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It is no wonder that the beginner and even more experienced traders become confused and frustrated. Well, if you think about this issue in detail, this is more of a psychological issue than a vud indicator system issue. As soon as we get a couple of loss making trades, we begin to look at our P&L statement. Furthermore, we begin to extrapolate the P&L “if” we were to loose a few more trades.
In this entire correction, I have shorted only three stocks; Tata Steel, DLF and Praj. Tata steel gave me small profit, in DLF I captured more than Rs and today in Praj I captured 2 rs per lot. Most of my trades in this correction have been on the long side and have resulted in small losses. In other words, buying in Bull markets is very easy and shorting in Bear markets is very easy. Also remember, indicators like RSI and Stoch can stay in Overbought and Oversold range for a long time.
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Means, If I buy delta 20, I need at least 5 options to ever come to delta 100. This may sounds complicate now, but you see, I have to think, how many positions I am going to take. Just a word on Intra day/Swing futures – When you talk about whipsaws, you must realize what they essentially are.
Hence once this offer is made to you, your mind will completely refuse to accept this in order to protect you from threat. Thanks for detailed explanation, making picture more vivid & definitely this will give my analysis new dimensions. Let me analyze the same counter for decision making.
Then the calculation is done as 5% risk per trade and 15% risk per day. All the calculation are done on % basis abosuletley. And this is done for all TF allocations but the measure is in terms of %. As for set-ups, I didn’t use any predefined ones. I just formed trading ideas and then tried to get in at good trade locations.
I have openly written many times that my knowledge in options is limited. My insatiable thirst of knowledge has attracted me to options now. Therefore, it is now only a matter of time when I start getting the hang of the same.
But even the purely mechanical traders are very adept at reading markets, and are aware of all of the complexity and ambiguity inherent in it. Their system might end up being simple, but it will come about through a very deep and complex understanding of markets. And usually this system will take the market environment (i.e. context) into account. Now is it easier emotionally to have clear set-ups to wait for and trade in this simple manner? But who said ‘easy’ would make you money. If I’ve learned anything, it’s that the market rewards what is hard to do.
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Accumulation is a subtle, sophisticated and sly process of cornering a huge quantity of the stock that makes the following phases possible and worthwhile. Once a large quantity has been absorbed the number of floating stock reduces and the demand increases. This makes possible the next phase Markup. Joseph Granville, creator of the On Balance Volume indicator, insisted on the importance of volume analysis. He exclaims that volume precedes price, and he even goes so far as to argue that volume is cause and price is effect.
You also will get more self confidence about trading. By being aware of your thoughts and feelings, it becomes easier to be a little more detached. When you are detached you become able to choose how to react to people, events and circumstances, which can save yourself https://1investing.in/ a lot of inconvenience, trouble and embarrassment. TS again gave him ample opportunity to cover his shorts on monday but to my surprise he just stick to his Sytem/Trading rules. Also, don’t take my view or anyone’s view on Nifty and couple it with your system.
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Talking about the experience, he is 27 years experienced person in this field. His style, his expressions, his words while teaching takes him to next level. If anyone wants to do job regarding stock market then I will prefer this coaching institute as your lifes turning point. Best institute for stock market coaching/training in India. Mr. Chakravarthys way of teaching makes you fall completely into the subject.
As you correctly said that most of the struggling traders always feel that the holy grail is round the corner and there is no self realisation that this is not their game. Then he goes on the never ending journey of buying books, learning technicals, visting forums etc. but more often than not his results do not change. One thing that comes to my mind is confiding with someone who is very close to you, maybe a close friend or spouse and start discussing how you have messed up and in what state you are. Coming to tools, EXCEL has all the utility tools one can want for Financial analysis and can be used in daily life. Spend some time there and try to learn the uses. Thoda difficult aur boring lagega, but believe me it can be a game changer for you.
- If earnings are not much but risk taking ability is high, some more goals can be met.
- In other words the volume should be low and quite.
- The fundamental law governing all markets, in any time frame, (intraday(1min-240min) or EOD is Supply and Demand.
- It completely depends on Market conditions.
Now don’t look at the market, your charts, your indicators or any tool that you use. Decide ONE instrument you have been trading since last few days. There is no logic here, any random pick is fine, but you need to select only ONE instrument. Instead, I would suggest you IMMEDIATELY LIST down things that went wrong, how did you act and how should you have reacted. READ, RE-READ, RE-READ endlessly and basis this write down your own rules, dos and don’ts. Memorise them, paste in front of your computer screen.
1) I have mentioned earlier that results are based on my sizing methods, risk profile and hence can vary according to what you chose. The word of some serious corrections is again doing the rounds; especially by the coveted guests in some of the prominent channels. Though their views and (our’s) cannot be negated, we need to be as objective as the ticker requires us to be.
I’ve never modified stop loss on losing side. Very rightly said ‘Time cures everthing’. So take your time, and do some homework till then. This is your best time to prepare for future.If you are just starting and havent’ mastered any form then it is not good idea to jumble different styles of trading.
Hence, use penny stocks for fun and not for using analysis. At first this concept seems very intimidating, but as you research more, you will know how to use this better. Once you can do this, your Investments and Options understanding will reach the next level.
UNCERTAINTY | meaning in the Cambridge English Dictionary
I got a lot of work experience working for many brokers in London and NYC. Currently I work as Forex Market Analyst for different brokers and professional traders. A Fibonacci retracement line is basically a predictive technical indicator, which is utilized by analysts for forecasting the exchange rate levels that may be applicable in future. Traders, both novice and professional can conveniently use the Fibonacci levels to take well calculated investment decisions. However, it is important that they cross-check and confirm with other sources before arriving at any conclusion.
meaning in the Cambridge English Dictionary
I know your next question is how to do this. Hence, let me tell you that for each trader this is different. Some can implement this from the very next day, whereas some cannot for years to come. In the end it boils down to self control and determination.
In conclusion, don’t bother about these things. If you invest, you won’t need to bother about such issues. If you speculate, then your mind will automatically create these self doubts in varied forms. Regarding Computer Algo – Lot has been said about how Computer Algo’s are determining where the markets head. To me this is nothing but another theory. Markets are too widespread with varied participants and hence I feel its very difficult to believe this is possible.
The first way is the Beta methodology and I will discuss this method in this post. In future, I’ll write about the second technique. All the negative news flowing through the system is in a way good. I look at this process as a self cleansing mechanism of the market.
If markets have to move up, stocks from this segment are going to appreciate a great deal. Hence, if you maintain your focus towards few stocks, there is more likelihood of you catching some stock which appreciates a lot more than index. Furthermore, pay attention to the stocks in this segment which are already in the upmove.
Similarly, probably all auto stocks have good price structure, but the best one’s from a 10 feet distance are Bajaj Auto and Tata Motors. In the end, I will only tell you to trust your own instincts and your view. You’ll always be more comfortable with that. For example, I think markets are robust and hence I am buying.
Of course that would have been the perfect time to make BIG money. @Jagan & Gangadharan – Jagan, you are patient and are working towards a plan. The good thing about you is that you think logically. Keep working towards your plan and soon you should be where you want to be. Gangadharan, I have no doubt that you will succeed.
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