Day Trading Stocks & Futures
- Thread starter TraderRavi
- Start date
- Tags banknifty bnf daytrading nifty future
I am not really trying to prove or disprove anything. I just had observed something. This is in general related to my favorable bias towards FMCGs. I believe well managed FMCGs perform good in the long term. This is true even if you look at larger time frames. I am trying to see if this is better than well managed PMS.
There was a discussion last month, dont remem the topic, but i posted HUL bcos i've had it. bought even in this dip.
This was probably one of very few stocks that didnt dip in 2008 crash.
Infact, what i wrote was, if you saw this chart in 08 period, u wouldn't even have known that such a crash ever happened.
but its very difficult to have a portf with 2-3, in hindsight it looks good.
Historically, pharma and fmcg are referred to as defensive for the same reason.
Now if you see BajFin price adjusted data, from 2007 high of 50 to low of inr. 5, it went to 5k this year. So each one has its own adv/disadv.
But for me, bottom line is EQ is an inherently risky asset class so if u remove the risk from it, and fear the DD, then it kills the return factor also.
Divislab also was great in that period. To some levels Titan/asianpaints also.
Now its very different, with so many algo models, it looks like the worst gets priced and hammered in one shot.
Even in that cae HUL, would've done a 8-10X return in same period.
Its like an FD is the mkt
This was probably one of very few stocks that didnt dip in 2008 crash.
Infact, what i wrote was, if you saw this chart in 08 period, u wouldn't even have known that such a crash ever happened.
but its very difficult to have a portf with 2-3, in hindsight it looks good.
Historically, pharma and fmcg are referred to as defensive for the same reason.
Now if you see BajFin price adjusted data, from 2007 high of 50 to low of inr. 5, it went to 5k this year. So each one has its own adv/disadv.
But for me, bottom line is EQ is an inherently risky asset class so if u remove the risk from it, and fear the DD, then it kills the return factor also.
Divislab also was great in that period. To some levels Titan/asianpaints also.
Now its very different, with so many algo models, it looks like the worst gets priced and hammered in one shot.
Even in that cae HUL, would've done a 8-10X return in same period.
Its like an FD is the mkt
There was a discussion last month, dont remem the topic, but i posted HUL bcos i've had it. bought even in this dip.
This was probably one of very few stocks that didnt dip in 2008 crash.
Infact, what i wrote was, if you saw this chart in 08 period, u wouldn't even have known that such a crash ever happened.
but its very difficult to have a portf with 2-3, in hindsight it looks good.
Historically, pharma and fmcg are referred to as defensive for the same reason.
Now if you see BajFin price adjusted data, from 2007 high of 50 to low of inr. 5, it went to 5k this year. So each one has its own adv/disadv.
But for me, bottom line is EQ is an inherently risky asset class so if u remove the risk from it, and fear the DD, then it kills the return factor also.
Divislab also was great in that period. To some levels Titan/asianpaints also.
Now its very different, with so many algo models, it looks like the worst gets priced and hammered in one shot.
Even in that cae HUL, would've done a 8-10X return in same period.
Its like an FD is the mkt
This was probably one of very few stocks that didnt dip in 2008 crash.
Infact, what i wrote was, if you saw this chart in 08 period, u wouldn't even have known that such a crash ever happened.
but its very difficult to have a portf with 2-3, in hindsight it looks good.
Historically, pharma and fmcg are referred to as defensive for the same reason.
Now if you see BajFin price adjusted data, from 2007 high of 50 to low of inr. 5, it went to 5k this year. So each one has its own adv/disadv.
But for me, bottom line is EQ is an inherently risky asset class so if u remove the risk from it, and fear the DD, then it kills the return factor also.
Divislab also was great in that period. To some levels Titan/asianpaints also.
Now its very different, with so many algo models, it looks like the worst gets priced and hammered in one shot.
Even in that cae HUL, would've done a 8-10X return in same period.
Its like an FD is the mkt
Somewhere in 2006, I bought HUL for 150 .
I also bought Bata at 80 and VST Industries at 306.
Bata may not be considered as FMCG. but VST is.
how to identify and use support and resistance in day trading?
there are many ways to find support and resistance in day trading like floor pivots, Fibonacci pivots, gann 2-3 bar swing, naked price action highs, and lows and many more. all of these work and work well if you know how to use them.
