General queries

Technical Analysis
1

Dear Team

I have started trading recently, want some advice on few points.

I am seriously thing of doing it full time and its not just for money but I am really enjoying.Should i go for it? I have tried stocks, stock futures,Nifty futures and Commodities.However I am doing well, enjoying and comfortable with Nifty futures and Natural Gas commodity and maybe USD/INR futures but Nifty will remain integral. However I only have capital to but 2 lots of Nifty but still doing well with it.Is it enough??

There is no great strategy as such but i try and remain mechanical with the process like buy/sell as per indicators signal, exit, book profit at predetermined target and book loss also at level I can bear. What is the right ideal Risk/Reward ratio??

The indicator settings I keep are longer to avoid false signals. I dont want advice but just want you all to help fine tune my process and indicator settings.

  • Chart-5 min
  • RSI-Period -14-Overbought-70 and oversold 30
  • Parabolic SAR-0.02 and 0.20.However I buy or sell only after 4-5 dots are developed.
  • Stochastic Momentum Index–% K periods-12,% K smoothing periods-7, % K double smoothing periods-7,% D periods-10,% D Moving average type-Exponential
  • Supertrend-10 and 3.

Finally Is there any complete distance learning course regarding all this covering derivatives, technical and fundamental analysis, currency etc.

Thanks in advance.

2

You are doing good. Learn money management. and decipline. You will be able to do even better.

You need to keep at least 50% cash in your account. Use remaining for trading.

Use F&O data for finding support and resistance zone and you can keep position longer for higher profits.

3

you can get complete guide on technical analysis, options & futures, commodities here… http://zerodha.com/varsity/
all the best…

4

Only after going through Varsity I started all this confidently.

But I was looking for courses from certification point of view

5

Thanks . I am more encouraged now.

There are 2 questions unanswered:–

What is ideal Risk/Reward ratio??

Should i get into it full time?? :slight_smile:

6
7

Risk reward ratio is not fixed. It is for intraday only.

If you’re doing on and off then don’t do intraday.

Use only equities positional.

If you want to do full time you should have any other sources of income and should understand that if you loose all the capital in your account financially nothing should happen to you personally.

Means don’t purely depend on Trading Income.

Don’t borrow money for trading

Don’t take leveraged positions

8

Thanks Darshan.Seems good

9

Thank you Sir as always.

Will keep troubling you