How to trade intraday-steps-sequence-your view-our view

#1
Hi friends

Recently I met a trader-new to trading and he was asking-

How do I go about intraday trading stocks?
and next how to do trading with futures?


My view is something like this.
First if you are new,catch a mentor to guide you & put on track.
next choose an instrument(stocks) and timeframe (hourly or 15 min-4 hourly)and trading style=say intraday -here
choose a trading system, get clearcut rules,do testing 30 and 100 trades.
confirm winning nature of the system.
When I say testing ,it has all to do with data that is beyond hard right edge of chart.in future zone not with data that is visible on leftside.

Use only risk capital, money that you can loose fully.
do only 2 or 3 trades a day.
the trading system
complete trading system-rarely you find a complete trading system
-that has entry,target,initial stoploss,trailing stop. if your system is a bad one,These are not visible on trading chart.

When you trade
draw a line with blue color at Entry price.
draw a line at target price
draw a line at stoploss. if your system is good, you have dynamic stoploss that is drawn by system.
know that entry and breakleven price are almost same and once you get profit of 0.5%,move your stoploss to entry level.
There after move stoploss after every 0.5% profit is there.

Most important question
how do you monitor your trading & price?
Suppose you have a chart on 10 minute timeframe.

Question
do you need to stare at chart all 10 minutes/ no need.
you must have a good internet & good ups.

you need to set sound set alert when price hit stoploss or target.
use bar complete and when bar is fully ready have a look at it.
In between,till next 10min bar forms,just avoid staring at screen.

your action involves doing a decision making after every bar is fully formed.
Three things to do
if stopline on chart hit--either exit trade or wait for bit more risk.for reversal to occur.
if target line is hit,place sell order and close trade
if price moved 0.5% from entry,then move stoploss from initial stoploss level to breakeven level.
if price moved not much-do nothing. wait.till 1500hrs.
square off if nothing happens at 1505 hrs
-------------------------
price can do one of the 3 things.

price can move to target-give profit
price can hit stoploss-most tips do this perfectly
price may not move much.

If you have no action rule for every situation,then you are badly off track.

The action sequence is
what to do if price reached a level of x or y?

do that planned action exactly when time comes.

you cant start thinking after you entered a trade.

once a bar is formed,take a ckeck if price hit tgt or stop or price moved 0.5% in favour.
do that required action

once a bar has formed and next bar is forming in progress you have not much to do till time frame is completed.
if you place a stoploss in terminal, it will get triggered.once stop hit,price may go back up.

for a 30 minute timeframe, check the candle and price action and then wait 30min till next candle is formed.
then ask yourself questions 1,2,3

Has price hit target-ready to give profit?
Has price hit stoploss-get ready to exit-most tips do this perfectly
has price not moved much from entry? then do nohing if market close time is far away..

Between two 30 min candles you can do other things no need to stare at screen.
why?
the alert sounds if price hit stop or target.then you can attend.

cAUTION
If you are going away from terminal, then place a stoploss 2* atr away from entry.
Since NSE & SEBI etc are still sleeping,we dont have facility to place two orders and OCO Facility doesnt exist-once cancel other(if target hit,stoploss gets cancelled by system in exchange or if stoploss hit,target sell order gets automatically cancelled)
 

guptak03

Well-Known Member
#2
i think we have an option in Sharekhan TradeTiger where if order got executed we can place stoploss and target together and if one get hitted another will get cancelled ..please check from sharekhan team as im not using sharekhan as my broker now..sharekhan TT the best terminal i ever used:thumb:
 

suri112000

Well-Known Member
#3
Leverage. A two edged sword. Learn to use leverage only to add to already profitable trades. Initial position should NEVER be from leveraged funds but from own risk capital.:thumb:
 

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