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

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

Comment:

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.

Comment:

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

Comment:

Nice little scalp from 448 to 445

Comment:

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

Comment:

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