2652 THEORY OF DAY TRADING (THIS IS THE BEST TO EARN AROUND 1000 RS TO 3000 RS IN DAY TRADING FOR A LIVING)

Different people have different methods and ways of day trading. Some trade using charts, 5 min, 30 min, 10 min some use MA, EMA, RSI, CCI, some also use many equations and formulas like pivot points, woodies pivot, demark pivot points, camarilla equations, any many more things. I have been trading the markets with all this and come to conclusion that trading market can be referred as gentlemans gambling, you can earn from it definitely provided u trade it with proper knowledge and a perfect plan and the main thing is that u must go in for small gains for n number of trades, which also can be referred as scalping. THE MOST IMPORTANT THINGS I TRACK IN DAY TRADING 1) Previous days range ( difference in days high and days low) the most important 2) That days high and that days low at 10:15 am after the start of markets Thats all , Earlier I used to trade using all the mentioned things like ma,rsi, adx camarilla equations and all stuff but now I trade in a simple way of using the days range. With my studies I have come to a conclusion the if a days range is of 85 points say for any stock say ONGC then it will have three values for the next days for me to trade (that calculation is done by me based on my studies ) Suppose the values I got are 36,63,92 then with this values I will trade for the next day Say ONGC next day opens at 785 and by 10.15 am it is at 795 neither open or the present value of the stock is important to me ,the thing important to me is the high and low of the stock at 10.15.now here comes three different cases which I will explain u in detail 1)when the difference between high and low ( range ) at 10.15 is less than the first value that is 36 Suppose ONGC has high of 801 and allow of 779 with a range of 22 points <36 Then if the price goes bellows 801 -36= 765 it will definitely go down 0.5 percent more down to 761.2 and this will be my gains In simple words sell stop loss order at 765 with a buy order at 761.2 Now at 10.15 if the price is at 795 it can go up also so if it goes then I have to take in account of low at 10.15 .so if the rice goes above 779+36=815 then it will definitely go up 0.5 percent up to 819.05 In simple words stop loss buy at 815 and sell at 819.05 If have both ur orders placed then the most important thing is that u must keep a watch on low and high of the stock.suppose at 10.35 its at a low of 770 then u must modify your stop loss buy order to 770+36=806 from 815 and sell order to 810 from 819.05.in this case your one order will be the same as the days high will be the same that is 801. If suppose at 10.35 the stock is at high of 805 then u must modify your stop loss sell order to 805-

36=769 from 765 and buy at 765.2 from 761.2 down 0.5 percent .the second order of yours will be the same as the low will be the same at 779. If u have any one side of your order executed with a profit then you must cancel the other two orders .suppose u have stop loss sell and a buy order triggered then you must cancel the other order of stop loss buy and sell order . 2)when the difference between the high and the low at 10.15 is more than 36 and less than 63 Suppose ONGC is at high of 825 and low of 770 at 10.15 Then sell below 825-63=762 and buy at 758.2 down 0.5 percent Buy at 770+63=833 and sell at 837.15 up 0.5 percent Here also it is important to keep a watch on the days high and low after 10.15 and as per the above example modify your orders if needed. If you have any one side of your order executed with a profit then u must cancel the other two orders .suppose u have stop loss sell and a buy order triggered then u must cancel the other order of stop loss buy and sell order. 3)when the difference between high and low at 10.15 if more than 63 and less than 92 Suppose ONGC is at high of 840 and a low of 768 at 10.15 am Sell below 840-92 = 748 and buy at 744.3 down 0.5 percent Buy above 768+92= 860 and sell at 864.3 up 0.5 percent . Same conditions apply as above methods. OBSERVATIONS AND CONCLUSIONS If I take in around 100 stocks then out of hundred only three to four stocks are that will not follow the above theory in day trading. Around 95 stocks when hit the stop loss sell or stop loss buy order go down or up by 0.5 percent respectively. The five stocks which have behaved opposite to the theory will definitely will follow this theory the next day and also for more consecutive days. This factor u must use to minimize your losses u made on that particular day when the stock behaved the opposite way. This is explained in cash management and stop losses. Around 70 to 80 stocks go up or down 0.7 to 1.2 percent after hitting the stop loss buy or stop loss sell orders.( here there is a risk that the price may not go in a single stroke down or up but It will go.) You must trade in those stocks which have a turnover of around 4 to 5 crores or above daily in trading and having short selling You must be expert in execution of orders and accurate in ur calculations. You should not panic at any time CASH MANAGEMENT AND STOP LOSS.

