Nifty Future and Option Trading: 8/19/12

Aug 25, 2012

Nifty Weekly Chart Update -27Aug2012

Weekly Stochastic Chart Show bullish view while daily correction is on.........

High of Shooting Star 5450 can be critical resistance

Bulls are safe along as nifty closes above 5378 and 5358

78.6% of the last major fall was held

WHAT IS TRADING ?

Trading in its simplest form, is a pattern recognition numbers game. We use market analysis to identify the patterns, define the risk, and determine when to take profits. The trade either works or it doesn't. In any case, we go on to next trade. It's that simple.

Aug 24, 2012

Order Selection Process

1.Study market and see any of the identified probabilistic view can be executed

2.Determine Risk Point

3.Is Risk Acceptable , if not ignore the trade

4.Determine Profit Target

5.Is Risk:Reward Acceptable,if not ignore the trade

6.Execute trade with protective stops.

7.If market doesn't act as forecasted in 5 trading days ,then exit the position.

8.If reason for putting the trade got invalidated ,then exit the position.

9.If market act as fore casted , start closing lot at Profit Target.

Mission and Goals

Mission

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1000 points in Nifty on an average per month by 2018

Goals

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1.300 points in Nifty on average per month by end of 2013

2.Introducing trading process for Record Management,Trade identification,Risk Management and Trading Psychology.

3.Aligning all my process and following it

Process Management

Trade Identification Process
1.Set aside a specified time every day to undertake your market analysis, trade identification.
2.Update the blog every day [http://perfectniftytrader.blogspot.in/]
3.Update Market Observation section for the identified Trade.[http://perfectdailynote.blogspot.in/]
4.Undertake this role in a dedicated space that is quiet and comfortable, and where you are able to focus 100% on the task at hand.

Trade Execution Process
1. Selecting a trade to executed from Market Observation Sections
2.Making a entry in Trading Posting Cards
3.Execute the trade

Trade Management Process
1.Monitoring and managing open positions, and recording these details.
2.Closing the trade on Profit Target

Risk Management Process
1.Monitoring Open position so that risk plan is being followed

Mindset processes

Repeating aloud, every time a trade is executed, carefully crafted auto-suggestion sentences such as Mark Douglas’s Five Fundamental Truths and / or Seven Principles of Consistency and / or any other trading affirmations that you may have constructed.

Managing the trading process will enable you to remain emotionally detached from the outcome of individual trades and will allow you to focus on managing the performance of your trading system or systems according to the predefined rules of your trading plan

Daily Journalizing
Keep details of all trades in a spreadsheet, so that you know all the details of your closed trades.

[http://perfecttradingjournal.blogspot.in/]

Weekly ,Monthly and Yearly Journalizing
Keep details of all trades in a spreadsheet, so that you know all the details of your closed trades.

[http://perfecttradingjournal.blogspot.in/]

Intraday Journalizing

1.Keep details of all trades in a spreadsheet, so that you know all the details of your open positions and pending orders.
2.Filling the Trading Posting Card before every trade
3.Personal Journal ~ writing your thoughts before, during and after trading

End of Sample Size
1.Postmortem of each trade in the Sample Size of 30 trades
2.What I did right or wrong
3.Updating the plan on the basis of learning
4.Improvement area of future sample Size