30062015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Nifty opened within previous day rage and moved up above PDH. Got rejected at RN. Then it was a BW around PDH. Attempted two longs and a short . Both the BOF trades at the bottom of the range worked well. A mid level short ended as a scratch

29062015

Not traded for few days. A family member was sick and was in hospital. Now discharged but need bed rest for a while. Posts will be irregular for the next two weeks. Nifty gaped down and moved down . Did not attempt a short here as I expected a pull back. I had an order at RN, but price reversed retesting the pull back high. Missed a good move. Long on BOF of BRN/IRL. Covered at RN. Another long above after a TRAP pattern. Covered above BRN as price was not showing strength

Scaling Up

I consider trading as a skill. Like any other skill, time is an important factor in trader development. It is very important to focus on skill rather than money during the initial stages even though the ultimate aim is to make money trading. If we cannot make consistent money with a single lot of Nifty, why trade big and lose more? First build the foundation. Fast growth is overrated. 

If you have been trading for a few months and the results are quite positive, you can think about scaling up. This has to be done slowly and steadily without affecting the psychology. Recently a reader wrote to me about this and we prepared a detailed plan. Here is it. Use this as a template to create your own plan

Initial Capital  66000/- (3 Months) Position 1 Lot.

Risk Per Trade 0.50% inclusive of commission 66000*.50/100= 330/-              (66000)

Maximum Risk cap for the day 3 losing trades 1.50% = 990/-

Maximum allowed loss in a week = 5% =Rs 3300/-

Maximum allowed loss per month=10% =  Rs 6600/- per month

Earn at least 200 points per month for 3 months continuously

Profit accumulated should be 200*3*25= 15000/-. Make capital to 132000/-  (Add 51000)

Position 50. Risk per trade 660/-  Loss per day  1980/-

Weekly Loss 5% @ 6600/-. Monthly Loss 13200/-

Earn 200 points per month for 3 months continuously

Profit accumulated 200*3*50 =  30000/-. Make capital to 198000/-                 (Add 36000)

Position 75. Risk per trade 990/-  Loss per day  2970/-

Weekly Loss 5% @ 9900/-. Monthly Loss 19800/-

Earn 200 points per month for 3 months continuously                                       (Add 21000)

Profit accumulated 200*3*75 =  45000/-. Make capital to 264000/-

Position 100. Risk per trade 1320/-  Loss per day  2970/-

Weekly Loss 5% @ 13200/-. Monthly Loss 26400/-

Earn 200 points per month for 3 months continuously

Profit accumulated 200*3*100 =  60000/-. Make capital to 330000/-                 (Add 6000)

Position 125. Risk per trade 1650/-  Loss per day  4950/-

Weekly Loss 5% @ 16500/-. Monthly Loss 33000/-

Go on adding an additional lot for every Rs 66000 of capital addition.If profit is less than 200 point a month do not count that month for adding lots.If makes a loss in a month reduce position size to half for the next month.Roll back to old volume only after earning 200+ points that month

Total capital to be brought in is Rs 180000/- if everything works well. After a while out of every 66000/- addition in capital , one third goes as Income Tax.Add another one third to the capital account and spend the rest.

Your suggestions and inputs are always welcome

19062015

Nifty gaped up above PDH. IR formed. Long on BPB of BRN. TP on FTC above 8220.Another long on BOF of BRN moved up breaking the early high. TP when price stalled at NS RN. Market appears to be  very bullish. Every dip is being bought. Stay with the bias.

17062015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
Could not trade today.After yesterdays vertical move some pull back was due. Price pulled back to MSP breaking PDC/PDH and RN. Even if somebody shorted break of PDH, market gave opportunity to get out. There was a long signal on BOF of PDC/PDH.Trade went to its target Range high. BOF of range high also hit the target PDC. But after a deep pull back. Long at PDH gave a nice move to 8120. There was another opportunity short on FTC, below MSP and below BRN

16062015

Nifty opened below PDC and BRN. Went short on TST of BRN on pull back with stop above PDC. I was not very confident about the trade . It gave 20 points. Avoided short into PDL. RN/NS RN was another barrier. Down move was not showing strength. Avoided trade into the strong flip on first BOF of PDL. Second one was BOF of LOD/RN and PDL. Long worked well. Shaken out prematurely due to micro managing.

15062015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis 
Nifty opened within previous day range and moved up. Missed the up move. Fall was also fast. Missed it also. Attempted a late short and got  stopped out. Long on the next BOF of PDH,PDC,BRN.Could not capture the full move . Shaken out at 8019. Attempted a short when price fell back into the range. This trade also exited early. No other trades

11062015

Nifty gaped up above PDH and got rejected. Missed the short there. Could have shorted aiming for a gap closure move through the Fluid. Never thought it will break the three strong levels. PDC, Flip and BRN. Short on BPB of BRN and could hold all the way to 8000. Another short at MSP which was also NS RN also worked well. Closed when it bounced from 8000. Bounce was short lived and a TRAP pattern gave another short signal. Could not capture this

10062015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Could not trade the last two days.Nifty opened near PDC and zoomed breaking PDH. Could not capture the move. Avoided BOF of BRN as the initial move was very strong. Nifty made a BW around BRN within the pull back corrective wave.Went short on BOF of range high. Covered on a TRAP like pattern when it climbed above BRN. Long on BPB of Range High. TP at RN 8150. On hind sight FTC at RN/NS RN was a trade that moved well

05062015

Nifty gaped down below PDC. IR formed. Went long on BOF of IRL. It was a grinding move up for a long time and finally took off. TP on FTC above momentum up move. I was hoping to go long at PDH on pull back. It quickly broke PDH, PDC, IRH and RN and bounced above these levels equally fast.Long on retest of IRH. Covered on TST of HOD. Final BOF of HOD and TST BRN was at lightning speed and I could not capture it

04062015

This is an illustrative example of the concepts being discussed.Markings are just visualizations on historical data in hindsight analysis  
Nifty opened within previous day range and moved up. BOF of PDC was too quick to capture. Skipped BOF of IRL as the trade was CT and against a quick down move. Shorted BOF of PDC,RN,IRH. But I was shaken out. Shorted below the IRL and it moved well. BOF of LOD was also a good trade.

03062015

Nifty opened below PDL/PDC and pulled back. I had a sell order at 8220. Price reversed before that without me .I did not chase as BRN was near. Went short on price pull back to BRN. This one gave a nice profit. Covered when it bounced from BRN 8100. Then the last impulse acted as a range and NF traded within it rest of the day. No other trades

02062015

Nifty opened near PDC and fell below PDL. Skipped the BPB due to RBI announcement. BRN was also very near. Went long on BOF of BRN as price has already fallen three legs from the open. Trade moved well. TP when it failed to move above BRN. Missed the short. Another long at BRN which was also  a double bottom failed and stopped out. Missed the next down move

URD has posted few videos on his site. Excellent work. Please do watch.