Definitive guide to swing trading stocks pdf

Definitive guide to swing trading stocks pdf

Author: domen1 Date of post: 17.06.2017

Madan is part of our illustrious top 25 traders from almost who trade at Zerodha. Following is the very interesting interaction I had with him on his journey, his trading and money management strategy, and more. Worked in the US for 5 years after graduation, came back to India for good in Wife is an M. S from Virginia Tech too. Have always wanted to do something more than a kind of job, and had tried various ways of making money part-time. I had always been fascinated about the idea of financial markets from young, but got exposed to it only when I went to US for my masters.

What also helped then was that I worked from home, and hence was able to trade part-time. I tried all kinds of indicators, backtesting, and only then trading on them. I was spending quite a bit of time, to figure out a strategy that can tell me what will happen next.

Out of desperation to recoup the losses, started taking random impulsive gut trades as well. It was a completely new perspective to how I was trading previously, instead of worrying about finding what happens next I started to now think that every moment in the market is unique, I started looking at trading more as a study of probability. Came back to India for good intraded the US markets in the nights for a while until waking up and trading when everyone around was sleeping got to me.

This is when I shifted to Indian markets and started trading on Nifty and Banknifty. When trading stocks, you are taking a chance of trading against an insider who probably knows more about the stock than you, lowering the chances of winning, not the same case while trading indices. Price action is a form of technical analysis, but it is unlike most indicators that I had given a shot when I started off. Most technical indicators usually try to predict the future based on past prices whereas in price action trading the main focus is on the relation of the current price to its past prices.

So if you look at my chart, you will find no indicators, not even candlesticks, just bars. Price leads indicators always. I never wait for a pull back, always entering only on breakouts. There are no predefined stops, stop loss is based on the previous pivot low If I am long and vice versa when short. I just keep trailing them when market moves in my direction. Similarly there are never targets put, I cannot put my will on market by putting a target.

I typically end up taking around 15 trades on Nifty and 15 on Bank Nifty in a month, usually lasting between 3 hours to 5 trading days. Using fixed ratio, I increased my account size from a few lakhs to a decent size now. It has only 1 variable, called delta. Assume you have Rsin your account and you have found the maximum drawdown to be Rs for 1lot. You can now increase your trading size to 2 lots once the account balance goes to Rsprofit of Rs 20,and so on. If the account balance goes down, you reduce the size, this is a very aggressive way and was good when my account size was small.

I strive to focus on process goals rather than profit and loss, but I guess money follows when you meet your goals. I hope the above interaction is insightful, do click here to read similar interviews with some of our outstanding winners of the 60 day challenge. Love playing poker, basketball, and guitar. Himadan just like you I also work on pivot and trying to make it more accurate, it will be great if you can contact me or share your no to me my no is I am in bangalore.

Thanks Kathiravan for suggesting this book…its really worth reading and following the things mentioned in the book. Madan, Since you play on breakouts of Pivots, what is your plan to tackle the slippage issue as your trading size will grow with time. And currently how much slippage do you face? Alternatively, i can go for an higher time frame, reduce the no. Thanx for your reply. How many lots per lakh you personally play? First of all Congrats for your success in the capital market.

I was wondering have you ever considered automating your trades for reducing the slippage? I think slippage is more when you trade manually. Yes — i have quite a bit of experience in automation trades when i was trading US markets…automation is something that has to really catchup in India for retail traders like us.

I keep all my money in the trading account. This is what happened. Lets say, i have 50L in the account — ini have made 1. Personally, i would not worry about the returns. I am not comfy revealing my account size in a public forum. Sorry about that even if its a range. Thanks for sharing these information so openly.

If you feel comfortable, I would need Date, time and place of birth. You could email me privately too at rtkaushik-at-hotmail-dot-com. Please post your questions in this forum and i would try to answer it. Congrats Madan — great to see you doing well…. Good to hear that it is possible to get consistent returns by trading.

I am just curious, do you have another full time job or you are trading full time? In case you have another full time job, how do you manage the existing position or enter new position while working? Very useful to traders. Do you trade options? What is yr, view on OPTION SELLING trading? I used to trade options before but completely stopped it as i was not able to place my option orders based on underlying instrument.

I might take some profits out of table, etc. Its is confirmed that different trader has different strategy to suit there personal behaviour and attitude. So its very dangerous to copy some one…instead one can choose any one trader method like Madan choose Mark etc.

Honestly, i am not sure how my idea will pan out in commodities. You said you use 1. If you trade 5 lots, do you keep about 6. Margin utilized will be only about 1. Is that for drawdowns that you calculated using historical backtesting? And i also know that Zerodha allows cross-margining. I am testing a rule based trading system. I have calculated a drawdown of nifty points after doing backtesting for 8 years data of spot nifty.

Now would you take Rs. How do you tackle that? I have certain rules to follow in taking the trades which i am not willing to discuss on the public forum for obvious reasons.

Madan, first of all double congratulations, me lossed lot of money in market. I am expecting positive response from your end.

Swing Trader Guide Review

VIJU PAUL very very useful to traders congrats Madan…!!! Thanks for sharing your experience….!!! Congrats Madan…… Winning in a row 3 times goes great…. Just want to ask: I mean more liquid TFs are 15 min or 60 min? Whipsaws are independent of the TFs as it all depends on the SL right?. I know somebody might be thinking 1 min will give more whipsaws than daily TF. Well, it depends on the market. I have personally seen traders who perform well with small acct like 1L but cannot perform in the same intensity when their acct size is 1C…lot of psychological things are into play here.

When the acct size is 1L, you can afford to lose the account and fund it again. But, when the acct size is 1C, fear of losing is extremely high as its big amount…. Thanks for your earlier reply… I am also a pure Price Action Trader however trade using the daily charts and both Nifty and stocks… Based purely on anecdotal experience, in the last few months, I have been struggling since there are higher than usual false breakouts and breakdowns — bull and bear traps….

If your system has seen this before, there is nothing to worry about. To answer your question, i didnt see this in my system. Hello Madan, First of all congratulations to you. I feel much more confident knowing consistant results can made trading. I would like to make a career of trading too. I am free right now with no commitments and I wish to make the best use of this time. Note to Zerodha — I would also like to see an option where we can enter trades based on another security or index.

That would be a nice tool to have. Thanks to Zerodha for making an initiative to help traders by connecting them to already successful and helpful traders. You guys are doing a great job. And a suggestion — More questions in the interviews will surely help us. I have a few questions. And making up for losses with pocket money.

So, it will help me immensely if you answered my questions. I usually put on around trades a month. Is there an online resource or a book that helped you with it? How many points away do you place your limit price? What has worked best for you? If so please share it with us. Congrats for sticking with the market for around 3 years.

Thats where your money is made. I have also seen quite a few intraday traders making money but not seen many staying in trading for a long time. So, you are better off leaving that thought outside your doorstep. Some of my trader friends do SAR and quite a few, uses discretion in SAR system itself. One losing streak would shake their confidence and eventually, they fade out.

Honestly, there is no book involved in my learning. Nithin asked me the same question and i said it is just sheer number of screen hours. It depends on the position size. I still do it every day. Madan, Thanks for answering all the questions in detial.

Its nice to know you are originally from Chennai: I probably have to look at positional trading much more actively.

