Hello Everyone,
I’m new to Intraday trading using Price Action and have recently learned and practiced it through paper testing. I’m now planning to take small-quantity real-time trades. My focus is on trading Options with Price Action, but I’m unsure about the ideal chart timeframe to use. What are the pros and cons of each time frame, etc.
Would you recommend trading on a 5-minute or 15-minute chart? I’d appreciate any suggestions or guidance.
Note: I was doing Short Straddle since last 2 years (5min), but now want to focus on Price Action, the most part. Hence new to Price Action, and not trading. Just to clarify.
Thank you!
Hi @Maveric_in_me , 5 min chart can provide quicker insights but may also come with more noise, while a 15 min chart generally gives a clearer trend. Similar question was answered here: Getting Started with Candlesticks – Varsity by Zerodha.
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Your eyes should be able to see the minute chart down to the 45 seconds chart. 5 or 15 min chart in day trading is too comfortable and will fail to get significant day returns. As per me, I say as per me, because there is no definite as such.
And you can play any style that you prefer. But it all comes down to this - Just make your losses so small as compared to your winners. And find a strategy, if you can trade less and make much.
And, well, everyone has brains. So, you ll figure something out or lose charm trying. Sharing what my 7+ years of day trading brain thinks.
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What is the ideal stop-loss we should plan for? Currently, I risk 20% of the premium price in a single options trade. For example, if the premium for Bank Nifty is ₹300, my stop-loss would be ₹240. This means, for a single lot, my maximum loss could be ₹1800.
I don’t trade options. But my risk concept is, I don’t risk 0.5R of my trade per day.
Say, my R is 2000. Then, 1000 is the max risk amt, or loss I ll take for that trade. Don’t want to type much
This is how my calc looks like. You ll get a fair idea. btw, I have been trading for nearly a decade, 8 years plus to be precise. So, you might find my answers just crude and up to the point.
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