Hello fellow traders who made it big,
I started trading a year back without much knowledge on daily trading. During the initial period, without any tech analysis, charts, i was able to scalp a 50ps-2rs profit on some stocks. Was profitable too for some time. To earn more, started reading lot of books/videos and now have a grasp of TA, but started loosing money big time. My trading capital just down from 1.5lakh to 50K now. How i lost money: choosing to trade on the tips providers/broker calls. etc.
Now i want to start afresh and NOT to loose so much money. After analysing the chart for the past 3 months, have come to some trading setup which i give below:
1. No trades for the first 1 hr.
2. Note the High and Low within this period.
3. If market moves higher than High, then go Long with a 15pt SL and initially 20pt profit. and trail the SL.
4. If the low is breached, then short with the same MM.
5. If the market hovers within the High and Low even after 1.30hrs, then go long/short only when the High/Low is breached. If not no trades.
Does this sound practical. I couldnt write a suitable AFL in Amibroker and couldnt backtest. But on seeing the chart for 2 months, looks valid.
I would request experienced traders/strategist to comment on this.