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

Monday, January 12, 2015

12012015


This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis     
Nifty gaped down within previous day range. Price failed to move beyond the opening bar. Avoided long due to BRN and PDC. Price made a BW around these levels. Long on TST of LOD. Trailed with patience but shaken out just before the quick BO up move. Only one trade.
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20 comments:

  1. UnknownJanuary 12, 2015 at 3:43 PM

    Hi ST
    Thanks for the analysis.
    What was the thought process when you TP?? If not there where would have you taken profit?

    Thanks
    TBP

    ReplyDelete
    Replies
    1. SMART TraderJanuary 12, 2015 at 4:37 PM

      The trade was into a 120 point fluid
      I should have given a little more room for the PB as I was in profit.
      Lost the last 40 point of the move

      ST

      Delete
  2. xrtrader1January 12, 2015 at 3:49 PM

    Thanks ST..

    ReplyDelete
  3. tRaDeR_BJanuary 12, 2015 at 3:53 PM

    Great trade ST...

    There was a kind of scary fall to test LOD.Also before that it could not go out of Fridays range on the higher side.I was bearish at that time.Can you please explain your thought process at that time of trade?

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    Replies
    1. SMART TraderJanuary 12, 2015 at 4:49 PM

      Last day price made a vertical move of 100 points and I was expecting a PB. Price refused to fall further after gap down and quickly moved above BRN. It was a BOF of BRN and I skipped the long due to PDC and PDH.I expected a range between PDH and BRN and a final BOF of BRN that will trigger a move through the fluid. But the BO of BRN moved down more than I expected and stalled at LOD.Down move was only due to the stop triggering below BRN. So went long there. The BRN flip held for a long time

      ST

      Delete
    2. BharatJanuary 12, 2015 at 5:22 PM

      ST,

      Was there a valid trade below BRN? as it tried to move three times above it and failed.

      What made you to take longs on test and not wait for breakdown failure of IRL? as the fall was very sharp.how will we know that the fall was due to stop triggering at BRN and not a trend reversal for takiing test trade?


      Thanks and Regards

      Bharat


      Delete
    3. SMART TraderJanuary 12, 2015 at 5:50 PM

      If it was genuine selling the second leg will usually run. Here it was not able to test the LOD extreme
      When price move up after a selling climax do not look to short unless there is a clear signal. Price never broke below a swing low convincingly. Try to go with the bias. Daily is in rally mode and price made a higher low. Now it will attempt to make a higher high

      ST

      Delete
  4. xrtrader1January 12, 2015 at 3:53 PM

    a> Regarding your trade, Angle was quiet sharp. Why you didn't waited for second test ?
    b> I waited for second test, didn't come, then took the PP trade above BRN, Covered at same place as yours, was it ok ?

    ReplyDelete
    Replies
    1. SMART TraderJanuary 12, 2015 at 4:53 PM

      Read the reply to traderB
      PP above BRN was a good and valid trade. But we could have waited through a pullback considering the fluid

      ST

      Delete
  5. PA TraderJanuary 12, 2015 at 4:17 PM

    These days you take a lot of TST trades. I am never able to figure it out. I feel more comfortable with a BPB or BOF at the DP. How do you identify a good TST setup?

    ReplyDelete
    Replies
    1. SMART TraderJanuary 12, 2015 at 5:27 PM

      After attending Siad's webinar I enter many trades blindly without any trigger confirmation
      I was not very comfortable at the beginning but slowly adapting to it
      Most of these trades are trend trades when a CT move stalls at a DP. Few of them are FTC after a selling or buying climax

      ST

      Delete
    2. PA TraderJanuary 12, 2015 at 7:26 PM

      Thanks !

      Delete
  6. Lazy TraderJanuary 12, 2015 at 4:57 PM

    ST, why didn`t you enter a short at the TST trade of PDH?

    ReplyDelete
    Replies
    1. SMART TraderJanuary 12, 2015 at 5:33 PM

      I avoid counter trend TST trades especially on the first test
      It is not advisable to take a TST trade into barriers like PDC and BRN

      ST

      Delete
  7. amberJanuary 12, 2015 at 7:53 PM

    Sir good evening,sir when TST was taken then from 12.45 to 1.33 pm below BRN can PP can be considered,kindly update thnx

    ReplyDelete
  8. amberJanuary 12, 2015 at 10:11 PM

    Sir thnx

    ReplyDelete
  9. BhavirJanuary 13, 2015 at 10:09 AM

    Decision point trading at its best. Clean and simple entry / exit. Thanks for sharing ST. Brilliant discipline and observations!

    ReplyDelete
  10. adityaJanuary 13, 2015 at 2:35 PM

    Hi ST, first of all let me congratulates you for finding an easy method for day traders. I have gone through ur book and found it very easy to understand but don't why I am not able to implement it correctly in real time. I just want to ask, Do u provide some sort of training or something like that? and also request you to please share ur e-mail id if possible

    ReplyDelete
    Replies
    1. SMART TraderJanuary 13, 2015 at 3:56 PM

      It will take a long time to achieve consistency. This is the way to go
      http://niftynirvana.blogspot.in/2014/03/way-to-go.html
      mail ID is nifty nirvana at g mail dot com.If you have any doubt post it in the blog

      ST

      Delete

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