A Game I Play Everyday: Redefining Intraday Trading Strategy
by Kamal Jamwal (Author)
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- 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.
- Clear cut example on how to use of proper risk management and position your trades.
- 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.
- Clear description of how to use risk management, money management while day trading.
- Even a new day trader can easily grasp the concept and start using this day trading strategy in his/her daily use.
- Lot of real market examples explaining when to enter, how to calculate stop loss.
- Complete list of do as well don’ts.
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:
- High probability setup
- Risk Management
- 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
- Bollinger Bands
- 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.
- Relative Strength Index (RSI)
- Measures the strength of the current prices action.
- It is a trend following momentum indicator that shows relationship between two moving averages.
- Bollinger Bands
- Two must pre requisites for any good trade
- 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:
- Position sizing is an important aspect of the trade.
- Idea is to generate big profits in right trades and keep your losses as small as possible.
- 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.
- Position should be based on the risk points and not on profit points.
- Don’t trade against the context of the market.
- Don’t ride arrogance or ego. Just listen to market context. Don’t do foolish daring.
- Practice, Practice and Practice.
- Trading is a marathon and not a 100 meters sprint.
You can buy the book from here – eBook
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