General Trading Chat

[Smart_trade]

ST sir, when ever you get time,please answer regarding today's situation:
Nifty opened gap down, by third 5min candle, it showed signs of filling the gap, now most of the scripts also opened gap down, many broke to the upside (broke their opening price by third candle, also assume they were down yesterday afternoon also) by third candle, still nifty and the scripts in question are trading below ema20.
Now my question is should we be looking at longs (in scripts) even when the index as such is trading below ema20?
Or
Should we wait and look for failures/shorting oppertunities instead.
My apologies if the question looks too naive.
Regards always
Vivek

It is possible that individual stocks and nifty may go in opposite direction but then the stock has to be a strong stock outperforming nifty. For example Nifty is near 52 weeks low but Infosis is almost at 52 weeks high, or today Nifty is subdued but Bajaj Finance is rallying ( it is up over 10.5 % in a day) on strong numbers posted by the company.

But the above are exceptions...in general if the nifty is down, most of the stocks also will be down. But it is better to see stock's chart and trade it on its own merits.

Smart_trade

 

[vivektrader]

It is possible that individual stocks and nifty may go in opposite direction but then the stock has to be a strong stock outperforming nifty. For example Nifty is near 52 weeks low but Infosis is almost at 52 weeks high, or today Nifty is subdued but Bajaj Finance is rallying ( it is up over 10.5 % in a day) on strong numbers posted by the company.

But the above are exceptions...in general if the nifty is down, most of the stocks also will be down. But it is better to see stock's chart and trade it on its own merits.

Smart_trade

Thank-you sir, one more clarification regarding importance of ema20 vis-a-vis holding positions or taking new ones, should ema be considered
Regards

 

[Smart_trade]

Thank-you sir, one more clarification regarding importance of ema20 vis-a-vis holding positions or taking new ones, should ema be considered
Regards

20 or 21 ema is very important as the market has a tendency to come to 21 ema in a trend move before making further advance/decline. That is why it is called Golden Average.

Smart_trade

 

[arsh22g]

Guess , most of us have learnt it the hard way.

After , a huge rally or decline usually the market takes a breather.
On such days its better to preserve our capital and sit outside instead of forcing trades which are not there and taking losses.

Yeah.... I was looking for stocks which had shown extremes in past couple of sessions, to catch either resumption or reversal of move. Stocks are way more volatile than NF and don't seem to respect swing highs/lows the same way as NF does.

It was just an experiment, last two days also showed big draw-downs, but got recovered and gave gains too as it is a high risk-high return game. Today, none of the stocks I traded respected any trend, so no recovery of losses.

But, having said that, learning from the experiment is that this strategy can still work if:
- Shares instead of futures are traded, to reduce quantity, reduce risk and achieve more diversification with a limited margin.
- Cumulative beta of the positions is close to zero, sudden market moves can be taken advantage of as loss making positions will hit SL and others will move along/against the market.

I will certainly try it again when capital is good enough for proper diversification. But as of now, only NF.

I am pretty confident about recovering losses with NF this week only, baki Nifty baba ki marzi hai

PS : It was fun though, seeing extreme losses and gains during the market hours and not panicking, real test of character.:thumb:

 

[Fundootrader]

7200 aaj hi touchdown karne ka mood hai kya - bachoo ki jaan leker manenge

 

[Smart_trade]

Bajaj Finance at all time high....see its chart,worth viewing...this is a bluest of the blue chip of 2016 and years to come...

Smart_trade

 

[Fundootrader]

Bajaj Finance at all time high....see its chart,worth viewing...this is a bluest of the blue chip of 2016 and years to come...

Smart_trade

so what's bajaj finance is doing right as compared to its peers - that's adding value

 

[Trader_PK]

getting recovered...

who said getting recovered..I generally see if stock decline is 1000+ then its sell sell only... same with vise versa

 

[Smart_trade]

so what's bajaj finance is doing right as compared to its peers - that's adding value

Superlative Growth in profits that is the only thing which takes the stock on a great heights....market gossips, operators,FIIs DIIs news,events...all fade infront of profit growth. Study any multibagger, you will see superlative profit growth for 3-4 years during its rise.

Smart_trade

 

[pratapvb]

gap below -2SD2 sidewsays moves into -2SD2
then -2SD2 gives support ..further sideways to pb to -1SD2
then down