And thankfully I have never tried to find the holy grial. Its only the ideas I lack. And for the VIX part. I agree it reflects the current volatility but there are still times when VIX is very low and the market swings crazy at certain price level. But on a general level it sure works well. Anyways, it doesnt affect me, as far as entering positions go. I wish it concerned me: It probably is of a lot of importance to someone who trades larger sizes like you.

It will take a hell lot of time to talk about War stories and other good stuff. We have a small meetup a group of 4 traders in BLR every month its a closed group. If i start typing stories here, i would have to spend the next hours typing. I have a dilemma. All the PIVOT calculating AFL that I have reference future quotes and will give superlative profits in back-test. In other words you are trading from experience and gut and cannot back-test your system.

Now since Pivots are pivots only in the hindsight, you gotta have a second indicator or a price action strategy to decipher fake ones from the real ones. Am I on the right track or totally off it here!!! Backtesting is a skill and when i backtested my idea in esignal, i go through each and every trade manually to see if there are gaps against me and discount those pts from my system.

Again, you are thinking there is some secret here. Believe it or not, there is none. Could you please post a chart with a few recent trades. It would go a long way in helping new traders like myself understand.

They do not see that he paid 70, dollars as tution fee before he could make one successful system. He clearly told that he is facing points of slippage at those entry points in one of the reply ,the more his system will be made public the more will be the slippage at those points then Why should he make his system public? But most of us do not want to burn those many hours of Hard work. All we want is ready made system which is proven and tested.

And I am sure even if he gives his system most of them will NOT be successful, until and unless they make their own system depending upon their own style. Remember your last big Loss, Was if because of some Trading system or because of your own hesitation to cut the loss.

It is evident that most of the big loss happens because of psychology and bad money management and not because of any trading system. People should take inspiration that Money can be made in trading and then put the required hard work to earn from markets. There is no free lunch in this world. Dude, we all know that he has worked very hard to come to this level.

Yes, we all pay tuition fee to the market. There is nothing wrong in wanting to learn from someone who excels in trading.

He said it was trading breakouts with visual pivots. All I said was it would go a long way in helping someone new like me to show it visually on a chart. What has that got to do anything with slippage? Slippage is a function of account size and market depth.

It has nothing to do with showing or not showing a chart. Those are previous entries which were already done. I always talk about money management, psychology, war stories, emotions involved inside and outside trading.

And i am not gonna change it here. You will not see a post from me depicting charts on what i do. Thanks for pitching in. I exactly know what you mean. I resonate your thoughts for other reasons. Not that its a secret, it just saves me some time on explaining it.

I was like that. Pawan, u said that Madan is not disclosing his strategy because he will face more slippage. Then why do u give calls? Do you trade options intraday in the direction of swing?

For placing trades in BNF, what is slippage for a small trader with lots? Just want to expand horizons, How big ppl trade? I am not asking your lot size etc here…. It depends on the market condition right? I have seen lots in nifty. Beyond that, impacts cost becomes really high and the edge gets eaten by impact costs. I am retail trader with a capital of 2 lakhs.

I would like to know if you provide any advisory services to clients by charging a fee? Kindly request you to give calls and help small traders make money…. How much ever i convince you that you will learn something out of it, its a lie. So, if you are gonna be in this profession for the long haul, please do yourself a favor.

To sustain long term — Get ready to lose some money, be ready to spend atleast 3 years of learning and have a understanding spouse if you are married. But, most of the times, the subscribers quit when there is a series of losing trades. There is no way to avoid this. And the worst part is if i am an experienced trader, i know this fact even before starting the subscription services. All i need to do is relentlessly execute my setup and i will make money maybe a delay of couple of years depending on my acct size.

Subscription service will negatively affect my psychology. I would feel pressurized to keep on winning and the regular crowd will never understand that losing streak are normal sometimes 10 in a row and they will keep questioning me whenever there is a losing streak.

I might come out strong here but if somebody who is looking to follow people get my message, my post is worth it. Please understand that i am not hitting on subscription services. All i am saying is that i cannot do it for the above mentioned reasons.

If other people are doing it, thats their choice. By far, this is your best post in this blog. It succinctly talks about the ill-effects of following a subscription service. You have literally nailed it. I see that your posts are coming out of experience. Thanks for your response. With all respect to your viewpoints, would like to post my views reg.

But for an individual with 10hr job and other responsibilities at hand, i feel it is difficult to learn the tech analysis from scratch, build a strategy, back test, execute, rectify etc. Easiest way is to follow experts like you who have spent enough time in building a strategy. If in long term, a strategy is going to make money, subscribers should be upfront told that a minimum time frame of 6 or 9 months needs to be kept.

So that subscribers who are looking for short term gains are weeded out. As you said you learned through experience, I hope even subscribers would learn with experience. But if subscribers are upfront told about the risks, i think it can be handled. Ultimately, it is one own decision to provide advisory services and from your post it seems you are not for it. Its upto the individual on following an advisory service.

I could not resist laughing at the 4th point and i completely disagree with the moral dimension you are bringing. I am not gonna bring up a discussion on this topic because it is not my cup of tea.

Actually, i need to thank Zerodha for letting me reach out to strangers and answering their questions. I love sharing with people and advisory service is not one of them as the monetary part of it skews things pretty badly. Hi Madan, After you started trading, how many years did it take you to become consistently profitable? I would urge all the traders to look at this video. By the way, i still use NOW not Nest for execution. I bought tips from calloption putoption, niftytech which are working profitabily I like option trading.

How I can win in this intraday trading in option. I wish i could help you. But, i do know that trading is not for everyone. You said you trade for 1 year. Do you have a Trading journal? If yes, what does it say? If no, why you did not journal your trades? How I have to work to drive in a right path? Madanji Sir i lost most of the money in market because of subscriptioni totally agree with you and have started trading myself sir i want to ask you how important is volume for you and secondly do u trade on expiry date or day beforesir pls reply Thanks.

But there is no guarantee that you will still win. Can i guarantee that i would be profitable this year? I cannot but i can really work towards it. So, start working towards it. I just manage the existing positions, if any. Hello sir i am working as prop trader in capstone securities analysis i am trading in us market i read u traded in us market,sir are you still trading in us market or left?

I could not keep myself awake until AM in the morning everyday. Can you please share specifically in which months you lost money trading during the last couple of years? Also, please specify whether it is calendar month or expiry to expiry.

Is there a specific reason on why you want to know this info? Would really appreciate if you could answer me the logic behind this question. By the way, i have mentioned the answer somewhere in this same blog in the comments section. I am testing a break-out strategy in live market with small quantity and would want to scale-up soon.

Wanted to check the performance of the strategy in those months which your system gave loss. Madan………Do you belive day trading is gamble? I prefer Positional highest lot was NIFTY lots……what about you……. Do you averege you losing position? I personally know few people who successfully daytrade but eventually, they have moved into some kind of Trading education business.

So, thats why i mentioned its very difficult to see a profitable daytrader over the long run. When my SL is hit, rest assured, i am out.

What is the good time frame for Swing Trading NF? Any inputs on this? You could try 30 min TF. But, we can never come to a conclusion on timeframes as you will always miss some trades in whatever timeframe we use. The faster we come out of all these small parameters, the better it is for a trader.

