Well I have few questions and a small favour to ask.Since I am very new and interested in day trading interpret the questions in that context.
1.How to analyse bid-ask spread? What do u look for in a snap-quote window and what movement catches your eyes.How do I interpret bid-ask quantity and corresponding price? I am clueless and a bit elaboration is welcome.Whatever books I have read did not elaborate much on quote windows so the question.
2.(in the context of Day trading) How do you play a huge volume and price spike in a average dull market? I mean suppose a stock is range bound and not doing very much for last few hours and you are wondering whether to take a nap since you are not positioned and its just dancing on squeezed BB band and then boom! The price started to go up/down without giving any time to react.Sometimes I can see the volume building up and some times there is one large spike? Bam! and everything is all over the place.
In that situation there was no uptrend or downtrend.Volatility is extremely low and no one(avg mortal!) can anticipate the sudden up/down move. How do I react?
Something obviously happened.Maybe a institutional investor bought it or whatever.But the price action after the move and what should I do is confusing.
First human instinct is to chase it. Then I wonder obviously it has already happened.I am waiting for an obvious reaction or retracement. What to do if a retracement /pull back comes( considering the fact that it can be beginning of huge downtrend too,which won't allow me to get out quickly)? what if nothing comes and price just started to go out of my range.The reaction time is small.What pros do?
3.it is a request.I need 5 stocks of NSE with good high average volume and priced between 200-500 may be Rs.1000-1100 to do my home work before I try to trade. Remember I am a beginner so tailor the answer to my level.
I am not looking to make money.My priority is to discover the rhythm of the stock's movement and a get a feel.I am looking to preserve my capital while scalping small predetermined amount and get out.I am not looking to ride a trend right now and make profit(no goal of becoming millionaire in X years) .Riding a trend right now seems to be a wild horse ride,very adrenaline fuelled but injurious to my capital.After few months my main goal is to preserve capital and stay for a long run.
For example I am looking for a 3-5 Rupees movement and if I am sure from the chart i would like to buy 200-300(at most 500 depending upon the cost) and get out the moment my price objectives are fulfilled.For example I am finding AXISBANK to be very friendly,and looking for similar suggestion.
I have already had a one shocker of a debacle which after few winning trades which knocked the wind out of me for few months.So I am not exactly total beginner in a sense I know what I shouldn't do any more but but beginner in the sense I am slowly trying to find out what I should!
Man,this is hard job! and more addictive than drugs.When the ticker starts to move wildly there is nothing like it.And when you make a trade for which you actually know the reason and your reasoning turned out to be right ,you are on top of the World! Unless FII decides to pull you down.LOL.
Further questions are to follow....
1.How to analyse bid-ask spread? What do u look for in a snap-quote window and what movement catches your eyes.How do I interpret bid-ask quantity and corresponding price? I am clueless and a bit elaboration is welcome.Whatever books I have read did not elaborate much on quote windows so the question.
2.(in the context of Day trading) How do you play a huge volume and price spike in a average dull market? I mean suppose a stock is range bound and not doing very much for last few hours and you are wondering whether to take a nap since you are not positioned and its just dancing on squeezed BB band and then boom! The price started to go up/down without giving any time to react.Sometimes I can see the volume building up and some times there is one large spike? Bam! and everything is all over the place.
In that situation there was no uptrend or downtrend.Volatility is extremely low and no one(avg mortal!) can anticipate the sudden up/down move. How do I react?
Something obviously happened.Maybe a institutional investor bought it or whatever.But the price action after the move and what should I do is confusing.
First human instinct is to chase it. Then I wonder obviously it has already happened.I am waiting for an obvious reaction or retracement. What to do if a retracement /pull back comes( considering the fact that it can be beginning of huge downtrend too,which won't allow me to get out quickly)? what if nothing comes and price just started to go out of my range.The reaction time is small.What pros do?
3.it is a request.I need 5 stocks of NSE with good high average volume and priced between 200-500 may be Rs.1000-1100 to do my home work before I try to trade. Remember I am a beginner so tailor the answer to my level.
I am not looking to make money.My priority is to discover the rhythm of the stock's movement and a get a feel.I am looking to preserve my capital while scalping small predetermined amount and get out.I am not looking to ride a trend right now and make profit(no goal of becoming millionaire in X years) .Riding a trend right now seems to be a wild horse ride,very adrenaline fuelled but injurious to my capital.After few months my main goal is to preserve capital and stay for a long run.
For example I am looking for a 3-5 Rupees movement and if I am sure from the chart i would like to buy 200-300(at most 500 depending upon the cost) and get out the moment my price objectives are fulfilled.For example I am finding AXISBANK to be very friendly,and looking for similar suggestion.
I have already had a one shocker of a debacle which after few winning trades which knocked the wind out of me for few months.So I am not exactly total beginner in a sense I know what I shouldn't do any more but but beginner in the sense I am slowly trying to find out what I should!
Man,this is hard job! and more addictive than drugs.When the ticker starts to move wildly there is nothing like it.And when you make a trade for which you actually know the reason and your reasoning turned out to be right ,you are on top of the World! Unless FII decides to pull you down.LOL.
Further questions are to follow....