Selection of Instrument for Trading

As i have read the earlier post of URD in his blog that commodity trading can be an option to aspiring traders who are working in a permanant job becos of below reasons:

1. Commodity Market operates till 1100 PM so we can have a trading session of two-three hours after completing the regular jobs.
2. commodity instruments has mini contracts which can used for trading while learning phase as the risk involved in mini contracts are less which is very much necessary for survival in market.
3. You can continue your learning phase in the time bound manner till the time you succeed.

Therefore i am choosing the Cruide Oil Mini and Gold Mini contracts for my second phase of learning and will continue to use the DP Method as the main focal point.

I will continue to post all my day to day learning on my blog and request to the readers to comment for any improvement.

27.09.2016 Tuesday

Hi Friends

It has been a long time when posted my last blog post. The reason behind this was that i was not able to sustain in Trading using the DP Method. I did not blame this strategy whereas there were many mistakes from my side which lead to the failure of my this term of becoming a successful trader.

Notwithstanding the above failure, i have not given up my spirit of becoming the successful trader and i will continue to strive for that. I have decided to complete few things in the coming days:

1. I am going to read the YTC PAT series again and will make up all my stuff of trading based upon that.
2. Thereafter i am going to read all the posts of Blog of "Nifty Nirvana" and "Chart Technicals" and will then fine tune my already prepared stuff.

When i will complete the above steps thereafter i decide my next course of action.

In between i will continue to post my experiences and EOD charts analysis as per my knowledge and experiance.

Wish all of you Happy and Profitable Trading ahead!

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18.04.2016 Monday

Could Join the market at 11:28. Observed that Nifty opened above PDH and sold off immediately after open. Selling came to pause at PDC and prices has already given BOF of BRN and PDH.  As previous trading session was a Type 1 Trend day. Expected a Range bound movement. Looking at the initial sell off, considered the general bias as Down and took the 2nd attempt of PDH BOF. Exited the position when nifty failed to clear the Swing Low in 2nd attempt.

Later observed at 13:03, candle BO the BRN and Range High. As the range bound day was expectedand also nifty was trading near its Range High, do not want to take long trade and decided to wait to give BOF setup by nifty coming down from the low of BO master candle, which did not happen. 

Took only one trade. Did not attempted any other trade.

The above trades are my view during hindsight analysis.

13.04.2016 Wednesday

Prices opened with trend full gap up and went upto RN. Thereafter whole day Nifty traded in tight Up Channel with barbed wire pattern. I was expecting the pull back to the point as marked and looking to enter on the pull back to that point which did not happen. Lately entered long when prices re-entered the channel after breaking the Channel Low Line.Exit the position on the top channel line.

12.04.2016 Tuesday

Prices opened near PDC within PDR. As previous day was a Uptrend Day and the todays open was within previous day range, it indicates the continuation of previous day sentiments. Looking to buy at range low.

Found BOF of day low in the afternoon. Entered Long and booked profit when prices failed to breach then day high at second time.

08.04.2016 Friday

Market Open near PDC within PDR. Initially tests the PDL and moved within tight range between BRN to PDL. Attempted one trade in afternoon as BOF of Range Low which ended as Breakeven Trade. 

This whole week, my performance has ended with No Profit No Loss Position and most of the trades ended as either Breakeven or stooped out. Prices has refused to give us any trending move. Whole week, prices has traded between ranges or price movements were very much volatile some days.

Lets see what's ahead in the coming week. 

Happy Trading Days Ahead and Happy Weekend.

06.04.2016 Wednesday

07.04.2016 Thursday

05.04.2016 Tuesday

Announcement day. Joined Market at 11:45 AM. Took only one Trade as BPB of Range Low and RN. Stopped Out.

04.04.2016 Monday

Market open with Gap Up in the direction of general trend. Initially failed to reamin above PDH. Expected to close the Gap. Nifty closed the Gap and given BOF Long entry setup. Entered Long. Moved my SL to breakeven when prices failed to move up from PDH in second attempt. Exited at Breakeven. I was expecting the breach of PDH and a re-test of BRN today. Prices moved in expected direction after my exit but failed to reach BRN. 

