Friday, 30 December 2016

Nifty Future 30122016















It opened full gap and continued to move up in a straight line.  I was not comfortable with taking a BPB trade and skipped that.  Then it spent almost rest of the day in a narrow range.  Towards the fag end attempted direct BO trade which did not work.

Wish you all a very successful and profitable Happy New Year!

Thursday, 29 December 2016

Quiz on DP Trading System

If you like taking the quiz, here it is for you on the DP trading system.  Please go ahead and test your existing knowledge on trading with DPs and ranges.  Login to your google account is required.

You will get to know the total score once you press submit along with the correct answers.

Scoring less than 80%, i.e. less than 12 points out of 15, means you lack the basic understanding of DP trading system.  If the foundation is weak, how will you be able to build your trading career on it?


Click here for the quiz.



Nifty Future & Nifty Bank Future 29122016



It was a very quiet day till 2 pm today.  Prices were trading close to its intraday high for long time and refusing to move down from there.  It gave me confidence to take a direct BO of range high.  It tested the patience a lot before launching off to the next orbit.





It traded in the range for almost whole day.  Towards the fag end suspected a good move out of this range and attempted a direct BO here too which yielded well. 

Wednesday, 28 December 2016

Nifty Future & Nifty Bank Future 28122016















(click on the chart for enlarged view of the chart)

There was one good direct BO long trade setup which moved well.















(click on the chart for enlarged view of the chart)

It opened above PDH and was moving well in a trending fashion.  Could find a good setup till late afternoon.  Attempted a direct BO here also which got rejected from BRN.

Thursday, 22 December 2016

Nifty Future & Tata Steel 22122016















(click on the chart for enlarged view of the chart)

It opened full gap down and gave nice BPB of PDL/PDC setup to initiate short which worked well.  Later attempted BPB of BRN short which moved some.  Also attempted a TST setup kind of short trade at BRN which missed the target by 2 points.
















(click on the chart for enlarged view of the chart)

Tata Steel in the morning first hour refused to move and ultimately it had to move.  Took BPB of LOL PDL BRN short trade which worked very very well.  After that it started ranging and provided a nice BOF of Range High which reached the target Range Low.


Tuesday, 20 December 2016

Nifty Future 20122016















It opened at PDC and traded in the narrow range in morning hours.  Then broke down.  Looking at the momentum, got compelled to take BPB of BRN short trade which ended as a scratch.  After that it gave BOF of BRN which moved towards the LOD.  Towards the fag end, attempted long on BOF of LOD/Range low which moved well.

Monday, 19 December 2016

Nifty Future 19122016















It opened below PDL but lacked momentum and whole day just traded in the 20-25 point range.

There was barb wire pattern around PDL and the range was too narrow to trade.

The day ended without giving any good setup to trade.

In day trading as the trading costs are too high, it is important to learn when not to trade and how to avoid trading in such lull period.  Prices always give enough clues about it.  We just need to develop the ability to read them.

Not losing money in such period is as important as making money in the best of the times.

Thursday, 15 December 2016

Nifty Future 15122016















Due to the news flow it opened full gap down, but it reacted opposite and started going up.  Took the BPB of PDL long trade which worked very well.  While it was consolidating, attempted a TST setup trade at range low which did not work and missed the short trade.  Towards the fag end attempted BOF of PDC BRN which yielded some.


Wednesday, 14 December 2016

Nifty Future 14122016















It opened within yesterday's range.  There was a BOF of BRN/range low which I could not take as I was away.  Took direct BO short trade which moved well and reached the target PDL.  Then it reversed in V shape and gave FTC setup at PDC for the short trade.


Friday, 9 December 2016

Nifty Bank Future 09122016















Today I could not find a good setup to trade in Nifty Future.  But as I was observing Nifty Bank, found this wonderful setup to go long as BPB of PDH.  Later it started ranging and gave another opportunity to ride the trend and go long.

Thursday, 8 December 2016

Nifty Future 08122016















It opened big gap up and broke out PDH.  Entered long on BPB setup with the anticipation of today being type 1 trend day which worked well.  It turned out to be the type 1 day and with that confidence attempted a TST long setup at Range low.  It also worked well.  Towards the fag end, attempted a direct BO long which ended as scratch.

