Day Trading A Single Stock

newtrader101

Well-Known Member
#1
Friends,
Experts ( notably, Wayne Thorp) say that trading just one stock has a positive effect on our equity.
It may be helpful for learners to try out this strategy. So I am trying this for a month with Asian Paints.
Back testing for the past 30 days (manually) showed 200% return (with 10x leverage). Let's see how it goes.

Method: 13-49 EMA Cross over on the 5 min. Stop loss: Previous high/low. Target: Double the stop distance.
Update: While backtesting, I calculated till EOD if not stopped out. So will hold till EOD.
 
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newtrader101

Well-Known Member
#2
Day 1:
MAs are bearish. Entered short.
1533183633673.png

1533183571462.png

Stopped out.
Loss= 7
Afterthought:
The hammer at the end of a downtrend, with a bullish confirmation. Should not have shorted.
After taking out my stop, it later continued downtrend in second half.
Solution: Raise stop still higher?
Perhaps it could've been avoided if I had entered at the hump of the MACD, at 1436.65
 
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VJAY

Well-Known Member
#3
Friends,
Experts ( notably, Wayne Thorp) say that trading just one stock has a positive effect on our equity.
It may be helpful for learners to try out this strategy. So I am trying this for a month with Asian Paints.
Back testing for the past 30 days (manually) showed 200% return (with 10x leverage). Let's see how it goes.

Method: 13-49 EMA Cross over on the 5 min. Stop loss: Previous high/low. Target: Double the stop distance.
Update: While backtesting, I calculated till EOD if not stopped out. So will hold till EOD.
With 1 scrip I think one could trade better and successfull ...
Please share your backtest data ....if possible
 

VJAY

Well-Known Member
#4
Some years ago I and some others traded in TATAMOTORS with simple swift method(ST da's) in cash sigament...its highly successfull that time.....one member that time traded it in high qty...though with MM :)
 

newtrader101

Well-Known Member
#5
Day 1
It has reversed and a bullish cross over has happened. Waiting for MACD to come down (pull back) or break out above high.
1533187309427.png


Update: No cross over yet. The angle of the crossover has to be wide and clear.
 
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newtrader101

Well-Known Member
#6
Some years ago I and some others traded in TATAMOTORS with simple swift method(ST da's) in cash sigament...its highly successfull that time.....one member that time traded it in high qty...though with MM :)
Interesting.
 
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newtrader101

Well-Known Member
#8
Day 1 Trade 2
Shorted @ 1424.70 when it broke below today's range.
Auto square off Exit 1419.80 @ 15:18
Profit=4.90.
Approx expenses=4.30
Day1 profit = -6.40
 
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sridhga

Well-Known Member
#9
Trading a single stock is a good idea. I have been working for some days on BEL and I have been covering on this thread. http://www.traderji.com/community/threads/sridhars-trading-dairy.106489/ However, I deviated a lot, because, very often, the stock does not get anywhere. Then, you will be tempted to look at other stocks.

But, studying a single stock every day provides a lot of insight. Daily and minute by minute tracking process gives you lot of insight and you are likely to become a discretionary trader rather than a robot. You will get a feel for it. Last month I bought BEL options and traveled to a remote place. For 15 days, I was not accessing my mobile phone as well. But I later returned to see that the series closed in the profit for me. This turned out to be one of my best months in the recent past. This insight you cannot get from any charts or trading systems other than observing your single stock on a continuous basis. This is like a mother who sees her child grow and gets a feel for, what the child does next/ how to handle the child etc.

Wish you good luck in your endeavor.
 
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