MOST SUCCESFUL TRADING THEORY

2652 THEORY OF DAY TRADING
( THIS IS THE BEST TO EARN AROUND 1000 RS TO 3000 RS IN DAY TRADING FOR A LIVING )
Different people have different methods and ways of day trading.Some trade using charts , 5 min ,30 min ,10 min some use MA,EMA,RSI,CCI, some also use many equations and formulas like pivot points,woodies pivot,demark pivot points, camarilla equations, any many more things.
I have been trading the markets with all this and come to conclusion that trading market can be reffered as gentlemans gambling ,u can earn from it definately provided u trade it with proper knowledge and a perfect plan and the main thing is that u must go in for small gains for n number of trades ,which also can be reffered as scalping
THE MOST IMPORTANT THINGS I TRACK IN DAY TRADING
1)Previous days range ( difference in days high and days low) the most important
2)that days high and that days low at 10:15 am after the start of markets
That’s all , earlier I used to trade using all the mentioned things like ma,rsi, adx camarilla equations and all stuff but now I trade in a simple way of using the days range
With my studies I have come to a conclusion the if a days range is of 85 points say for any stock say ONGC then it will have three values for the next days for me to trade (that calculation is done by me based on my studies )
Suppose the values I got are 36,63,92 then with this values I will trade for the next day
Say ONGC next day opens at 785 and by 10.15 am it is at 795 neither open or the present value of the stock is important to me ,the thing important to me is the high and low of the stock at 10.15.now here comes three different cases which I will explain u in detail
1)when the difference between high and low ( range ) at 10.15 is less than the first value that is 36
Suppose ONGC has high of 801 and alow of 779 with a range of 22 points <36 36=" 765" 36="815" 36="806" 36="769" 63="762" 63="833" 92 =" 748" 92=" 860" id="KonaLink2" target="undefined" class="kLink" style="text-decoration: underline ! important; position: static;" href="http://www.traderji.com/#">short selling
You must be expert in execution of orders and accurate in ur calculations
You should not panic at any time
CASH MANAGEMENT AND STOP LOSS
How I trade and put my stop losses
I take in 20 stocks for trading . I sell or buy one lakh worth of shares of a particular comp.(initial amount which I double as per the requirement )
Now suppose for a stock say ONGC I have my orders as below
Sell below price A and buy at B
Buy above price C and sell at D
NOW HERE ARISES THREE DIFFERENT CONDITIONS
1) when the sell below A order is hit , I put a stop loss of 1 percent above the hit price A for stop loss buy .If my buy at B is hit without hitting the stop loss then I will make a profit of 0.5 percent .this is the best fitted condition for the above theory.
The same condition is applicable to buy above price C and sell at price D 2)When the sell below A order is hit , I put a stop loss of 1 percent above the hit price A for a stop loss buy.If instead of going at price B the price hits the stop loss then I make a loss of 1 percent(rs 1000 for one lakh wirth of shares) .But at this point I again put order sell below A and modify buy at a price 0.8 percent down of price A ( not at price B which is 0.5 percent down of price A ).Now here the value of stocks ur selling is important .If u have sold shares of one lakh value and booked a loss of one percent then u must sell at the same price two lakh worth of shares ( that is double the value ) but modify buy order at 0.8 percent down from the sell price instead of 0.5 percent down.now when buy order is hit u will profit 1600 rs as compared to a loss of 1000 rs (after ur brokerage charges u still are in profit).This is one of the rare cases in the above theory but u must be prepared to it. The same condition is applicable to buy above price C and sell at price D.
3)when the sell below price A is hit.I put a stop loss 1 percent above the hit price A for a stop loss buy.If instead of going down to price B , stop loss is triggered then I make a loss of one percent . Then I be ready placing another stop loss sell order (but the value of the shares is double)at price A ,and modify my buy order from 0.5 percent down from price to 0.8 percent. But if suppose the price never comes to hit stop loss buy , then for the day I will make a loss of one percent on one lakh worth of shares.
Now to minimize my losses on that day for a particular stock I will double my value of shares to sell or buy the next day (reason if the theory fails for one day then for next 100 percent it will struck and will do for more consecutive days for that particular stock).Here I make up for the loss made by me on the first day on that stock.for e.g on 23/2 I make a loss of one thousand rs (one percent of one lakh) short selling a particular stock .The next day I will sell or buy (as per the above conditions) double the value on the previous day for a profit margin of 0.5 percent only . Here for that day my earning is rs 1000 on the two lakh worth of shares.which will minimize my loss by done by me on the previous day.

I take in 20 stocks of which I get around 12 stocks with hit the price .If number three condition arises for any of these 12 stocks then I have a loss of rs 1000 for that stock but I earn rs 11*500 for other stocks that is 5500.
So me net profit

will be 5500-1000 =4500
It may be that in those some(one or two) of 11 stocks ,number two condition arise this may reduce my profit.
For the stock whih made a net loss ,the next day plan will make it less by half adding to the next day profit.
Sometime I start a trade by selling or buying shares worth 50,000 and then double my amount to one lakh as per condition number 2 or 3 .
This is a theory just to earn a leaving ,a sure method of trading market.