Thursday, September 15, 2011

Watching the Markets during the day

A blog  (sorry, I missed out which one) , suggests a simple test to determine if intraday activity outperforms any after hours system.

Before the open, every morning, write down your trades for the day assuming that you will not be monitoring the market during trading hours. Write down your reasons, the entry level, exit level and whatever else. Track the results of this simulation after a few weeks and compare it with your actual intraday trades.

I think the point is that the less stressed , no intra day monitoring trades may perform better.

The Nifty continues its slow move up. A suggestion to buy with a stop below 4900 has turned out to be profitable. Readers must understand that often such suggestions will lose money. The profits come because of probability - more money is made and less money is lost over a long period thus giving positive expectations for a trading method.

3 comments:

Tarique Anwar said...

peterbrandt.com i guess.. he asked to do it in a dummy trading platform !

Bharat Thakwani said...

hi sir... will u be coming back on et now..?

Sasi Uppuluri said...

Sir, I guess the method should work. Many like me, have the best forecasting ability but find it difficult to trade the plan. So, this should work if implemented under good money management principles.