I can help you with stock chart reading

[cooltetra]

Yes VV
Thats very clear from the way u answer the queries. I never miss one from you.
Please comeback soon.
Best Regards
Coool.

 

[kuldeep49]

2 years back I realized I loved trading. Trading is something I never get bored. I can take a trading book and read several chapters in a row. I look at charts of stocks one after another. I can and I am doing this day in and day out. Still I am not bored. So, that keeps me going. Everyone should find in their life some kind of interest. I think I found that interest in trading. I will see how long it will last. Having said that, I am taking a break from this thread for next couple of weeks. See U later. Good Luck with your trading.

VV,
Have a good time on your holiday.
Rgds
Kuldeep

 

[rangarajan]

Hey VV,
1000+ by no means a small task & you really need a break.Enjoy the same.But i wonder whether whether u could really take yr mind from seeing the quotes.
Reg yr pleasure from trading,i fall in line with you.I am 58+ & still enjoy my trading.
see you after yr return.
ranga

 

[Happytraderindia]

Food for thought

Thanks. I will take this opportunity to recap what I have given and where we want to take this thread in future. Here are the most important aspects I think I have given.

1. Be consistent in whatever U do. Have a trading plan.

Trading is a small cycle. Write down the trading plan and following it consistently. Do not be swayed by the market. Market always lures into taking different paths. Do not get swayed by it. Your trading plan is the Tree which you use it as support in the cyclone of the market.
Do you know about Odysseus and Sirens story. See the attached image. The mast is your plan. Sirens are the market. You drowning in the sea represents loses.

2. Use Position Size for Money Management.

Use the calculator I attached earlier. Without using this, there is no hope for your success. Remember, with one Win you are not going to the bank and taking your money. With one loss, you are not going bankrupt. If you are serious, you are there day in day out for many years. Position sizing with constant risk is the key to winning on Long Term.

3. Stop Loss and Profit Taking

Devise a strategy for exits. Exits are the key to your winning. If you look around on Traderji, most people are bothered about entries. We are looking at the wrong place.

4. Continue to read.

Give yourself many years. Accompany trading with reading. Continue to experiment and improve.

As I suggested in the recent replies, from now on, I want this thread to have your viewpoint. Specially, I like to hear contrary view points. This is what I want to know.

1. I like to know views on pull back methodology.

2. New techniques for Stop Loss, Profit Taking methodologies.

3. When I suggest a stock, I want your pros and cons of taking the trade.

Basically, I want to avoid TUNNEL view. Lets share and improve our trading.


Consider EXIDEIND for entry.

Have you thought on this?
These are not contrary views, just a food for a thought.

Entry:

Your one of the filter criterian for the entry in the stock:
stock having 8EMA > 50 EMA. ( I am not saying it is right or wrong.)

- 8 trading days means apprx 2 weeks. 50 trading days means apprx 2 months. What is the relation of price and volume during these 50 days and last 2 weeks?
- Does chart talk to you?

You can find many of filters. e.g. 2 months high, 20 day breakout, 10-20-30 set up etc etc.

In software terminology, these filters are nothing but wrappers over P/V relation.
A relation between price and volume is the most important factor.

If one uses filters ignoring P/V then it is just like driving a car without understanding how the car works.

Only thing where filters can help in is to provide a psychological check.

Initial Stop:

Volatility based stops work better in trend following system. Volatility based stops are prone to drawdown. During the drawdown, the equity at risk has to be adjusted.

Most of the time stock/market is not trending. If one wants to succeed in trend following then one needs to look at multiple markets. To do all this, it needs tremendous descipline. That is what famous TURTLES did.

Do you sense something? Are you drifting away from swing trading to trend following?

Exit:

What if stock is trending?

What if stock is ranged?

What if there is a stiff resistance on higher time frame?

Position size:

Let us say R is a initial risk.
If one is already having a postion in the stock then,

if profit reaches to 1R,
should we add another pie of position?
should we book half of the profit?

Expectancy:

E = % of win * avg money win - % of loose * avg money loose.

How E can be greater?

These thoughts are just like fuel to propell you further.

 

[scorpio155]

VV u really do a great job here. I get to learn so much on weekends from this forum. This place is really great.

Thanks to all, who make traderji a wonderful place

 

[Czar]

timing is most accurate sire...in your charts & in this thread, guess its time for all of us to take a break...pretty eventfull 6 months huh

 

[myloginid]

Hi VV,

want to be the first one to catch you when you are back on leave
Any comments on Nirma, Hyderabad Industries and Jindal Saw Pipes

Thanks,
Manish

 

[kenneth]

Hi VV,

want to be the first one to catch you when you are back on leave
Any comments on Nirma, Hyderabad Industries and Jindal Saw Pipes

Thanks,
Manish

HiManish

Khartik has answered. Refer http://www.traderji.com/59324-post388.html

ken

 

[shethharsh]

Hello vvonteru ,

Im invested in Mahindra Gesco @ 740 . Today the stock made a high of 836 . Good profits or me at this level .Plz temme the target for this stock .

Thanking you always,

Harsh SHeth

 

[chachi]

Hello vvonteru ,

Im invested in Mahindra Gesco @ 740 . Today the stock made a high of 836 . Good profits or me at this level .Plz temme the target for this stock .

Thanking you always,

Harsh SHeth

Hi Harsh,

Wow, you had a nice entry. VV has taken a break. You cant get the answer from him immedietly. However a call was given by Jai I remember. Target 900, SL 675. You may now need to raise the SL. Please check his thread at http://www.traderji.com/equities/6010-delivery-calls-28.html. Enjoy the ride!!!

Regards
Chachi