Trading Strategies Using Technical Analysis

[rajesh.sadhanala]

We must add in our winning positions and stay with our positions as long as the trend lasts. But the reality is most do not come out of their "which entry method" dilema and hence do not go to the stage of considering other aspects of trading which are absolutely essential in making a shift from " marginally profitable trader" to a trader who is pulling out serious money from the markets.

Good that you created awareness of these things being important....

Smart_trade

The point of marginally profitable trader to a trader who is pulling out serious money from the markets is very very important..

We have to grow slowly with time or else it will be stagnant..

Money Management & Position sizing and changing the direction of trades becomes very important with time..

Somehow scalping doesn't help in the long run if we dont know how to enjoy the complete trend.. Its my point of view.. Thanks for creating that awareness and hope our trader friends look it in the long run instead of just making money for the day..

Cheers
Raj

 

[jagankris]

Somehow scalping doesn't help in the long run until if we dont know how to enjoy the complete trend.. Its my point of view.. Thanks for creating that awareness and hope our trader friends look it in the long run instead of just making money for the day..

Cheers
Raj

I agree with you Rajesh.
At least I haven't seen or heard successful stories of any scalper with in the forum or outside.

 

[rajesh.sadhanala]

I think unless the trader is really savvy to what is going on and understand the nature of trends and margin management, adding can be very risky. There are many examples, but I'll name a few:
1. Trader enters the trade, and then it starts to get gains. It pulls back, then he decides to add a position. It continues to pullback, and both positions are stopped out. One ends in a gain, and the other in a loss, and more often than not, they balance each other out.
2. Trader loads up, and position moves in his favor. He's excited, so he loads up some more. Trades go against up him and his account margins out.
3. Trader enters a trade, and he knows he got it right, but the trade goes against him. He loads up some more after it continues to pull against him, and it continues on its contrarian path, and then gets stuck with a horrible loss.
4. Trader adds a position, market goes sideways. Equity is tied up, so he cannot enter other opportunities.

1. Trader enters the trade, and then it starts to get gains. It pulls back, then he decides to add a position. It continues to pullback, and both positions are stopped out. One ends in a gain, and the other in a loss, and more often than not, they balance each other out.

Usually I add at the pullback
100 buy price moved to 120.. pulled back to 115.. I dont add at 115 coz we dont pullback is complete or a reversal.. so again the trend is back with a shorter timeframe.. May be 118 or even crossover of 120.. Now my stops moved to 115..
Stops keep trailing n sometimes may have to close at the break-even

2. Trader loads up, and position moves in his favor. He's excited, so he loads up some more. Trades go against up him and his account margins out.

I never do that unless there is a pullback.. will wait for a pullback to add..

3. Trader enters a trade, and he knows he got it right, but the trade goes against him. He loads up some more after it continues to pull against him, and it continues on its contrarian path, and then gets stuck with a horrible loss.

I do averaging at down sometimes but not while going down.. only when moving up with a very strict SL..

4. Trader adds a position, market goes sideways. Equity is tied up, so he cannot enter other opportunities.

Added a position expecting a move.. with time, still hanging then close the trade even if it for a min loss n look for a better one..

I have been trying all these in my trade plan.. I am very novice n beginning of my trading..

Regards
Raj

 

[anuragmunjal]

Usually I add at the pullback
100 buy price moved to 120.. pulled back to 115.. I dont add at 115 coz we dont pullback is complete or a reversal.. so again the trend is back with a shorter timeframe.. May be 118 or even crossover of 120.. Now my stops moved to 115..
Stops keep trailing n sometimes may have to close at the break-even

2. Trader loads up, and position moves in his favor. He's excited, so he loads up some more. Trades go against up him and his account margins out.

I never do that unless there is a pullback.. will wait for a pullback to add..


Dear friend

In my exp.. if u crosscheck all ur trades, whatever little u save in 7-8 trades when u add on a 'pullback', would be much less than that "one missed oppertunity",where the pullback would not have been decent enough to merit an add and the market would have just gone in a single direction. I believe if u add up that oppertunity cost of 'the missed trade', u would find that saving a few rs. in a few trades is not such a good idea.

regards

 

[anuragmunjal]

Usually I add at the pullback
100 buy price moved to 120.. pulled back to 115.. I dont add at 115 coz we dont pullback is complete or a reversal.. so again the trend is back with a shorter timeframe.. May be 118 or even crossover of 120.. Now my stops moved to 115..
Stops keep trailing n sometimes may have to close at the break-even

2. Trader loads up, and position moves in his favor. He's excited, so he loads up some more. Trades go against up him and his account margins out.

I never do that unless there is a pullback.. will wait for a pullback to add..


Dear friend

In my exp.. if u crosscheck all ur trades, whatever little u save in 7-8 trades when u add on a 'pullback', would be much less than that "one missed oppertunity",where the pullback would not have been decent enough to merit an add and the market would have just gone in a single direction. I believe if u add up that oppertunity cost of 'the missed trade', u would find that saving a few rs. in a few trades is not such a good idea.

regards

hi Raunak & ST

I would request u to share ur view on the above post..

regards

 

[rajesh.sadhanala]

Dear friend

In my exp.. if u crosscheck all ur trades, whatever little u save in 7-8 trades when u add on a 'pullback', would be much less than that "one missed oppertunity",where the pullback would not have been decent enough to merit an add and the market would have just gone in a single direction. I believe if u add up that oppertunity cost of 'the missed trade', u would find that saving a few rs. in a few trades is not such a good idea.

regards

Its not about saving fews rs but trend continuation.. Imagine a second add on a continuation will make ur buy price to half and if there is a pullback.. it can break-even

You may be right but I am not comfortable adding when there is no pullback or sideways movement giving a breakout..

If I have missed any opportunity I do not like to chase..

 

[gauharjk]

Is there a new thread where you guys talk? Where is everybody?

 

[thestarvingtrader]

Enjoyed reading about the "What-if" syndrome. Thanks Swing King! The Starving Trader has been through quite the "what-if" phase himself and can relate.

May your trades be green!
The Starving Trader

 

[stud]

May your trades be green!
The Starving Trader

may the markets be in green been a dismal 3 months for the markets.

 

[MurAtt]

May your trades be green!
The Starving Trader

may the markets be in green been a dismal 3 months for the markets.

@ stud

Trades being green and Markets being green ....

Markets being green may still not give you positive results and u may still be at a loss.

Trades being green mean irrespective of markets being green/red .. you bank account is ever increasing ..

Now take your pick ... which one would you vote for if they are fighting for the SEBI Chief Election

And yes ... I need a reply bro