The Subtle Art of Intraday Trading: A Handbook on How to Bank on Trading Psychology, Options Strategies and Make a Living out of Indian Stock Market even as Beginners
Intraday trading is an exciting and mysterious activity for most people. The flashing profit-making intraday trading videos on YouTube excite most. If you ask any person to come up with one word that comes to their mind when they hear intraday trading, they say either 'money' or 'fear.'If making money in day trading was that easy, everyone would have made money from it. Systematic learning is required to get success in intraday trading.Options are important in intraday trading because they allow a trader to take a position in the market without putting up the total value of the underlying asset. Traders use options to speculate on future market price movements or hedge against potential losses in their portfolios.Options allow traders to tailor their positions to suit their individual risk profiles and trading objectives. By buying or selling options, traders can gain exposure to stocks, commodities, currencies, and other assets without committing the total amount of capital required if they were taking a position in the underlying asset itself.Options are a vital tool for any trader looking to take advantage of the markets' opportunities. By understanding how options work and how to use them effectively, traders can increase their chances of success in the market and achieve their investment objectives.This book also provides valuable options trading strategies for intraday trading.Read the book to know more about Intraday Trading!
Author of a few Best Sellers, "How to Make Money with Breakout Trading", "Mind Markets and Money," and "Trade and Grow Rich," Indrazith Shantharaj is an intraday trader who trades mostly in indices in Indian markets.
He uses the concepts of Market Profile intensively, with tailor-made systems for Indian market conditions.
Apart from trading, he spends his free time in travel and adventure. He also believes extensively on using the power of MIND and is a practicing spiritual sadhana.
'The Subtle Art Of Intraday', is a collection of several chapters dedicated to the trading world. This books discusses on what exactly Intraday Trading is, the techniques to find stocks, trading hacks and tools to trading.
The author has explained the terms and concepts in a lucid manner. This book can be a helpful one for young readers. Highly recommend!
many terms we have to check to know what it means - so not much beginners friendly all explained in short without much blabbering but also not detailed and somethings are not explained in detail like options.. his course ad is there.
1. Every swing high, swing low, strong sell-off, or strong buy-off point plays a crucial role in intraday trading, by acting as either support or resistance.
2. PDL will act as support in balanced market conditions (open within previous day range) and acts as resistance in imbalanced market conditions (open beyond previous day range). vice versa for PDH
3. careful with your open positions whenever the price comes close to the round numbers. If it shows signs of going against your trade, either close the trade or trail the SL.
4. The price range of the first 1-hour after market opens is called as Initial Balance (IB) Range
- Very often, this range acts as support and resistance in normal conditions.
- If IB high is also close to the previous day’s high, this price range becomes a strong resistance. Vice versa for IB low and PDL.
Price behavior near crucial price levels (whether it holds or fails):
1. candlestick patterns (for beginners and intermediate)
Bullish harami + hammer:
- Author have seen this pattern almost every day in intraday trading.
- Frequently occurs in intraday trading near IB low, previous day low, and swing low (in 15-min chart) and Most of the time, the price took strong support and bounced back.
Pin bar:
- This is the best pattern to identify price rejection at major resistance zones (IBH, PDH, and Swing High)
Engulfing pattern:
- most powerful candlestick pattern in all types of trading
- When bullish engulfing patterns occur near a significant support zone, it indicates the rejection of lower prices (doesn't break support), hence the high probability of price going in the north direction.
- When bearish engulfing patterns occur near a major resistance zone, it indicates the rejection of price (failed to trade above resistance). Hence, there is a high probability of price going in the south direction.
"A strict stop loss below this pattern is mandatory"
2. Price acceptance and rejection (for intermediate - advance)
Price acceptance:
- The higher the time it consolidates just below resistance or just above support area, there is a higher probability of breakout of these line. This concept is recognized as 'Price Acceptance.'
- Price broke the support or resistance line and started trading there for some time. It is nothing but price acceptance below the support line or above the resistance line.
Price rejection:
- a sharp reaction in quick time (preferably in 1-2 candle) whenever it reaches the support (big buying lower Wick) or resistance area (big selling higher wick)
"a stop-loss on the opposite side is mandatory"
Crucial parameters for assessing a Trading strategy: Author suggest backtesting a trading strategy across 10 years of historical data (minimum is 5 years)
1. A good trading system will have only about 40-60% accuracy without compromising other factors.
2. A trading system with a higher than 1.2 Profit Factor is good if it scores well with other factors.
3. Maximum Drawdown in any trading system should not exceed 20%. I suggest picking only the techniques which have less than 10% maximum drawdown.
