Thursday, June 16, 2016

Sailing against the wind - Day Trading: June 15, Intraday

Wednesday was potentially good day turned into a bad day, quite deliberately at that.

Nifty Discretionary Trades

Trade 1: Long green bar right at open, and I wanted to go long in the opening second. That did not happen, and the price pulled back slightly below 8150. I thought that I had saved a few points, but when the price came back to 8150, I took the long.

Trade 2: Reversed to short as a Breakout Failure of 8150, looking for a gap closure. Loss. Stop Loss was at 8150.10 instead of 8150. Filled with a slippage of 5 points.

Trade 3: Long on Breakout Failure of range. Could have improved my entry by a few points. This trade moved very slowly and broke 8150. This was followed by a period of volatility in Nifty50 Futures, but calmness in Nifty50 Spot, with Spot staying firmly below 8150. This indicated that Futures would spike whenever Spot broke 8150. Booked at spike.

The Short Bias: The spike was followed by an ascending triangle. Though this is generally bullish, I was looking to short a Breakout Failure of the upper range. The upper range finally broke with a big spike, and there was no Breakout Failure, but I stayed with my short bias.

Day's trades - Live Tweets
Day's Trades - Live Tweets

My first opportunity to discard my bias was then the triangle broke on the lower side. This was a potential long setup, but I decided to hold out for a Breakout Failure of the upper side.

The second opportunity to discard my short bias was the big spike. I had was expecting a regular Breakout Failure, not this huge spike. Besides, there was no Breakout Failure.

The rest of the trades, sailing against the wind: Trade 4 was a short on loss of momentum. Did not work. I shorted right in the spike bar. If I had ignored my bias and been patient, then the next inside bar could have been an opportunity to go long.

Trade 5 was taken as a Breakout Failure of 8200. I was not trading the news. I came to know of the news that caused the breakout only after the Trade 5 entry. These news breakouts can move either way after the spike. Today's news set the trend for the rest of the day.

Trade 4 and 5 could be justified in some manner, but there is very little justification for Trade 6, except something that reinforced my short bias - for no good reason. The Stop Loss for Trade 5 was 8201, but the fill happened near 8199. That made attempt one more short at 8200, but even then I should not have move the trigger above 8200... but the bias.

Trade 7 was a last attempt to go with the trend. Failed.

Markets seem to be in red again. Let's see what today holds. For the moment, I am continuing with discretionary trades.


  1. Hi AB

    your 3rd trade looks like good entery & u could have trailed your stop better. I missed that entry thinking that space was an issue