Sat. May 2nd, 2020

Jigar Balani

My Thoughts on Better Living

Book Summary- A Game I Play Everyday – Redefining Intraday Trading Strategy

4 min read
Book Summary of - A Game I Play Everyday - Redefining Intraday Trading Strategy
4 min to read

    A Game I Play Everyday – Redefining Intraday Trading Strategy

 

A Game I Play Everyday: Redefining Intraday Trading Strategy

by Kamal Jamwal  (Author)

Buy Now eBook

Book Description:

  1. Learn a Powerful Intraday strategy for day trading in FOREX, Stocks, Indexes in less than 90 Minutes. A quick guide on how to use this simple and effective Intraday Trading strategy on daily basis to quickly capture the up trends, downtrends of market.
  2. Clear cut example on how to use of proper risk management and position your trades.
  3. Crystal clear description of entries and exit criteria for buying as well as selling trades. Simple and clear instructions on how to configure your trading setups for trading.
  4. Clear description of how to use risk management, money management while day trading.
  5. Even a new day trader can easily grasp the concept and start using this day trading strategy in his/her daily use.
  6. Lot of real market examples explaining when to enter, how to calculate stop loss.
  7. Complete list of do as well don’ts.

Book Summary:

Sharing a few points from the book which I really found good to share. This summary also includes key lessons and important passages from the book as well as a few of my own thoughts and understanding:

  • You just need one strategy where you know where to enter and where to exit from the trades. Just a crystal clear set of rules. That’s it!
  • Marry this with a sound Risk Management and Risk:Reward Ratio.
  • Strategy should be practiced before actual trading.
  • Only the game can teach you the game –Jesse Livermore.
  • Trading is a game of Math. Market does not understand our emotions.
  • Market is just a net value of inflow and outflow of money.
  • Trading works on probabilities. The only formula for success is you lose less and you earn more. Successful trading means trading same setup/strategy over again and again and in that process create a lot of money.
  • Three pillars of successful trading:
    1. High probability setup
    2. Risk Management
    3. Risk to Reward Ratio (Money Management)
  • We know that when all the entry conditions would be met, make a entry in trading. While in the trade, wait for all exit conditions to happen and then exit the trade.
  • Back test and practice a thousand times. Once you have a working system, stick to it forever.
  • If you understand the math of trading, with 20% accuracy also you can be successful.
  • Trailing Stop Loss allows you to keep running your profitable trades saving your hard earned profits from eroding.
  • All the math you need in the stock market you get in the fourth grade – Peter Lynch
  • Trading Setups
    1. Bollinger Bands
      1. When lower and high bands are expanded widely, the indicate volatility in the stock and if they look squeezed or narrowed it means price is moving In a range.
    2. Relative Strength Index (RSI)
      1. Measures the strength of the current prices action.
    3. MACD
      1. It is a trend following momentum indicator that shows relationship between two moving averages.
  • Two must pre requisites for any good trade
    1. Trend
    2. Strength of the trend.
  • Long Setups – Earning in rising markets
  • Short Setups – Earning in falling markets
  • 1:5 risk to reward ratio allows you to have a hit rate of 20%. I can actually be a complete imbecile. I can be wrong 80% of time and still not lose. –Paul Tudor Jones
  • Risk to Reward Ratio – indicates the ratio of reward you get in a trade for each dollar you put into a trade.
  • Bigger the Risk to Reward ratio, more breathing room you would have to lose.
  • One Day does not make a trend.
  • Swing trading refers to a style of trading in which positions are held for a period of days or weeks in an attempt to capture short term market moves. It does not require constant monitoring.
  • On the other hand, positional trading encompasses the longest trading time frame – span of months to years.
  • I’ve missed more than 9000 shots in my career. I ‘ve lost almost 300 games. 26 times I’ve been trusted to take the game’s winning shot and missed. I’ve failed over and over again in my life and that’s why I succeed. –Michael Jordan.
  • Few Do’s and Don’ts:
    1. Position sizing is an important aspect of the trade.
    2. Idea is to generate big profits in right trades and keep your losses as small as possible.
    3. Don’t enter into a stock when it is already moved in that direction quite enough. Rather, enter only when it just breaks out of that range.
    4. Position should be based on the risk points and not on profit points.
    5. Don’t trade against the context of the market.
    6. Don’t ride arrogance or ego. Just listen to market context. Don’t do foolish daring.
    7. Practice, Practice and Practice.
  • Trading is a marathon and not a 100 meters sprint.

You can buy the book from here – eBook

Thank you for going through this list and hope it helps to get started.

Do share your comments and feedback on the options provided for investing in mutual funds.

Cheers and Wish you a Happy Reading!

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