28th June 2024 - Friday

Again Friday has come. Has not been a great week.

The issue continuously is i am facing in past few is that the market is not coming close to 20 MA. So market goes away and never comes back.

Second issue was the confusion on playing around 200 MA - now that has to stop. Will only play 9/15 EMA - not anything else. Once market is close to these, thats when I enter.

Market was highly bullish and continues to be bullish.

Will look to trade long mostly of the cases.

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Trading Day -

Was a good day. Test 9 and 15 EMA and they work well. Let the price cross them and come back to them when they are above 200 EMA for long positions. Once done, take the trade when white takes black.

Similarly, the other way round. Let me price cross the moving averages and then pull back when 9 and 15 are below the 200 EMA for short trade. Once done, take the trade when black takes white.

Made Money.

27th June 2024 - Thursday

 EXPIRY!!!

Another expiry, last one was bad. Lets see if this method playing 20MA works and how much.

All the best - no change in anything. Lets see how it goes.

The market is at all time high. Can it correct from here? Of course.

The market is very positive though - 3 days of back to back breaking previous highs. About 20 MA on daily and 1 hour.

23,821 on Nifty Futures is a major support level and any shorts have to be below this level.

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Trading day -

The direction today was ok but the trades didn't work out. Not all, some did work out and reduced the loss to under Rs 1000.

20 MA is proving to be very slow and hence i have now shifted to 9 and 15 EMA - they are faster. The idea is to trade them - not anything  else - not support resistance, not 200 EMA.

Just take trades at 9/15 EMA and stop loss will be lower of the two EMAs - mostly 15 for long and higher of two for short.

LOST MONEY.

26th June 2024 - Wednesday

One day before expiry.

Market roared on 25th June. Needs to be seen how the things tomorrow goes. Process is very simple.

So will follow the process and see.

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Trading Day -

Today was a good day. Even if not in terms of actual money made but the Futures chart worked better than Gift Nifty.

Took the first trade and got stopped.

Took a second one which made money and recovered loss.

Made Money.

25th June 2024 - Tuesday

Rules remain the same.

Nifty is positive on Daily and 1 hourly time frame. Overall trend continues to be positive.

Look for Call opportunities primarily.

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Trading Day -

It was a weird trading day. Gift Nifty was showing weakness whereas Nifty clearly opened in a good state on one side of both 20 and 200 MAs.

Decision - Never to trade GIFT Nifty anymore - will continue to trade Nifty Futures chart.

All rules remain the same. Trade only at 20 MA.

5 trades today and all went bad.

I am not sure what went wrong. But i have taken trades which was a bad location.

Lets ensure that things go back to normal again.

LOST MONEY

24th June 2024 - Monday

 New week - new opportunity - new experiences.

Strong bearish engulfing on daily timeframe. 23,427.5 is a support level for GIFT Nifty and is currently at 23,467. So need to see how the market opens tomorrow.

Based on how the opening is, trades need to be planned. Looks like a cautious day.

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Trading day -

4 total trades 

1. Took a PE trade - went to 1:2 and then market bounced back from almost touching 1:3 and took breakeven stop loss.

2. CE trade on an already extended market and took the SL

3. Same thing on 3rd trade as no 2. The market had already moved a lot

4. Sideways market for 3rd trade also

Another exit at almost cost.

21st June 2024 - Friday

 Friday cannot be a dry day - as i don't drink, i drink extra chai :).

Now, Fridays are typically for options writers - the market typically doesnt move much - but we will see.

Market is still overwhelmingly positive in outlook. Nifty is above 20 MA on Daily and 1 hour timeframe and up and down on 15 mins.

Will wait at least 30 min before trading. But one key lesson from today - not matter what, trade only at 20 MA.

Decided to practice this more and so will only play in 1 lot till i get more comfortable.

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Trading Day -

1. Started the day with a call option buy but it did'nt go anywhere and eventually crashed into my SL.

2. Second trade was taken incorrectly - i was looking at something on 1 min timeframe and just took the trade by mistake - didn't cut it as once trade is taken, its taken - this one also hit SL.