4. A good trading system will have less than 12 consecutive losing trades
Trading system: (I mentioned the combination with better Backtest result than others below each trading system)
Author's Backtest setting:
Initial Capital – Rs.350,000 Trading Instrument – Banknifty Futures Timeframe – 15 Min chart Trading Window – 2010 to 2021 Position Sizing – Fixed 2 Lots (No increment with capital) Transaction/Slippage Cost – 0.002% EOD exit – 3.15 PM (IST – Indian Standard Time) No Trailing SL included
1. Moving Average & Price Crossover
Long trade (the price should cross the EMA from the downside)
Entry – When the price breaks the high of the crossover candle Stop-loss – 0.5% from the entry price Exit – Either the price should hit stop-loss or EOD exit (3.15 PM IST)
Backtest result: EMA 82 (accuracy - 41%, PF - 1.4, maximum drawdown - 15%, continuous losing trades - 10, total trades - 1352, Ending capital - 14,34,289)
2. Two EMA Crossover
Long trade (the Short EMA should cross the Long EMA from the downside).
Entry – When the price breaks the high of the crossover candle Stop-loss – 0.5% from the entry price Exit – stop-loss or EOD exit
Backtest result: EMA 6 and 60 (accuracy - 43%, PF - 1.34, maximum drawdown - 14%, continuous losing trades - 8, total trades - 777, Ending capital - 931,860)
3. Initiative Buying (Gap-ups)
- the price open above the previous day high (gap up open), and it sustains above PDH even after 15-minutes from the open.
- bullish confirmation patterns for Initiative buying are bullish engulfing, bullish harami + hammer, hammer, 'open-low' (open is equal to low of the candle), which is a price acceptance pattern, 'open-test-drive-up', (opens, moves down, fails lower price test and then prices move up) which is rejection of selling below PDH
Entry - above the high of the candle Stop-loss - below the low of the candle
No Backtest results provided.
4. Initiative Selling (Gap-down)
- the price opened precisely at the previous day's low (slight gap down from the close), and it sustained below PDL even after 15-minutes from the open.
- bearish confirmation patterns for Initiative Selling are bearish engulfing, bearish harami, pinbar patterns 'open-high' (open is equal to high of the candle), which is a price acceptance pattern, 'open-test-drive-down', (opens, moves up, fails higher price test and then prices move down) which is a rejection of buying above PDL.
No Backtest results provided.
* Traders can observe these gap up and gap down patterns in either 5-min, or 10-min, or 15-min timeframes. * Please note that in a 5-min timeframe, you get very early entry, but there is also a high probability of failure. In 15-min timeframe, you get more success, but sometimes your entry will be late.
"Hence, Author suggest backtesting this system for a few years and picking the timeframe that suits your personality."
5. Open Range Breakout (ORB) Strategy (Predefined range can be 1-hour or 30-minutes)
- Involves taking a long trade if the price breaks IB high and opting for a short trade if it breaks IB low.
- But, it doesn't show good results in the current market conditions and now gives many false breakouts and false breakdowns.
- Hence, it is necessary to include a filter that avoids these.
'wick' of the breakout candle (which breaks the 1-hour range) should be less than 10-20% of the entire body of the breakout candle.
Long trade,
Entry - above the high of the breakout candle Stop-loss - below the low of the breakout candle (or 1% from the entry price)
Backtest result: Range 1-hour and Wick 10%, Initial stop-loss – 1% away from the entry price (accuracy - 51%, PF - 1.24, maximum drawdown - 20%, continuous losing trades - 8, total trades - 1362, Ending capital - 11,29,386)
6. Stochastic Indicator System
- Always look for a ‘Long’ trade above 80 and look for a ‘Short’ trade below 20
- Author only backtested this system for 'Long' trades (with different levels near 80 and different SL)
Entry – When the price breaks the high of the candle in which stochastic crosses the threshold level (80 and other levels). Initial stop-loss – 0.5% away from the entry price EOD exit – 3.15 PM (IST)
Backtest result: stochastic 84 and 0.5% SL (accuracy - 44%, PF - 1.35, maximum drawdown - 12%, continuous losing trades - 9, total trades - 1030, ending capital - 12,01,914)
7&8. Failure of IB & IS
- IBF (in the second candle, price closed below PDH), ISF (in the second candle, price bounced back above PDL - it's confusing)
- Confirmation - bearish patterns associated with PDH (IBF), bullish patterns associated with PDL (ISF)
- gives slower sideways to the downside (IB failure) or upside (IS failure) move
Entry - below the 2nd candle low (IBF), above the high of the candle (ISF) stop-loss - above the high of 2nd candle (IBF), below the low of the candle (ISF)
No Backtest results provided.
