Friday, 9 March 2018

Nifty Future 09032018

It opened gap up around PDH but did not sustain and moved down to fill the gap.  After filling gap, it gave BOF of PDC setup which moved sharply.  There were clusters of levels around PDH and prices had difficulty to successfully break them.  BOF of PDH & DO was a good setup again which moved some.  After that, it just remained range bound creating a barbed wire around PDH.  Once it consolidated enough for 2-3 hours, it seemed like prices were breaking out, but failed.  Towards the fag end it moved down sharply without allowing an entry.

Thursday, 8 March 2018

Nifty Future 08032018

It opened within previous day's range.  Once it failed to break PDL, it presented a nice setup to go long.  After that remained range bound.  At fag end, it did break out, HOD and PDH but it was too late.

Wednesday, 7 March 2018

Nifty Future 07032018

After a big move yesterday, there was expectation of it remaining range bound in the morning session.  Prices also behaved as per expectation creating barbed wire around PDL.  In the second half of day, it again made barbed wire around BRN.  There were two setups as marked in an attempt to trade away from barbed wire, but prices refused to move and continued to remain range bound..

Sunday, 4 March 2018

New Initiative

After a phenomenal success of Stock Future trading service, I am happy to announce launch of my new initiative Champion Trader website.  In this site, I have introduced a trading service for Nifty Options.  Trading Nifty Options on long side (buy side) only is becoming very much popular nowadays in traders.  I trade mostly on long side in Nifty Options so thought this way I will be able to help other traders too.  Also, in case if you are interested in learning to trade Nifty Options with DP and price action method, there is an offer for my Champion Day Trader video tutorial there. The site is just freshly made so not much content there right now, but surely in near future, I look forward to add some useful trading related material there.

Your wishes for this new initiative means a lot to me.

Friday, 2 March 2018

Fantastic Stock Future Trading Performance for year 2017

Click here for my February 2018 stock future trading performance report.  Results speak for itself.

This month I focused on trading less but only a good quality setup.  This resulted in very big number of profit making trades.  Out of 16 trades, only 3 trades hit SL and couple were scratched in a very minor loss.  January 2018 was also a super profitable month.  Last year in March when I started this initiative, I never thought stock future trading would yield such super gains.  I say with proud and immense pleasure that there was not a single negative month.  All 11 months have made money, some months less, some months more, but that is how trading goes.  Click here for year 2017 performance.  Now with these initial two good months and higher overall volatility in markets I can sense year 2018 is going to be a very profitable year for intraday trading.

There were lot of traders who took the decision to join me for trading and traded for around one month or so, but could not continue further.  The reasons for stopping trading were like this.  Most of them were looking for either holy grail or wanting to become overnight rich.  Few of them could not handle the pressure and stress of short term trading.  Some of them even doubted my ability as a trader.  Some had issues with basic volatile nature of stocks and slippage.  To cut the long story short, they all failed to accept the basic nature of trading and trading as a process.  One needs to evaluate this trading as a process after a series of trades.  If we assess one week's performance or one month's performance or few months worth of performance, we will never be able to assess its true great potential that trading has to offer.  If you closely assess year 2017 trading performance, you will find October and December month produced very little profit.  In other months, there were also few phases where 4 to 5 trades consecutively hit SL.  If someone starts to get worried seeing consecutive losses and few rough months, he/she will avoid trading and never be able to get benefit from this trading process once it starts producing great results.
As you know, in a one-day cricket match, game is played for 100 overs and we assess the performance of a team based on how it overall played for 100 overs, 50 for fielding and 50 for batting.  We cannot assess a team or team player based on performance over last few balls or few overs.  Same way, we trade for long term, for next 5 years, next 10 years or for rest of the life.  During this long period, we are going to take hundreds and thousands of intraday trades.  So when we are going to trade like this for years to come, why do we need to assess the short term results of last few days, few weeks or few months and then judge performance.  It will never give us correct answer.  This is the reason I have produced the results of last 11 months (since I started trading it) here so that you can get a fair idea and assess it better.

On the other hand, Kiran, Vivek, Jimit, Yashraj, Raja, Ravii, Anu Anand, Kirana DS, Dinesh Kumar, Sundara Reddy, Vinayak had total faith and confidence in my ability as a trader and their ability to follow my trades with discipline.  I thank them from bottom of my heart for believing in me and associating with me over this 11 month period.

Now let me share some success mantras:
  • Good accuracy of 60%:  To achieve this high trading accuracy, I focus only on high probability trade setups.  For that I try to find a reason which will make the prices move.  Range breakouts, reversal and news flow in my experience offer a great potential to make the prices move.  So this is what I try to trade.
  • Good risk reward:  I trade only if the setup offers 1:2 risk reward ratio, else I will let it go.
  • Limiting losses:  I trade with very tight, small SL.  Also I will never overtrade and limit the max number of loss making trades in a day to 2.
  • Trading in best time slot:  Prices normally tend to move directionally in morning session due to several reasons, so 9:15 am to 11:15 am is the best time slot for trading and I trade only in this time slot.

If you follow these success mantras in your trading with discipline, conviction and confidence, I am sure nothing will ever stop you from making money in intraday trading.  

Thursday, 1 March 2018

Nifty Future 01032018

It opened and traded for the most part of the day within previous day's range.  BOF of PDL as marked appeared good setup to go long.  Ultimately it did break PDL but too late to trade.

Wednesday, 28 February 2018

Price divergence between spot and future levels

Today I would like to talk about divergence that appears between Nifty spot and Nifty future at High of the Day or Low of the Day.

Whenever prices break their low it is considered as weakness in prices and whenever it breaks its high, it is considered as strength in prices.  It is observed that when Future shows weakness by breaking its low but its underlying spot fails to break the low, it gives an indication that because the underlying is not showing weakness, there are good chances that prices will reverse.  Same way, whenever Future breaks the high but spot does not, it may soon reverse its direction.

Here are today's charts of Nifty spot and Nifty future.  See what happens at Low of the Day.

There was clear divergence at LOD.  Future did break the low but spot did not. 

Now lets have a look at divergence that happens at HOD.

So while trading BOF of LOD or HOD, it makes sense to also look at spot chart and see whether there is divergence or not.  If the spot shows strength, it is better to trade the strength.  If spot shows weakness, it is better to trade the weakness.

For successful intraday trading, there is no other alternative but to develop the skill of reading price action.  Reading strength and weakness of price like this is one such example.  If you are really serious in trading with price action, I would suggest you to go for the Champion Day Trader video tutorial where I have demonstrated in more detail different other ways to assess strength and weakness of prices.  Once we develop this essential skill, waiting for the desired setup to occur patiently and then trading becomes much more easy.