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Silver – A bear move possible
Watching the Markets during the day
A blog (sorry, I missed out which one) , suggests a simple test to determine if intraday activity outperforms any after hours system.
Before the open, every morning, write down your trades for the day assuming that you will not be monitoring the market during trading hours. Write down your reasons, the entry level, exit level and whatever else. Track the results of this simulation after a few weeks and compare it with your actual intraday trades.
I think the point is that the less stressed , no intra day monitoring trades may perform better.
The Nifty continues its slow move up. A suggestion to buy with a stop below 4900 has turned out to be profitable. Readers must understand that often such suggestions will lose money. The profits come because of probability – more money is made and less money is lost over a long period thus giving positive expectations for a trading method.
Trading tactics for day traders
1. Set a daily limit for losses. If you are trading in more than one instrument, have a limit for each instrument, as well as a total limit. once that amount is touched, stop trading for the day. No exceptions.
2. Markets open at 9.15 AM. Have a view before the open. Then revise the view, if neccessary by 9.30 AM. In another half hour, say 10 AM, you know if you are in sync with the market or out of sync. If you have a losing trade in the first 45 minutes and your views are not in sync, take that day off. Work on your charts, paper trade, do research but do not trade.
3. If market is moving according to your view, then increase your trading volume. Take advantage of good days by being aggressive.
4. Trade in multiple positions, so that you can take some profits if there is a Range Expansion (RE) in your favor. An RE bar is visible on the chart for its unusual length. As a simple rule, it should be at least twice the average range, almost certainly closing in the top 20% (if trend is up) or bottom 20% (if trend is down).