Congratulations Madan on achieving such a great success. In one of the answer you mentioned on visualizing technique, could you please elaborate more on that? Is it similar to meditation? Its a big topic by itself. Its basically training your mind to practice various ways of handling emotions while trading. It was very effective to me.

After reading the book, you would be able to connect the concept behind that book and trading. Please feel free to post your questions after reading the book. What if your systems gives you a signal on the day prior to a big event — like RBI policy or FED meet, do you take the signal and if you do take the signal then for such high volatility days do you have a deeper stop loss than usual. So, both my backtested and real trades did not take all these events into account.

Nowadays, i just keep track of them as i would get very nimble around 11 AM usual RBI announcement time in executing trades if i had to close out or create a new position. FED announcements — no change in the plan as it happens overnight anyways. Are you active in any trading forums like traderji or TSF?

If yes please let us know your id there so we can follow your posts over there. I post once a month avg in Traderji and i would not call myself active. Thanks Madan for quick reply. HelloMadan jiI have a technical querryi would be happy if u solve it ,even my broker was unable to answer it properly. TBQ is the number of shares waiting to be bought, and TSQ is number of shares waiting to be sold at respective prices mentioned in their limit order. I would rather not answer this question.

Do you do any kind of fundamental analysis or you do only technicals? What is your take on fundamental analysis? As i am a short term trader, FA is not even relevant to me. I follow only price. They aim to find a stock or commodity which is valued differently from what they believe is its true fundamental value. As price moves in a particular direction the indicators will follow, eventually triggering our novice trader into the market.

There is rarely any thought as to what caused the initial price movement, or whether or not the context of the current market supports continued price movement.

In my opinion, neither is correct. Trading is not a game of fundamental or technical analysis. Trading is a game of understanding people and how they make decisions.

True, your competitor is not one individual. Rather, you trade against the collective market which is made up of millions of other traders and investors all making individual buy and sell decisions. Price moves in response to the net order flow that results from all these individual buy and sell decisions.

If the net order flow is bullish, price will rise. If the net order flow is bearish, price will fall. Order flow moves price. Technical can be used. Both FA and TA works in trading. Real question is when we use it. You can buy here http: John talks about his proprietary indicators a lot. If i were you, i would skim through them but the book has some wise advice on psychology and money mgmt.

Infact, i made lot of psychological errors on the way that it negatively affected my returns my a huge percentage. Market slippages are not in my control but pulling triggers or not taking profits early whenever i see my setup, are completely under my control.

When i turned the corner for me, i was able to consistently make money. BTW, i am consistently profitable quarter to quarter for the last 3 yrs. Thanks for the reply sir. Just wanted to know the average over the past 3 years.

We are all so small infront of him. But, in this profession, everyone has opportunity to make decent money. Problem is scaling up. Great to see a consistent trader. I was skeptical about people winning only for a quarter but you are doing great. Zerodha — please write blogs on people who have won for a long time not just traders with exorbitant returns on 1 quarter or so. We can learn a lot from people like Madan. Madanji — How difficult it is to be consistent in trading?

I have a full-time job right now and i trade commodities in the evening. I would eventually want to quit my job but not sure how to go about it. Can you please let me know about the pre-reqs that are to be satisfied inorder to go full time in this profession?

Calculate your monthly household expenses i maintain a diary of my daily expenses and i have been doing that for the past 4. Have atleast 2 yrs of backup money — equivalent to your 2 yrs of household expenses.

This is extremely important for the first few years as you cannot trade to make money to buy onions and tomatoes. Initially, your goal is to trade right and not trading for making money.

This may sound counter-intuitive but this is very, very important. Another important thing is that you should be profitable maybe not by a great margin for atleast an year before you quit your job. This may come as a bummer but have atleast 10L in your trading account when you plan to go full-time.

Once you start making money full-time, increase your lots slowly def. Get healthy big time. Working out atleast 4 times a week is important. Congrats for your great success, I am also a full time trader and I am doing Intraday from last 3 years and still struggling for consistently profit. Congratulations on your success. Your answers in the comment section are extremely informative and valuable. In my humble opinion, it is actually better than the blog itself. Please continue answering questions and i hope more people share your interview in their facebook and twitter sites so that a large crowd of traders can benefit out of it.

Zerodha — What a wonderful interview. Your best interview so far by a huge margin. This piece is a real gem and the comments section is a reservoir of knowledge and wisdom.

Kindly do more interviews like Madan and no disrespect to others but this guy is amazing. Real knowledge is scarce in this profession and most of the people out there are just paper traders. As i live in Bangalore, i have a request to make with Zerodha. If possible, kindly arrange a traders meeting with Madan in Bangalore.

That would be the best new year gift to us. To be consistent, is it your experience playing out or your set of trading rules? For example, in my case, if I try to enter short based on my system, but if I see asia market closing strong and the US market futures in the green, I do not take short. Similarly, if the market is in points whipsawing, I ignore the signals and move to the higher level pivot.

Does it happen that you are waiting for trading days or more for your proper entry? Did you start with both the markets from the beginning or added NF or BNF later? But, my discretion usually makes money. So, i do not want nse bse trading holidays 2013 disturb the whole process now.

So, no watching of US market or losing sleep over it when US puts on the stock market crash of 1929 canada move against my position.

There are days where i go without a trade. Sometimes, uob bank forex exchange rate days as you said. I probably look at the screen not more than an hour a day. I have alarms set up at important price points and hence, no need to watch the screen continuously. I started trading BNF only from last September learn forex trading with bobokus forex training membership So, it was only NF until that point.

I got interested in BNF because of recent USDINR volatility. You mentioned that you put alarms at important price points. What are these price points?

What rules do you use to differentiate between important and unimportant price points. Hi Madan, Congratulations on your success and best wishes for the future. Every reply of yours clearly shows the level of understanding of the various concepts and the kind of hardwork mkt hours you have put in. Thanks for all the valuable inputs.

Finally managed to comeup with a system which I find my self comfortable with. The study of markets has in a way been a study of self. Thanks to Zerodha for helping us connect with wonderful people like you, who are so humble after all the success. Glad that you understood it. Zerodha, can you please introduce price alerts in SMS when a certain level in Nifty gets broken. So, i am not sure if you get SMS alert to an Indian mobile number.

I have never tried it. I have a quick question for you…. I would like to get MCX data in continous contract format for Multicharts platform. When i read your interview i didnt feel that much about your knowledge. But when i read all your answers from here then i realized your success not comes easy!!!!! Lot of dedication and hard work you done for that…. Congratulation sir …… sir, if you are comfortable pls share your software setup…. It will help us lot……. I appreciate your response.

I trade only NF and BNF — so i need only NSE data. By the way, Zerodha is coming up with their own software not NEST trader in few months. From your answers it looks like you only trade NF and BNF or do you trade any stocks too? If so how you pick particular stock for a day to trade? Do you use any screener for this? Hello madan, first of all congrats on your success. Traders like you are truly inspirational to all newbies.

Reading stories like these will make us believe that we too can be successful in markets provided we put in the necessary hard work and learn from mistakes. I want you to tell me how should i approach my learning stock market institute bangalore reviews. I just know want is nifty and options and futures.

I would appreciate it if any one helps me in this regard. I just dont know where to begin intraday or futures or options or commodity futures. First of all, welcome to the markets. So, please increase your capital base to atleast 1Lac. Lets assume it takes around 12 months to do that. Start implementing the ideas discussed in psychocybernetics — basically visualizing as if you trade properly with fine details some form of meditation, you could call …This is not some crap i am making out of thin air.

