Day Trading Stocks & Futures

[ncube]

Warning!!! Controversial statements, please ignore if it is against your views:

1. Trading is a zero sum game, there is nothing to be proud of by taking money from poor 1-2 lot small traders and generating 100% returns.
2. Grow up quickly and compete with bigger players where the intention is to eat into a small portion of their big profits.
3. Why fight, Trading & Investing are practically same, just that in investing the time frame is longer with the focus on buy & hold, hence one key trading rule used is quality companies.

 

[ncube]

Warning!!! Controversial statements, please ignore if it is against your views:

1. In investing one is betting on growth, hope & prosperity for all which is always good for our country and profit by punishing only those who are greedy.
2. In trading especially shorting, one is betting for slowdown, desperation & suffering for all which is never good for our country and profit by taking advantage of others fears.
3. Just to Introspect: Profiting from prosperity is always more satisfactory than profiting from gloom & doom.

 

[against_tides]

Warning!!! Controversial statements, please ignore if it is against your views:

1. In investing one is betting on growth, hope & prosperity for all which is always good for our country and profit by punishing only those who are greedy.
2. In trading especially shorting, one is betting for slowdown, desperation & suffering for all which is never good for our country and profit by taking advantage of others fears.
3. Just to Introspect: Profiting from prosperity is always more satisfactory than profiting from gloom & doom.

Trading provides lubrication to investing..

And stock market is not zero sum game..

 

[XRAY27]

Ah, I think I misunderstood, thought he was asking about how a trader make his strategy systematic/mechanical and execute it. Systematic trading is just a process and not a strategy by itself, hence any rule based strategy can be made systematic.

Not much familiar with MP, thought it was Price action + volume based analysis. Lot more to learn...long way to go..

You got a system which is tested,don't learn any thing new..just size of trade should be rised...you are a experienced person you know this very well

 

[KAL.YUG]

Warning!!! Controversial statements, please ignore if it is against your views:

1. Trading is a zero sum game, there is nothing to be proud of by taking money from poor 1-2 lot small traders and generating 100% returns.
2. Grow up quickly and compete with bigger players where the intention is to eat into a small portion of their big profits.
3. Why fight, Trading & Investing are practically same, just that in investing the time frame is longer with the focus on buy & hold, hence one key trading rule used is quality companies.

But order matching algorithms do not identify/differentiate a poor and rich man's order from the best 5 bids.
(this is with respect F&O markets)

 

[ncube]

You got a system which is tested,don't learn any thing new..just size of trade should be rised...you are a experienced person you know this very well

No Sir, learning is a lifelong process and not with the intention to change any of my existing systems but like you mentioned in your signature its to enable actions. I always liked this statement in your signature. One never know how the knowledge one has gained through learning new concepts will come to our use in future...

I try to keep my strategies to be non correlated, I already use a strategy based on price action + volume, since I thought MP is based on similar concept did not explore it much.

 

[soft_trader]

Nifty 50 Companies return in FY 2019-20 so far.

View attachment 37950

From where are you getting it?

 

[ncube]

But order matching algorithms do not identify/differentiate a poor and rich man's order from the best 5 bids.
(this is with respect F&O markets)

Market participants are not identified from order flow (visible factor), but from their behavior/capacity (derived factor). Think about it and you will get your answer..

 

[travi]

A trader saw buying come into the market, and he quickly jumped on board. He saw that the odds of taking out a recent high were good, given the size of the buying. To his surprise, however, the trade stalled out before the target and reversed. He quickly exited with a tick loss.

He turned to me and said, "I just paid for information."

When the market bounced higher a few ticks several minutes later, the volume was weak. No big players were taking the long side. He aggressively sold and quickly made a couple of points.

He placed a good trade, and it didn't work out. He didn't view that as a threat, as a loss, or as a failure.
He viewed it as information. The market was telling him that we weren't going to take out the recent high.

If your setups are valid, there are only two kinds of trades: Those that make you money and those that give you information.

-- Sunday Fuel for the pysch
unfortunately I have it copied to my list but don't know the original source. If anyone does, kindly oblige so we can credit him/her.

 

[TraderRavi]

Lessons from trading on Yes Bank
AUGUST 23, 2019
Nitin Kamath

Over 7 lakh people currently hold stocks in their demat account with us. The current market fall has been quite sharp (especially in midcap and small-caps) and hurting most of our investment portfolios. While there has been wealth destruction across the board, three companies stand out not just in value lost, but also in the number of people who have been affected – Yes Bank, Ashok Leyland, and Tata Motors.

As a part of our risk management strategy, we monitor the aggregate movement holdings and positions across our client base. I am compelled to share some recent statistics given the crazy amount of wealth destruction. Nearly 2 lakh of our clients hold Yes Bank with an unrealized loss of over 59%; 1.25 lakh hold Ashok Leyland with loss of 40%; over 1 lakh hold Tata motors with over 51% loss. Among the three, it’s just crazy the amount of wealth Yes Bank has destroyed.

There are some valuable lessons to be learnt here.

Here is the Yes Bank chart for the last year with the number of our clients who held the stock on different dates –
27th Aug 2018: 23681,
21st Sep 2018: 58909 (after the first fall),
22nd Aug 2019: 196417 (post all the blood bath).

Avoid averaging down

Averaging down means continuing to buy a stock on its way down to reduce the average acquisition price in hopes of turning losses into profits with a smaller uptick in the market price.

This is the single biggest mistake made by traders not just beginners, but also the experienced. 1.96 lakh of our clients who currently hold Yes Bank have bought the stock on an average at least 4 different times, mostly on the way down considering how the stock has behaved the last year. Yes, there are many times where averaging down might have worked, but the issue with this strategy of averaging down is that one bad trade is enough to wipe out all previous earnings and more.

Have a stop-loss

https://zerodha.com/z-connect/traders-zone/lessons-from-trading-on-yes-bank