Day Trading A Single Stock

[primitivetrader]

It is real trade, but I'm using only 1 unit . Still loss is a loss.

Thanks for the suggestions. They're very helpful.

You must be referring to this pullback, right? That'd need a really nimble and fast hand. Sorry, but I haven't yet started thinking in PA mode. In your view, what'd be the sequence of a trading education? Like:

1. Money management
2. Stop loss and Risk reward
3. Theory (TA,PA etc)
4. Paper trade
5. Actual trade

View attachment 27727

yes this is the pullback i was telling you. its not some complex PA, its very simple but effective.

1. Money management
2. Stop loss and Risk reward
3. Theory (TA,PA etc)
4. Paper trade
5. Actual trade

the above is the wrong sequence as per me. basic foundation of trading is technical analysis, if you do not have the foundation what will you do with above.
all the above comes very late first learn about technical analysis any method/system define your set ups objectively, entry conditions back test them as much as you want forward test them
then comes mm risk reward and psychology and blah blah (all these as per me are very much overrated). this is all as per me is intellectual mastxxbatxon.

 

[primitivetrader]

for your ref below chart shows how with simple reading you can go with the market most of the time.

 

[newtrader101]

Asian Paints closed @ 1395. The next Gann levels are 1387.55 and 1396.90.

 

[newtrader101]

It opened at yesterday's close and then started moving upwards. Entered @ market long. Hit the next Gann level and then returned.

Had two trades:
Long: 1400 (MKT) Exit 1405 ((MKT)
Short: 1403.10 (MKT) Exit 1397 (LMT)
P&L: 11.10
Now the issue is holding on to this profit. It was tough racing with the price. So am done for the day.
Setting alerts in case it crosses these levels.

12:09 PM
It closed above the next level (1406.30). Bought @ 1408, SL 1394.30, TGT 1425 (2 levels ahead- on the diagonal in Gann square)

Changed stop to 1396.85
Stopped out.

Now if it goes up I'll be very sad.

Today's trades:

I didn't know it, but ended up making seven trades, and losing all the profit to expenses.​

 

[newtrader101]

It opened at yesterday's close and then started moving upwards. Entered @ market long. Hit the next Gann level and then returned.

View attachment 27761

Had two trades:
Long: 1400 (MKT) Exit 1405 ((MKT)
Short: 1403.10 (MKT) Exit 1397 (LMT)
P&L: 11.10
Now the issue is holding on to this profit. It was tough racing with the price. So am done for the day.
Setting alerts in case it crosses these levels.

12:09 PM
It closed above the next level (1406.30). Bought @ 1408, SL 1394.30, TGT 1425 (2 levels ahead- on the diagonal in Gann square)
View attachment 27772
Changed stop to 1396.85
Stopped out.
View attachment 27775
Now if it goes up I'll be very sad.

Today's trades:
View attachment 27782

I didn't know it, but ended up making seven trades, and losing all the profit to expenses.​

Something's basically wrong in my approach. I am just blindly following setups. I saw in Al Brooks' book today that each candle tells a story. Must learn how to decode it. Will need to revisit the basics and may have to study Price Action, as PT said.
Thinking of completing this one month and then taking a break.
Please suggest PA books you found useful.

 

[primitivetrader]

Something's basically wrong in my approach. I am just blindly following setups. I saw in Al Brooks' book today that each candle tells a story. Must learn how to decode it. Will need to revisit the basics and may have to study Price Action, as PT said.
Thinking of completing this one month and then taking a break.
Please suggest PA books you found useful.

Al Brooks video course is far better than his books. Books are too complex and unecessarly difficult. Also it's not costly I think it's dollar 200. Another good source is Lance being price action course. Search it you will get it free. Another good source is priceactiontradingsystem.com price action course it costs dollar100. Gelan woods price action course.
Don't go for Joe Ross books they don't work much and too many rules.

 

[newtrader101]

Revisiting the original strategy and how it would have fared

It has behaved erratically for the past few days. In any case there doesn't seem to be any point in this exercise. While backtesting we take the entry based on pull back. However, in real trading, there is no guarantee it will pull back.

 

[newtrader101]

The Challenge for the remaining days (Aug 27,28,29,30,31, Sep 3):

• To stick to the initial strategy (13-49 EMA cross, 5 min).
• Stop after a winning trade.
• Stop after two losing trades.

Other items to practise:

• Show vaR
• Follow Risk:Rwd

 

[Tejas Khoday]

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.

However, I deviated a lot, because, very often, the stock does not get anywhere. Then, you will be tempted to look at other stocks. - This is the most relevant part of your message. I would say, it is inevitable for a discretionary trader.

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. - Great analogy.

 

[Tejas Khoday]

@newtrader101 If you decided to trade only one stock then why not trade only on nifty.

Perhaps because it barely moves. Majority of the top 20 contracts by volume are Bank Nifty options.