How I trade and put my stop losses I take in 20 stocks for trading . I sell or buy one lakh worth of shares of a particular comp.(initial amount which I double as per the requirement ) Now suppose for a stock say ONGC I have my orders as below Sell below price A and buy at B. Buy above price C and sell at D. NOW HERE ARISES THREE DIFFERENT CONDITIONS 1) when the sell below A order is hit , I put a stop loss of 1 percent above the hit price A for stop loss buy .If my buy at B is hit without hitting the stop loss then I will make a profit of 0.5 percent .this is the best fitted condition for the above theory. The same condition is applicable to buy above price C and sell at price D 2)When the sell below A order is hit , I put a stop loss of 1 percent above the hit price A for a stop loss buy.If instead of going at price B the price hits the stop loss then I make a loss of 1 percent(rs 1000 for one lakh worth of shares) .But at this point I again put order sell below A and modify buy at a price 0.8 percent down of price A ( not at price B which is 0.5 percent down of price A ).Now here the value of stocks ur selling is important .If u have sold shares of one lakh value and booked a loss of one percent then u must sell at the same price two lakh worth of shares ( that is double the value ) but modify buy order at 0.8 percent down from the sell price instead of 0.5 percent down.now when buy order is hit u will profit 1600 rs as compared to a loss of 1000 rs (after ur brokerage charges u still are in profit).This is one of the rare cases in the above theory but u must be prepared to it. The same condition is applicable to buy above price C and sell at price D. 3)when the sell below price A is hit.I put a stop loss 1 percent above the hit price A for a stop loss buy.If instead of going down to price B , stop loss is triggered then I make a loss of one percent . Then I be ready placing another stop loss sell order (but the value of the shares is double)at price A ,and modify my buy order from 0.5 percent down from price to 0.8 percent. But if suppose the price never comes to hit stop loss buy , then for the day I will make a loss of one percent on one lakh worth of shares. Now to minimize my losses on that day for a particular stock I will double my value of shares to sell or buy the next day (reason if the theory fails for one day then for next 100 percent it will struck and will do for more consecutive days for that particular stock).Here I make up for the loss made by me on the first day on that stock.for e.g on 23/2 I make a loss of one thousand rs (one percent of one lakh) short selling a particular stock .The next day I will sell or buy (as per the above conditions) double the value on the previous day for a profit margin of 0.5 percent only . Here for that day my earning is rs 1000 on the two lakh worth of shares.which will minimize my loss by done by me on the previous day. I take in 20 stocks of which I get around 12 stocks with hit the price .If number three condition arises for any of these 12 stocks then I have a loss of rs 1000

for that stock but I earn rs 11*500 for other stocks that is 5500. So me net profit will be 5500-1000 =4500 It may be that in those some(one or two) of 11 stocks ,number two condition arise this may reduce my profit. For the stock which made a net loss ,the next day plan will make it less by half adding to the next day profit. Sometime I start a trade by selling or buying shares worth 50,000 and then double my amount to one lakh as per condition number 2 or 3 . This is a theory just to earn a leaving ,a sure method of trading market. 2652 THEORY OF DAY TRADING THE MOST IMPORTANT THINGS TO TRACK IN DAY TRADING Previous days range (difference in days high and days low) the most important That days high and that days low at 10:15 am after the start of markets PDR F1 F2 F3 = = = = PDH - PDL 0.4333 * PDR 0.7666 * PDR 1.3333 * PDR = High Low (at 10.15 AM)

Opening Range If

F1 > Opening Range Factor = F1 Else If F2 > Opening Range Factor = F2 Else If F3 > Opening Range Factor = F3 Buy Stop Order for Long Target for Long Stop for Long = = Intraday Low + Factor

Buy Price * 1.005 (0.5 % gain) = Buy Price * 0.99 (1.0 % Loss)

Sell Stop Order for Short= Intraday High - Factor Target for Short Stop for Long = Sell Price * 0.005 (0.5 % gain) = Sell Price * 1.005 (1.0 % Loss)

Simple intraday trading method - 2652 deluxe Hi to all traderji readers i am here to write my new method of intraday trading first of all why i was late to post it here when i wrote asking to all old friends of 2652 group and new readers whether i should post it here or not most of my old friends told me not to post it here and new insisted that i should post it here The reason is that Just check each and every method posted on traderji may it be flow method of asint sir, pride intraday method, picot points methods or 2652, the performance of each method has gone down after it was posted here.. Well all these methods are still working and 2652 is still working and will work for all stocks of any market but one should be able to use it wisely like may be trading only second trade in a day or third trade in a day but 2652 is one method which works consistently well for all stocks. the reason for failing of theses methods after posting on tradeji may be market movers are keeping an eye on this methods on tradeji , may be there are too may buy and sellers as per the methods . but one thing is that traderji is one of the most visited technical site in Indian by top technical analysts and people in share markets . so i was too a bit hesitant , but i have three more methods with me and this i am posting here just to check whether this new method which is totally different from most of the methods posted earlier on traderji , reason its a reversal method one important thing is that there is no method intraday trading which will give 80 to 100 percent results and that also for n number of stocks If u had notice mostly all methods or tips are based breakout system buy above and sell below but all theses fails after giving good profits some times reason is that each stock has its time of buzzing and then going at nails pace with no volatility in intraday. For breakout system some use NR4 and NR7 method for finding stocks but its very simple to trace slow performing stocks So here we are looking for slow performing stocks which doesnt have strength to make large moves at the end part of market (they may move significantly in first part of day) Some people may find this silly like how come people wrote of 2652 that it was rubbish method and all were proved wrong though many senior readers and writers are out from here like sunil and saint sir but still its a most visited site .what i believe is that u must never trade a new method unless u backtest it for a month or back test it with the previous data and also never leave any method think that this is silly and this will not work. in this crazy world of share market anything can work

NOW JUST READ IT PROPERLY HOW IT WORKS THE METHOD WORKS ON 15 MINTUES TIME FRAME FOR CANDLE 9 TO 3.15 THERE ARE 26 CANDLES WE DIVIDE IT IN TWO PARTS PART I - IS FROM 9 TO 11.30 CANDLES OF 11 CANDLES AND PART 2 - IS FROM 11.45 TO 3.15 CANDLE OF 15 CANDLES WHAT WE MUST DO IN FIRST PART - 1 JUST AN WATCH ON CANDLE 1 TO 11 FIND THE CANDLE WHICH IS HIGH AND WHICH IS LOW TILL 11.30 SUPOSSE CANDLE NO 3 THAT IS FROM 9.30 TO 9.45 IS THE LOW THEN NAME IT AS L3 AND SUPPOSE THE HIGH IS NO 9 AT 11 TO 11.15 THEN NAME IT AS H9 SO PART 1 END AT CANDLE NO 11 AT 11.30 TO 11.45 WHAT TO DO IN PART 2 PART 2 STARTS WITH CANDLE NO 11.45 TO 12 AND END WITH 3.15 TO 3.30 WITH 15 CANDLES NOW IN PART 1 FIRST LOW WAS ATTAINED AT L3 AND THEN HIGH WAS ATTAINED H9 NOW IN SECOND PART U MUST KEEP AN EYE ON LOW OF CANDLE 3 (BECAUSE L3 IS FIRST) THAT IS FROM 12.15 TO 12.30. IF LOW OF THE 3RD CANDLE IS BROKEN OR TOUCHED THE LOW OF 3RD CANDLE THEN U MUST BE READY FOR 9TH CANDLE IN SECOND PART FOR TRADE WHEN 9TH CANDLE IN SECOND PART THAT IS CANDLE FROM 1.45 TO 2.00 ENDS THE PUT A SELL ORDER AT THE HIGH OF 9TH CANDLE IN SECOND PART PUT 0.9 PERCENT STOP LOSS AND PROFIT OF 0.8 PERCENT (OR AS PER CLOSE AT 3.15 TO 3.20) ABOVE AND BELOW THE SELLING PRICE RESPECTIVELY. IF THE LOW IN THIRD CANDLE WAS NOT BROKEN IN 3RD CANDLE THERE WOULD HAVE BEEN NO TRADE IN 9TH CANDLE NOW IF SUPPOSE IN PART 1 FIRST H4 IS THE HIGH AND L10 IS THE LOW THEN IN PART TWO WAIT FOR 4TH HIGH TO BREAK CANDLE THAT IS 12.30 TO 12.45 IF IT BREAKS THE HIGH OR TOUCHES THE HIGH OF THE 4TH CANDLE IN SECOND PART BE READY FOR THE 10TH CANDLE IN SECOND PART THAT IS 2 TO 2.15 WHEN 10TH CANDLE ENDS AS PUT A BUY ODRER AT THE LOW OF THE 10TH CANDLE STOP IS 0.9 PERCENT BELOW THE BUY PRICE AND PROFIT IS .8 PERCENT ABOVE THE BUY PRICE (OR AS PER CLOSE) IF HIGH OF 4TH CANDLE IS NOT BROKEN THEN THERE WILL BE NO TRADE IN 10TH CANDLE OF SECOND PART

THIS WORKS ON ASSUMPUTION THAT NO CHART OF A STOCK IS SYMETRICAL IN BOTH TH PARTS THIS METHOD WORKS WELL FOR NIFTY STOCKS BUT SELECTION OF STOCKS IS THE KEY THERE IS ONE MORE TWEAK TO THIS METHOD WHICH MAKES ITS MORE EFFICEINT BUT WITHOUT THE TWEAK ALSO IT WORKS FINE I CANT POST THE TWEAK HERE (CANT DO MORE CHARITY AT LOSS) BUT CAN DEFINATELY HELP IN CHOSING OF SLOW STOCKS U CAN GO IN FOR SLOW STOCKS LIKE INFOSYSTCH, GRASIM, BHEL, SUNPHARMA, ITC, HINDLIVR, TCS, AVOID VERY STOCKS LIKE RELCAPITAL, RELINFRA, EDUCOMP, IDEA, UNITECH ONE MORE THING IS THAT U MUST TAKE THOSE STOCKS THAT HAD MOVED TOO MUCH IN EARLY HOURS OF TRADE OR PART 1 THIS LIST U CAN GET FROM MONEYCONTROL .COM HOURLY GAINERS AND LOSERS. A WISE TRADER WILL GET N NUMBER OF STOCKS WHICH QUALIFY FOR THE ABOVE METHOD IN BREAKOUT UR LOOKING FOR nr4 and nr7 here u can looking for just opposite. IF U HAVE AMBIBROKER THEN DO BACKTEST IT FOR SOME SLOW STOCKS AND ALSO SOME VOLATILE STOCKS. THIS METHODS IS THE BEST BECAUSE YOUR ARE TRADING WHEN THE MARKETS HAS DONE A LOT IN A DAY. PLEASE DO NOT ASK SILLY QUESTIONSLIKE WHY U TOOK 9 TO 11.30, WHY U CHOSE 15 MINTS TIME FRAME, ARE U TRADING WITH THIS AND ALL STUFF TIME F AND ALL JUST DO BACKTEST AND COME ON HERE I MAY BE ONLINE SOMETIMES BUT IF U HAVE ANY GENUINE QUERRY DO MAIL ME AT ASSIST.E@REOSRTRIO.COM OR DHIRAJ_UG@YAHOO.CO.IN WHAT A INTRADAY TRADER SHOULD AIM - TO ERAN AROUND 4 TO 5 PERCENT ON WHATEVER HE IS TRADING. THAT MEANS IF UR TRADING BHEL WITH ONE LAKHS THEN U MUST AIM TO EARN WITH BHEL AT THEN END OF MONTHS ONLY 4 TO 5 THOUSAND. BUT THERE THE METHOD SHOULD BE CONSISTENT AND U MUST TRADE 4 TO 5 STOCKS HOPE THIS WILL HELP ALL OF U AND IF UR TRADING TRADE WITH SMALL QUANTITIES. I WITH MY TWEAK TAKE 3 STOCKS AND TRADE WORKING FINE FOR ME HAPPY