Got shaken out of the Opening Range Breakout trade

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Today, I logged in early again in an attempt to replicate my success with Opening Range Breakout yesterday. I found the opening move in State Bank Of India to be impressive, and went short with it. But my Initial Stop Loss was tight and got hit. I had wanted to keep a Stop-and-Reverse to long at that point, but did not have sufficient margin. Such potential early morning whipsaws are the reason why I was logging in late prior to yesterday.

Anyway, if I had stayed on with State Bank Of India, I would have ridden the second breakdown successfully, but that was not to be.

I was already into Hindalco. My 2 trades in Hindalco did not give me much.

After that, I was back to State Bank Of India. I thought that my late short in State Bank would help me get into profits, but that was not to be. Actually, I was in profit in that trade, but the wide Trailing Stop Loss required by the One Good Trade rule, prevented locking any profits in it.

Day Trading Price Action SBIN

Day Trading Price Action HINDALCO

>>> My live tweets of today's trades <<<

 

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Opening Range Breakout: One Great Trade covered yesterday's losses

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Finally, I got a One Good Trade. Today, I have more than recovered from yesterday's losses.

Trading the right scrip matters

Today was a metals day (I didn't check the other commodity charts). All of them, Hindalco, Vedanta, Jindal Steel, Tata Steel - all of them were on fire. Taking a Opening Range Breakout Long trade on any one of them would have made me rich.

That way, I was lucky that I chose to go with Hindalco today, instead of State Bank Of India or ICICI Bank. Also, kind of made my own luck, when I decided to switch from Nifty Futures to Stock Futures. Just look at the Nifty Futures chart today. There was no life in it.

On these Stock Futures, though the Day Trading Margin Requirements are higher, the brokerage and other costs are lower per unit of volatility, when compared to the Nifty Futures. An important thing to keep in mind is the volume/liquidity of individual Stock Futures. I am satisfied with the liquidity in the scrips that I have chosen to trade so far, though many times I could not get my entry orders filled for what could have been potentially good trades.

This trading style has been working so far. I guess that it will keep working.... until it stops working. The sun is shining right now... so make hay with this trading system.

Opening Range Breakout

Lately, I have been logging into my trading terminal a good 15-20 minutes after start of trading. It could be that I am just lazy, but I try to rationalize that due to the delay I avoid a number of early whipsaws. Today, I logged in early, just about 3 minutes after trading began.

Though I liked the look of both ICICI Bank and Tata Steel, I decided that I like the pattern on the Hindalco chart better. Hindalco had a good gap up and had higher volumes. That matches the kind of better Opening Range Breakout scenarios that I was evaluating earlier.

This one was a good Opening Range Breakout day, with no deep pullbacks that could take out my Trailing Stop Losses, and I only had to sit through it. The One Good Trade rule for my Trailing Stop Loss kept it wide enough.

From tomorrow, I will try to log in early into my trading terminal to catch similar trades, if possible. Especially, need to keep an eye on the gap ups and volumes at day open.

Day Trading Price Action Chart

>>> My live tweets of today's trades <<<

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More lessons about Initial Stop Losses

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I started experimenting with small Initial Stop Losses yesterday. Today, I continued the experiment. The experiment has given me very bad results on both days. Is the market trying to tell me something?

Though the impact of today's misfortune with the small Initial Stop Loss in HINDALCO was much greater, I don't feel as bad about it as the small Initial Stop Loss exit in ICICIBANK yesterday. Something quirky - I don't know why. If I had been able to stick with that HINDALCO long, it would have been perhaps my best trading day this month. But I have still not decided whether to end this experiment with the Initial Stop Loss positioning. The perpetual dilemma about Stop Loss positioning continues....

2 losses in HINDALCO, followed by 3 losses in SBIN. Finally, one good trade in ICICIBANK, but overall a very bad day trading day.

That's trading. You win some, you lose some. You pick yourself up and then move on.... Right!!?

Day Trading Price Action HINDALCO

Day Trading Price Action SBIN

Day Trading Price Action ICICIBANK

>>> My live tweets of today's trades <<<

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