Day Trading Stocks & Futures

[Smart_trade]

Dear SmartTrade,

Thanks a lot for your post, it does help calm the nerves. I will be doing a staggered buying in this fall.

I have a question for you related to day trading. I have decided to start trading one of your day trading methods called Swift. I have known this for the last 10 years but somehow couldnt manage to day trade. I am pasting the method here and I have some questions on that which I requerst you to answer:-

Quote

SWIFT​

Method : Swift ....An intraday Trading Method

Timeframe : 5 min for Bank NF....10/15 min for others

Set Up : 30 Bars simple moving average( of close ) overlayed on the price chart....( 60 bars in case of BNF...)

Buy Set up : Prices taking out PH above the MA line.....and MA Line ticking up ( meaning MA value to be higher than previous bar MA value)

Sell Set up : PL cracking below the MA line and MA line ticking down....

No Trade : Price above MA but MA falling....and also Price below the MA line and MA line rising....

Enrty : On all pivots...pure,aggressive,sideways,tiny ....Be careful in the range of first bar..... Bothways trades on Gaps/steep rise earlier days

Exits...Pivots in opposite direction,previous support/resistances,EOM bars, Hammers,shooting stars in larger Timeframe of 30 min....

Adds : On all types of pivots......Initial + 1 adds normally...Initial + 2 adds in exceptionally strong trending market in downtrends....

Filters : Small filter of 5 points for BNF,1 point for Tata Motors....

Unquote

Questions:-
1. I am not in a position to do fno for the moment. I would like to know from you which stocks are suitable for day trading. You had mentioned Tata motors, over the last 10 years, please share if you know more stocks uitable specifically for day trading.
2. Would you like to improvise anything in the method or can we keeep it as is?
3. I also plan to club this with your VWAP idea and also your more than 5 bar oscillators idea to improve the chances of a successful trade with 1% risk oer trade to begin with.

Eagerl;y waiting for your reply.

Regards,
PTK

1) Any stock which does not give jerky moves and giving 2-2.5 % move in a day could be suitable for trading this method.Though I have stopped day trading for last few years, stocks like Asian Paints,Pidilite,Kotak and HDFC bank ( particularly in a downmove ) could be traded on this method.

2) Basically in this method we trade a shorter trend in the direction of longer trend and when both trends are in opposite direction we stay out.Other combinations could be 10/15 min bars with 13 bars MA...

3) Dont combine too many methods/indicators as it gives rise to indecision. Few small losing trades are ok and they are part of this business.5 bars in OB/OS zone is a very powerful technique when the markets trend strongly.......

My best wishes for your success with this method.....

 

[Smart_trade]

अरे भाई Big players are missing in action like ST DA, Travi, Timepass, Vivektrader , May be missing lot names. Bhai logo note ginna khatm hogaya to hamare upar bhi do char chite udado.
Bahut loss leke खडे hai.

Your losses are due to the fact that you dont cut them fast and keep waiting in the hope mode. If you really want to succeed in the market, you have to be short term in cutting losses and long term in running of profits.

I am not very active in forum during the day as I have to do lot of work as the market correction is presenting a much awaited opportunity. I have to liquidate my funds parked in short term debt funds to be deployed in this correction and that keeps me busy deciding how much to liquidate and when....I had mentioned in this thread that I have booked profits and parked my funds in short term debt fund and now switching back to equity deployment gradually.

Hum chaar chhite kyun poori baldi udel rahe hain but log sun ne ko taiyyar ho to sahi......

 

[Smart_trade]

Doctor Sahab,
ऐसा konsa forum hai jahape vitamin H ( हिम्मत) milti hai.

Vitamin H (Himmat) kisi forum se nahi milti.Himmat comes by having a well defined and throughly backtested strategy,very efficient implementation of that strategy and having a adequately strong capitalisation needed for that strategy.It also comes by negotiating few tough periods with faith and conviction on the strategy which is called trading/investing experience.

