General Trading Chat
- Thread starter timepass
- Start date
- Tags idle thoughts trading talk only
If anyone's interested:
http://blogs.marketwatch.com/capito...ce-before-house-committee/??siteid=bullytweet
http://blogs.marketwatch.com/capito...ce-before-house-committee/??siteid=bullytweet
Origional source : Lance beggs
In most cases emotional issues are not actually the problem. They're highlighting the fact that either (a) your strategy is flawed, or (b) you don't have faith in your strategy, or (c) you're trading too much size.
Correct any of the above first.
But assuming that the above areas of trading are all fine, and you're finding that your emotional response to risk is consistently leading to inappropriate actions:
1. Consider it a whole mind/body system. Manage the body first – eat better, exercise more, ensure sufficient sleep.
2. For emotions… first awareness of the problem and then acceptance. Admit your fears. Notice them when they arise during trading. Welcome them and thank them for providing their information (sounds stupid I know… but do it… it takes some of the edge off the emotion).
3. Develop pattern-interrupts for whenever you observe fear, in order to prevent it from leading to out-of-control behaviour. ie. strategies to ensure either minimisation of risk during these periods of emotion, or avoidance of risk through separation of yourself from the markets.
4. Consider the original source of these fears. It pre-dates your trading! There is great potential for self-growth here.
In most cases emotional issues are not actually the problem. They're highlighting the fact that either (a) your strategy is flawed, or (b) you don't have faith in your strategy, or (c) you're trading too much size.
Correct any of the above first.
But assuming that the above areas of trading are all fine, and you're finding that your emotional response to risk is consistently leading to inappropriate actions:
1. Consider it a whole mind/body system. Manage the body first – eat better, exercise more, ensure sufficient sleep.
2. For emotions… first awareness of the problem and then acceptance. Admit your fears. Notice them when they arise during trading. Welcome them and thank them for providing their information (sounds stupid I know… but do it… it takes some of the edge off the emotion).
3. Develop pattern-interrupts for whenever you observe fear, in order to prevent it from leading to out-of-control behaviour. ie. strategies to ensure either minimisation of risk during these periods of emotion, or avoidance of risk through separation of yourself from the markets.
4. Consider the original source of these fears. It pre-dates your trading! There is great potential for self-growth here.
Beautiful post by Mr. Anil S Trivedi
[quote name="anil_s_trivedi" post=1027400]
<br />
<br />
This is method to identify support/Resistance zones on price chart. Now let me clarify this not the only method, but one of its kind. And yes its no fool proof, but its something which will open your eyes next time you will see any chart.<br />
<br />
So lets start the action...<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
For example i had taken example of BHEL...this is randomly choosen...and i had no bias to choose this chart...you can use any chart of your liking...<br />
<br />
Idea behind whole exercise is focussing price action on only high volume bars..why high volume bars...First it tells the extent shared changed hands on that single day. Secondly, high volume tells institutions are active on that same day. As high volume is action of theirs and not of retail players like us. third, institutions have long term play in mind when they get into some shares...<br />
<br />
All steps are there on chart...so plz study this method on your favourite stock...<br />
<br />
Now debatable points on this method are...timeframe..i mean how long we look back into history. I had choosen '4'years...you can have your own way..intraday players can go as short as hourly timeframe with look back running 6 months or so.<br />
<br />
We had to placed horizontal line on volume bars having covering exceptional high volumes...<br />
<br />
Second point to debate is, placing horizontal lines on close only...you can place on high/lows too...you had to choose best fit...i had placed on closings...<br />
<br />
Take care...thats it for the day...[/QUOTE]<br />
<br />
<br />
This is one of the first objective methods I've seen for support resistance. I did do a review of material from OTA and so far it has been subjective. <br />
<br />
Neither methods are, as you've already said it, fool proof, but, this one allows for easier training.
[quote name="anil_s_trivedi" post=1027400]
<br />
This is method to identify support/Resistance zones on price chart. Now let me clarify this not the only method, but one of its kind. And yes its no fool proof, but its something which will open your eyes next time you will see any chart.<br />
<br />
So lets start the action...<br />
<br />
<br />
<br />
<br />
<br />
For example i had taken example of BHEL...this is randomly choosen...and i had no bias to choose this chart...you can use any chart of your liking...<br />
<br />
Idea behind whole exercise is focussing price action on only high volume bars..why high volume bars...First it tells the extent shared changed hands on that single day. Secondly, high volume tells institutions are active on that same day. As high volume is action of theirs and not of retail players like us. third, institutions have long term play in mind when they get into some shares...<br />
<br />
All steps are there on chart...so plz study this method on your favourite stock...<br />
<br />
Now debatable points on this method are...timeframe..i mean how long we look back into history. I had choosen '4'years...you can have your own way..intraday players can go as short as hourly timeframe with look back running 6 months or so.<br />
<br />
We had to placed horizontal line on volume bars having covering exceptional high volumes...<br />
<br />
Second point to debate is, placing horizontal lines on close only...you can place on high/lows too...you had to choose best fit...i had placed on closings...<br />
<br />
Take care...thats it for the day...[/QUOTE]<br />
<br />
<br />
This is one of the first objective methods I've seen for support resistance. I did do a review of material from OTA and so far it has been subjective. <br />
<br />
Neither methods are, as you've already said it, fool proof, but, this one allows for easier training.
Similar threads
-
My Views on the General Elections 2024
- Started by Verde
- Replies: 21
-
-
What are some general and basic price-volume action pattern one should know?
- Started by shyttrader
- Replies: 1
-
-