Sunday, June 26, 2011

Live Trades charts - Part 2 (contd.)

Here is an update of the recent trades I have done. These trades are in Commodities/Futures market.
But, it does not matter if you are trading commodities or stocks or forex, as long as you trade with the trend and read the tape correctly and follow the laws of money management and risk control.

In short, follow your system faithfully without getting emotional.

The main aim of this post is to show the price pattern and the thought behind each trade.


Previously, i had shorted it at 103 and was stopped out at 106.
The reason I had shorted was that the trend was down.

After being stopped out, the prices went on higher.

I waited for the price to pause and retrace so that I can enter on the long side.
Why? Because now the market is trending up. All the three moving averages are sloping upwards.
I bought the contract at 113.
Currently, we have $200 profit.

Let us see how this trade goes.


I had shorted two contracts at 1296 because the trend was going down and the price went below the support level. Also, the price went below the 1300 level which was a "round number". Any prices which end in "00" are major crossing points. Example: Dow 10,000

I purchased one contract at around 1276 for a profit of $1000.

I am now letting the profits run for the second contract. As of now, it has $1637 gain.

Two things:
Trend is our friend
Let our profits run.


I had shorted at 808.75 because the overall trend was down.

As of now, we have a gain of $7,387.
But, we have to let the profits run.

It is natural for us to to feel tempted to take profits.
We should not worry about the profits while we are in a trade. Why? Because it clouds the judgement. Rather, we should worry about our risk and check if every act we do is according to our trading plan.


I had shorted silver at 35.19 because the trend was down.
It tried to go up again, but it failed miserably. It could not even cross the previous high.
Also, it crossed below the support level (shown by the red horizontal line) and also below the 35 "round number".

Currently, we have $1600 gain.
We will follow the trend and let the profits run.


I had shorted two contracts at 1336.
Why? Because the trend was down and also the price went below the "round number" of 1350.

I covered back one contract at around 1316 for profit of $1000.

I am letting the profits run for the second contract.
Currently, we have a realised profit of $1000 and a running profit of $1287

Let us wait and let the profits run.


I took a new position.
The chart of Corn was looking bearish and so i shorted it at 653.50.
Why? It was making lower lows.It went below the 700 "round number".

Currently, we have a loss of $175.
No need to worry. As long as the loss is below 2 percent of our total capital, we do not have to worry.
Just put a stop loss trade and RELAX and wait for the trade to work out or get stopped out!

Thursday, June 23, 2011

Sunday, June 19, 2011

Five Live Trades using Price Action

In this post, I will show you 5 live trades, out of which, 4 are profitable till now, while one trade got stopped out.

Rather than using any trading system software, the trading decisions were made using the price action.
I have added comments on the charts showing my thought processes.
Please feel free to ask questions.

It does not matter whether you are trading stocks or commodities. The basic price action principles remain the same. Once you learn to "read the tape", you can trade confidently in any market.

What will happen to these trades? Will they end up profitable or will they end up in losses? Who knows and who cares! That is because I have already placed stop orders to get out of the positions in case the market moves against me.

Also, the risk per position is less than 1 percent of total account size. So, i am not worried.

Here is the portion of my futures broker's Account statement listing the 4 active trades. One trade was stopped out and is not shown here.


The prices were acting bearish. The bulls tried to make the price go up again and again, but they could not breach the 900 levels.



I was stopped out of this trade.



Sunday, June 12, 2011

DreamTai upcoming releases + new DreamTai FaceBook Page


I am still working on DreamTai 5.02.15 Beta 2.
I had released 5.02.15 Beta 1 and got many useful comments and suggestions from the users all around the world.

Thank you very much for all your suggestions.
I will add them in stages release by release.

Beta 2 will have nicer looking charts.
Attached is a screenshot of the next version.
It is almost 80 percent complete.

Beta 3 (not yet started) will have multiple time frame charts, like daily, weekly, monthly.

Also in the works are the following features to be added:
[A] Ability to save settings like:

1. Risk Factor (currently defaulting to 2 percent of initial capital)
2. Chart Lines\Drawings
3. Chart Colors
4. Chart chart, line chart, daily, weekly, monthly

[B] Rule based scanning..That is, scan the portfolio for stocks which fit a particular criteria.

Also, now DreamTai has a FaceBook page.

Go to to go to DreamTai FaceBook page, or just search for DreamTai on Facebook.

Please do join the DreamTai FaceBook page and give suggestions for features you like in Future releases.

Sunday, February 27, 2011

Stock market status as of Feb 27, 2011

The Dow Jones Index is in a bearish mode due to the Middle East problems.

Continue looking for new stocks to short.

Sunday, January 30, 2011

Stock market status as of Jan 30, 2011

The Dow Jones Index has just given a SELL signal in DreamTai, because of the unrest and violence in Egypt.

Please tighten your stops in the long positions and start searching for suitable stocks to short.