Monday, 5 December 2016

Nifty Future 05122016















It opened just above PDL & BRN and traded in a tight range for a long time.  Attempted a direct BO short below the range low.  It moved some.  Later it could break out above range high and attempted a BPB long trade there which moved very well.  There was no other setup.

Friday, 2 December 2016

How many Nifty points do I need to make monthly for living?

This is the most frequent and common question that I have been asked whenever I interacted with other aspiring traders.  In fact, frankly speaking, I was also looking for the answer to the same question when I started trading.  There were different answers to it, some said 200 points a month from trading Nifty is considered good for making a living out of it, some said 300 points, and some even said 100 points.  I thought no one exactly knew how much.

Later after some time, I realized it is not necessary to make 100 points or 200 points per month per Nifty lot for living.  I can make a living out of it even with lets say 10 points per lot per month.  Yes, you heard it right.  Let me explain.



Many traders pay so much attention to their long-term objective of becoming a professional, successful trader or expanding their trading account in the fastest possible way.  In that process, they make very little or no effort to figure out how exactly to achieve this in a more realistic way.  I was aware of this, so did not do that mistake.  Now, to achieve the goal of making a living out of trading Nifty, I thought if I set the goal of earning as little as 10 points per month per lot, since it sounds very little, it will be very easy to achieve it successfully and once I achieve it, I will be able to do a lot better and finally will be able to achieve the long term objective of becoming a professional trader.  I started doing some calculations like this,

Net 10 Nifty points per lot per month = Rs. 750 per month on a capital of Rs. 10000.

Then I calculated my yearly earning like this,

Rs. 750 per month x 12 months = Rs. 9000 a year.

This way if I calculate the earning on a capital of 12 lacs, it will be like

Rs. 9000 per year x 120 lots = Rs. 10,80,000 a year or Rs. 90,000 a month or roughly Rs. 1 lac a month.

My eyes popped up when I realized even though I make this tiny profit of Rs. 750 per month per lot, I will be able to double my trading capital almost every one year.  Then I calculated further and got amazed by the results.  It turned out that trading capital of around Rs. 12 lacs will be able to generate a monthly income of Rs. 1 lac if I am able to make as little as 10 points per lot per month. Furthermore, I really don't require this huge capital (not really a huge nowadays) at all for trading.  I will always have an option of using shares, gold, liquid funds etc as a margin for my trading and real requirement for the cash will be very less.

I felt I needed to understand the markets first, get proper knowledge of trading and acquire some experience by simulating trading.  Once I do that and get equipped with all the knowledge, I can start with a very little trading capital of Rs. 10K.  My objective is to only make 10 points per month, month after month consistently.  I know if I am able to do that, within next few years of time I will be able to earn Rs. 1 lacs per month on my own. After that nobody will be able to stop me and only the sky will be the limit for me as a trader.

I decided to act on this.  I made an effort to understand the trading and markets.  The learning phase took lot of time.  It was very difficult to find a trading mentor those days. I had to do lot of trial and error method.  But I did not lose patience.  I kept on working on it until I found this wonderful DP method of trading.  After spending few years on it and finally achieving this goal of earning 10 points per month, I was confident enough to take up the trading as a source of living and I could quit the handsomely paid 9 to 6 kind of a day job.  

Now tell me, isn't it possible to make 10 points per month   You would probably laugh at me and say this is what I can make in one trade alone, actually more than that.  Am I right or wrong?  It is not necessary to trade only Nifty future or options.  You can set your goal the same way and can choose to trade your favorite stock, commodity or currency.  You can even pick the trading system of your liking, be it mechanical, indicator based or any other discretionary system.  You can also choose your number of trading hours. No need to be a full time trader.

Start small and then build up.

Go ahead and start working on achieving this goal. If you are able to earn 10 points per lot per month consistently for 9 consecutive months, you can contact me.  I will feel proud to associate myself with you and if required, help you get more funding for your trading. 

Nifty Future 02122016















It opened CT full gap and traded in the range for a long time.  Attempted one trade as BPB of Range High which did not work.  No other trades.

Wednesday, 30 November 2016

Nifty Future 30112016
















It opened at PDC and attempted to break it which failed.  I was thinking about taking a long trade there but it moved quickly and missed it.  In noon time it formed barb wire around BRN and traded in tight range for a long period.  Attempted a short trade on direct BO which refused to move well.
Later tried again direct BO of HOD/range high thinking it will have enough power to break the PDH.  It moved per expectation breaking PDH and moving much higher.

