Saturday, January 16, 2021

#RELIANCE trades

This week I continued with the method that I tried last week

After a debacle on Monday, I decided to trade only #RELIANCE, since I am able to enter with very small stop losses in #RELIANCE. It might make sense to stick to just one scrip, since there is a greater chance to catching good moves in the scrip. This plans works only if (Warning: Zen philosophy alert)

  1. There is a good move in the scrip
  2. I am able to catch that move

Since the entries are with small stop losses, I could risk taking multiple hits before catching a good move, and still not be hurt much.

This idea worked for 2 days, and then got hit by a series of losses. That made me drop Stop and Reverse trades, just to reduce the number of trades (here the thought is that every trade = potential loss)

** There was a period when I used to avoid using the terms 'win' and 'loss' in reference to my trades. But now I am out of that phase. Now, even when I use the terms 'win' and 'loss', mentally I am just thinking 'plus' and 'minus'.

Trades on Monday, Jan 11, 2021

6 losses - 2 each in #INFY, #BANKNIFTY and #HDFCBANK, followed by a small gain in #RELIANCE. Result: -4.5x

#INFY opened gap-up in the morning. I just wanted to get in, hoping for a strong move in either directions. Did not happen.

#BANKNIFTY trades with small Stop Losses. Quick stop loss hits.

#HDFCBANK short did not work. Then I reversed to long by mistake, because I forgot to cancel the SAR order.

Small gain in the last trade in #RELIANCE.






Trades on Tuesday, Jan 12, 2021

Traded only #RELIANCE. Second trade was a winner. Result: +11x

The first trade, short, had the SL hit quickly. Did not SAR.

Got a long entry soon enough. I was under tremendous mental pressure to lock in some profits. Reason for the pressure: Losses in the previous trading days. Managed to ward off the pressure, and got to exit at almost the high of the day.




Trades on Wednesday, Jan 13, 2021

Only 1 trade. #RELIANCE. Result: +7x

Early morning entry. I was not under any mental pressure to lock in profits on this day. Reason: Win in the previous trading day. So even when +12x reduced to +7x, I was hardly bothered.




Trades on Thursday, Jan 14, 2021

7 trades in #RELIANCE. Result: -5x

The system had a grahana on Sankranthi. Bad day. Got whipped, whipped, whipped. I was expecting that this system would give about 4, or at max 5 trades on a whipsaw day. But on this day, I was already in 7 trades and 6 losses before lunch.

Keeping the Stop Loss small has its advantages. At the end of the day, decided to avoid SAR (Stop and Reverse) trades just to avoid the number of trades (potential losses.)




Trades on Friday, Jan 15, 2021 

3 trades in #RELIANCE. All losses. Result: -3x

Missed out on the best move of the day, the drop that began just before 2 PM. Could not identify any small risk entry after that since the scrip was volatile after the drop.



Next steps

I had a serious look at the options charts for the first time in more than six years. This method seems tailor-made for options. Taking small stop losses in the hope of catching a big move. Big moves from narrow ranges happen all the time in options. Somehow, I am still not impressed with the options charts, though I did identify some of those setups. For the moment, I still prefer the small SL setups in #RELIANCE. Options are still on the table, though.

I am more impressed with potential of this system on the commodities chart. I found multiple setups in all the charts that I looked - #CRUDEOIL, #GOLD, #SILVER, #COPPER, #LEAD, #NICKEL and #ZINC. These setups look much better and more consistent than those on any of the Stock Futures chart. I can catch some very good moves that start after 2 PM. I should seriously be trading this method on commodities. What's preventing me is life. Nowadays, get out of the house after 3:30 PM for 2-4 hours. Will try this method on commodities as soon as I am able to reschedule my routine.

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