Monday, May 12, 2008

>12th May Trading day

Hmmm roller coaster day Nifty plopped down hard and then came up smartly it usually not easy to trade news days

Today IIP data was awaited,A short trade in IFCI was done in morning usually when it is seen that nifty is witnessing free fall its good to short weak stocks provided you are fast enough or can trail with stop profit(it is a stop loss which is initiated when the trade is in profit for us to make sure it remains in profit )well nifty recovers smartly only to be beaten down again to the days low because of bad IIP data.


Tried another short in IFCI but it did not perform accordingly also nifty started to show strength trade was covered in loss before the stop loss.Since IIP data was bad it was really tough to take a long call suddenly as the nifty started to buzz in positive direction,
But when even market breath started to turn positive it gave confidence and few small trades were initiated in ISPAT IND ,WELGUJ and HDIL which did well rather should say quite well before the Market closed.Today CAIRN was a big miss trade though we did discuss that few trading days back exact same pattern was seen today too to see the old pattern click here...

Todays analysis is again on CAIRN chart attached.

Saturday, May 10, 2008

>Performance Review for Traders

Any given trade and any given day may or may not go a trader’s way, depending upon personal and market circumstances. A three-month period, however, is ample opportunity for frequent traders to demonstrate progress in their development. Here’s a quarterly report card that you might find helpful in tracking your own performance improvement:

1) Have I been profitable after expenses over the last quarter? If so, which markets and trading ideas have contributed most to my profitability? How can I maximize those markets and ideas going forward? If I haven’t been profitable, which markets and trading ideas have contributed most to my losses? How can I minimize or modify those markets and ideas going forward?

2) Have I improved my P/L over the prior quarter? Over the average of the prior three quarters? If so, what changes did I make in the last quarter that contributed to my improved performance? What changes in the markets have aided my recent performance? If I have not improved my P/L over the last quarter and/or over the average of the prior three quarters, what have I been doing differently that has been holding me back? What has changed about the markets that’s hampered my performance?

3) Have I managed risk well compared with other quarters? Have I made more in my largest winning days than I’ve lost in my largest losing ones? If so, what has worked for me in capping my losses that I can carry forward to the next quarter? If not, what do I need to do to limit my losses better in the next quarter?

4) Have I adapted well to market changes? How have my markets changed over the last quarter, and what did I do to adapt? Which of those adaptations do I need to emphasize in the next quarter? Which further adaptations can I make next quarter to deal with market changes?

5) How have I improved myself as a trader over the last quarter? What improvements have I made in my trading? In my finding opportunities? In my discipline and self-management? Which improvements do I most want to emphasize and carry forward to the next three months? What improvements haven’t I made in the last quarter that I need to focus on during the coming months?

Notice that the follow up questions are as important as the lead questions. It is those follow ups that turn the quarterly assessment into next quarter's goals. It is not enough to plan trades. Career success also means planning your development.
Brett N. Steenbarger, Ph.D.

Friday, May 09, 2008

>Trading day 9th may

Nifty opened gap down but recovered smartly to come back to positive today being friday inflation nos were awaited ,Well numbers turned out to be higher than previous week .

Which set the stage for shorting nifty trading below 5050 was negative which paved way for 5000-4980 ,I expected nifty to show some strength near 5000 and bounce back but ultimately breached 5000 today it was mostly because of heavy selling in Mukesh Ambani led RELIANCE IND and RPL both fell in excess of 5% Selling in these counters were mostly attributed to the Rumor that "govt is considering to ban export of RELIANCE and RPL products"Lets wait and what really is happening and whether this remains a rumor or turns out to be true.

Today morning did one long trade in TVS MOTORS it was a good setup would explain that with a chart.

Did some jobbing in ifci long

In the later half of the day tried to long TVS MOTORS again but sl was hit!!!
Bombay dyeing was shorted below 970 this trade would have fetched great return provide done in futures since i traded it in ICICI i was not able to capitalize fully on the fall as they usually cove all intra day positions by 3o'clock well my short was covered neat 925 whereas it touched a low of 890:( Never mind i did make money in that.
Regards
Rish