Ghaseeta trade: Why it took whole day for this trade to achieve its TG?

[sva31855]

Technically this seemed a sound trade to me. See long entry at 10:24.

Question is: Despite being technically correct, why did this trade achieve its 1:2 TG only at the end? Why so much consolidation/sideways move, despite HHs and HLs being created? I call such trades as "Ghaseeta trades" out of frustration

 

[sva31855]

One hypothesis I have to sensemake this: reversals take time.

IRCTC now seems to be reversing after decline after earnings.

Same ghaseeta pattern for Cummins seen yesterday. Interestingly it is also reversing.

 

[Nish]

Technically this seemed a sound trade to me. See long entry at 10:24.

Question is: Despite being technically correct, why did this trade achieve its 1:2 TG only at the end? Why so much consolidation/sideways move, despite HHs and HLs being created? I call such trades as "Ghaseeta trades" out of frustration

IN GENERAL TERMS

Best time for experienced intraday traders is:

1) 11:00AM to 1:30PM
2) 02:10PM to 3:10PM

The Reasons:

A) 9:15AM to 11:00AM market players try to know, which market is moving and mostly all the dust and noise of retail trades settles down.

B) 30m chart signals becomes somewhat predictable and all that days news and events are priced-in.

C) Big players are now free from their daily To-Do-List priorities !

D) FnO Option OI positions are mostly decided by this time, to capture Time Decays in option prices !

Hope this clarifies some of the doubts , which always lingers in small traders mind about why they exited the profitable trade too early or why their SL always get triggered and afterward the prices moved up or down - which they were expecting for a profit trade !

 

[mastermind007]

View attachment 46471

Technically this seemed a sound trade to me. See long entry at 10:24.

Question is: Despite being technically correct, why did this trade achieve its 1:2 TG only at the end? Why so much consolidation/sideways move, despite HHs and HLs being created? I call such trades as "Ghaseeta trades" out of frustration

Nice terminology. At one training institute, this kind of market was called "Accumulation" or "Distribution" phase.

In such players big players are either buying from or selling to retail players and they want to transfer huge quantity at a preset price without premium or discount.

Generally, a stock is in trend only for 10-20% of its life. Rest of the time is sideways.

 

[sva31855]

IN GENERAL TERMS

A) 9:15AM to 11:00AM market players try to know, which market is moving and mostly all the dust and noise of retail trades settles down.

Point A I really like.

I call these as "playing norms". To do well in the game, I go by the belief that, we need to understand how others play the game..

However, Mike Bellafiore (SMB) team uses pre-open data, gap opens, news, etc. to know much in advance which stocks are in play. So, I am also trying to figure that out, so that I can play from 9:20 onwards..

 

[sva31855]

In such players big players are either buying from or selling to retail players and they want to transfer huge quantity at a preset price without premium or discount.

Actually for inter-day level I can understand. For the ghaseeta was surprising given that it was intraday, and a new high was created with high volume. Typically either such move carry on or reverse sharply (fakeouts).

But I hv an SM (sensemaking) of this now, after discussing in my friend group: IRCTC seems to be a stock that day traders do not typically target. Hence PA is a bit unusual at intraday level.

 

[Nish]

Point A I really like.

I call these as "playing norms". To do well in the game, I go by the belief that, we need to understand how others play the game..

However, Mike Bellafiore (SMB) team uses pre-open data, gap opens, news, etc. to know much in advance which stocks are in play. So, I am also trying to figure that out, so that I can play from 9:20 onwards..

Initiating a trade is a matter of INDIVIDUAL choice !

Ultimate goal should be to PROTECT THE CAPITAL, .. Profit is just a BY-PRODUCT of Trading ADICTIVITY !

 

[troycoleman]

@Nish Good explanation of the time of intraday trading and the reasons behind. I personally do not go for intraday trading.