Hello Dhiraj ji
I registered with Traderji.com around 10 days back and have been reading threads and posts from veteran traders, looking for a good and almost fool proof technique to do profitable day trading for a living.
I have dabbled in swing trading, for a year with some losses and left it for 2 years. At that time, I did not do due diligence of studying and understanding the details and also (most important) learn from veteran traders.
I did minutely learn the 2652 way of trading which you had shared with all (way back in Dec 2008-Jan 2009 time frame). I would first of all thank you for the good heartedness to share your indigenous method with all, God will definitely reward you (and he might be doing currently too) for this noble act. I did paper trade based on that and I had one scenario which I wanted to share with you and get your expert advise on:
Scenario:
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Today (31st October 2013), At around 10:16AM, i looked at the High and Low of ICICIBANK on NSE (high and low from 9:15
AM to 10:15 AM), the High was at 9:43AM and i took value of Close =1101.75 and the Low was at 10:08 AM and i took value
of Low = 1089.3, the Previous High (30th Oct 2013) = 1106.9 and Previous Low = 1079.4, Difference of Prev. High - Prev. Low
= 27.5. I placed a Sell Order with (Sell = 1089.85, Buy = 1084.41, Stop Loss = 1100.74) and a simultaneous Buy Order with (Buy = 1101.2, Sell = 1106.7, Stop Loss = 1090.19)
As you had explained,
Sell Buy Stop Loss Buy Sell Stop Loss
1101.75 -11.9 = 1089.85 0.5% below 1089.85 = 1084.41 1% above 1089.85 = 1100.74 1089.3 + 11.9 = 1101.2 0.5% above 1101.2 = 1106.70 1% below 1101.2 = 1090.19
RESELL
Sell Buy Stop Loss
1101.75 -11.9 = 1089.85 0.8% below 1089.85 = 1081.13 1% above 1089.85 = 1100.74
Result: I placed both the orders (Capital amount 8,00,000 ) at 10:25AM (as I took about 10 minutes to do the calculations and enter the Sell and Buy orders into software system) and then I waited. At 11:06AM, my Sell Order was executed (the Close price at 11:06AM was 1088.65), so i sold a total of 734 shares (800000/1089.85 = 734). I cancelled the Buy order immediately and waited.At 12:53 PM, the Stop Loss was triggered and i sold the 734 shares for a loss at 807943.16, so the net loss is 807943.16-800000 = 7943.16. Then again i put a ReSell Order (Sell=1089.85, Buy = 1081.13, Stop Loss Buy - 1100.74) at 1:00pm (took around 6-7 minutes for entering order into system) Then again i put a ReSell Order with values but the Sell Price is never reached till end of day(3:30PM)
Please answer my following questions and help me in this case:
1. Are all the values correct, which i used and for placing the Sell and Buy Orders ?
2. It takes a lot of time (after 10:15AM) to do the calculations and place the orders, is it to be done manually or is there some automated way ?
3. When i have a loss in a Sell Order(Stop Loss Triggered), then said i should place a Resell order; in such a case do i also have to place the opposite trade also (Re Buy order?) Also, When i have a loss in a Buy Order(Stop Loss Triggered), then said i should place a Re Buy order; in such a case do i also have to place the opposite trade also (Re Sell order?)
4. I am getting all my values and data from the NSE website chart, the URL of which is below
http://nseindia.com/ChartApp/install/charts/mainpage.jsp
Is this the right chart (1 min chart) which i should be looking at for get my figures?
5. In the above mentioned 1 minute chart, for a particular point of time there is a Open, High, Low, Close. Which value should i use (For eg. at 9:43 AM in the URL chart, it shows Open = 1100.2, High = 1101.8, Low = 1100.0, Close = 1101.75), which value out of these 4 values should i take as High between 9:15AM and 10:15AM )
6. This is a basic question which might sound silly (i have not yet got my Zerodha Trading A/C activated so i do not have the order entry screens in front of me and i am forgetting quite a bit from my past experience). If i take the example of the Sell Order (Sell, Buy, Stop Loss) first i place a Sell order and while placing the Buy Order (within the Buy Order screen itself ) do we have option of setting/giving value to Stop Loss? That means the Buy value (1084.41) and Stop Loss Value (1100.74) can be entered as part of one order ?
So does that mean, at 10:15 AM i went ahead and placed 2 orders as part of Short Sell (Sell and Buy (with inbuilt option for Stop Loss) and 2 orders as part of Long Buy (Buy and Sell (with inbuilt option for Stop Loss)). So in total there are 4 seperate orders which i have to place at 10:15AM ? Is that correct ?