Today, also I am sharing with all of you the reasoning behind taking these trades which I discussed with two other traders during live mentoring session in market hours.  

Trade 1 with the chart and reasons behind the thought process:

Sunil, once we know we are trading the range, we need to find the way to trade that range.
Here you get a chance to buy at probable range low in an up trend.
There will always be two kind of setups.  One which markets offer us and one which we want them to appear on the chart.
Here this is what markets offered us.















Trade 2 with the chart and reasons behind the thought process:

seems to be barb wire around brn

Yes, but for last 20 mins trading below BRN.
and most importantly, at what point you would feel it is moving away from barb wire.
on break of blue dotted line or somewhere else













Trade 3 with the chart and reasons behind the thought process:

Now HOD can preset a good setup there.  BRN is not acting as a DP so we can ignore it.
HOD is acting as a range extreme.
Since trend is up, even a direct BO above this range can be tried.  It should have enough power to break the PDH.  But having said that, good setup is always above PDH.













You are maybe an engineer, IT expert, MBA or a simple graduate or managing your own small business.  You would have spent lot of money and number of years for your education and building up your career., so that you can live rest of your life comfortably.  But have you ever thought,  what amount of time and money you spent for building up day trading as a profession.  Are you putting your efforts in the right direction?   If not then think about it.  If it requires you to take someone's help to put you in right direction, never hesitate.  Go ahead.  Do whatever you can do to shorten your learning curve. and reach your goal  You will never get the second life.

Tuesday, 29 November 2016

Nifty Future 29112016















It broke out PDH without giving a proper entry and rallied till 8220.  After that started consolidating and attempted a long trade as marked.  It got resisted at HOD and did not yield much.  Later took BPB of BRN/range low which moved well.

Thursday, 24 November 2016

Nifty Future 24112016















It opened gap down and started trading in the range.  It attempted to break out the range and BRN above but failed.  Attempted a short trade here as BOF of BRN and Range High.  It moved very well. In the afternoon there was a good BOF of PDL and LOD which again moved very well.  At fag end it produced another good move after BOF of BRN.

Today the DP trading system was at its best producing good results at extremes.  Are you benefiting from it or still not able to catch these wonderful moves?  Please share.

Monday, 21 November 2016

Nifty Future 21112016

















It opened at BRN and broke down PDL within few minutes and presented a nice BPB setup to go short which worked very very well.  Later it spent some time in a range and attempted direct BO below the range which moved in favor some and then retraced back into the range.

Last weekend uploaded a fresh new website dptradingsystem.com.  Please have a look and give your valuable feedback.

Also checkout this promotional video on DP Trading System and the video tutorial.  Go ahead and share it with your friends and other traders as much as possible.  If you still have not subscribed to the video tutorial, what is stopping you to do that.  Thanks.



Friday, 18 November 2016

Nifty Future 18112016
















It opened within previous day's range and gave BOF of PDL without any entry pattern.  With that BOF in mind, expected range BO on other side and hence attempted direct BO of PDC/BRN which ended as scratch.  Then it broke out successfully but did not offer good R:R and hence avoided.  Later it came back into the earlier range and attempted short trade as marked which worked well.

Thursday, 17 November 2016

Nifty Future 17112016
















It opened within yesterday's range and traded in the range for long time.  There was a good direct BO setup below LOD but hesitated to take it because of multiple levels below it very close.

Wednesday, 16 November 2016

Nifty Future 16112016
















It opened big gap up which got sold off quickly without giving an entry point.  After bouncing from PDL it started ranging and when a BO attempt failed entered into a short trade and scratched it.  After that attempted direct BO of range high which moved till BRN and allowed partial exit there.  In afternoon, entered again into a short trade on acceptance of prices back into the earlier range which moved well.

Here, I am sharing with all of you the blogs that have been recently created by the DP traders for maintaining their trade journals.  Have a look and appreciate their efforts.  It may encourage you to maintain your journal like that.