 

[Smart_trade]

I have been doing lots of experiments with SWP ( Systematic Withdrawal Plan ) of various mutual funds for my friend who has kept Rs 30 Lacs in bank deposits for interest to fund his monthly fixed expenses. It is a great technique to get monthly income plus wealth generation in 7-10 years

Example : Rs 30 Lacs invested in HDFC Midcap opportunities fund on 1-12-2013 and SWP of Rs 22,000 per month started from December 2014 and continued till today.....the investor has already withdrawn Rs 18,70,000 by way of monthly payments and his fund holding has grown to 1 Cr and 17 L ( almost 4 times the initial investment ) . SWP is also very tax efficient as compared to bank FD/SCSS etc......

For people interested, the SWP calculator is on website of advisorkhoj.com, SBI Mutual Fund, ICICI Prudential Mutual funds also have their own SWP calculators and we get detailed working of SWP monthwise there.....

 

[TRADERbest]

I have been doing lots of experiments with SWP ( Systematic Withdrawal Plan ) of various mutual funds for my friend who has kept Rs 30 Lacs in bank deposits for interest to fund his monthly fixed expenses. It is a great technique to get monthly income plus wealth generation in 7-10 years

Example : Rs 30 Lacs invested in HDFC Midcap opportunities fund on 1-12-2013 and SWP of Rs 22,000 per month started from December 2014 and continued till today.....the investor has already withdrawn Rs 18,70,000 by way of monthly payments and his fund holding has grown to 1 Cr and 17 L ( almost 4 times the initial investment ) . SWP is also very tax efficient as compared to bank FD/SCSS etc......

For people interested, the SWP calculator is on website of advisorkhoj.com, SBI Mutual Fund, ICICI Prudential Mutual funds also have their own SWP calculators and we get detailed working of SWP monthwise there.....

What will be the effect if the market is stagnant or falling for 7- 8 years?

 

[Smart_trade]

What will be the effect if the market is stagnant or falling for 7- 8 years?

That is a risk with any equity investment, but here the assumption is India is a growing economy and it wont remain stagnant/falling for 7-8 years....this assumption has come true for last 70 years.

 

[TRADERbest]

That is a risk with any equity investment, but here the assumption is India is a growing economy and it wont remain stagnant/falling for 7-8 years....this assumption has come true for last 70 years.

I suppose SWP is even good idea for debt funds...as opposed to FDS cuz of tax purposes,,

 

[apegaonkar9]

Why Reliance is missing from every one Bigshot of this forum.

 

[Smart_trade]

Why Reliance is missing from every one Bigshot of this forum.

Most investors have Reliance as a part of their portfolio. They also added in partly paid stock,paid the calls and now all those partly paid shares are fully paid.

 

[manohara]

I have been doing lots of experiments with SWP ( Systematic Withdrawal Plan ) of various mutual funds for my friend who has kept Rs 30 Lacs in bank deposits for interest to fund his monthly fixed expenses. It is a great technique to get monthly income plus wealth generation in 7-10 years

Example : Rs 30 Lacs invested in HDFC Midcap opportunities fund on 1-12-2013 and SWP of Rs 22,000 per month started from December 2014 and continued till today.....the investor has already withdrawn Rs 18,70,000 by way of monthly payments and his fund holding has grown to 1 Cr and 17 L ( almost 4 times the initial investment ) . SWP is also very tax efficient as compared to bank FD/SCSS etc......

For people interested, the SWP calculator is on website of advisorkhoj.com, SBI Mutual Fund, ICICI Prudential Mutual funds also have their own SWP calculators and we get detailed working of SWP monthwise there.....

Yes Bro , I also gone through it, SWP, with various combinations , last month for analyzing quitting my 3L/Month job at this age 47 Y, to withdraw same amount monthly in next future ,investing in any index ETF with SWP plan 15% CAGR by investing 3 Cr at the end of 30 years from here, 3cr will become 30Cr after withdrawing 3L/month. It seems good.