9. First Candle Breakout System
Long trade,
Entry – When the price breaks the high of the first candle (15-min timeframe) and RSI > 60 Stop-loss – 0.5% from the entry price Exit – stop-loss or EOD exit.
Backtest result: RSI 55 and 35, 0.5% SL (accuracy - 42%, PF - 1.5, maximum drawdown - 10%, continuous losing trades - 9 total trades - 858, Ending capital - 12,47,320)
10. ABCD System (for new and intermediate traders)
- Typically ABCD patterns start with a strong move with a small gap opening and high volume - Made new high/low of the day (point B). - best time to opt for a trade at pullback/bounce C.
Timeframe showed in examples (5min)
Long trade,
Entry - above the bullish harami high (not sure about when there is other patterns) Stop-loss - below the low of the bullish harami (not sure about when there is other patterns) Trailing SL - below each swing low
No Backtest results provided.
Money management rules:
1. Never risk more than 2% of the trading capital on any trade.
2. only 3 trades per day rule
3. if you face a 10% loss on any trading day (due to slippage, system failures, human error, etc.), close all the trades, shut down the system, and take a break of a few days from trading.
"If you are guessing You are gambling" . This is a book about the trading world. Now a days the trading & incoming money from it is spreading rapidly. This book is written from that prospective giving a depth & deep idea about the trading world it's pros n cons along with some good messages & tips to take the decision wisely. . The cover of the book is good simply designed but on a contrary it looks very professional. The writing style of the book is magnificent. It's written such a way that you can easily understand all those tricks of trading world along with some tips to work in it. But it doesn't mean that the book don't have nothing enjoying to read rather it's an informative one. You are going to many more new things about it. The language used in the book is moderate. Here author mainly tried to cover up as much as easier for students. The narration is nice it's a total sum of everything you should know about trading. It's really fascinating to read. The beautiful graphical works added in between the chapters & the point wise writing style are very small things but it gives an extra crunch to the reading experience. Book is nicely paced & author nicely collaborated all those things in a very effective manner
This is my first book reading on intraday trading and I absolutely found it helpful. The terms associated with this has been aptly expressed through some real life examples and numerous charts. Divided into ten chapters, the book will take you to the indepth knowledge of trading, practically and psychologically. The book also features some of the helpful tools needed in intraday trading. The other benefits you will receive when you get to read this book. I truly found this book to be insightful and get acquainted with the new terms after used in trading. The books has been written with the aim to make you easily understand both the pros and cons, risks, procedures and precautions while doing the trade. One need to fully understand the market to step in this field. And this book will definitely help you attaining those goals. I personally loved this book and would like to recommend to all.
Subtle art of intraday trading If making money in day trading was that easy, everyone would have made money from it. Systematic learning is required to get success in intraday trading.
Read the book to know more about intraday trading! As a newbie to genre , i feel this educating read on intraday trading strategy is a complete attention grabber.
The writing is simple, lucid and easy to get into and i feel the content to length ratio of the book is apt as well. It was creatively designed concepts and learning points that broadens your perspective. Lessons from each chapter was immense and mind enhancing , giving valuable takeaways for a everyone struggling to find their footing in trading world.An easy set of strategies, that's enhances our strategy of trading.I know i gonna dive back to reading this book to brush up the valuable information.
So if you're a new to trading and intraday trading world or feeling stuck then give this book a chance.
THE SUBTLE ART OF INTRADAY TRADING by Indrazith Shantharaj
"..intraday trading is an exciting and mysterious activity. The flashing profit-making video ads on YouTube excite most."
The book highlights how day traders have their own techniques to assess the price fluctuations and take the trades.
The author clarifies if a trader commits to one scrip or one trading pattern, he will take the maximum advantage of it and easily make money in day trading.
