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.