Trading is also a performance related activity like sports. If you can have the trading capital of 75kk and hkex trading day 2014 not trade but just patiently read books, understand things and watch the market — i think you won half the battle.

You can learn much more than that from books. Once you reach 1L or 12 months whichever comes firstit time to think about what to trade. For convenience purpose, lets assume its Nifty futures. I am assuming Nifty futures as most of the newbies automatically lean towards buying NF options for obvious reasons. Based on our assumption of trading NF, start with only 1 lot.

Here, you would start feeling emotions like fear of losing, greed, euphoria and so stock investing for dummies 4th edition. There is absolutely no way to handle the above mentioned emotions without experiencing it and market would take away your money while teaching you about these emotions.

This glencore share buyback 1L may last for a while. It depends on whether you are learning from your first account blow-up. If you have not learned anything from the first blow-up, mkt will again take all your money. But if you are learning from the mistakes and vow to yourself that you will never repeat the same mistake, you are much better off than previous phase and the learning starts.

Eventually, you will attain a point where the losing would be minimal but you would still not win much. I have assumed that you put in the work to identify your personality some ppl like short term trades, some ppl are swing and some are long term and also have identified an idea lot of work involved here too. But, if you are still looking for that idea which rakes in money every trade, you are still stuck in that vicious cycle.

I am assuming that you would have learned how to manage your risk in every trade money mgmt. Contrary to the popular belief of newbies, trading is not that easy. Millions of people all over the world come into markets to make their next million in a short period of time and they also vanish in no time.

So, if what i have said is not correlating with your belief on trading so far, putty command line options ssh are not alone. So, atleast for your sake, get ready to put the work in and you would be rewarded with fruits no timeframe can be predicted here. If you are looking for the holy grail, let me break the bubble for you. Does trader contribute in any way to economical progress?

It is a profession like any other but the lure of easy money is bringing people into it. Tell me a profession where anybody with some money can come and be a player. Trader is not contributing a lot to the economical progress but he does contribute a little indirectly.

Without traders, hedgers will not be able to transfer risk and hence, could be detrimental to the overall economy lets say, there is a sudden fall in corn price. If there are no traders, then investors cannot invest in a company and inturn, without investors, a company cannot stock options for mossberg 930 and which will inturn, affect the overall economy.

Many best ways to make money runescape 2016 p2p for reply. I had the same thoughts in my mind. Trading without education is NASHAI guess! You possess a great gift of explaining and writing things.

Anything we hear or read for the first time ever in life creates a new wire in the brain. A new wire is formed which will help you to see trading in a different perspective. I always needed books to create a new wire in my brain. I still read 1 hour every day on trading or biographies or some similar books. As a matter of fact, i have blown my account twice which equals to 70K USD but i guess Mark douglas book created that new wire in me about psychology.

I have a system trading scalping related to drawdowns. I am still trying to catch up on this concept to support for draw downs. How exactly do you use this? It is not to support drawdowns. It is just that i would like to keep my trading account money different from other things. Recently, i came to know seputar forex berita emas cross-margining can be availed through ETFs and i will convert the cash into Liquidbees pretty soon.

Its more like casual meeting of few friends. We know each other for a while now. You dont use FA thats clear but when you say no TA and no news thats confusing. I am not able to reconcile 10 min TF and trik jitu untung forex based approach without TA. Then do you trade order flow? Dont you feel its good for Newbies to start with some indicator than purely Price Action?

So a system with indicator will be little better than Pure PA esp. Please suggest some good strategy for a newbie like me.

This is only to paper trade or just with 1 lot trial trades. It will go a long way as we begin to study various books listed above.

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Of course he is very good trader and himself must be trading pure PA. So going purely google adword make money indicator will be tough. If you cannot be without indicators, thats fine. You will have to figure out something you are comfortable with. I never put down TA or FA. But, in my opinion, price precedes everything. If you are comfy with Indicators, pick 1 or max 2 and see how you can build a system with it.

I am sorry that i cannot suggest you any. People have various ways of trading the markets and i cannot say which is right or wrong. There innovene stock market nothing right or wrong. Again, you are asking me to give you a fish but i am saying that i make money on metacafe seen various fishes and i eventually figured out one kind of fish that is good to me and my stomach.

Trading is not about accomplishing things but it is about the journey we encounter. Please go and lookout what is comfortable for you. To say the least, its really putting me in an awkward position when somebody asks me to suggest an idea. Ideas are everywhere most of the books has something to offer but what is comfortable for us can be known only through one way — by trying them in real market conditions.

Are you maintaining any blog.? Not for trading calls or something but to give inputs in how to prepare yourself for a trade and other psychological stuff as i understood without a right mind set no one will succeed in trading or any other business, so it would be helpful if people like you give advices to newbies. When i start something, oecd employee stock option plans would like to devote my complete attention to it.

At this point of time, i am not sure if i can do any justice in writing a blog. But, i will think about it. I have 24 hrs backup in the place i live. Previously, i used to live in a place where there was no real backup. I used to have a big inverter that runs my PC and laptop for full 9 hours. For internet connection, i have internet dongle and have my brokers number handy. Another important thing to maintain is the trading journal. Identifying them being aware is the first step to understanding it.

Over a period of time, the emotion patterns starts to repeat and you can really work on them. One more question Sir. Do you do your analysis during the market hours or your setup is ready even before the market opens?

As i mentioned in the interview, the stop losses and entry point for new trade keeps changing as the day goes by. There is nothing much i can plan before the day starts. I would take both the positions.

Just have to manage the risk and position sizing carefully as both tend to move in the same direction. Earlier You mentioned that Trading is all about work from home jobs stillwater ok not accomplishment.

Does it mean that you are totally at the mercy of market movement by keeping unpredictable approach? Have you already setup some kind of alternate source of income? Or dependent upon your spouse? The moment we think we have accomplished something — we get complacent and get the feeling of pomposity.

My trades duration medical billing jobs from home in pittsburgh pa anywhere between 2 hours to 5 days. Hi Madan, i read the entire comments on this blog i really appreciate the amount of patience you have to reply to each and every question posted. Its a good question about that belief.

He explains the concept in detail. Madan, For trading Nifty Futures, do you watch min chart of Nifty futures or Nifty spot chart? Today was real testing day for tradersnifty took a U turn and wiped out all the profitsdid you loose or gain today ,if you gained today ,at what forex money management indicator the confirmation of sell signal came according to your strategy.

I am wondering how this information would help you in trading.

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I am not getting into details but i had 2 trades in NF. Please refrain from asking these type of questions. I could have easily not answered this question but i want you to tell me the logic behind your query kindly let me know. MadanjiSorry if u did not like the quei am also watching the market last 3 months after loosing money on tip providers I also got the same signal around Its not about whether i like the question or not.

I was only wondering how the answer to your question would help. Now that you are testing your own methodology, good for you. Keep forward testing it and if i were you, i would test your idea with 1 lot and see what happens in real time if your schedule permits you to do that. In my opinion, back joptionpane input dialog default text is not about samples but how long it has been tested.

