Blog on my best/worst trades of the week Related to Diary of a Intraday Trader Cash

[ryan4ucar]

Hello traders I will be running a blog in this thread about my best and worst trades of the past week giving my explanation about the tweets that I make while trading in my other thread Diary of a day trader cash segment only.
I am sorry there are 2 diary's with same name i dont know it its possible to change my thread name to some else do let me know if it is.

Many traders here are good at displaying buy and sell rates and writing how they make and loose but none of them are giving reasons for their trade or the reasons are usually vague with no definite plan (I am not criticizing these traders just a trend that I have seen here and one of the reasons I stay away from this forumn).
I am repeating again like a broken record trading is about performance and the best you can be at it, there are lots of skills involved in becoming a consistently profitable trader a little bit of luck maybe a factor, but if you start blaming luck all the time as many traders are doing here maybe its time to take up another sport , you are not taking responsibility for your actions may be.
Trading is as internal as it is external as many of us belief. Anyways enuf of philosophy lets get down to work.
The fist skill required for trading is self awareness , are you aware of whats happening around you? if not and you want to improve lets play this small game.

Note Follow this game step by step and don’t skip or read the next steps.
1. Its called Attention blindness , This game proves that at some level higher or lower we are always blind to the surroundings around us , take for example your wrist watch , are the numbers on you wrist watch roman numerals , square shaped , or round shaped ,what colour are the numbers? (silver , black etc). think for 5 secs in your mind.

2. If you are unable to answer that look at your watch for just 2 seconds no more.

3. Now tell me whats the time and where was the seconds hand +-5secs ofcourse .

If you passed this test then congrats you are above average in self awareness, if not try to improve your self every day , attention to detail is the most important thing in trading , we all know the brand name of our watches and the price of it. This is external like saying I bought 5 lots of nifty for x price and sold it for y. Internal would knowing the watch internally even better what makes it tick and give you the precise second. Internal in market would be nifty is at this price after some time now its here its moves so many points in this time but volume is low or high , it is not pulling back much must be strong , I am in the trade long , but it is going side ways what is the right thing to do here. Or I am in profit instead of taking this small profit ill sell 2 lots keep the rest because chances of it going even higher are more.
You have to keep on asking questions to yourself at some level you always know whats the right thing to do but are clouded because of greed and fear. Build this inner voice you have to be thinking clearly in situations.
Hope you build this skill , next week ill talk about Ability to take risk as another skill to have as a trader.
My next blog is on best/ worst trades of the week.

 

[ryan4ucar]

Adani power Trade

This week ill talk about Adani Power and Mangalore Refineries.
Before I explain them , I am an intraday trader been trading for about 5 years ,traded everthing possible from equities to forex to commodities to futures learnt a lot of expensive lessons until I realized what it takes to become a successful trader. Now I have methodology in place and most of the times I have the ability to make crystal clear decisions about what I want to do (not necessarily profitable all the time trust me this is not possible even the best of the best are wrong many times but when they win they win big and when they loose its like pocket change that you throw from you pocket everyday into a jar)
Anyways my methodology is technical analysis of stocks in news and earnings , I trade them because they are guaranteed to move and very liquid when Inplay. I analyse nifty futures to get a directional bias of the overall market , not choosing index because it has no volume. I try to be flexible mentally and ready to change from short to long in a seconds notice as can be seen from my tweets in the other thread. Also I try and follow big buyers and sellrs as they help in moving market direction in the way they want.

Adani Power. (Take notice of thinking process very important)
Lately power has been a hot topic all power stocks are running everywhere on news about coal being available , adani power about 2 weeks back had very bad earnings and was plummeting down every day since earnings then came the news and as id happening in this current market bad stocks are jumping more higher than the good ones , and when they get jolted like on the profit selling day 3 days back they come down equally faster.
So currently power stocks are on my radar and I am ready to trade them both ways especially adani doing like 10 million shares average daily good liquidity as a trader I like to control my risk first . So adani on 22feb from being 6% up at 96 ans chage went down 82.50 down 9 % a staggering 15 % move intraday. The next day on 23rd it was down 2 % hit 82.5 3 times and came down but every time it comes down less , in technical terms its called ascending triangle , a classic pattern but more likely when a stock is in midterm uptrend in this case its a down trend it can easily fail , hence I just scalped here little did I know it was going to touch 87 as it was way oversold. Notice the thinking process attention to detail is important. I am thinking so much still I didnt make much on the trade , Making money is secondary although its important doing the right thing is more important , my thinking here was its a week stock and wont rally much it will fizzle out, being a weak stock it gave me another chance when it came to 82.50 back again after 3 pm it went to 84 but I wasnt paying attention and lost then chance.