Saurav

Prabakaran

Gururaj


Tuesday, 15 November 2016

Nifty Future 15112016
















It opened full gap down and started falling.  Took first trade as BPB of BRN which moved very quickly.  Second trade was at BOF of Range High then which moved well too.  Third trade was again a short trade on direct BO of Range Low as marked by dotted line which also moved well.

It has been a month now since Sunil and Saurav joined me for live trading and mentoring during market hours.  I thank you both of you for keeping a faith in me and being a good disciple.

Friday, 4 November 2016

Nifty Future 04112016
















Took two trades, both at the LOD then which was acting as range low also.  Could not find a good setup at range highs.

Thursday, 3 November 2016

Nifty Future 03112016
















It opened full gap down close to 8500 and started going up.  Attempted a long trade on BPB setup which did not work.  Later attempted short trade out of long consolidation which yielded some.

Friday, 28 October 2016

Wednesday, 26 October 2016

Nifty Future 26102016
















It opened full gap down.  Thought the momentum will continue looking at the setup and took a BPB trade which did not work.  After that it started consolidating and took a BOF of RN/Range High.  Waited for some time and finally it ended up as a scratch.  Towards the fag end, it gave a BPB short setup which yielded some as prices could reach BRN at least.


Tuesday, 25 October 2016

Nifty Future 25102016
















It opened gap down and sold off in a straight line without giving any setup to short.  Then consolidated and gave a good Pressure play setup.  Could not take direct BO and took it as BPB which yielded some.  After that it started chopping around BRN and PDL.

Monday, 24 October 2016

Nifty Future 24102016












It opened full gap up and took support at multiple DPs like PDH/PDC/BRN.  Traded in a tight barbed wire range.  Waited for the prices to come out of this tight range.  Took BPB of HOD which ended as a scratch.  Took a short trade below 8725 which was acting a range low which also ended as a scratch.

Friday, 21 October 2016

Nifty Future 21102016
















It opened at BRN and started moving down.  BPB of PDL was not a good setup to take the trade as the prices spent lot of time inside the master candle.  Then it traded in the range and gave a good Pressure Play kind of setup to go long above PDL which did not work and ended as a scratch.  The late up move did not allow a proper entry.

Wednesday, 19 October 2016

Nifty Future 19102016
















In morning it was expected to remain rangebound with bullish bias and hence took first direct BO above narrow consolidation which did not work.  After that BPB trade of Range Low which also failed.  Later there was a good BOF of DO/HOD/PDH but could not take it as found no suitable entry point.

Friday, 14 October 2016

Nifty Future 14102016
















Today expected it to remain rangebound and attempted a TST trade at BRN in the morning which moved well.  In afternoon attempted LOL BOF of Range High & BRN which reversed quickly without testing the lows.

It was the second day of live mentoring and I am happy that I could help a trader earn 30 plus option points. Lot of interaction takes place every day right from start of the day till EOD discussing when to trade, when not, what to look for, where to hide SL, where to exit.  What is a good setup and what is a mediocre kind.  For example, the BOF setup at around 1 pm was skipped and it was discussed live why it was necessary to skip that setup.

It is kind of an unique experience for me, but it demands lot of focus and dedication, so I am not too keen to continue mentoring during market hours beyond December 2016.  I wish more and more traders take advantage of this and benefit from it.

Thursday, 13 October 2016

Nifty Future 13102016
















Anticipated trend day in morning and it turned to be the same.  Took a short trade on pullback itself without waiting for confirmation.  Later there was a good TRAP pattern which did not work.

Started today live mentoring with two passionate traders and it was a good beginning as one of them was able to make 60+ points today. 

Wednesday, 12 October 2016

Tuesday, 11 October 2016

Success of an Options trader

Happy Dussehra to all of you.

On this auspicious day it gives me immense pleasure to share with all of you a success of a trader.  He approached me few months back expressing his desire to learn day trading.  He sounded very serious about taking the trading as a business and making it a source of living.  He subscribed to the video tutorial and spent a good amount of time understanding and grasping the concepts discussed in the tutorial.  He later even requested me to spend time with him throughout the trading day to help understand the trade execution and trade management under the emotions of risk of real money.  I decided to help him and we interacted during market hours and remained in constant touch for month after another.  This whole exercise proved to be a great asset to him in learning and applying the concepts to the live markets. He even went on to share with me his financial ledger report for the month of September 2016 with the precondition that I will not share his personal details and keep it anonymous. So here I am sharing the same with all of you, hiding only the personal details.  Remember, it is not just few trades that are shared but a ledger for whole month.  In very rare case traders share their financial ledger like this revealing everything.
Instructions:  Click on the image to open it in new window for enlarged view.


