Day trading is not always a failure. Make sure you observe the market for few stocks consistently. Mark its progress and the fashion in which it is moving. Don’t hurry since the market won’t go anywhere.
Don’t go too much technical. Observe the trend and pattern till 9:30 and start doing intraday after/between 9:30 to 10:00 AM.
Day trading is all about momentum and nothing else. You need some way to identify stocks with momentum. Though a knowledge of technicals surely helps, it is not completely fool proof. You should always rely on combination of technicals and not on a single one. You need to devise your own methodology and test it by paper trading before entering the real market. If you are a intra-day stock futures trader keep the following as base and then supplement with further value-additions:
Stock selection for trading intra day futures:
a) Do not trade during the first half an hour of the opening.
b) By 10.00 am you will definitely have a fair idea about the general trend or atleast the market sentiment. This is a function of prev day DJIA performance, current day’s Asian markets performance, etc.
c) If general sentiments appear to be positive, look for stocks with momentum that can be gone long. Similarly if sentiments appear to be negative, look for stocks with momentum that can be gone short.
d) Now comes the crucial aspect of identifying stocks with momentum (bullish and bearish). At 9.50am to 10am, go to the market watch section of exchange’s website and find out stocks which have the following characteristics :
i) Open price is the lowest price / near lowest of the day so far. (indicates bullish trend with momentum)
ii) Open price is the highest price / near highest of the day so far. (indicates bearish trend with momentum)
The above can be easily automated in excel by downloading the excel link from the exchange’s website. If the general sentiments appear to be positive, focus of item i) else focus on item ii). If the general market trend is directionless and range bound focus on a combination of i) and ii). Few more parameters can also be supplemented to i) and ii) to confirm the momentum.
e) Last but not the least is discipline. Have a strict SL depending upon your risk appetite. If you are in profit do not hesitate to book it as greediness is the biggest enemy of a trader. If you are in loss, SL will take care of your exit. Do not overtrade.
yes that means u r 99% right if u try it otherway around.most of the time it come to mind to set my stoploss to target and my target to stoploss .because mostly my stoploss hit ez lel .ever considered ?
Hi friend, live data is available at , http://www.nseindia.com/live_market/dynaContent/live_watch/equities_stock_watch.htm
Nifty 50 and nifty midcap 50 are available. It gets updated frequently. Ensure you refresh the sheet using the round arrow given in the page before use. It can be downloaded in excel too. One can download in excel and apply the aforesaid simple algo. If one needs wide variety of fno stocks, one can use the bse market watch page which updates all stocks traded during the day and which can be downloaded in excel too. One can use this and filter only fno stocks using some methodology. In any case this appears to be a good strategy atleast as per my experience.
Speed and momentum is my technique for day trading…I made losses everyday for 1 year…never gave up trading…my losses turned into profits after a good while of experience…One thing is bookish knowledge isn’t everything, you have to be practical into trading…Control emotions and u will get consistent profits.