1. Please do not enter your trade order in range bound or trading market means if there is no move then keep safe your money for next opportunity .
Hi KC,
I am not a day trader, but do watch intraday movements very closely. When it comes to trending or trading markets, I have myself been unable to recognize it on a real time basis. Other traders with whom I have interacted are also having the similar experience. By the time you realize that the market is in a trading range, "you have already been severely whipsawed", and by the time you realize that its a trending movement, "half of the trend is already over" and may be already coming to an end. The words in quotes are not my own, but that of experienced intraday traders like Pride. Linkon also has similar experience. He has even gone to the extent to saying to the effect that "Trend followers end up trend chasers". So is the answer to the question "trending or trading?" really so simple on a real time basis.
It is easy to postulate rules but when it comes to real time trading, I do not think these rules will be of much use. The rules assume that "once a trade goes southward" it will finally crash into the ground. The trader may be merely caught in a downward retracement of a up trending market.
As far as strict stop losses go, again the assumption is that triggering of the stop loss ends all possibilities of the trade becoming unprofitable. There are numerous occasions on which the price has moved against you only to eat your stop loss and force you to cover at the last tick against you.
Also, are you an trader or a "tutor" of day trading?