I like to use a fixed percentage zig zag indicator for day trading on close price (one can use on high and low also ). how much percentage point move should be used? as per me, it can be anywhere between 0.05 to 0.1 on a 2M-3M timeframe. no idea about higher time frames than these 2.
there are 2 kinds of S/R :
1) minor- this S/R is being created by a single pivot point. its strength is less and most of the time it works well in trend.
2) major S/R- this S/R is being created by 2 or more pivot points and gives good support and resistance to PA. work well both in trend and range.
below chart shows zigzag overlayed on candlestick chart along with minor and major S/R:
the above chart is more than enough to make money consistently with trading with the trend. trend reversals trades on small time frames like 2M-3M requires excellent PA reading. one can use other indicators like 20EMA(i prefer), 34 EMA or any other, as per preference. one can use volume or volume-based indicators, can you any oscillator too. but the above chart is good enough if one knows how to read PA and how to S/R and know the "trend as off now".
trading with S/R:
there are only 2 types of trades be it any method or any system. pull back and breakout. both work well. pullbacks in trend are easy to trade. one of the set up I use breakout of major S/R and then price pullback to test it. the downside you have to have an understanding of when the trend is getting mature. most of the time I don't try to trade the whole up move or down move.
below is the chart showing a couple of PB trades. I have put 20EMA also on the chart. these are only entries one has to read and analyze PA also. I use volume also, which I have not shown on the chart.
hope it helps somebody.
there are many ways to find support and resistance in day trading like floor pivots, Fibonacci pivots, gann 2-3 bar swing, naked price action highs, and lows and many more. all of these work and work well if you know how to use them.
I like to use a fixed percentage zig zag indicator for day trading on close price (one can use on high and low also ). how much percentage point move should be used? as per me, it can be anywhere between 0.05 to 0.1 on a 2M-3M timeframe. no idea about higher time frames than these 2.
there are 2 kinds of S/R :
1) minor- this S/R is being created by a single pivot point. its strength is less and most of the time it works well in trend.
2) major S/R- this S/R is being created by 2 or more pivot points and gives good support and resistance to PA. work well both in trend and range.
below chart shows zigzag overlayed on candlestick chart along with minor and major S/R:
the above chart is more than enough to make money consistently with trading with the trend. trend reversals trades on small time frames like 2M-3M requires excellent PA reading. one can use other indicators like 20EMA(i prefer), 34 EMA or any other, as per preference. one can use volume or volume-based indicators, can you any oscillator too. but the above chart is good enough if one knows how to read PA and how to S/R and know the "trend as off now".
trading with S/R:
there are only 2 types of trades be it any method or any system. pull back and breakout. both work well. pullbacks in trend are easy to trade. one of the set up I use breakout of major S/R and then price pullback to test it. the downside you have to have an understanding of when the trend is getting mature. most of the time I don't try to trade the whole up move or down move.
below is the chart showing a couple of PB trades. I have put 20EMA also on the chart. these are only entries one has to read and analyze PA also. I use volume also, which I have not shown on the chart.
hope it helps somebody.
most sectors from that period recovered naturally.
IT sort of didnt, although it gave a decent return.
Most of the Real-estate sector died, at least in stock price terms
Those energy Co's with something bad cooking inside like rpower/suzlon etc
Lesson learnt is:
We need not worry about all the 8-10 sectors and where they will really reach in 8-10yrs, but be shit scared of those few which face the same dinosaur fate and stay away from them.
IT sort of didnt, although it gave a decent return.
Most of the Real-estate sector died, at least in stock price terms
Those energy Co's with something bad cooking inside like rpower/suzlon etc
Lesson learnt is:
We need not worry about all the 8-10 sectors and where they will really reach in 8-10yrs, but be shit scared of those few which face the same dinosaur fate and stay away from them.
Bhai,
You are not using just 5 but 6 systems
As, Now the Allocation Algo is your 6th system
.
You are not using just 5 but 6 systems
As, Now the Allocation Algo is your 6th system
.
not the allocation alone. Because anyone can do it. Below is some info shared by ncube .." The co-relation between strategies should be near 0, which means they are not co-related"
"Yes, identifying zero correlation strategies are difficult, but it can be constructed and its a big topic in itself and we can discuss it some other time."
"The result I have mentioned is the combination of 5 specific strategies I have tested and how it has worked in the last 10 years. It does not mean that you try it with some 5 new strategies with similar CAGR and DD and end up with 53%."
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