As tomorrow is the RBI Announcement day, Prices has traded in a very tight range during full day.

The day closed as Breakeven Day.

01.04.2016 Friday

Took First Trade as BOF of IRL. Exited at Breakeven when prices failed to breach IRH and DO. As prices failed to move up after BO from DO, decided to watch the price action as there were multiple decision points below it (DO, PDC, PDL and BRN). Expecting the entry setup at BRN. Took second trade as BOF of PDL. Exited at Breakeven at this trade also.

Took two trades and both ended as Breakeven Trades.

16.03.2016 Wednesday

ACTUAL TRADE

Prices opened within previous day range near PDL. Entered short on BPB of PDL. Exit the position at RN when prices unable to breach RN. Position yielded small profit.

Later noticed BOF of RN in afternoon but didn't took any position as i was not quite sure for the upmove as FED decision is upcoming today. This position proves to be best setup today.

IDLE TRADE

15.03.2016 Tuesday

BIG PICTURE ANALYSIS

Yesterday prices have traded in a channel and in late hours, prices has broken the upper trading channel line. Today prices Opened within previous days range near PDC. I expected the prices to trade within new price channel.

ACTUAL TRADE

Trade 1 -

Candle 1 -  Prices opened within previous day range. Nifty Sold out and closed below PDC and near PDL.

Candle 2 - Prices closed below PDL near Lower Channel Line.

Candle 9 - Candle made a Swing Low after BO. Decided to go long on break of this swing low.

Candle 19 - Enter Short on break of the Swing Low after PDL BO.

Candle 20 - Covered the position at breakeven as later i was not sure that prices will breach the Channel low. after exit prices breaches the lower channel trend line. and found support at BRN as i expected earlier.

Trade 2 -

Candle 30 - Prices made another pullback to the swing low of candle 9. Entered short again in the expectations that BRN level will be tested again. Ignored that prices has found support on Lower Trend line of channel on candle 29.

Candle 31 - SL hit and stopped out with small loss.

Trade 3 -

Prices traded in the tight trading range quite a long time. I expected to enter short on the confirm break of BRN and decided to enter on the weak pullback.

Candle 77 - 84 - Candle BO the BRN and traded near the BRN for sometime. Also it was Trading Channel range High. 

Candle 85 and 86 - Prices successfully BO the BRN. Waited for the weak pullback and decided to enter on weak pullback.

Candle 88 - Entered Short with stop loss to candle 83 High.

Prices moved downward and found support again on Lower Trend line of Channel. Decided to wait as i thought lower trend channel line will be broken on second test. But prices move above without re-testing the Lower Trendline of Channel. Moved my SL to breakeven point. 

Candle 107 - SL hit. Exit on Breakeven.

Lession Learnt : 

(1) When prices are trading in the Channel, Avoid taking any trade and if any trade is taken, then exit when prices found trend channel Upper/Lower lines.

IDLE TRADE

Prices open within previous day range with gap up of 26 points. Taken Long on BPB of BRN. Trade didn't move well as prices failed to breach the ten high. Exited at Breakeven. Again went long when prices refused to go below the BRN BO master candle. Exited on the FTA.

Missed two good opportunities, one is BPB as marked as i was not much confident as prices earlier breached the BRN once.Second is BOF of day high. I was expectin the wea pull back of the BOF or atleast prices will try to breach the PDH one more time which did not happen and prices went down.

Monitoriing Nifty Spot

Hi All

From some days, i am monitoring the nifty spot index along with the nifty future chart and found it useful. By using this, as a begineer, i am able to avoid various low probability trades which will hit my account. Also on NS, we get various setups clearly which are not avaialble on nifty future chart.

I also read the Nifty Nirvana post regarding this. Link to post is:

http://niftynirvana.blogspot.in/2012/10/nifty-levels.html#comment-form

But in my view, monitoring nifty spot along with nifty future will gave me another edge as i will be able to avoid certain premature or low probability trades. For example, today NS has given a clear setup of BPB of PDC whereas on NF there was no such setup.

Although i need to walk a long to be a profitable trader. I have also noticed that by monitoring Nifty Spot, i am also taking less loosing trades.

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