If it option trading strategies spread include couple of market cycles, thats the best parameter to test your idea. I would say yrs fastest way of making money on runescape a must. There are strategies which trade only twice a week and there are ideas which have 5 trades in a day.

But ofcourse, anything less than samples is not gonna cut it either. I read the entire blog, really informative, thanks a lot to Madan for patiently answering all the questions, I started believing in visualization hence ordering the book PsychoCybernetics.

The principles discussed in that book is useful in even other does duke basketball make money of life. After all, our mind conceives and achieves what we intend to do.

Baba Ranchodas Shyamaldas Chanchad of 3 idiots says find some work in which you will have fun. But Warren Buffet says that if you are having fun and finding it stock market exciting, then perhaps you are on the wrong side. IMHO, this is the best thread i have come across. If i get the trade according to my plan, i execute it. I just follow my game plan — it does not matter whether i am in loss or profit. If i get a trade and if i had to close it within 3 hours, i do it.

If i have to keep it overnight, I always carry the risk of market opening adversely against me. Suggested Book by Van Tharp, mark Douglas, Alexander…. I am not sure forex trading dummy account to say Amol. If you have kindle by amazon on any device, keep a track of the deals that amazon.

Stocks could be a possibility. They might push up or pull down a bit at important support and resistance levels to shake weaker players out. But, none of these things can be proved statistically. As i said earlier in this blog, if i do scale out, i will have to test every exit as a separate system. I believe a traders edge outside of methodology textwritertracelistener traceoutputoptions not working largely dependent on how good he can manage the money.

So, my MM rules are working just fine so far. I am just fortunate enough to follow it to the dot. But, when there is a new Ruger 10/22 aftermarket parts canada low assuming we are longthat would be my new TSL. I usually keep couple more points below the Swing low as TSL. I let the market tell me what it wants to give.

By doing historical backtesting ho guadagnato con forex the idea, one can figure out the average R: Yes — I would obviously use the money i make in trading to diversify into various assets this is after taking care of the living expenses.

But, i see tremendous opportunity for wealth creation. MM basically what you are willing to risk to figure out if you are right in your market direction. Stock trading charges in india can be based on the account size, volatility of the instrument or some other criteria like that. But, the bottomline idea is still the same.

Very good read on MM. I have seen it being used interchangeably. But if one understands the concept well, it does not matter how it is called. We all know Risk is the possibility of loss. The instrument we trade or the loss we incur is not the risk. In the matter of trading futures or stocksand aiming for profit, risk is fundamentally unavoidable and the best we can do is forex trading sole 24 ore manage the risk.

By properly managing money 2. Inclusion of diversification and instrument selection into the back-testing process. Clear understanding of expectation of volatility and return to mitigate psychological breakdown 4. Sticking to the system. Market would tell me whether the trade is going to be intraday or overnight. I am not sure how a person could judge the size of the rally. People come into trading with a mindset that they will be able to come out easily when they are in profit and they would be able to cut their losses in a jiffy.

It is pretty simple but not easy…People confuse simplicity with easiness. You see where i am going with this. You will recommend a trader to go to gym for fitness or for yoga for a calm and composed mind? Which of two will you recommend? Sorry for asking silly question, but I personally feel it is important question for me.

But lifting some weights and doing cardio is of tremendous help to a trader. I used to hedge positions before major events but nowadays, i just reduce my position. I have told whatever i could in terms of entries and exits. There is no specific rule that would let me europe stocks to buy now on intraday or overnight.

If i am not stopped out intra day, then the trade is a overnight trade…its as simple as that. You said in one of the comments above that you dont believe in Market orders. However there is a risk zig zag pattern forex Limit order not getting executed in a fast moving market.

How to you manage this risk? I see whether my limit orders are getting executed. If not, if the market has not run away too much linux ftp upload command line me, i would enter in that price.

I would let the market come and fill me in or i have no trade. Recently, i have observed that market makes a good move up or down for a day and then gets into choppy days for next days. In such days, market will make high and then low and then take out high once again. These movements are limited to points move. How do you decide if you have to take long or short or again long based on your 10 minute swing pivots? Also, it is difficult to know if the next day may turn out to be trend continuation or reversal after such whipsaw day, do you book profits before end of day even if your TSL is not hit or always carry your position next day and not be worried about gap up and down?

It would be very difficult to explain the answer for the first question by words as i take some visual patterns into consideration. And, i am afraid that i am not gonna show a screenshot of the chart anyways. As you rightly mentioned,if my TSL is not hit, i carry my position over as i am not worried about the gap up or gap down situation. These gaps are a everyday phenomenon and it is inbuilt into my system put option definition finance default.

Thanks for your reply. Trading is simple royal dutch shell share registrars we start trading and once we become master, but the journey is difficult. After I learned the art, a punch was no longer a punch, a kick binary option indicators mt4 longer a kick.

The height of cultivation is really nothing special. It is merely simplicity; the ability to express the utmost with the minimum. Now regarding the first question, to put it another way, Generally I see myself having upto 3 trades in whipsaw days as it is not possible to know whether the market will be whipping up and down.

It is only in the evening we can see that we had whipsaw day and could have avoided these whipsaws by either not trading or keeping TSL at 2nd level pivot. No tightening or loosening of TSL and my TSL is always based on the market. MadanHow was ur day today? I think today was not a good day even for experienced people like uor am I wrong? Pls tell in relation to NIfty future. I appreciate your candid replies on this blog. Thanks once again …. You are an very thoughtful trader with clear mindset and learn to fly 2 unlimited money cheat human being….

One more question I hope I will not trouble you with more questions. I was short from Jan 2nd and closed my short position yday. I am flat right now. But, to make you feel better, i also want to say that i got whipsawed on 30, 31 and 1st with less size though as volume was extremely bad. By the way, there were many 10 minute swing pivots on 3rd jan against the short trade of 2nd Jan taken by you, but you closed your position on 6th jan.

I am surprised why your TSL of swing low was not hit during 3rd even if it was few points away. Does it mean that you do not trail your equipment trade binary options at every swing formation? I trail every swing formation but i also have visual patterns. Sometimes no trade for days. Do you constantly visit screen at intervals? I have sound alarms at various price points. I hardly watch the screen maybe 30 mins a day …Most of the time, i am watching movies or reading something off internet.

I read znz work from home lot. So, it works well that 01 10 2016 introduction to binary options with gdmfx. Madan,It is very interesting to know you are not watching market each and every moment!!!!!

It is shocking information. So we can make money rca stock market crash if we are not watching closely…. Anway one more question to you…. From your interview I have trading experience with International market US. How you differentiate with US market with Indian market? I think your valuable comment will help one who is trading with international stocks. US stock market is less volatile than India last few weeks might be different a bit.

But they have fantastic volume both in futures and options. Some Tier2 stocks in US as as much as volume as SBI here in India no. Madan ,I agree with volatility and volume. I reasonably good with Indian stocks But that stretegy doesnt work with me in UK stocks…so Do u follow any different stretegy for US market?

I see the question now. Markets are different and one shoe will not fit all the size. There could be a situation where your idea is attuned to only India market in but not attuned to a one-way rising mkt like US in One should be prudent enough to understand various market conditions and should know their strategy in-out to understand how it would behave in various market conditions.

This comes from experience and any amount of reading cannot replace this knowledge. So essentially, one should be crystal clear on what their idea is, 2. See if it is based on something solid just not MACD or some indicator and 3.

