There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits
Tuesday, October 1, 2013
01102013
I was not trading live today. Nifty was trapped within the previous day closing range.In hind sight there were two opportunities BOF of PDL and Break of IRH. Today also Market was choppy and undecided. May be due to the holiday.
It is not a tradeable break. Reasons 1.LOL breakout.BRN/IRH. Most of the time price will get rejected from second level. 2.50 point move already over without pull back. Trade only BPB in such cases 3.Next attempt is after a while so that some stop accumulation happens 4.Target is the prominent swing high of the previous day from where it bounced 5.For this there are two options.Trade direct break or BPB. BPB will reduce the space. So traded the direct break
Technically it could be a BOF or TST, but not tradeable in my scheme
Price tried to go below DO, PDC and PDL. Got rejected strongly. We are trading into strong DPs namely BRN,IRL,PDC and PDL from where a "V" rejection happened. Notice the price could not even reach the FTA called IRL
how do you carry out trade management? my thinking is that, you trade 1 lot ... and if you sense you are wrong you r out without market taking your stops and waiting for fresh entry... is that your thinking sir ?
also, how do you decide on stop loss, its based on pivots or a fixed stop loss of say 10 or 20 points ?
Anon Most of the time I enter on break of a probable flip which should act as a barrier on pullback. If the flip is not holding, I will think about exiting as there is not enough momentum I am not comfortable risking more than 10 points as the average swing of NF in 3M time frame is around 20. I aim for a 1:2 RR
some times ill keep stoploss as Peak's and bottom's of recent break out bcoz breakout candle will be smaller .. what to you suggest for those times when break out candle is less than 10 points and when there will be high probability of huge swings .. for understanding it better i requested you to show stoploss as per your view in your trades.. so that we can understand our stoploss mistakes ..
St when u say there was a trade above irh there are three bars before yr entry which breaks irh what to do there
ReplyDeleteShub
ReplyDeleteIt is not a tradeable break. Reasons
1.LOL breakout.BRN/IRH. Most of the time price will get rejected from second level.
2.50 point move already over without pull back. Trade only BPB in such cases
3.Next attempt is after a while so that some stop accumulation happens
4.Target is the prominent swing high of the previous day from where it bounced
5.For this there are two options.Trade direct break or BPB. BPB will reduce the space. So traded the direct break
ST
What about bof do you thing those bars can be taken as bof
ReplyDeleteShub
ReplyDeleteTechnically it could be a BOF or TST, but not tradeable in my scheme
Price tried to go below DO, PDC and PDL. Got rejected strongly. We are trading into strong DPs namely BRN,IRL,PDC and PDL from where a "V" rejection happened.
Notice the price could not even reach the FTA called IRL
ST
dear sir,
ReplyDeletehow do you carry out trade management? my thinking is that, you trade 1 lot ... and if you sense you are wrong you r out without market taking your stops and waiting for fresh entry... is that your thinking sir ?
also, how do you decide on stop loss, its based on pivots or a fixed stop loss of say 10 or 20 points ?
Anon
ReplyDeleteMost of the time I enter on break of a probable flip which should act as a barrier on pullback. If the flip is not holding, I will think about exiting as there is not enough momentum
I am not comfortable risking more than 10 points as the average swing of NF in 3M time frame is around 20. I aim for a 1:2 RR
ST
Hello sir,
ReplyDeletesome times ill keep stoploss as Peak's and bottom's of recent break out bcoz breakout candle will be smaller ..
what to you suggest for those times when break out candle is less than 10 points and when there will be high probability of huge swings ..
for understanding it better i requested you to show stoploss as per your view in your trades.. so that we can understand our stoploss mistakes ..
Guptak03
Gupta
ReplyDeleteStop placement is very tricky and difficult for single lot traders. Will try to write a separate post on this during the weekend
ST
Thank you very much sir.
ReplyDeleteGuptak03