He traded with only 1 Nifty option lot throughout the month and as you can see, he came out as a winner at the end of month.  He started the month with minus 3099 and ended the month with plus 920, so making the profit of Rs. 4019 per 1 Nifty option lot in a month.

By any standard, this is a great achievement.  This is great because only 3% of the traders who attempt trading eventually make money and very few of these 3% are able to make huge money like this.  Rs. 4019 is really very huge when we consider the capital required to trade one lot of Nifty option and its profit making capacity.  It comes to around 20% of return on capital per month.  With this kind of return one can just double the capital in 5 months, and furthermore this is just the start. Once you are in a habit of making money consistently, only sky is the limit for you, and I am sure with the kind of efforts and number of years (almost 10 years) that he has put in to achieve this success, he will not only be able to maintain this success but reach new heights in the future. I wish him all the luck.









If you want to take the day trading as a source of living and you are really very serious about it and ready to do everything possible to achieve success here, you can find me with you.

Take the decision of killing a "loser" demon in you this Dussehra.  You can drop me a mail to charttechnicals@gmail.com.

Saturday, 8 October 2016

How to plan day trading for living


Image result











If you are planning to day trade for living, this post might interest you.  Here I share my personal experience focusing on how the average person, with extensive or very little trading experience, can enter into the arena of day trading and creating wealth with some preparation.

Some time back when I decided to day trade for living as a business, I felt I needed to do some preparation in order to ensure my smooth transition from a fixed monthly salary job to a volatile kind of earning through the day trading.  Due to the volatile nature of monthly earning in the trading profession, first challenge in front of me was to generate some sort of income through other sources so that I do not need to depend solely upon the trading for living.  I thought this other income was very much required because it would not only take care of my day-to-day needs but also it would give me mental peace and I would be more relaxed and not under undue pressure to treat the trading as the only source of income. If you are thinking about taking up day trading for living, I would suggest you to do some preparation like this, so that you can plan it out the better way.

My first priority was to become debt free by paying out my loans which I did.  After getting rid of loans and other liabilities, this is how I explored different options to generate some passive monthly income of around Rs. 25,000 which I thought would take care of routine expenses like grocery, utility bills, school fees for my kids. etc.

Interest income:
I had some funds that I saved over the years, mainly through PF, FDs and shares.  I decided not to utilize all the funds for the trading and instead put it into fixed deposit and good liquid funds to generate around 8 to 9% of yearly risk free interest income.  The amount of Rs. 10 lakhs was enough to generate monthly interest income of around Rs. 7000.

Sovereign Gold Bonds.  I went ahead and converted the physical gold of roughly Rs. 5 lakhs into the sovereign gold bonds to generate 2.5% of yearly interest income. This guaranteed me monthly income of around Rs. 1000.

Rental income:
I also had an option of renting out a small old property after doing some repairing work which I decided to do.  It helped me generate a monthly rental income of Rs. 5000.

Income through part-time work:
Since it was possible for me to work online at my free time from home, I decided to continue to do it for around 3 hours a day.  After all this is what I did and worked for 15 years. I only required to spare 3 hours post market close.  In addition to that I also involved myself in coaching and mentoring to help come up aspiring traders in a professional way utilizing my free time on weekends.  Working parttime like this helped me generate an average income of around Rs. 12000 per month.

So everything was there, available for me.  What I had to do was just plan it out properly to generate a continuous source of monthly income to keep me going in this highly uncertain day trading profession.  Every profession requires time and experience to get settled and day trading profession is no different.  There will be initial hiccups and initial struggling phase when starting out trading as a profession and hence it becomes pretty much mandatory to be ready with some other options.  I kept on telling myself everyday that even if I could not earn a penny from the trading, I would be able to sustain and hang on to it with the help of passive income.  This passive income was also very much necessary as I was the only earner in my small family.

