There is a substantial risk of loss associated with trading Derivatives . Losses can and will occur. My methods will not ensure profits

Wednesday, June 4, 2014

04062014


Nifty opened within previous day range. IR formed. Went long on break of IRH/PDH. Trade failed immediately on the very next bar.Exited at a small loss. Rest of the day Nifty spent within a 20 point range which was also a barbed wire around PDC. Went long on the BOF of IR low.Exited on BOF of PDH
Did not take any other trade as I had some other work
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19 comments:

  1. UnknownJune 4, 2014 at 7:42 PM

    ST sir,

    Flat day.. managed to end day with no profit no loss…
    Chart here http://imgur.com/UIMPtB7

    TRADE1:

    Long at 7431, above IRH with initial SL below PDC (7421)
    Moved SL to 7424, below low of PDH BO bar
    SL hit; exited trade with loss of 9 points

    TRADE2:
    Short at 7424, after BOF of PDH with initial SL 7430
    Moved SL to 7424, above PDC
    Trail SL hit; exited trade with loss of 2 points

    TRADE3:

    Short at 7426, after BOF of PDH & TST of HOD with initial SL 7437
    Exited trade at 7413 near EOD with gain of 11 points

    Points earned: 0

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 8:39 PM

      You have done well
      Took three trades in a 20 point range and finished without loss

      ST

      Delete
  2. amberJune 4, 2014 at 7:45 PM

    Sir good evening ,sir sent a mail when time permits kindly check thnx

    ReplyDelete
  3. UnknownJune 4, 2014 at 7:46 PM

    ST sir,

    Regarding your 2nd trade, I avoided BOF of IRL as I was thinking IR will be valid during 1st hour.. logically it is valid trade but I was not sure if I can trade this or not.. waited to see if BOF trade comes at 7400 BRN.. missed IRL BOF trade.

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 8:44 PM

      Rose Mary

      A level will be valid till it gets broken
      It can also be considered as LOD then

      ST

      Delete
  4. UnknownJune 4, 2014 at 7:51 PM

    Hi ST
    What was the thought process behind taking the direct BO long trade??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 8:42 PM

      I thought my position will be safe with PDH/IRH and PDC/DO below my entry.
      After watching the first rejection from below PDC I expected it to move up

      ST

      Delete
  5. veerJune 4, 2014 at 7:55 PM

    Sir,

    Thanks. I have few questions:
    1. For IR - should we have to consider the tails also ? Because in some charts , I remember you have not taken. Pls suggest.
    2.For the long the zone (around 12.38 p.m.) you have taken profit- can we initiate short at the same zone as BOF ? Is it valid ?

    Thanks & Regards
    Veer

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 8:33 PM

      Veer

      Tails are tricky. we will never know where the orders are. The real level will be known only when price revisits the area.
      So for direct breakouts I consider tails.When price revisit the area after a long time I ignore tails. Here the top of tails were at PDH and I considered it as IRH. IRL was confirmed below the tail when the next four or five tests reacted there

      Yes it is a valid short trade. If you are comfortable doing such SAR trades you can very well make it. But somehow I am not comfortable at SAR and I need to clear my mind after every exit

      ST

      Delete
  6. veerJune 4, 2014 at 9:28 PM

    Thanks Sir.

    Thanks Ms.Rose Mary for the Chart and Trade sequentials.

    Regards,

    Veer

    ReplyDelete
  7. TrekkieJune 4, 2014 at 10:20 PM

    Hi ST,
    At what point did PDC cease to be a DP?

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 10:39 PM

      Once a range establishes around a DP avoid trading that DP
      Trade the new range.
      http://niftynirvana.blogspot.in/2012/06/barbed-wire.html
      http://niftynirvana.blogspot.in/2012/10/brackets-and-envelops.html

      ST

      Delete
  8. BharatJune 4, 2014 at 10:22 PM

    ST,

    I took Breakdown failure of IRL @ 10.15 and 11.18 candle high.. was 10.15 trade wrong?.. i exited 11.18 long below 11.30 and missed the upmove.. how do you trail sl in such cases and exit if the trade fails with min damage?

    Bharat

    ReplyDelete
    Replies
    1. SMART TraderJune 4, 2014 at 10:56 PM

      First one was not a good BOF. Price should break the low well and bounce back to trap the shorts
      Further for 45 minutes price got trapped within 7410-20. Your entry was within this range only. If you wait for the break of this range there was no space to upside
      You are micro managing trades. Your entry was on BOF of IRL. Price never came below IRL. After your entry, allow a pullback within the DP barrier and once price moves away move the stops to the new swing point

      ST

      Delete
  9. nirtosJune 5, 2014 at 10:11 AM

    Hi St,
    See if this is useful : http://webapps.stackexchange.com/questions/21295/how-do-i-download-all-my-blogger-posts
    Thanks

    ReplyDelete
  10. TrekkieDecember 6, 2014 at 12:04 PM

    Hi ST,
    I am trying to clean up my entries and exits. Here in this chart, in the second trade, i.e., BOF long, you have waited for some confirmation to go long it appears (i.e., long is not above the break down bar, not abvoe the green bar, but above the two sideways bars), in the third trade, which is BOF short, you have taken a short right below the breakout bar. Can you please help me understand the difference in thought process? Thanks for your help.

    ReplyDelete
    Replies
    1. SMART TraderDecember 6, 2014 at 6:23 PM

      We need to enter as soon as we are convinced about what the market is going to do.
      In the morning price attempted to move above PDH and failed.Then traded below PDC for an hour
      Price could not move to PDH again and a break of PDC failed. A BOF of PDC. Price hit IRL and gave a bounce. We need some confirmation whether it is going to hold or not.
      In case of the BOF of PDH, notice what happened during the previous attempt. Should we wait for more confirmation?

      ST

      Delete

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