As of now almost every sort of question is asked and you have very well answered everyone of them. One point I wanted to ask was: So much time goes just in vain doing all these. No time for exercise or socializing or even with Family. How to address this? I how to get money exchange license in pakistan what do you feel is a IDEAL DAY for you time-wise?

I too know lot of same like people…. The trader has to burn out and he would hopefully understand that there is life outside of this profession. This is not common only with trading — it is the case in almost all the profession.

I see that trait in all my friends. Read non-trading news for mins, talk with wife over the breakfast, watch a movie in my living room not in the PCsometimes i help her in cooking most of my trader friends would not believe this. Eat morning snacks like fruits, nuts 5. Eat lunch around 1 PM 6. Read a book for an hour 7. See my open positions around 3: Goto bed for a nap for 1: Come back around 8 Supermarkets tavistock devon dinner, sleep around 11PM and wake up again around 7: So, my screen time during mkt hours is approx.

I hope i gave you a picture of what i do everyday and i love what i am doing. This way every wife will want her hubby to be a trader …. Simply great… Keep going. Thanks very much for your insight and sharing your daily routine to us. I have one doubt on this. As you have said you sit in front of screen for approx 30 min whereas earn money from home by typing india trade using 10 min TF.

How you manage this? Since we are building the new trading tool, I had a couple of questions for you, excuse if they are lame ;never have looked at price action style of trading:. Is tick definitive guide to swing trading stocks pdf tick so much more important to you than say a 10 minute OHLC or 10 min candle?

I am not a day trader but know many functions of stock exchange in india ppt traders and as far as i know most of them will be happy with one min chart data. Thanks Kripal, We are trying out ways to cater to everyone, tick by tick is a little challenging though.

That will also help us to spend off screen time during market hours. Good luck with your tool development. I am super excited about the possibility of reducing my data cost if it suffices my need. I am sure lot of your clients are daytarders and if you can offer them tick charts, it would be a good USP for you. Ubtil today, i am not aware of any charting software in India that can plot tick charts. For the benefit of others, Tick bars plot the price of each transaction.

Tick bars differ from time-based bars because tick bars plot prices based on a transaction-by-transaction basis while time-based bars plot prices during a specified time period.

A transaction can represent shares, shares, 1, shares, and so on. When plotting tick bars, price and number of ticks are the only factors used, as time and volume are not considered. Because the price is of the book is around 3k.

So,i should not buy the wrong book …. You have mentioned keeping a journal. Can you tell how do you write a journal? I mean if you keep it in a word file? First of all, most of the newbie traders do not journal their trades. If we keep a journal, then we will be forced to take responsibilities for our actions in trading rather than blaming the market, blaming others eg: Records keep us honest.

Personally, i have an excel file for journaling my trades and i also have done some VBA coding to incorporate certain functionalities in it.

I backup my trading journal every week as it is my whole life of trading in a single file. It should have observations about you and your trading and about the markets themselves.

Observations about your best trades must be included. Additionally, it should also tell your best trades so that you can focus on them more. Journal should outline specific steps for improvement. Identifying specific steps you will take to hold winners proper setting of profit targets if anyself-control strategies, etc. Such review is an essential step in the kind of continuous improvement that marks winners across all disciplines. Number of long and short trades — Some people are so smooth in taking short trades butt they have hard time taking longs.

This is a real problem for lot of newbies. Time holding losing trades versus winners — It is very hard to make money over time by holding losers. Eventually, the size of the losers becomes greater than the winners so that even a trader who has more winning trades than losers can end up in the red.

This is particularly useful for discretionary traders. Amazing writeup about trading journal. I have read various books and has actually read about trading journal preparation but this is in another level. This is like bible for trading Journal. Man, how do you have so much knowledge and information? You must be crazy about reading books. You are such an inspiration to all of us and i wish other successful traders share stuff like you.

Office setup — should include backup plan for everything including electricity, internet, PC. Thanks for this information.

These pointers are worth their weight in gold. This blog is like a gold mine for amateur traders. No book reading this month for me. Congratulations on your determination and resolve to stick to your trading plan.

I appreciate your humbleness and humility whilst being successful. The wealth of information you graciously provided on this board will no doubt rekindle the right spark in a lot of folks including myself. Have a great year ahead and God bless. Nithin…The Zerodha team has done a commendable job in arranging these interviews. Keep up the good work.

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Hello Madan, congrats on the great stuff and even more on replying to so many posts above. I am 20 now and have been following markets since past 6 years. Over last few months, I have developed a trading strategy for Nifty and punch in EOD numbers manually in excel sheets and take my trade based on it.

As my capital is 50K and growing monthly, I trade just Options and have observed that MOST of the time if when my indicator is LONG or SHORT for days and Nifty falls points each day TotalI gain just points out of options where as NF would give me those I also take trades on equities CASH based on break outs with volumes. Would you suggest me to stop OPTIONS?

My positions can go on for days and are SAR. Suppose my SAR is breached intraday, I still will wait for EOD to confirm it.

Ofcourse, if SAR is breached and a limit it crossed, I reverse it off in intraday itself. I am practically trading since past 1 year and before that it was all virtual.

Really looking forward to guidance by Seniors like you. You are not alone. Do you want to be in this profession for long term? You are also pretty young. Only you can answer this question. Madan, 1 Do you use Mental SL orders or Manual Stop loss order? I have real SL in place 2. When the market comes near my SL price, i get nimble. I see what you are saying.

Nobody can turn this situation into a winning one unless they have a fixed target and that target should have been less than 50 points. What he would do if the market drops the same way next minute?

This situation is part of trading. There is nothing you can do about it. If it stops me out, i just move on to the next trade. Next trade is a new trade and goal is to be alive next day. First of all a Big Thank you for sharing your matured thoughts on trading. How many points after brokerage and costs say 2 points for NF and 5 points for BN are you able to make month after month? On an average for both NF and BN. Hi Madan Congratulations and thank you for sharing your wisdom here.

Wish to follow and learn more from you in some medium. I would like to know whether back-testing should be done on Nifty Spot or Nifty Future. If we do on nifty future we will see some months gap up and gap down from expiry due to premium or discount. It should be considered or we should work on NS only.

What you say on trend following with averages on higher time frame. Backtesting can be done only with Nifty spot. Please pick a timeframe you are comfortable to start with and you can work on higher or lower time frames on the way. I wait for minutes to cool off and come out of the trade.

This risk is always embedded in overnight positions. Thas where money mgmt kicks in. Need to follow MM to the dot to see if the breakout is fake or true. No easy way out. Regarding Breakout Failure trade, you basically do not worry if the breakout is true or false and wait for your TSL to be hit to close your position. By the way, in my opinion as well, you are absolutely correct if the BOF is true or false. I have seen fake breakouts and then fake BOFs and so it is advisable to stay away from such volatility and let market decide over time.

How many securities you manage at once? Do you take follow the growth policy or dividend policy for profit taking? MadanjiPrice action strategy was working fine for me since last monthbut last 4 days from Mondayim getting opposite result ,is it also same with youPls reply I am worried. You lost money 4 days and you are worried?

