iCharts Discussions

[drbalarst]

pranams to my guru mr n kumarann, my first article in this forum, i need all ur blessings and suggestion.dear vievers, today exactly at 1.30 pm , i took long at ongc around 1020, reason r in 15 min chart it makes a low of 1010. which is a support at 34 ema, so the support at 34 ema i sintact, i decided to go long, in 15 mins charts , last three candel high is 1019 .95 i bought 200 shares ongc at 1020.50, i kept my stop loss at 1009.95, which is below 34 ema in 15 mins chart. it came upto 1015. and went to 1024. then i changed my stop loss to 1018.5, which is intact thru out the day, and i covered my longs at 1030, gives me good profit.. in a negative market, irrespective of trend i went long booked profit.. just go thru this, ur valuable suggestions r welcome, thank u drbalarst

[naresh1711]

Sir

Gone through your trade concept the way u have narreted its perfect just test your trade system across scrips and time frame, ONGC being Nifty heavy weight was used to pull the nifty up from day lows for some trading bounce. This time it went in your favour but it can rub u some time on wrong side. All I am saying is just manage ur trade properly with strict stoploss though your stop seems narrow but given time frame and ur objective u can decide on that. Good luck with your trading and try to post your observation online to the benefit of i-chartians.

naresh1711

[daytrader007]

Like RIL, ONGC is one of the most difficult stocks to trade. Many days, it tends to hit SL first and then move up/down. Therefore, be careful in trading ONGC. If you know pulse of ONGC, then you may take those moves to your advantage. My this view is only for intra-day trading. I believe ONGC is a very good stock for swing trading.

Good stock for day trading is TISCO STER LITL RELCAP etc. These are high beta stocks and would attract higher SL.

dr sir,

when you know trend of a stock, then why do not you buy at 1010 than waiting 1020. your risk will be less if you would have bought at 1010.

[daytrader007]

dr sir,

just now i saw RT chart of ONGC. I think you bought ONGC after the spike. It was a risky trade.

[vivek999]

Dear drbalarst,

Thanks for sharing the analysis and strategy of your trade.

Based on the information in your message, I would like to note down the following:
Entry 1020
SL 1010
Target 1030

The risk in the trade was 10 points, and the reward in the trade was also 10 points. The risk-reward ratio is 1:1.
This means that the probability of successful-trade is 50%. However, the probability of unsuccessful-trade is also 50%. When a coin is tossed, the probability of the coin showing-up 'Heads' is 50%, and the probability is also 50% for the coin showing-up 'Tails'. In other words, the risk-reward ratio in a bet involving 'tossing-of-coin' is 1:1.
In Trading, can a risk-reward ratio of 1:1 be viewed as a good opportunity?

The answer to the above question may be subjective. I have looked at your trade from the perspective of only risk-reward ratio (or should I say that I have looked at it from 'Statistical-Probability' perspective?). However, I do understand that you may have looked at the trade from other perspectives, and felt that it is a good trading opportunity. I also understand that managing a trade is lot more than just calculating the statistical-probability. If your analysis and strategy have been working very well for you, you may choose not to look at it from this kind of 'Probability' perspective. Sometimes, too much of analysis can lead to confusion

Happy Trading!

Vivek