As I was doing my homework I observed what happened it was still a good short if it traded below 82.5 to go to 80 the next day so I set up an alert of below 83. I usually dont do trend trading in the first hour as there are no trades then its just momentum trading , stck goes wherever it can go and then slows down and turns most of the times , after 10 you can see clear trends all day.

So my alert gets hit at 83 at about 10.30 I see it had been coming steadily down from 9.30 and sold in a panic from 84 to below 83then forms a bear flag from 10.45 and comes down below 82.5 I am in business if it stays here now , the key is it has to stay near this price, if it has hit 82.5 and ran away like a scared rabbit to say 84 I set a alert again for below 83 , trading long is dangerous here you can trade long above 87 as that was previos high of day.
As it turned out after bearflag it traded lower , as many people or beginners do theyll go short immediately with full size , its below 82.5 ill make my 1st million now very fast is their thinking , it can easily go back to 84 from here to retest the panic area as seen in chart , a good way to initiate trading is start scalping the 83 level whare the bear flag was there hece I tweeted


Adanipower between 83 and 82.25 below 82.25 yesterdays breakout good short meawile scalp this 83 for about 50 paisa and use the profit to trade below 82.25 for free trades good way to trade


You had about 4 good 50 paisa scalps , so if you were risking 100 rs for this trade say , risk about 25 scalping it comes to 83 short it set stop above 83.5 take profit at 82.5 if you do it 4 time u make 100 rs risking only 25 rupees now you have a free trade , with this 100 rupees.
Then I tweeted


if u see chart of adani power its trading between 83 to 82.5 if it stays between 82.25 to 82.5 for 3 or more mins short it
waiting for adani to come to 82.25 to short ,confirmation would be high voulme here
no big sellers in adani power maybe waiting for weak longs to get on board
nifty not helping though might breakout on 3 minute chart


This is my thought process I am not blindly going there with all guns blazing there is a plan and I am following it , I dont like to blame luck when things dont go my way , I am lucky to be able to to do the thing I love the most trading trading is a priviledge not a right.

So all this happens at 12.15 to 12.30 it is near 82.50 and not moving no big sellers are coming if you have a 1 second chart you can see spikes in volume here, on level 2 I can see large orders for buying at 82.25 if sellers sell here and these prices are touched I am good to go this is my plan and this happens at around 12.35 I am short my full size at 82.4 out above 83 at 12.38 it goes down now I know its going to create panic and prices will come up I set profits taking cover at 81.75 and 81.4 when its turning back I am out about two thirds of my position now it come to retest at 82.3 time to reshort , dont sit and think just reshort if its realy weak It will give you about 3 seconds time , I dont wait for 82.3 to reshort I am in at 82.2 cause other traders will be shorting it to. I am reloaded and now it starts ticking back down. In this play I wa lucky that it worked 1st time it usually takes 2 or 3 tries I dont push above 3.

Anyways its at low of day at 81.2 at 1 pm my target is 80 yesterdays low , work is not over you have to nurture this trade like a baby attention to detail is important.
I tweeted

"buyers are lots in adanipower but its ticking down will godwn violently now if it continues target 80, it might get squezed also will be out above 82.5"

"squezed out of adani wanted to short again at 83 didnt quite reach it"

"and thats how the squeeze works it gets you out of positions and then trades lower should be able to recognise it and trade it , this is how trading works its about perfomance ang having these skills."


At 1pm nifty started rising and as illiquid as the Indian markets are one large order and nifty runs like a headless chicken it started turning agains me I took some profit at 81.7 ans left the rest thinking it wont have guts trading near 82.5 big mistake anything can happen in the markets , 100,000 shares got traded in a moment antd it flew past 82.50 andl I panicked and coverd all 82.3 when it ticked down the volume got me shaken, 83 was next test I was redy with 82.95 as I thought it would cross 83 easily with so much volume it touched 82.9 and ran back like a scared rabit on about 80 thousand shares, For some reason I switched off dont quite remember y and started looking at other stocks.

Anyways the squeeze here is index squeeze when index is going higher and stock is also moving with it you have to be a bit care full traders know there are shrts in the system and weaks ones like it turned out to be me also will run for cover so you get a 100k spike in volume to clear all shorts , but I did the right thing here coved lower and was ready with the reshort.

But execution let me down instead of putting a order ar 81.95 I should have really put half at 81.85 and another half at 82.05 to get average of 81.95 this gaurantess if I dont get all I get atleast half , it pissed me off that I din get 83 short I subconsioly switched off big mistake if you switch off and go off the boil you shouldnt be trading , you need to have sustained energy for trading. Its all about performance as I said before
.
Anyways it was another golden opportuninty that the market gives every day you just have to be aware. It was clearly holding below 82.50 after 13.35 for about 5 mins and from there low was 80.3 very near the target of 80
The manglore fertilizer trade is an equally interesting one I spent a lot of time on this ill write a blog on that later maybe.
Also please to write comments and suggestions are always welcome.

Regards Ryan