the expectional situations, if any, when this strategy does not work or we should not trade?
7)Will it be right to trade only failure trades next day with big amounts( permitting MM) ( that is on first day take 20 stocks not for trading but only to observe from them that which are failure or loss making trade. Say out of 20 stocks 2 are loss making so on next day trade only those 2 stocks. but still observing the 20 stocks to find out the loss mkaing stocks to trade the next day. Continuing the same every day)as theory say that on next day we are 100% sure that the trade will work in our favour so that we rarely have any losing trade. This will be specially usefull for those ( like me) who are not comfortable trading 20 stocks at a time. Is this logic correct and practical?
Sorry for asking so many questions at a time.
Thanks & regards.
Manoj
hi jammy,
nice to read ur querries
point 1) u must start taking into acount high and low from 10.15 onwards
if ur taking in suppose ten stocks and then u go in by each stock prices so it might be that when u reach to ten stock it will be around 10.40 or say 10. 45 .
At this point also i will sugest u to place ur orders using high and low at that time .( at 10.40 )
2) it is advisable not to go beyond 10.45
in some cases there are profitable orders after 10.45 but its not advisable .
in between 10.15 to 10.45 there is no fix time u get in ur orders.
3) today i think was a volatile day.
as u had given example of reliance today i have pratically earned profit in this stock and have been earning in this stock for last many days
so it proves that u can earn in volatile days also
today is sold at 1118 but kept my profit margin a bit high ( one percent )
as there was a down trend and earned healthy one percent profit .
actually this is not as per my thoery but as i had mentioned in some of earlier posts that it is up to the indivisuals to keep their margins( my theory works for margin of 0.5 percent )
4) ur sell value at 1118 .65
stop loss at 1129(around one percent )
buy at 1113 (0.5 percent down from the sell price an not at one percent as the theory).this value of ur is wrong as per the theory
if ur keeping a profit of one percent then ur taking risk
but here the risk reward ratio is also high
this works good when ur taking in account n number of stocks.
one u get profit , cancel the stop loss order for the stock.
5) point 5 is rubbish .do not think of it .
hope its all clear now
to all members
i want to make it clear that do not start fresh in a stock after 10.45 am
but if u have ur orders placed in for a stock at 10.15 and suppose at 10.45 also none of ur orders are triggered then u can modify ur orders as per the low and high of the stock even after 10.45
but do not get into fresh orders after 10.45
suppose reliance is at h=1200 , l=1150, at 10.15
sell below at 1120 and buy above 1165. suppose at 11.30 its at new low of 1130 then u must modify ur buy above value , sell below will be the same
though if u enter fresh then also the orders will be the same9high at 1200 and new low of 1130) but as i told u never enter in a fresh price setting after 10.45 .
hope u got it .
dhiraj
i want to make it clear that do not start fresh in a stock after 10.45 am
but if u have ur orders placed in for a stock at 10.15 and suppose at 10.45 also none of ur orders are triggered then u can modify ur orders as per the low and high of the stock even after 10.45
but do not get into fresh orders after 10.45
suppose reliance is at h=1200 , l=1150, at 10.15
sell below at 1120 and buy above 1165. suppose at 11.30 its at new low of 1130 then u must modify ur buy above value , sell below will be the same
though if u enter fresh then also the orders will be the same9high at 1200 and new low of 1130) but as i told u never enter in a fresh price setting after 10.45 .
hope u got it .
dhiraj
hi manoj
am happy that members are showing interest in my theory
i will clear all points one by one
1) take in to account wrong tick . not as per graphs.the high and low on nse .
soem people are using high and low on futures and trading in futures , but me am in cash and happy .
i do not know much about futures .
2)read my previous post .
3)paper trade in just 5 stocks and get back to me in a week .
try reliance, infosys, rel cap, lt, bhel, bharti, ongc, herohonda, sbi
4) factors are constant for cash .if ur using it for futures then also i suggest that it should be constant
5) i cant comment on time limit
u must take loss and have guts to place new orders doubling the amount in the direction u had loss.
6)if suppose there is very high range on day one for a stock and for the next day ur 0.433 factor range value is not breaken the its better that u cancel all ur orders .so it will be no trade day for u in that stock .
it some times happen so i suggest that u must ake n stocks .
but i think u start up with 4 to 5 stocks with a small amount .
7) when i paper traded this with some of key stocks i found it that 100 percent if this fails on one day the second day its a win position.ur idea is great of taking stocks that failed on day and trade them on the next day
till today i have no members saying that it failed on two consecutive days
manoj i am sure that with this method and 10 stocks in hand , a prompt trader will be always in profit .
I JUST WANT TO KNOW ANYBODY HERE IS IN LOSS OVER A WEEK OR SAY THREE DAYS USING THIS METHOD .
THIS IS JUST TO MAKE CHANGES IN THE THEORY IF REQUIRED
HOPE SOME OF UR DOUBTS WILL BE CLEARED
DHIRAJ
am happy that members are showing interest in my theory
i will clear all points one by one
1) take in to account wrong tick . not as per graphs.the high and low on nse .
soem people are using high and low on futures and trading in futures , but me am in cash and happy .
i do not know much about futures .
2)read my previous post .
3)paper trade in just 5 stocks and get back to me in a week .
try reliance, infosys, rel cap, lt, bhel, bharti, ongc, herohonda, sbi
4) factors are constant for cash .if ur using it for futures then also i suggest that it should be constant
5) i cant comment on time limit
u must take loss and have guts to place new orders doubling the amount in the direction u had loss.
6)if suppose there is very high range on day one for a stock and for the next day ur 0.433 factor range value is not breaken the its better that u cancel all ur orders .so it will be no trade day for u in that stock .
it some times happen so i suggest that u must ake n stocks .
but i think u start up with 4 to 5 stocks with a small amount .
7) when i paper traded this with some of key stocks i found it that 100 percent if this fails on one day the second day its a win position.ur idea is great of taking stocks that failed on day and trade them on the next day
till today i have no members saying that it failed on two consecutive days
manoj i am sure that with this method and 10 stocks in hand , a prompt trader will be always in profit .
I JUST WANT TO KNOW ANYBODY HERE IS IN LOSS OVER A WEEK OR SAY THREE DAYS USING THIS METHOD .
THIS IS JUST TO MAKE CHANGES IN THE THEORY IF REQUIRED
HOPE SOME OF UR DOUBTS WILL BE CLEARED
DHIRAJ
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