Trading Course in Hyderabad from Saturday October 10, 2009

GANGINENI DHANANJHAY's



Stock market Course for Active Traders
     http://www.hilotrader.blogspot.com/

gdhananjhay@gmail.com
Mobile : 09391319721         






Module1 – Basics of Trading -


Trading Vs Investing Vs Gambling, Types of Trading, Players in the Trading Industry, Orders and Order Properties . Why People Trade ( Utilitarian Traders, Profit Motivated traders ),Cardinal Rules of Trading
FA,TA, Traders Mindset.,


Module 2 – Understanding Candlesticks & Indicators:


Candlesticks, Simple patterns ( Doji,Bullish Engulfing, Bearish engulfing etc)
Indicators – trend following ( SMA,EMA,MACD)

Momentum Oscillators ( RSI,Stochastics)




Module 3 - Tools of Trading –


 How to identify the trend of the market ? Larger time frame (20DEMA,50DEMA,200DSMA)
Intraday ( 20 EMA, Open, ATP, UpTrend(HH,HL), DownTrend(LH,LL),Swing High, Swing low, Chart based Pivots)
Determine the strength of a trend ( ADX,A/D, Sector Behavior, MACD,RSI),
Low risk entry into the trend (Pullback to 20 EMA,ATP, Open, Volume action)




Module 4 – Preparation for the Trading Day:

1. Identify intermediate term trend ( Uptrend, Downtrend or Range- 20DEMA, No of Stocks > 20DMA, Basket of Stocks (5 each from 8 sectors) strength)
2. Yesterday's Price stronger, weaker or in range wrt previous day (Hi&Lo prices across sectors, Indexes, DoD Changes)
3. Special Circumstances likely to affect today's trade ( RBI, Economic numbers, Holiday period)
4. What are relevant Price target Levels and Reference points ( PDH,PDL, Previous day ATP, Intraday Pivots S1,S2,S3/ R1,R2,R3)
5. Close of previous day and Open of today
   ( Near the top of the range / Above yesterday 's PP – Strong. Near Bottom of range/ Below PP – Weakness , Around PP/ Mixed A-D in early trade – Range)
6. Global Cues - S&P 500, US CBoE VIX, USD Index, CRB Index, Crude Oil, Gold, Baltic Dry Index, Nikkei, Chinese, HangSeng, SGX Nifty )
7. Writing down all observations and Opinions in a Notebook and reflecting daily.
   
   
   
   
   
   
   
   
   
   
   
   
   
    

Module 5 – Intraday Trading strategies

1. Identifying Stocks in Play for Intraday ( Stocks in News, Earnings, Policy announcements, Most actives, Contrary Behavior) ( Less than 3 to focus on )
2. Keep track of key levels and inflection points on SIP
3. Know what sectors are in play, and what stocks within those sectors are strong or weak.
   
4. Look at different time frames, 1min, 5min, 15min, 30min, daily, monthly and yearly.
   
5. Make one good trade and not necessarily one profitable trade
   
6. Stick to one stock on the open, Avoid
   Flipping
   
7. Focus on Buying supports, shorting resistance, playing held bids, held offers, consolidation and ranges
   
8. Trade in the direction of intraday sentiment ( A/D,ATP,Open)
9. Start with profit targets: range extremes, pivot prices, and R1/R2/R3 and S1/S2/S3 targets. First figure out where you think the market is likely to move
10. Don't chase price highs or lows. Make the market show you that it is making a higher low (uptrend), a lower high (downtrend), or holding support/resistance (range).
11. Stop loss level ( logical stops, random noise, Small position size with larger stops adj for Vol)
12. Catching the late day volume surges
13. ATP as an evolving estimate of fulcrum/value
    
14. Characteristics of a trend day (Breakouts from short-term ranges ( previous day's range, multi-day range, opening range) on strong volume; Strength in market's leading sectors, Confirmation from correlated markets, Extreme readings in the day's advance-decline readings)
    
15. Understanding price Spikes
    
16. Sharp Moves vs Mild moves ( mean, SD of a Normal Distribution)
17. ORB Strategy
18. Opening one hour / Closing one hour ( DH/DL made in first hour ?)

 


Module 6 – Best Practices in Trading & Trading Psychology

1. Reading Inter market Themes (Pro Risk Vs Anti Risk, Dollar weakness, Interest Rates )
2. Reading Volume ( Volumes, Delivery %, OI)
3. Reading Sector themes ( Strength in metals, Oil , Commodities)
4. Stresses for Traders : Excessive risk taking, Changing markets, Unrealistic Expectations, Departures from prudent risk management
5. Trading Mechanics( Dr Brett , ETP page 140), An Observation Checklist(ETP,page143)
6. Mechanics of Risk management ( ETP, page 145)