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Jan 8, 2013- A frustrating day

All day today, the stocks didnt move much in any direction as the consolidation still goes on. Its a good idea to wait out the consolidation period as it can be very frustrating to hold on to positions at this time.

I came into the day with AAPL 505 put and 540 call with AAPL closing yesterday at 523.9. Today it opened right at resistance at 532 area and tested 521  support area once again. Right now, I need a big move in either direction to profit from this strangle. My bet is on the upside if AAPL is able to break the 532 area.

I entered PCLN 670 weekly call when the stock crossed 660.5 alert. However, the stock didn’t do anything all day as it was rangebound between 656 and 660 area. If the market is able to rally any day then, I am looking for this to test atleast 670 area.

One more position I entered was LNKD 110 call when the price was at 110 support area. It immediately bounce off that support level.

Things I learned from today

  1. Usually the attempt at first breakout fails. Good breakouts usually happen on third or fourth attempt.
  2. Support and resistance levels play out more often than not.
  3. If you are patient and wait for a good entry, you will more often than not get one.
 
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Posted by on January 9, 2013 in Uncategorized

 

Watch list for Jan. 8, 2013

  1. PCLN- S at 655 and 648, Over 660, 670 next res.
  2. AAPL- In a range here. <520, 515 gets tested. Over 529.3, 535 gets tested.
  3. GOOG- Over 741.50, 750 is the next level. 730 support below.
  4. AMZN- > 269, 275 target. 265.8 and 262.5 support below.
  5. GS- S at 130 below. Over 134.5, next level of resistance at 138 area.
  6. MA- At ATH, 515 S and > 521, it makes new ATH
  7. CRM- Consolidating here. 
  8. LULU- At rising TL support here.
 
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Posted by on January 8, 2013 in Uncategorized

 

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Mistakes

  1. Trading impulsively without looking at s/r areas or the chart
  2. Trading in the first 5 minutes
  3. Going against the trend
  4. Not following stop loss
  5. Not taking profits at resistance or not entering positions at support.
  6. Bad Entry/exit
 
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Posted by on January 8, 2013 in Uncategorized

 

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Jan. 7, 2013- Starting to feel good about trading

A few things from today that I want to note are

  1. I let a winning position turn into a losing one. Get out at breakeven if that happens and enter again at a better opportunity.
  2. Still need to get better at a lot of things like- being disciplined and taking only those setups on which homework has been done, being patient to wait for setups and not force trades.

Lesson from today- Take losses when they are small. It is the best way to preserve your capital for the better trades which can make you loads of money.

 
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Posted by on January 8, 2013 in Uncategorized

 

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My first post

Hello everybody,

This is my first post and I want to introduce myself here. I have been trading since May 2011 and would like to share my experiences since that time in the stock market. I understand a bit more about the stock market now than I did then and it has been a great learning experience for me. I have survived the ups and downs of the stock market and I believe that I am now ready to go to the next step.

  1. I started trading in May 2011. At that time, I did not know much about trading and just dived into the stock market without even the basic knowledge of reading the chart properly. 
  2. I have been day trading and swing trading options since that time. In the beginning, the concepts of following stop loss didn’t seem to matter at all. One day, I would be up huge only to give up those gains and more the next day. It was an emotional roller-coaster for me everyday. 
  3. Now a days, my thinking is a lot clearer. I am able to make good decisions and remain calm and composed at all times. 
  4. I only follow my plan and wait patiently for stock market to give me a good entry either long or short. 
  5. Before the start of the trading day, I go over my watch list and homework to make sure that I follow my plan. 
  6. I have a well laid out game plan for every single day.
  7.  

 
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Posted by on October 8, 2012 in Uncategorized

 

Stock Charts

var tradingview_widget_options = {}; tradingview_widget_options.width = 600; tradingview_widget_options.height = 400; tradingview_widget_options.symbol = ‘SPY’; tradingview_widget_options.interval = ’15’; tradingview_widget_options.toolbar_bg = ‘#E4E8EB’; tradingview_widget_options.hide_side_toolbar = false; tradingview_widget_options.allow_symbol_change = true; new TradingView.widget(tradingview_widget_options); var tradingview_widget_options = {}; tradingview_widget_options.width = 600; tradingview_widget_options.height = 400; tradingview_widget_options.symbol = ‘GOOG’; tradingview_widget_options.interval = ’15’; tradingview_widget_options.toolbar_bg = ‘#E4E8EB’; tradingview_widget_options.hide_side_toolbar = false; tradingview_widget_options.allow_symbol_change = true; new TradingView.widget(tradingview_widget_options); var tradingview_widget_options = {}; tradingview_widget_options.width = 600; tradingview_widget_options.height = 400; tradingview_widget_options.symbol = ‘PCLN’; tradingview_widget_options.interval = ’15’; tradingview_widget_options.toolbar_bg = ‘#E4E8EB’; tradingview_widget_options.hide_side_toolbar = false; tradingview_widget_options.allow_symbol_change = true; new TradingView.widget(tradingview_widget_options); var tradingview_widget_options = {}; tradingview_widget_options.width = 600; tradingview_widget_options.height = 400; tradingview_widget_options.symbol = ‘AAPL’; tradingview_widget_options.interval = ’15’; tradingview_widget_options.toolbar_bg = ‘#E4E8EB’; tradingview_widget_options.hide_side_toolbar = false; tradingview_widget_options.allow_symbol_change = true; new TradingView.widget(tradingview_widget_options);

