Wednesday, July 2, 2014

Check List -- Before Initiating Trade

QuestionAnswerRemarks
Day TrendBearishBullish or Bearish or Sideways
Initial BiasBullishBullish, If DO is above yesterday closing range & nifty formed IR above yesterday close range.. viceversa for bearish
Check if any DP's at/around IRYesIf yes, trade DP's
Which pattern you are going trade?BOF of BRNBO, BOF, BPB, TST, FTC
Check space for tradeYesatleast 10 points to move for the trade, i.e. FTA 10 points away
Is Critical Mass favouring your trade?YesHow day traders are positioned? Are they in profit? When they are going to book profits? Where they will panic? Who is in control of the Market?
Is Order Flow favours your trade?YesWhere are the orders? Where other traders will keep their stops? Where we should enter to ride these orders?
Are you risking more than 10 points?NoInitial SL should not be more than 10 points
Note:

After trade initiated, manage it by hiding SL behind DP's, Swing high/low, Flip Zones.