3. Third trade was correctly taken - the market was reversing and when it took support at 20 MA and bounced back, trade was taken - the market though whipsawed back, ate the stop loss And started moving back in my direction :)

4. The last trade was taken when market was reversing after trade 3 and broke the lower high, thats when i took the trade, again a call option - this trade went all the way and was successful.

Closed the day with a loss of 100 odd rupees. Need to ensure i don't take any wrong trades.

But overall a good trade - followed all the rules.

20th June 2024 - Thursday

Expiry day it is.

Nifty created an outside candle on 19th June. Fell in first half but recovered a bit in second half.

My outlook will stay bearish for now although Nifty is strong on daily timeframe. it remains weak on 1 hour chart.

Opening will be important and then need to play according to moving averages.

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Trading Day -

Taken 5 trades today - only one at SMA 20 and that made i to 1:2 and terminated at break-even. Didn't make it to 1:3 target.

Remaining traded were taken farther away from 20, although one of the trades was taken closer to 200 MA but came back to hit stop loss and and touched 20MA.

Key learning, no matter the candlestick pattern, DON'T TAKE TRADE AWAY FROM 20 MA.

One of the trades was taken at 20 MA but the price was making lower highs. So watch out for such scenarios also.

SO IN A NUTSHELL - TAKE TRADES ONLY WHEN MARKET IS IN HIGHER HIGH, HIGHER LOW OR LOWER HIGH, LOWER LOW PATTERN AND IS AT 20 MA.

LOST MONEY

19th June 2024 - Wednesday

Overall Context Nifty is bullish across daily, hourly and 15 mins timeframe. Do not want to short as a going in position. Will wait for price active to form but will look to take long trades.

Nifty has made a hanging man pattern on 18th June. 

Although it remains overwhelmingly positive, it needs to be seen what effect hanging man pattern will have.

Nifty has made 79 positions range on 18th June and traded in that range all day. This range for tomorrow remains no trade zone and trade should be planned once this range is broken.

Needs to be seen what the price action says on 19th June. In general, definitely looks like a buy-on-dip market.

Also, taking Bon to doctor tomorrow so might not have a lot of time to trade in morning. Will see.

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Trading Day -

Wasn't a great day overall and lost around 2500 with 2 lots of Nifty. The hanging man pattern did play out and the market crashed in the morning but ten recovered in second half.

A few modifications to strategy - i would like to go for bigger profits rather than 1:2. So I will go with 1:3 risk to reward ratio. Although once 1:2 is achieved, i would make it cost neutral - means move the stop loss to breakeven.

Do not want to go with trailing stop loss thing for now as Nifty does pull back quite a bit before the SL stops the erosion in profit - so 1:3 is better - not all trades will reach here but whichever do will earn bigger profits.

LOST MONEY

17th June 2024 - Monday

Markets closed for Bakri Eid.

18th June 2024 - Tuesday

Overall Context

Nifty is bullish across daily, hourly and 15 mins timeframe. Do not want to short as a going in position. Will wait for price active to form but will look to take long trades.

If Nifty open low yesterday, will wait for it to recover and then take a long trade - buy on dip day for me.

Key levels on Gift Nifty charts is 23535-40 and around 23550.

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Trading Day -

Trading day was good. Took 6 trades - need to see if this can be reduced. Also need stop after 1030-11 am most days.

Made Rs 1692.50 on 2 lots Nifty. 

Trades with overall trend which was positive overall. 

Even for tomorrow, trend remains positive.

MADE MONEY

My Trading Style

My trading has started from Options buying, I know, not the most profitable strategy. Also I do not buy naked options :), so even worse isn't it?

Anyways, i have been experimenting a lot with small quantities as I am learning and the idea is to capture a trending move up and get out if trend slows down or changes.

How  to determine trend? With moving averages. I use 20 and 200 simple moving averages. I also use a 9 EMA for trailing.

My trading style is to trade 20 moving average - at 20 MA, buy when green takes red and trail with 9 EMA.

Simple.