My Trade Dairy - mravi

[mravi]

AXISBANK slipping slowly. First target around 1080.
Trailing stop loss @ 1130.

 

[mravi]

Exited AXISBANK - Obviously I took the entry too early. 10% Capital down.

 

[mravi]

Long on TataSteel.

 

[mravi]

What a day.. Not sure what to do.. sitting aside.. 4% capital down.

 

[mravi]

Interesting read:
http://www.moneycontrol.com/news/market-edge/freak-trade-to-cost-emkay-rs-51-crtalksbrokers_765857.html#toptag

 

[mravi]

Took short position on TATASTEEL.

SL: 420.

 

[mravi]

Continuing to hold position in TATASTEEL.

 

[mravi]

Exited TATASTEEL as stop loss hit.
Last 4 days I kept on exiting positions as Stop loss hit. Capital down by 20%.

In last 6 months since I started trading in futures, this kind of situation is happening second time. This is the period where uncertainty is high, I tend to loose money because I keep on hitting stop losses.

Staying away from market is "best option". But, markets just won't let me stay away.

Need to work on this aspect rigorously.

Are there any technical indicators which tell when we are entering into range bound market?

 

[mravi]

These two thumb rules may help.

In a direction-less market:
1. Don't go short anything that is above 20-day EMA.
2. Don't go long on anything that is below 20-day EMA.

Last 2 months I tried to stick to very less number of stocks. My trades are mainly in IDFC, AXISBANK, SBIN. Made money because there is trend in these stocks.

Lost money in TATASTEEL, because I took short position.. when market is positive.

Also, the KDJ indicator in google charts need to be used with trend.

Most stocks that I track gave negative moving average convergence including NIFTY. I think market will correct further.

So, went SHORT on DLF near the 20 day EMA.

Last 2 weeks trades will be remembered - so the mistakes can be reduced.

 

[timepass]

Also, the KDJ indicator in google charts need to be used with trend.

What is KDJ indicator ??