My Trade Journal

[VJAY]

Forgot to post BNF

 

[VJAY]

q&a.....dsm

question :
Hello dsm

i have never traded for a fixed target/amount, but have thought about it a few times. Have a few questions, please answer them at your own time and convenience.

How do you arrive at the x amount that you have to make per day. On the other side do you also have a -ve target for stop trading?

As per your experience have your overall gains increased / become steady (smoother equity curve)

anything else you like to add. Interested in knowing more about this approach in trading.

Answer:

My view and trading style has evolved over time. Some of my learning :

* avoid low volume f&o stocks.
* check chart patterns in higher tf.
* if the previous day 240m chart is bullish/bearish and there is good open in the same direction next day, such trade are good reward/risk opportunity, giving a safe 1%
* have a few chart patterns in your mind that are easy to trade. Scan for these setups...
* do not trade random setups. You should be able to know which setup you are trading.
* avoid taking entry in a stock which has a large move in one bar (or two) relative to others in the chart. Most likely, that is all there will be.
* it is preferable to trade in the direction of index.
* best to trade in f&o are index stocks - nifty and banknifty.
* if you have a passion for trading, do consider commodities. The same patterns that are in stocks, occur in commodities. With longer hours, one can trade as per convenience. ( i take a break between 3.30-5.30 and may trade or watch the commodity for a few hours and not the whole session)
* what i have learnt : If you have a large capital account, it would be better to reduce it. In this manner, losses will really hurt when transferring funds to broker. Having a smaller capital account, you will not take unnecessary risk and will be more disciplined in trading. This is one aspect which made a big difference in my trading.

Regarding your question :

* target will depend upon one's trading style and risk taking capability.
* my risk taking capacity is very low. My max risk per trade is 700-1.5k or 2.5k max. If trading at a critical level.
* do not trade the same script if there are two sl's - as there will be a bias.
* enter the sl in the system when you enter the trade. This will avoid indecision and overthinking.
* have a max loss level for the day. Do not trade once this level is hit.
* having a fixed target level will improve discipline. And yes, also the equity curve.
* intend to increase the daily target level over time. But it will be done gradually and in stages.

 

[VJAY]

 

[VJAY]

BNF

 

[VJAY]

 

[VJAY]

No trades today....boring day...BO came only after 3.05

 

[VJAY]

Unable to get in this down move.....need to test this missing scenerios..

 

[VJAY]

BNF

 

[VJAY]

V'Shaped reversal -explained by ST da

V shaped reversals are based on selling climax and the fact that the last seller has sold. For catching V shaped reversal we must see the following :

1) The market has a sustained trend move, few large range bars.

2) The last leg of the move should be very sharp indicating possible capitulation or climax.

See the chart, here we locate a pivot low P bar, and go one bar back ( P-1) if the high of this P-1 bar is higher than the high of P bar, it it is not ,then we go to P-2 bar and when the high of the P-1 or P-2 bar is taken out by the market, we buy with a stoploss of pivot low.The chart shows green line indicating buy level.

The same method can be used for profit booking if we are short....book profits on high of P-1 bar. In steep downmove, we trail the profit taking on high of each successively lower bars so profit taking can be done on high of P bar..

 

[VJAY]