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

Monday, December 1, 2014

01122014

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis
Market was too choppy and did not respect any levels well. Got stopped out in all the three trades. First one was a BO of IRL into a fluid. Stopped out. Later attempted a long and short . both the trades immediately failed
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15 comments:

  1. ArvindDecember 1, 2014 at 3:59 PM

    Sir,
    My trades.
    http://screencast.com/t/llZQt0uXbusw

    Does my second trade qualifies for PP trade.
    Thanks

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 4:18 PM

      Cant call it PP. Still the level attracted many traps

      ST

      Delete
  2. PA TraderDecember 1, 2014 at 4:09 PM

    I too got caught in the TRAP, but managed to reverse the trade at the break below the green candle. Carried the trade till BRN. But by that time I was chopped so much that my net returns (incl costs) was negative for the day.

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 4:20 PM

      It was chop. Looks like a wide down channel after the morning spike

      ST

      Delete
  3. UnknownDecember 1, 2014 at 4:16 PM

    Hi ST

    The TRAP trade moved well. What was the thought process in getting out of the trade??
    And was space a consideration for not attempting BOF IRL??

    Thanks
    TBP

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 4:23 PM

      I lowered the stop too soon above the flip and got stopped out
      I was little hesitant to trade into IRH which rejected twice

      ST

      Delete
  4. L.V.GandhiDecember 1, 2014 at 6:12 PM

    Why you did not consider BOF of RN 8650? Can you explain your thought process

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 7:45 PM

      We are not considering RN as a DP till now
      XX50 option strikes are slowly becoming important as BRN
      http://niftynirvana.blogspot.in/2012/09/round-numbers.html

      ST

      Delete
    2. L.V.GandhiDecember 2, 2014 at 9:17 AM

      Thank You.

      Delete
  5. TrekkieDecember 1, 2014 at 6:14 PM

    Hi ST,
    Thanks for the chart. Did you think of going long at any point after 2 pm? I had a long order above 2:37 and 2:57, luckily both did not trigger, I thought there may be some short cover. I took a long trade above 10.06, but I guess it was wrong because of lack of space. I took a long above 1.09 as bof of LOD and got stopped out. I missed your last short because I thought since price was moving down since morning and BRN too close it was better to not go for short. Please correct my errors.

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 8:07 PM

      Market will give very subtle clues about what it is going to do.The problem is we are focusing more on patterns
      Morning up move above IRH was just stop triggering. Price did not extend beyond the BO bar. Then all the long signals were not able to move price above it. Price was making lower highs. 8650-40-30. One could have gone short on TRAP at 8630. There was no need to wait for the low to break

      ST

      Delete
    2. TrekkieDecember 1, 2014 at 9:29 PM

      Thank you ST.

      Delete
  6. Price Action LabDecember 1, 2014 at 7:56 PM

    Hi ST,
    What was the thought process behind bo @IRL

    ReplyDelete
    Replies
    1. SMART TraderDecember 1, 2014 at 7:59 PM

      There was a 70 point fluid below it. Created by the gap up and spike of yesterday.
      So took a chance.

      ST

      Delete
  7. BhavirDecember 2, 2014 at 12:19 AM

    Thanks for the chart ST. Agree .. another choppy day after the upmove yesterday and before news event tomorrow.
    My reading at -
    http://niftytradediary.wordpress.com/2014/12/02/1-dec-2014/

    ReplyDelete

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