 
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Posted by on September 9, 2012 in Uncategorized

 

Average Trader’s Dilemma

When to buy, when to sell. When you buy, the markets go down and when you sell, the market goes up. The average trader always buys the stock when it has gone up too much and sells when it has gone down too much. Without thinking of the resistance up ahead, he buys thinking that this time the market will clear this resistance. However, the smart money plays this game over and over until the average trader gets frustrated and quits on the stock and that is the time when the stock moves up. When this stock finally moves up and the trader misses the move, then he either buys this stock too late off of the pivot point or keeps on regretting and blaming himself for missing the move.

How to avoid this scenario?

  1. Be prepared and know what your actions will be before putting on a trade. What will you do if the position moves against you or goes in your direction? Do you know the support and resistance areas for the stock?
  2. Be Patient– It pays to be patient and buying the stock at the right point. For doing this, you need to be alert and do your homework every day.
  3. Hard work– Perhaps the most important thing in being successful. If one keeps on trying and not give up, he/she will achieve success.
  4. Emotional Check– Before the market opens everyday, make sure to keep your emotions in check and play the market according to your plan. Emotions can come into play if you are over trading or trading a bigger size than you can handle. 
  5. Keep it simple and avoid the noise – Keep it simple. Buy support, sell resistance, avoid the noise, trade your plan and be prepared. Keep on putting in the hours until you reach there. You will reach there.
 
 

My Trading Plan

 
 

My Rules 11/23 (Follow until Dec. 31st and see the results)

 5TPMDRIPS
 
5 minutes Rule- Be patient and wait for 5 minutes. Calm and Patience

T (Trend) Never go against the trend.

P Vs.MCompare Price Vs MA’s. If price is below MA then only go short and if price is above MA then only go long.

D –  What is the direction of the market today? Don’t fight it or resist it

R3-    RS Vs SPY,   Research  Risk/Reward

I- Indexes  Support and Resistance areas. Fibonacci and Divergences

P- Be Patient and wait for 5 minutes.

S-Stop loss rules. One hard stop point. If it hits then you get out. No questions asked.




 
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Posted by on November 24, 2011 in Uncategorized

 

5 Simple Rules to Trading (One day at a time)

5 Simple Rules to Trading (One day at a time)

Always remember this line– If you want to be successful at trading then you have to be DISCIPLINED. There is no other way around it. You can be lucky a few times but not always. 

Never lose hope. Always have faith, belief and confidence in your self and your abilities.

Remember that there is always the Next Trade.
There are always going to be winners and losers in a trading career. The people who win are those that lose a small amount when they are wrong and gain a big amount when they are correct.

When you are wrongAccept that you are wrong, exit your trade and move on to the next trade where you can use your capital to put on profitable trades.
Be objective– Don’t have any opinion about the market, trade what you see.

Be on the right side– There are 3 sides in a market, Bull side, Bear side and right side. 
 

5 Simple Rules to Trading (One day at a time)
  1. Discipline (Its as simple as it sounds. Rules just need to be followed)
  2. Charting Techniques
  3. Homework on setups
  4. Stop loss rules
  5. Market Direction

Explained in detail:-

  1. Discipline– A+ setups only, Dont chase, Wait for pullbacks, be Patient, Follow your rules. R/R strategy. Do not hope that a losing trade will turn into a winner. Cut your losses and run.
  2. Charting Techniques– Look for breakout trades, support and resistance areas, MA’s pullbacks, 30 week MA, Important patterns like H&S, DB, DT, TB, TT, AT, DT, Wedges etc. Price and Volume confirmation.Try to find Swing setups since they are most profitable.
  3. Homework on setups– Work atleast 1 hour everyday to find good setups to trade. No A+ setups means no trade.Wake up at 5 AM on all weekdays. Write down your trading plan for the day.
  4. Stop loss rules– If the stock goes below your stop loss point, exit it and buy if it comes back over to your buy point again. Let your winners run.
  5. Market Direction– McClellan Oscillator, A/D line, Support and resistance areas. Dont resist the market. Flow with it and make profits. 

All the above rules are simple and can be very profitable, if followed on a daily basis.

 
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Posted by on October 25, 2011 in Uncategorized