"EASY DOESN”T PAY WELL!"
The author mentions the need for precautions to know trading better through pictorial representation of stocks of different companies.
Initial Balance Range is highly beneficial for day traders.
Overall the book covers all important sides of trading. The graphical representations are excellent. But this book is for the readers who are interested in finance. As a subject, this book is not understandable to all.
Indrazith Shantaraj gives a complete insight on everything related to Intraday Trading. It's psychology, why is it risky to invest in it by just guessing and not knowing it's depth and tricks, it's pros and cons everything.
The book begins with an incident in which Indrazith Shantaraj has just completed Vipassana Meditation, then he jumps into discuss every details related to Intraday trading, he adds that he has to take this meditation course to calm his mind as on the day he made his best money was the most hectic day of his life.
The book at no point gets boring due to the great examples used, it is one of such topic that people always think like losing money only. Everything is explained in points and in a serial order which makes it much easier to understand.
This book is for those who wants to begin a career in Trading or the persons who want to get knowledge. It's totally interesting and insightful.
🌸Book Name: The Subtle Art Of IntraDay Trading 🌸Author: Indrazith Shantharaj 🌸Format: Kindle 🌸Language: English
Rating: ⭐⭐⭐⭐🌟/5
This is perfect for starter. Explained beautifully in a simple language and with plenty of chart examples. From the cover of the book to the blurb everything is so much enticing that you can't keep the book down untill you finish reading it. This book is amazing that's what makes it a ⭐⭐⭐⭐⭐ read. One should read once. You read the book, and you would fall in love with the writer. He is such a great author. Eagerly waiting for his next master piece.
The book aims at preventing potential investors from substantial errors and also teaches them strategies to achieve long-term investment goals. It is a detailed book with several wisdom quotes that are likely to change one’s investing career and lead to the path of financial safety and security. Moreover, this book provides timeless recommendations on the money business.
This book is really helpful for people who want to make a fresh start in intraday trading. It gives readers a thorough understanding about intraday trading. All points are productively explained in this book. Language used in this book is simple and easy to understand. Recommended to all. Read the book to know more about Intraday Trading!
Book is good and helpful, still I was struggling with the trading jargons as they aren't defined anywhere. Helpful for someone who is aware of all the terms and keywords.
Really a good book which explains complex pointers in easy to understand words and examples. Worth reading it multiple times to fresh up self understanding / concepts.
It's a good book for people who is trying their luck in trading as there are some practical examples are given by author about the strategies one should follow. And for whom the trading is apt.
I like almost all the chapters.He explained in very simple and clear manner with necessary guidance through charts and examples.His chapter on trading psychology is very good and any trader has to read and remember each and every point
Absolutely must read for beginners. Author has quoted from his hard learned examples. Knowledge and Wisdom worth acquiring.. More illustrations on option strategies would have been like an icing on the cake
Good book on intraday Trading with few backtested testing strategies and very important lessons for trading. Given the stats of number of successful intraday trader being almost in single digit, I feel that The risks could have been highlighted a little better and in detail.
Knowledgeable and helpful. Many concepts are explained in detail like round numbers I wanted to know about it since like ever and this book provided it
This Book is helpful for someone who is already into trading and is aware of all the jargons and keywords. It will also provide some insight on money management which is very helpful for any trader.
The Subtle Art of Intraday Trading is a comprehensive guide to the world of intraday trading, written specifically for beginners looking to enter the Indian stock market.
The book is written by a seasoned trader with years of experience in the field, and it shows in the depth and detail of the content. The author covers a wide range of topics, including trading psychology, options strategies, and risk management, all of which are essential for success in the fast-paced world of intraday trading.
One of the standout features of this book is its focus on the psychological aspect of trading. The author spends a significant amount of time discussing the importance of maintaining a clear head and avoiding emotional decision-making, which is crucial for anyone looking to make a living out of trading.
The book also includes a number of practical strategies and techniques that beginners can use to get started in the market. From choosing the right stocks to developing a solid trading plan, The Subtle Art of Intraday Trading provides a wealth of information that is both useful and accessible for beginners.
Overall, I would highly recommend The Subtle Art of Intraday Trading to anyone looking to get started in the world of intraday trading. Whether you're a complete beginner or an experienced trader looking to improve your skills, this book has something for everyone.