Day Trading with a Simple Strategy: Is it Easy ? :DNo 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
Daytrading
My Intraday StrategyI have a very simple Intraday strategy which works really good. I would like to know your comments, advice or any faults you think my system might have, do paper trade this before actual trading.
After market hours I scan stocks in the 15 min time frame to find out which stocks have broken above or below a range of say 20 bars behind. Meaning from last 300 mins range of the stock and a break above or below that at day end.
After seeing the breakout I generally see the volume with which the stock has broken the range either above or below and the closing price at end of the day. If the volume is above average till the end that gives me an idea that the probability of the stock moving in the direction of the breakout or breakdown is more at the next day opening.
RSI or the relative strength index plays a crucial role too. In case of a breakout the RSI should be nearing 70 and ready to cross it from below ie sloping upwards. In case of a breakdown RSi should be sloping downwards and ready to go below 40-38-35 levels from above.
When these three factors come into play, I decide the price at which i will keep a buying stop order in case of a breakout and selling stop order incase of a breakdown and place the order after premarket close ie at 9.07am. I immediately place my stops as soon the market takes my orders.
I will wait for 45mins to an hour to see if my trade entered is moving or then i exit at CMP.
Youll can see from the ideas that i have published that mostly i do get good quick trades. except todays HDFC bANK which isnt going anywhere.
Please let me know your feedback!
Thanks