Some ideas:
If you are planning on entering into the day trading profession as a source of living, I would suggest you to do some well thought-out preparation like this. I am sure you will have some options like this or something different which will work out for you for sure.  If you are living in a metro city like Bangalore, Mumbai or Delhi where standard of living is high, you may think about shifting to a much smaller town.  It will help you cut your expenses to a great extent.  You may have some piece of land in a village, which you can think about selling out to generate some funds for the interest income. You may be good at, for example, music or dance or writing or some kind of sports and you can involve yourself in coaching as a part time profession to generate some passive income.  You can even utilize your marketing or consulting skills for that purpose.  There are lots and lots of options. You just need to sit and assess your strength and weakness.  Once you do that, you will automatically find a way to better utilize your capabilities and resources, and you will be ready to take your first step into day trading as a business.

Monday, 3 October 2016

Nifty Future 03102016
















It opened full gap up and gave first setup in form of  BPB of PDH with the entry above BRN.  Then it consolidated and gave another setup at Range Low/NS BRN.  This setup makes the sense only if by this time you are sure about the type 1 trend day.  It moved indeed in type 1 trend day for the rest of day and proved to be a good setup to initiate trade there.

If you are a subscriber of the video tutorial, market gave you enough clues in the morning itself for type 1 trend day kind of a day. 

Thursday, 29 September 2016

Nifty Future 29092016















Today if you were aware of how to trade the news flow then only the day trading was possible.  News play a very important role in moving the markets and we cannot ignore it.  It creates the volatility and hence the profit potential for us as a day trader.  We need to know how to trade the news.  I have already discussed how to trade the news flow in my Video Tutorial and I hope the subscribers of the same would have benefited from the same. They could have covered the cost of tutorial today itself by trading only 1 lot of Nifty.

The important thing to notice here is the market reaction to the news flow which comes as a surprise or shock and that too especially during market hours. Any sizable pullback of 50 to 75 points during such news flow day is normally going to be used to create fresh positions by the traders.

I have marked the setup keeping in mind this sizable pullback.  Also that level was acting as a tough resistance and did not allow the prices to go further up.

If you could not trade with the news flow today wondering what is happening, I am sure next time if the same kind of news hit to the markets, you will find the setup like this to trade.

Wednesday, 28 September 2016

Nifty Future 28092016

















It opened within previous day's range and started trading higher.  There were three possible setups as marked on the chart.  First one was BPB of PDC.  Second was direct BO of the range and third was the reversal trade, BOF of PDH.

I also marked the ranges that played out during the day.  Notice how the prices traveled from one range to another.

Once you are aware of the ranges and know what the prices are doing, it will become lot more easier to trade with the system. 

Tuesday, 27 September 2016

Nifty Future 27092016



After yesterday's trend day, expected a rangebound move and hence when the prices came to Range High, shorted immediately without any confirmation.  There was also a direct BO setup in the afternoon just above PDL which moved well.

Monday, 26 September 2016

Nifty Future 26092016

As discussed on last post prices were showing weakness to go higher and today they confirmed it by breaking below PDL and trading at lower levels throughout the day.

I also marked S/R levels on chart yesterday and this is how one can trade those levels on Nifty Future.  Here are the Nifty spot and future charts.

















Here this is how one should try to read the prices.  "On Big Picture, weakness in bulls.  Opens full gap down - indicating weakness.  Takes support at NF BRN but fails to break above morning high indicating again indicating weakness. After trading in a narrow range breaks down below NF BRN and trades below BRN, which confirms the weakness.  After that it breaks the support level in Spot and trades below the support." So here is the opportunity and it is time to take the trade as BPB.

Always try to read the price action and be in sync with whatever you are able to read from the prices. You will most often get at least one good setup to trade during the day.

Sunday, 25 September 2016

Nifty Next Week
















Looking at the price action, it seems like there is weakness in the bulls for Nifty because in last two weeks, it gave full gap ups twice but soon prices started trading at lower levels instead of going higher.  Also looking at the daily, there may have been a lower high made.

So next week since there is no sign of strength in bulls, prices may remain range bound and may test supports more often than resistances.  All probable resistances and supports have been marked on the chart.

As a range trader, to my advantage, all the established supports and resistances will offer good trading opportunities.  If support holds, look to buy and if resistance holds, look to sell.  If the level gets broken successfully, look to trade in the direction of break out.

If you like this post, please share it on social media as much as possible for you.