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

Thursday, November 27, 2014

27112014


Nifty opened near PDC and moved up.IR formed. My expectation was a move up to BRN or at least to IRH. Entered a TT at 8475 with SL 8465,  Trade moved favorably a little  and stayed above PDC for long . SL shifted to 8469. Stopped out. Could have shifted to then LOD. I did not find any good signals later. Expected chop for expiry and stayed out

20 comments:

  1. Hi ST
    Could we have entered on the second test of 8460 as BOF??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. 8480 was resisting the entire morning section. Dont wanted to trade into that level
      On expiry day cant trust price action. Especially afternoon session

      ST

      Delete
  2. ST
    thanks
    why no BPB PDC short near your TP

    rgds
    Kishore

    ReplyDelete
    Replies
    1. I was holding a long and looking for exit
      Further the BO did not extend beyond the tail of yesterday fall

      ST

      Delete
  3. Hi ST,

    Nov contract month was not an easy trading month for the traders, however, I could make around net 200 nifty points. I hope Dec month turns out to be better month.

    Regards

    ReplyDelete
    Replies
    1. Any method that makes 200 points PM on an average is excellent
      50 is considered as good by many institutions which is a 30% return on their capital
      Assuming a position of 50 NF for one lakh of capital.Problem is many people want to live trading 50 NF

      ST

      Delete
    2. ST, I agree with you. For trading for a living, we need to use margin of at least Rs 1-1.25 lakh for 50 quantities of NF and we should not assume more than 100 points per month over long period of time. We need to be conservative because markets can behave irrationally for much longer than we think. And if you are trading at higher leverage, then "The market can stay irrational longer than you can stay solvent." ~ John Maynard Keynes.

      Delete
    3. L.V.Gandhi,

      For accessing my blog, please send an email to resotrading@gmail.com as my blog is private

      Delete
    4. I couldn't agree more .. well summarized!

      Delete
  4. Hi ST
    I want to thank you especially as I complete One year of my Blog.
    Thanks for the encouragement and clearing my doubts.

    TBP

    ReplyDelete
    Replies
    1. TBP

      Congratulations.Happy anniversary
      The main advantage of blogging is that it will force you to be disciplined
      You are answerable to the readers and need to explain every action of yours.
      Try to write some articles also. My schooling was in Malayalam and I worked in a bank where there was no need to write anything as part of my job. After started writing the blog, I surprisingly found out that my English is not as bad as I thought.
      All the best

      ST

      Delete
    2. I am already beginning to know the difference. More than anything you are answerable to your self.
      Could never be a better way other than blogging to maintain a trading journal. one can go back and visit anytime and review prior trades during times of trading low/high.

      Delete
  5. ST
    That's a great way to drive home a point. Surely i am going to write some articles too.
    Thanks for all the support!!

    TBP

    ReplyDelete
  6. Hi ST,
    Slightly off topic ... but you mentioned the other day that DP method arose from your previous trading experiences and traders such as Lance Beggs. Trading the acceptance/rejection of price at Decision Points via TST, BOF, BPB, BO setups makes logical sense. However, if possible could you briefly explain why you chose to ignore Pullbacks and Complex Pullbacks. Is it simply because you have framed the market as always being in a trading range, and PB and CPB setups are therefore no longer relevant? Thanks.

    ReplyDelete
    Replies
    1. PB and CPB setups are very much relevant
      What else is BPB. We are looking for the first pull back after a breakout
      We need the pull back to a relevant level. that is all
      TRAP pattern is nothing but a CPB. We look for that only in an established trend
      Most of the time a multi leg pull back appear as a range.People call it a FLAG too

      ST

      Delete

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