Introducing our new contributor - G.Bharadwaj


#25

Thanks for your response…Have you ever tried Automating (Kite API) your strategy or your opinion regarding this?

Do you think we can control our Emotions by automating and also flawless execution (to some extend)?


#26

Winning trades over a period of any 1 year will be around 60%, while monthly would vary from a rare 50% to a rare 70% while average would fall around 60% again.
Tape reading for me is nothing more than price-volume in the market depth which tells me the likely direction of the stock any given few seconds. If nifty and the stock basic minute or tick chart is not seen in tandem with market depth its hardly of use for scalpers.


#27

Have not yet tried, will do so in the near future.

Am sure it will help for the better by cutting of the emotional attachment & ego part especially in letting go of loss positions.


#28
  1. A huge majority are trend following like 90%+

  2. I had noted down entry and exit times of my trades for curiosity purpose for a week at a stretch sometime back according to which,
    20% of my trades - I hold for < 30 seconds
    30% - I hold for 30 seconds to 2 minutes
    50% - I hold for 2 to 4 minutes.

The above has remained more or less the same from a decade.

  1. Though my immediate family were neutral on me planning to take this up as a livelihood, i faced lot of flak and opposition from extended family and friends. But like any other major decision, we have to OWN the decision and feel good about it. ALSO if things dont work out even after say 2 years max we should swallow our ego, break up from trading and move on with other options. Trading needs a certain temperament and internal calm which i feel has to come by birth and cannot be acquired. So after learning and applying every trick in the book, after attending every workshop offered, after punching 10000s of orders if a trader still doesnt achieve consistent profits, he/she has to move on.

#29

I am not a scalper or day trader. I hold position for couple of days to a week or so.

What made you to gravitate towards scalping after about a long 7 years trying different timeframes. Scalping for 10 years is long and you must have paid hell of a lot of brokerage.

( you bio reads: I was a keen student of all kinds of trading from medium term to scalping between 2001 till 2008). My understanding is over a period of time, traders generally increase timeframe and do less no of trades)


#31

hmm couple of reasons mainly,

Deep wounds during the learning years of a few overnight positions destroying dozens of good trades due to something happening several oceans away from us
Grew very very comfortable with few minutes trades as I feel as though am inside a cocoon without being affected by factors beyond us. If i lose it will be due to my own indiscipline and nothing else.
Another business of mine(which i passively tend to during evenings and weekends) needed regular capital inflow almost every week. Scalping alone could provide me that comfort irrespective of market trend or volatility.
Content with earnings and lack of large ambitions or multi crore per year kind of targets.
I need absolute peace and undisturbed leisure time after 3 PM without an iota of worry/anxiety/anticipation/expectation, which is not possible if positions are held overnight (for my kinds of mindset)


#32

HI Bharadwaj,

I would like to understand your stop loss method from you, you said your SL is .25 of stock price.
so you keep SL while entering the buy/sell order or you place the order first with a far SL and then modify your SL once executed ?

Thanks


#33

This is really Interesting. Thanks for taking time to Share your thoughts.


#34

Would you Start jump trading when market opens or will you wait for first 15 or 30 min?

Similarly would you take new position in last 1 hr?


#35

Do you have similar analysis for time of the trade ?
generally traders dont want to trade in initial few mins but there are many two trade and profile by trading during this time. What is your experience about % of profitable trades based on time of trade ?
For the sake of example. % of profitable trades, initiated between 9:30 to 11, 11 to 12:30, 12:30 to 2 and 2 to 3:20.


#36

@G.Bharadwaj
Also, please do let us know your favorite book on trading psychology and technical analysis.


#37

How do you select stock for scalping? Do you use any scanners? At which time of day you do most of your scalping? Do you scale in & scale out? And how do you decide share quantity for each position (as we don’t have any hot-key in zerodha to buy quickly on the basis of pre-defined buying power)?


#38

I manually exit trades which goes against me by quarter percent. I do not place any stop while placing the order rather the second I enter, I would be ready to sell whether it’s going for or against. A tight auto stop loss is no doubt a risky proposition cos quite often the order fires while the next second it may be back near break even or even profits. However for those who are not ready to cut loses and repeatedly make the mistake of running loses, its best to place stop loss orders.


#39

No i dont use scanners. My daily scalping candidates will be the the usual suspects of that season :slight_smile: For example IT from the last 2 months & Pharma from a month for longs. Top liquid stock futures of the sector under consideration which also happens to be actively pushed by large broker research desks will be what i trade everyday. Scaling - kind of yes on a micro scale. Quantity - 5 to 10 lots of F & O combined.10 lots will usually be about 3 orders both while buying and selling like 4 3 3 per order.


#40

@G.Bharadwaj sir I have used the same strategy for scalping futures and while I was profitable for the majority of trades,one or 2 rapid and long candles in the opposite direction(greater than 0.5-1%of my capital)have caused all my profits to vanish and also void the risk-reward,as I also don’t use SL like u but exit in 25 to 30 secs.In such unavoidable scenarios what do u do?especially since u have an even smaller 0.3% manual SL!Also can u give an overview of your entry setup like preferred candlestick formation/volume/indicator for a particular stock entry position.


#41

For scalping u need “depth trader” screen like the one below. (similar to forex) which will take atleast another 5 years for Indian brokerages to roll out.

If the panel is “Armed” single click on bid side will sell and ask side will buy.

Capture


#42

@NeverMind & @conquistadorjd

I trade right from the first minute till 3:15 pm, but first 2-3 trades will be half the usual quantity till i kind of settle in the zone.

There is no difference in average strike rates in any given hour for me (when days at a stretch is considered)

Fav books and recos : Reminiscences of a Stock Operator, You Can Still Make it in the Market, Black Swan and Alexander Elders books.

The numerous snippets which @nithin has posted under the topic Innerworth are superb :ok_hand::ok_hand:


#43

If you have been successful in majority trades you would know which are the stocks which have given you massive loss, i doubt any Nifty 50 stock can cause that much injury as it will give you sufficient number of seconds to exit for quarter %. Analyse all your big loses so far and you will find some common links. For example in my case, scalping stocks which had already moved more than 3% on either side was giving big losses, scalping stocks which are trading within 2-3% of 52 wk high / low was giving big losses etc
Entry setup - I dont rely on any candlestick pattern.My entry is based on simple intraday supports, resistances and breakouts happening within my favorite sector,stocks of the day.


#44

Thanks a lot for all the wonderful posts, its very helpful.

I am sure you must have your own trading plan and rules that you stick with. Could you please share some details on that.

What kind of tools do you use to analyze your performance, trading journal, shortlisting scalping stocks etc?


#45

Now you’ve gone too far… Stop asking too many questions… :grinning::grinning::joy::joy::joy::joy::joy::rofl: