Tuesday, May 19, 2009

Stock Futures gain, day trading today

The Singapore SGX Nifty is currently at 4585, suggesting that the market may trade today without being hit by another upper circuit.

For those traders who do not have any positions in the market, the day is not going to be easy. Volatility is high because of the big jump from 3700 to 4500+.

Day Traders must not enter at the open or even after a few minutes of trade. Suppose the Nifty falls a 100 points after you enter, then quickly rallies back to its highs, where will you be? The correct way to tarde is to wait for a consolidation. The consolidation allows traders to identify low risk exits. The support lines of such a range become your stop loss. The breakout from resistance becomes a trigger to enter.

Many a time, I find it difficult to offer futures trading strategies since most of these methods require the use of technical analysis, not just levels. Today's suggestion also needs an intra day chart. This annoys many readers who wish to receive 'calls'. But traders who do not have proper tools for day trading should not be in the market anyway.

online day trading


saket said...

The Missing out feeling
Well the market moved almost 20% and those including me did not have any positions on friday have lost the oppurtunity and lost nearly 30% of the market move.We are getting a left out feeling.
Now it is difficult to get into trade specially long even though the trend is up.What should we do wait for a dip,What if is doesnt come(it will come but there is a fear since it has not in the last 2 months) and if it comes at wht point should we try to enter.Its 2000 pts from where the rally started without any meaningful dip.
So please suggest strategies for medium term traders.

Mind Without Fear said...

We do not know whether it will drop 100 points or 150 points. What I have learned from Sudarshanji is patience in deciding support/resistance level. So here is what I am planning to do. If it does begin to fall, WAIT for the fall to be over. How do we know that the falls is over? Well we do not know for sure. I guess it it falls 150 points and then rises 50-70 points, then the fall is temporarily over. BUT I would wait for a confirmation setup. I would wait for the market to fall again and watch to see if the previous low held. If it does, that is the point where I shall enter keeping the earlier low ( not the mot recent low ) as stop loss. If the stop loss is too big for me to stomach I shall sray away. If none of these sceaniors develop, I would try to stay away and not nibble. Do wish me luck in sticking to my plan.

tushki said...

sir pls suggest a trading level for power grid corp..i have short sell it at 99..wat range u expect there in 1 week time

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