Day trading-using technical analysis chart pattern

[divya jain]

hello,
which chart pattern would be easy to follow initially to do day trading?

 

[TraderRavi]

Whatever method you use for day trading..my only advice will be to start with only 10K or 20K max..with target around 200 - 500 per day......because initially while learning everybody losses...So if you lose too much in initial phase that will be a burden in later phase..just like in my case...I started with 70 K ...and in first 8 months averaging 20 - 30 K per month my total loss is over 200K....so that was a mistake in my part...
for information on different stratgies you have to devote time and find threads in this wonderful forum....
for live trading under Our Guru SavantGarde...here is the link...
http://www.traderji.com/equities/47979-stocks-keep-close-eye-canteen.html

...

 

[divya jain]

Hi
thanks for the good tips...!
divya

 

[iamaaditya]

Though not easy to spot at once (for newbies), but i would recommend you to trade , Head and Shoulder (and avoid Inverted Head and Shoulder).

this link should be a good starter
http://www.investopedia.com/university/charts/charts2.asp

try to spot all the Head and Shoulder in your favorite Scrip (say in last 2 year data) (better do it for Nifty) and post your results here on Monday (a weekend task).

Please beware of Pareidolia and certaily Apophenia , spotting patterns which aren't there, (like spotting faces in moon or cloud ) since your mind is looking for them. (this is one big hurdle in Pattern trading, but this shouldn't take away from the fact that pattern trading is very successful (when combined with discipline and position sizing).

all the best and merry christmas to everyone.

 

[udi1970]

hello,
which chart pattern would be easy to follow initially to do day trading?

when you use charts or technical indicators settle for a small target like 0.4 to 0.6%. you may seldom lose even if your analysis is incorrect.

 

[veluri1967]

Before your trade, decide how much you would loose if the trade goes wrong. Thatz your stop loss. Decide how much you would gain if the trade goes right. Thatz your profit Target. Never key in your trades unless you have predefined Stop Loss and Profit Target.

Whether you make money or not is immaterial at initial stages. But what matters is whether you are trading correctly or not ie sticking to predefined Stop Loss and Profit Targets. When Profit Target is hit, no more greedy, just book profits and get out. When Stop Loss is hit, no more fear, just book losses graciously and get out.

Tap yourself, if you successfully closed your position either at Stop Loss or Profit Target. Whether it was a Loss or Gain trade, but that was a successful trade. Once you become successful in trading, profits will follow automatically.

Most importantly keep eloborate record of all of your trades including your feelings before, during and after the trades. Review them at periodical intervels.

All the best.

 

[k.raaja]

@ divyajain, use rounding bottom, head and shoulder, inverted head and shoulder,double bottom,double top patterns in initial stages.