'L' Please Keep Distance. 'L' earner onboard

#1
So, after watching, reading, more watching and more reading I am ready to get behind the wheels. I will post my trades on chart as well as my thought process behind the trades. Please give your comments constructive as well as destructive. I am a tough nut mentally and can filter out the constructive part of destructive comments too. As few things to start with.

1> How important are stop loss? I mean if you are actively looking at the real time 1 min chart and have your cursor on the market (sell/buy) ready to click and number of shares already filled in. If I am going to bathroom, I do put stop loss.

2> For adds, do you put limit order or market? If limit, how and when do you know when you will add? I mean when you have bought the first, you wait for stronger confirmation for adds after locking in some profit. So, lets say the bar comes near trend line after posting a higher high. Now do you put add as limit after crossing the high or buy limit at market when the bar touches the trend line. Is this a novice question to ask?

I have done 3 intraday trades in before as 4th one would have triggered the day trader signal to the brokerage firm .
 
#4
So, after watching, reading, more watching and more reading I am ready to get behind the wheels. I will post my trades on chart as well as my thought process behind the trades. Please give your comments constructive as well as destructive. I am a tough nut mentally and can filter out the constructive part of destructive comments too. As few things to start with.

1> How important are stop loss? I mean if you are actively looking at the real time 1 min chart and have your cursor on the market (sell/buy) ready to click and number of shares already filled in. If I am going to bathroom, I do put stop loss.

2> For adds, do you put limit order or market? If limit, how and when do you know when you will add? I mean when you have bought the first, you wait for stronger confirmation for adds after locking in some profit. So, lets say the bar comes near trend line after posting a higher high. Now do you put add as limit after crossing the high or buy limit at market when the bar touches the trend line. Is this a novice question to ask?

I have done 3 intraday trades in before as 4th one would have triggered the day trader signal to the brokerage firm .
hi rodart
i m too a new bee but learned somethings real hard way , i hope you dont have to do it the thorny route .I have become slightly more wise(rather say more disciplined ).First of all mental stoplosses have a tendency to slip farther (may not happen in the begining )but eventually it will ,i can promise you that .when you enter a trade ,you enter with a plan (i hope you do ) whether right or wrong, so your losses depending on your risk appetite will be predetermined in other words there is only so much you are willing to loose in a given trade.So if thats the case why not fill it ?.Answer to your second question is more complex as there are many rules and methods to do so depending on the methods you are following to trade ,certainly i dont use limit orders(for adds or sar ,others more experienced might differ) as bid and ask is not the only criteria for adds .What kind of trader you are will finally decide how you want to do it ,whether you are full time day trader ,swing or positional .If you are last two catgory then you wont have much choice but to go limit way provided the trend has enough stream left (now this i feel is the secret which is difficult to master but most useful) now you want to acheive this mechanical way or gut feel way is up to you ,but whichever way stoploss and sizing is going to be the key
sorry for the lengthy and preachy post
paget345
 
#5
[/URL] Uploaded with ImageShack.us[/IMG]

This chart represents my buying and selling points. Numbers represent the reasons why I chose those prices (green buy signals and red sell signals) and B & S shows the approximate location the trade got executed.

My key learning for today.

Trade 1-2: I am not sure what I was doing. I thought I saw double top and wanted to short with SL of 10846 ended up buying and by the time I realized the mistake instead of +15 I was -15 :(
Trade 3-4: I was trying to catch an uptrend. bought above last top. Caught the up move fine, and started trailing SL. Can some experts guide me if my exit was correct or how else I could have been onboard the trend without. Should I have used bigger SL. if so how big and why?
Trade 5-6: I go onboard the trend again as soon as it went above the last high. Was that a correct decision with regards to RR? Trailing SL kicked out as soon as last high was breached at 10883.
Trade 7-8: As soon as the neck of double top was breached, I got in and traded 10 points.

My cost is about Rs 40 per lakh turnover at Ventura. Yesterday I traded about 8.06 lakhs buy and 8.06 lakhs sell for total trading cost of 316 including stt and all . So my cost is under 4 paisa or Rs 4 price difference. Am I targeting too small moves for my trading cost?

-Rohit
 
Last edited:
#6
hey
I tried to understand the trades from the markings you made on the image you posted, but wasn't completely able to.

for someone just starting out, i have a few general things to say -
1. paper trade. for example, if you are going to buy above the last intra-day top, with a stop below a previous intra-day-pivot-low (your trade3-4), then test this setup on paper during live markets before you put actual money in. paper trade a setup for as long as it takes for you to be confident about it. or as long as it takes for you to come to the conclusion that it's not worth trading.

2. for trade 5-6 you asked whether the decision was correct from a risk-reward perspective. from whatever i have read, a general rule of thumb seems to be that take only those trades where your potential profit target is at least twice your stop loss points. however, it is my personal belief that the RR ratio you are comfortable with will need to be figured out by you as you move ahead. the point to remember is that you need to have a reason to believe that taking n trades with certain RR will yield a profit at the end of n trades. a random entry with a stop loss of 10 points, and profit target of 20 points is not likely to yield profits after any number of trades.

3. don't get discouraged if your queries here are not replied (or not convincingly replied) in the beginning. merely posting them will add to your clarity.

i'm a beginner myself. i wish you all the luck.
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?