MY STYLE - BLOG
My Trading Methodology
This method is suitable for traders who want to do day trading, but dont want
to sit in front of the terminal the whole day.
When the market is trending, you will normally only do1-2 trades per day.
When the market is ranging, because of whipsaws between long and short
directions, you will be forced to do multiple trades. In that situation, please
follow the rule, that after 3 trades you will not trade any more for the day.
In particular, if you hit 3 stop losses without any profit for any day, please
stop trading that day.
How does the system work?
For those who do only one trade a day, follow steps 1 and 2 and if needed
For those who can do more than one trade a day, please follow steps 1,3 and
1.THE FOLLOWING STEP IS REPEATED FOR EVERY TRADE
A trade call will be give on this site. You will execute this trade within
2-3 points of the call given. For example if short at 5512 is indicated, short
in the range 5509-5512. Long at 5512 means go long at 5512-5515.
Your stop loss, initially, will be 10 points away from your trade price, but
as soon as your trade is profitable, you will make stop loss = trade price +
brokerage or at least = golden level. We may change this logic slightly in the
coming days, but remember, the stop loss will always be close to the golden
2.FOR THOSE INTERESTED IN DOING ONLY ONE TRADE A DAY.
For those traders, who will not be in front of the terminal, you will wait
till the trade is slightly profitable in about 20-30 minutes, set the stop loss
and then do anything else. Check the status ocaasionally if you can or come
back at 2:30 to 3 p.m. and if the order is still active, exit it. Thats it..
One trade a day. You can also see step 4, if it will work for you.
3.STEP FOR THOSE WHO WILL MONITOR THEIR TRADES FREQUENTLY
Check if the trade has hit stop loss.If not, watch out for any exit calls for
the trade or if it reaches a target that you are happy with - say 20,30, 40 or
more points, you can decide to exit the trade. If the market is ranging, you
can exit the trade after 10-12 points of profit and wait for the next call at
4. FOR THOSE TRADERS WHO CAN REMOTELY ACT ON ORDERS YOU CAN DO THE
If you are able to telephonically talk to your broker, you can set the exit
target 20-50 points away from your trade price as well. In this situation, you
have 2 orders in place, one a stop loss and the other an exit order. Even if
you are away from your terminal, you will have to monitor the nifty futures
level, by calling your broker or using a mobile application or checking on a
news channel on TV. If either the stop loss is hit or the target is achieved,
you must exit the other order in the system. After that, you can await the next
call at step 1.
Abnash Singh, Am a Trader helping small traders to realize their dreams.