Professional Documents
Culture Documents
Trading Vs Investing Vs Gambling, Types of Trading, Players in the Trading Industry, Orders and Order
Properties . Why People Trade ( Utilitarian Traders, Profit Motivated traders ),Cardinal Rules of Trading
FA,TA, Traders Mindset.,
How to identify the trend of the market ? Larger time frame (20DEMA,50DEMA,200DSMA)
Intraday ( 20 EMA, Open, ATP, UpTrend(HH,HL), DownTrend(LH,LL),Swing High, Swing low, Chart
based Pivots)
Determine the strength of a trend ( ADX,A/D, Sector Behavior, MACD,RSI),
Low risk entry into the trend (Pullback to 20 EMA,ATP, Open, Volume action)
1. Identify intermediate term trend ( Uptrend, Downtrend or Range- 20DEMA, No of Stocks >
20DMA, Basket of Stocks (5 each from 8 sectors) strength)
2. Yesterday's Price stronger, weaker or in range wrt previous day (Hi&Lo prices across sectors,
Indexes, DoD Changes)
3. Special Circumstances likely to affect today's trade ( RBI, Economic numbers, Holiday period)
4. What are relevant Price target Levels and Reference points ( PDH,PDL, Previous day ATP,
Intraday Pivots S1,S2,S3/ R1,R2,R3)
6. Global Cues - S&P 500, US CBoE VIX, USD Index, CRB Index, Crude Oil, Gold, Baltic Dry Index,
Nikkei, Chinese, HangSeng, SGX Nifty )
7. Writing down all observations and Opinions in a Notebook and reflecting daily.
1. Identifying Stocks in Play for Intraday ( Stocks in News, Earnings, Policy announcements, Most
actives, Contrary Behavior) ( Less than 3 to focus on )
7. Focus on Buying supports, shorting resistance, playing held bids, held offers, consolidation and
ranges
9. Start with profit targets: range extremes, pivot prices, and R1/R2/R3 and S1/S2/S3 targets. First
figure out where you think the market is likely to move
10.Don't chase price highs or lows. Make the market show you that it is making a higher low
(uptrend), a lower high (downtrend), or holding support/resistance (range).
11.Stop loss level ( logical stops, random noise, Small position size with larger stops adj for Vol)
12.Catching the late day volume surges
13.ATP as an evolving estimate of fulcrum/value
14.Characteristics of a trend day (Breakouts from short-term ranges ( previous day's range, multiday range, opening range) on strong volume; Strength in market's leading sectors, Confirmation
from correlated markets, Extreme readings in the day's advance-decline readings)