Friday, 19 September 2014

19092014


As expected today Nifty remained range bound after a big trending day yesterday.  I was looking for the trade setup at the extremes of the range especially BOF, hence did not attempt a BPB trade above RN.  Then there was a minor BOF at LOD then.  Hesitated to take it because of PDH, RN above.

No trades today.

11 comments:

  1. Dave,
    If yesterday was a normal day(no big swings). Would you have attempted BPB at RN ?

    ReplyDelete
  2. xrtrader

    Yes, I would have attempted.

    URD

    ReplyDelete
  3. Daveji,

    How do you analyse the strength of BOF? Sometimes, even when the penetration is less, the rejection is very good and price runs away in the direction of BOF without making a second attempt to break the DP. How much importance do you give to penetration and rejection?

    I would like to know your thought process in judging a BOF.

    Thanks
    S.Karthikeyan

    ReplyDelete
    Replies
    1. SK

      I am aware of the strength of the DP but "strength of BOF" I do not know. If it penetrates more beyond DP, candle is wide, pin bar, closes below/above DP and then reverses, etc, can be considered as good BOF. Sometimes when second push to break the level fails, good BOF happens. Else it all depends on the strength of DP, strength of trend, order flow, location etc for its success. If the rejection is quick from the DP like yesterday's BOF of PDL, it gives more confidence. Many a times a break by couple of points or very few points is just a small SL triggering of other traders, like today's BOF of LOD. Real BOF traps lot of traders. It traps the traders who were already riding the move, it traps the BO traders.

      URD

      Delete
  4. Daveji,

    I am not sure, whether my blog deserves to be mentioned as a Decision Point Trader. Thank you so much for including my Blog in the list.

    One can learn a lot on what one should not do by going through my blog. I have done all the possible mistakes, a new trader can make - marking ranges, reading price action at DP and following the patterns mechanically without looking at the background information, to name a few. Hope someone can learn from my mistakes.

    Once again thanking you,

    S.Karthikeyan

    ReplyDelete
  5. Hi dave,

    I am a big fan of you. Little disappointed because you are not able to trade regular.I learned lot from you. Since my journey of 6 months decision point method learning i considered myself significant improvement. As like you i am working in bpo not able to spend much time and i liked you idea of adding more instruments like tata steel etc. I am looking forward your trade on multiple instrument and your observation.

    Thanks
    Arun

    ReplyDelete
    Replies
    1. Arunkumar

      Thanks for the nice words. I am working on that concept currently. I would like to observe with the DP method in mind, how the stocks behave, how they move when Nifty is in opposite direction, how much they move usually, what is the reasonable SL, target, and lot of other things before committing real money. There are few stocks which I am currently observing, like Tata steel, Tata motors, Hindalco, DLF. I will pick one out of them eventually. Idea is to trade two instruments simultaneously. Nifty and any one stock and trade them for a particular session, either morning session, say 9:15 to 12 or 12:30/1.00 pm to end of session. I will put all the details here, how to go about it before I actually start doing. I request you and others to share their ideas, suggestions about it.

      URD

      Delete
  6. @ U R Dave ji ,

    If you have excess time , then why not think about Crude Oil or Copper in mcx at evening time , these both contract have good volatility and liquidity enough to trade

    Thank you

    ReplyDelete
    Replies
    1. Vishal

      I do not want to trade for long hours, so exploring other possibilities. I have no exposure to commodities. I would like to ask you few things about it. Please enlighten since you have been trading them about the lot size, margin required, capital required, at what time slot we can expect movement, how the DPs behave, does price respect the DPs.

      Thanks

      URD

      Delete
  7. im thinking to trade NF (for intraday only).
    nifty options ( for intraday and also positional with max 1 or 2 lots)
    any 1 stock futures for intraday.

    ReplyDelete
    Replies
    1. Chandra

      First start trading with only one instrument. Once you get a grip and you become confident then only think about adding other instruments. In trading, focus is most important. You cannot afford to lose your focus, your attention in intraday trading. The moment it is lost, you won't be able to take right decision and goof up. Believe me, if you can trade Nifty future alone successfully, you will make fortunes out of it.

      URD

      Delete