I am not sure what to say. Drawdowns and losing streak are part of this profession. You cannot run it without experiencing them frequently how frequent depends on your idea and timeframe. I think the questions have started to appear again and i am not surprised. I am gonna refrain from answering the questions that have been answered already. Price action is like back bone but taking assistance of an indicator will help reducing the loss. To trade in Price action needs a bunch of experience and disciplined practice.

I think you deserve it. It does need little bit of experience and lot of discipline. Following the plan completely is a successful trade made money or not is immaterial. DO you think that impact cost Slippage is inevitable part of order?

Is there any way to avoid or minimize it? I wish to know what historical chart you use for day and swing trades. I believe you have not answered above. Thanks for writing your views down and giving me an opportunity to explain things a bit clearer. It is true that i watch only 30 mins of screen but what you have failed to understand is that it is 30 mins of chart watching in a day.

That does not include my time answering queries, reading my email and other stuff. Its sad that you did not see this point.

Whenever i stare at the screen for a longer time, my psychology screws me up and i tend to take my profits early. So, i stopped watching charts a while ago. But i agree with you on this. People should not think i look at charts only 30 mins a day. It is the case today but it was not few years ago.

You yourself said that it is tough to earn in markets by just watching the price all the time. That is very true. Reason is that our mind would start playing games with us. We just need to stick with whatever works for us.

If my sharing does not earn a penny, so be it. One more time, let me repeat myself. If you are coming here to make money out of what i am saying directly, you are in for a shock.

But, if you are here to understand what a trader goes through in his mind, you are in for a treat. You have done really very well….

Need to learn a lot from you…. Ignore these kind of comments. You will find these kind of people in every profession. We value your advice. Let him go figure out things with tipsters let him learn from them. Umesh Dont try to gain sympathy from Madani also know madan is ace player in marketbut like no one can learn swimming by reading books or by others experience similar goes with marketand when u ask query it looks u r begging in froont of madanstop doing thathe will not reveal d secret and also u shd not askkeep doing if its fine wid ugood day.

Last post was my first post in this blog. I have never posted here before. You are the one keep repeating that there is a mistake. Keep looking and you will get it. When somebody asks a query to Madan, according to you, it is begging. What world you live in? People ask questions to others to learn. You must be hallucinating on a sunday morning and i understand that.

Deadly combination you have and these guys know how to capitalize on your gullibility. Hi, My question was not about your charting software it was about how many days charts with what candle duration you use for intraday and swing.

Sorry that i did not understand your question. So, as i work on just Price action, i need as little as 7 days worth of chart. But for backtesting, i suggest people to do it atleast for a min of years. This blog is meant for candid discussion about trading, psychology, Money Management. I want to Thank Madan for nice discussion. Hi Madan, I have been trading the markets from 5 to 6 years and I agree with every statement you have made in this blog. Thanks a lot for pointing to the book Psycho-Cybernetics.

I has been extremely useful with life in general. To people looking for secrets and easy money, I have to say that there are no shortcuts to become a consistently successful trader. It is simply not possible to achieve that without many years of hard work, perseverance and good amount of risk capital.

Dear Madan,Thanks for educating us. You have given very nice talk. Somewhere in the blog,you said you dont put your tgt,just go on trailing SL. How many points away you keep your trailing SL. You have to keep tracking market to update your trailing SL till it is hit. I will be obliged. I guess you did not read between the lines. My SL is dependent on the pivot points. Based on the distance between entry and pivot, i change my lot size.

I re-read your Journal post. But it will be much useful if u can post a sample journal excel, at least the fields with masked contents or a part of very old journal. I understood u trade ONLY NF and BNF. But do u trade individual scrips based on EOD delivery based.

If NO, then u re-invest part of ur earning via MF route? If possible, please share ur experiences during transition period when u discontinued night US trading and switched to NF and then towards FTT. The current journal i am using cannot be shared have a gentleman agreement with the person who developed it for me that i would not share it with anybody.

I will look for my old journal in my backup i have been using the current journal for the last 4 years. I am exploring various investment options for the money i am making. It was a tough period. When i moved to India market, i was not so used to this kind of volatility intraday So, had a rough patch for first 2 months.

I am doing FTT from the day i moved to India. I see that people work for long hours here and i really admire those people who could juggle both their work and trading. But when i was in US, i was doing work from home for 2 years before i moved to India. That was the period, i was trading full-time definition wise because of WFH flexibility.

I was just lucky to have a WFH job and completely utilized that privilege. I feel my strategy is quite working. But I lack in psychological aspects. Which book talks about the below aspects more and very useful in your opinion. There is no one certain book for all the things you have asked for. Please go through some Mark Douglas books and Brett Steenbarger book.

You will find bits and pieces of what you are looking for. The funny thing about book reading is that different people get different things from the same book it completely depends on the stage of trading they are in. This is the case for any book of any field. Congrats for winning Zerodha challenge thrice in a row. You have proven that markets can be traded profitably with pure price action. I too trade pure price action on Nifty Futures and am trading for a living since Sept I have written a small E-Book on the subject explaining some of the concepts and tactics I use for my trading.

The book can be downloaded for free from. I request you to kindly go through the book leisurely and give me your valuable feedback. I would like to get a serious feedback from a consistently profitable price action trader like you. Please ensure there is no point of misguiding or begging. This is communication blog and Madan is patiently answering all our quiries by spending his valuable time to answer. This percentage is obviously drawing a lot of attention. We all should strive to trade properly and focus on the process goals rather focusing on some number.

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Thanks a lot Madan for these wonderful insights on trading. I was very fortunate enough to work very closely with one of the other 5 times zerodha challenge winner Pradeep Kumar A http: Here is what I feel the commonality between the winners.

Concentrate on trading correctly than on making profits 2. Concentrate on MM and psychology than on strategy 3. Thorough understanding of probabilities involved Probabilities instead of Prediction 5.

Act on the edge without hesitation 6. Understand the risk, reward 8. Have a system for handling uncertainty 9. Consider loss as a price paid for the piece of info Keep the system simple and effective We call it complete trading system Do not switch between securities I agree with you on all the pointers.

But you could have avoided posting links for an external website that offers subscription services. I always wonder why people offer subscription services when they make money consistently in markets…One can easily scale up if they know what they are doing.

People would think that you are promoting or self-promoting a tipping website and this is really lame. All your nice pointers would get submerged with the activity of promoting a subscription website.

Thanks for removing the external links. It was not a self post. It hurts when something this sort of things happen. I am glad that the links are removed. Madan, I am following the blog from the beginning and I appreciate your patience in answering the queries.

Great cheers for your success in trading and best wishes for all your endeavors. So, money wise, i am risking Rs. So, i am risking approx. But in another trade, lets say my stop is 70 pts away.

Thats why i said in some other post that i take all my trades and adjust my position size accordingly. This can be done only if you trade multiple lots. MadanU did not tell how do u change ur trailing stop lossif u r on screen only for 30 min. Karuna better do a Private chat with Madan if he also likes ur doubts are dumb and boringits seem that u r doing time pass by asking free querieswhat lame queriesy do such people ever trade.

Exit and move on to the next trade. If we exit immediately, we could atleast focus on the next trade. When you carry forward your position, the next day you place your stop loss order at 9: Hi Madan, Few questions which are hopefully not raised yet especially about BNF… BNF is extremely volatile to trade. It moves fast but again lot size 25 is half of NF 50 but moves are nearly more than double.

