Wednesday, 25 June 2014

25062014


Nifty opened near PDC with initial move down.  Traded whole day in a tight range.
1) BOF of range low.  Booked when failed to go above PDC/Range high. Profit of 5 points.
2) BOF of PDC/range high.  This also did not move much.  Booked at 3 points of profit.

6 comments:

  1. when to take BO trades nd when to avoid them?

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    Replies
    1. CM

      In your initial phase of trading career, completely avoid direct BO trades. We never know for sure which BO is going to work, especially when range gets established like today.

      URD

      Delete
  2. I entered the short at 7572 as PP at 11:36 candle? how you could avoid so many BO of range lows and not see them as valid entries?
    Also, I did not take BOF of range low at 7579 as I was expecting some resistance at 7588-90 area but you still took that trade. Similarly, I did not enter BOF of range high at 7580 as I expected resistance around range low of 7570. Both of these had small fluid zones as well. How much space do you look for? Is 10 points fluid good enough to take such trades?

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    Replies
    1. Vikram

      I did trade direct BOs and lost lot of money on BOs. Now I am starting to learn how to avoid them. Now I very seldom attempt direct BO. For the first BO at 11:36 I had kept the limit SL order 3 points below the lowest low at that time. Luckily, it did not trigger. After that time the range became very apparent and I decided not to go for another direct BO attempt. Whenever the range gets established, avoid trading direct BO of that range. Let go that BO trade. We will have lot of other opportunities in the market to make money.

      Whenever we trade the range, target is always the other range extreme. If we expect more, we need to be ready to lose whatever we got at that time. For example, BOF of range low at 7579 had an ideal target of range high but I did not book there as I expected the range to get broken and go higher up. Ultimately I had to give away the points I had at that time and had to book the trade at few points of profit only. Same story with my second trade.

      Less space means more worry and more space gives you less worry.

      URD

      Delete
    2. Do you generally trade this kind of PP trade by keeping 3 points distance or was today just an exception? But if you had kept the same kind of 3 points distance from the DH of 7593, it would have got triggered as the market made high of 7597.7, but I guess you did not because of BRN.
      But, kudos to you to make for not just avoiding losses but making profits on such a close range and volatile day !

      Delete
    3. Vikram

      For direct BO entry it is better to put entry order few points away. This way we can avoid false break.by couple of points.
      I did not attempt BO on Range High. There was BRN and PDH above.
      Tight range days are difficult ones to trade. We cannot do anything about it.

      URD

      Delete