Day Trading with a Simple Strategy: Is it Easy ? :D

Sep 7, 2017

No absolutely not, its not easy. Perhaps the most difficult type of trading is the intraday trading. Reason being we have just 6 hours to accommodate our trades, and most of the time stocks dance here and there before giving that 15 min. to 30 min. window in which they give trending moves. I always get ready to lose when I day trade, but I always know how much risk to take.

Today I had a small trade in Mindtree which I thought is worth sharing on TV.

Mindtree has been in a downtrend on the daily and hourly charts.

I watched it consolidating yesterday. Today it started the day with a gap outside yesterday's range and quickly retraced back to the range. It was first sign of weakness.

Second Candle A had a nice bounce from the support but that was not enough to initiate long. When the stock is in a long term downtrend , I can't buy just on the basis of a bullish candle on a lower time frame chart.

Candle B bounced from 449.50. It was huge, positive and above average volume response. OK.. we can take some risk if this trend continues but no continuation seen.

I placed a sell stop order just below 449.50 along with those fellow traders who bought in candle B and placed their stops below the low of this candle.

In the very next candle sell order was triggered. I placed a stop loss order just above the high of candle B.

The very next candle C was scary for sellers like me, a long wicked hammer with nice volume.

Although I did not had a chance to sell at the low of this hammer, I decided to trail -- remember an old saying, " Let you profits run".

I trailed every 15 min. candle and got stopped quite near the low of the hammer.

Although the trade looks small it was a little short of 1% the stock's value.

This trades quickly turned into favor but this does not happens always. So its good to follow the trend; look for patterns and ranges and play as per convenience.

Hit like if this information was interesting.
Trade safe, stay healthy.

Regards
Bravetotrade

Sep 7, 2017

Note

I used BOS confirmation method, see following post. Although it was a low probability confirmation method yet it let to a strong break down with no PRR opportunity. So friends it's all about the price action before breakout. The consolation looked like a base as if the price is going to shoot but when it broke down, the whole sentiment went bearish and it could not look back.

Sep 8, 2017

Note

Have a look at today's chart. A possible PRR trade.

Sep 8, 2017

Note

Nice little scalp from 448 to 445

Sep 8, 2017

Note

Currently there is lot of divergence. Seems like pullback is starting on upside. Let's see.

Sep 8, 2017

Note

Just see what happened when yesterday's psychological level was broken again today.