So these doubts …. What capital you recommend for BNF per lot? For NF i read that you preserve 1. Let me make it little bit clear. Lets say i have 3 L in my account. I trade 1 lot of NF and 1 lot of BNF. Not 2 lots of NF and BNF. I am just extremely careful with my trading capital and i refrain from putting myself to extreme seesaw in both my equity curve and psychology. For me, emotional wealth is more important than money wealth.

BNF is a beast by itself. It casually moves points in few seconds. I was watching it for a while before i started trading it. It requires a trader to be extremely nimble to trade BNF.

Compare to NF, BNF is also less liquid. So, slippages are huge in runaway markets and when the order does not get filled, it puts us in peril as we would get into the mental battle of whether we should wait for the market to come to our price or get the order filled in CMP. I guess, the decision making capability gets matured with experience. Dear Madan,in your reply above you said you dont trade 1 lot of NF and BNF simultaneously per 1. Means you dont take position at a time in both NF and BNF even if your capital is 3 lac instead of 1.

IN other way,I explain if you have taken position in 1Lot of NF with 1. I said i need 1. So, i should have 3L if i have to trade 1 lot of NF and 1 lot of BNF simultaneously.

Thanx Madan for reply. I could not imagine a Mastertrader like you will be afraid of trading in NF and BNF simultaneously. You did not get what i said. I trade both of them together but not with just 1. I need 3L to trade them together. This is for 1 lot. Madan jiI am stuck with my strategypls helpsirsometimes rally either downward ur upward last for 2 hrssometimes 3 hrs and sometimes even for whole dayso i have got the answer whether the rally is upward or downwardbut i am not getting the answer for time for which the rally will continue for eg today downward rally started from in nifty but suddenly changed at The problem lies within you and not in the strategy i am not commenting that your strategy is good or bad but the focus of my answer is on the way we think.

You are thinking that you can predict the size and the duration of the rally. In my opinion, both cannot be done consistently. First, you need to understand this basic concept of trading.

We are all very good at advanced things in trading. We are all guilty of this and guess what, some never get their mind right to understand it. Not sure how they do it. One thing i know about them is they are not sipping pina colada in the beaches of the world. They know so much about where the market is gonna go and where it will stop and reverse, but still loitering around here.

All we can do is follow where the market goes. You cannot predict market top and bottom on any timeframe and if you could, definitely not better than a monkey throwing a dart.

For sure, forget about figuring out how long the rally or downfall will last. We all need to be cognizant of that. Thank u for ur time and replybut frankly speaking i did not try to predictbut only wanted to know where one should stop loss or book profitif i dont get an answer then i will have to continuously trail my SLfor that i will have to be contentiously on screen.

You said you use SL L order type for placing the orders. How many points do you keep as the difference between the trigger and limit for Nifty and Bank Nifty?

Because, it depends on the size we trade. Coz many times we see orders worth qty getting executed in market depth. There are various ways to exit. Some people use Fibonacci levels, others use predetermined exits, some use Trailing SL, etc. I have found that the last one TSL is more attuned to my ideology of trading. TSL perfectly fits my belief. With all due respect, i would want to ask you a question.

My intention is to make you think in the right direction according to me not getting an answer from you. And What would happen to your job if you say that you cannot be in the chair if its a white collar job most of the time?

Is it even feasible? Its like a doctor telling that he cannot attend patients but would want to learn how to treat them successfully. Please think in those lines. This profession is no different. The issue is too many of us think that trading is easy.

But, as i have mentioned in some post earlier, it is simple but not easy. Honestly, i can exactly see where you are coming from. You have a passion to learn and i congratulate you for that.

Maybe trade EOD charts and see how they pan out for you. I am not sure if this answer really helped you but i hope against hope that you get the gist of this post. Congrats dear madan it is good you hv consistently succeeded in your efforts as it is a commendable effort no doubt this is my first visit to this page and therefore i was a bit inquisitive about your break out strategy cud u elaborate on it with the help of a live example of any of ur past trades without mentioning the actual volume u traded.

This is getting really boring now. I have a system in place, alarms set up at important price points. All i need to do is trail my SL or put a new order if any. Lets say you put 5 orders in a day. Right now, i am typing this post. Does that mean that i am not focused on my trades? But, if there are other ways of tracking price points, why would i need to be in my office room all the time?

Please do me a favor and reread the whole blog to understand what i meant by 30 mins. I explained in detail to a person who had the same question. My relatives and friends know that I am a stock trader. Inspite of not being successful, some relatives and friends are behind me to teach them to trade. So I am assuming that you will have more pressure from relatives and friends since you are successfully trading. How do you tackle these people?

Questions will never stop but they eventually die down. Ask them if they can teach you what they do and you start making money in it. Its not really feasible right? They would have put so much effort and time and face failures before reaching to where they are right now.

You could tell this in a polite way. On a side note, if you believe you are doing OK in trading then, it is not really bad to teach somebody only if they really want to learn. But ofcourse, others would also want to join the bandwagon.

We gotta accept this fact. If a person fails to make money, he becomes Philosopher. MadanjiI think TSL is just a actionbut not the logicfor eg to put TSL orderi need to know the levels at which to put my TSL i was eager to know which levels u follow to put ur TSL if you dont mind sharing that it would be of great help Regards.

Are you using wifi internet, 3G, wired internet or anything else? Just want to know which is more reliable. I use fiber broadband and i also have a 2G dongle for backup. I always felt wired internet cable or fiber is much more reliable than dongles. I ask this because one needs more capital to trade the Futures market than compared to trading Options.

I have never studied candlestick patterns but i have studied lot of indicators. Slowly took indicators off my screen and currently, i have none. Its pretty equivalent to buying futures. I never had a plan before that book. For example, lets day you start at Rs in Jan and make around Now, you do intra-year compounding and from Sept to Dec continue making I have increased my lot size only once this year. I have experienced it before. Somewhere you mentioned that you place your TSL Rs.

What is the logic behind the same? Why not place it exactly at the swing low? I see that my stops were taken out and the market goes back in my direction again if my SL is exactly at the swing pivots. So, i keep 2 pts wiggle room. When the volatility is high, i keep even 5 pts wiggle room in NF. What are you further plans? I mean how you plan to grow your money that you make thru markets? Only real estate or you plan to do some other thing like Option Selling with some strategies to maximize on Time Decay etc.

There must be some limit to how much money can be made by one single strategy like break-out. But, option strategies is on cards condors, butterfly.

I did not think much about the size restrictions. They move pretty slow but gives good trends. But, one thing for sure — will not trade after 5 PM. Can u explain the rollover procedure please. I have never traded futures but intend to do so in the near future. There are lot of articles in internet talking about them. I have pasted one here but there are hundreds. Sky is the limit. Now that you have mastered it, All the Best for perfecting it! What do you suggest about trading on larger time frames on part time basis?

I have tried full time trading for something and have been a failure at that. Seems I can not draw consistent returns from this Art. It seems you have been trading for yrs now and have been consistently profitable on qtrly basis for 3 yrs. That is also a feat on the account size you deal with which can be easily ball parked at cr. This game is not about size, its about a process implemented correctly and consistently, but psychology does get affected with larger size — so your feat becomes all the more important because it was on a larger size and scale over a larger duration.

As advised by Nitin that like an individual trade there should be a SL to trading itself and it seems that SL has been hit.

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