I can help you with stock chart reading

[rangarajan]

Dear VV,
Could you tell us what exactly you mean by "Pulling up,will set up as short".Does it mean that one could short the scrip,if the price goes up at R levels or lower pivot levels & these are potential stocks for Shorting in the day's to come?
ranga

 

[Czar]

I think today's morning upmove was the oppurtunity..

 

[vvonteru]

Dear VV,
Could you tell us what exactly you mean by "Pulling up,will set up as short".Does it mean that one could short the scrip,if the price goes up at R levels or lower pivot levels & these are potential stocks for Shorting in the day's to come?
ranga

I was expecting some more updays. Can't imagine how negative things have turn out. Hopefully, things will be better.

With the expectation of updays, people will try to bail out. If there are no updays sooner or later, the reaction will be more severe. I don't believe in that case right now. About shorting, I do trading in Geogit. They don't offer shorting , keeping the stock more than a day. The only other option is to do options. I am not in options at. U can (should) use this line of thinking in day trading. Because, we want to use the direction of easy path to sail our boat. In market conditions like these, avoid taking long signals when market pulls up in day trading. Rather take shorting signals when the market is set for shorting.

 

[copperdesk]

Vvonteru Sir,

How are you? Can you please suggest me a good book on TA? Traderji.com has very rich content about this subject just because of you and other seniors, but all this are available in frangmented form.

Yesterday i brought "Stock Market - Technical Analysis Of The Financial Markets" by Mr. John J. Murphy (Trading Advisor "Meryl Lynch", Senior TA, CNBC for seven years.) Is this book good? or any better is available?

Regards.

CopperDesk.

 

[Czar]

I was expecting some more updays. Can't imagine how negative things have turn out. Hopefully, things will be better.

With the expectation of updays, people will try to bail out. If there are no updays sooner or later, the reaction will be more severe. I don't believe in that case right now. About shorting, I do trading in Geogit. They don't offer shorting , keeping the stock more than a day. The only other option is to do options. I am not in options at. U can (should) use this line of thinking in day trading. Because, we want to use the direction of easy path to sail our boat. In market conditions like these, avoid taking long signals when market pulls up in day trading. Rather take shorting signals when the market is set for shorting.

I think the more upside dint happen because the natural fall was stopped & the market is being artificially propped by auth. This could I believe make matters worst...

 

[vvonteru]

Vvonteru Sir,

How are you? Can you please suggest me a good book on TA? Traderji.com has very rich content about this subject just because of you and other seniors, but all this are available in frangmented form.

Yesterday i brought "Stock Market - Technical Analysis Of The Financial Markets" by Mr. John J. Murphy (Trading Advisor "Meryl Lynch", Senior TA, CNBC for seven years.) Is this book good? or any better is available?

Regards.

CopperDesk.

I have not read it. My gurus are Elder and Dave Landry. Elder goes through basics. Thats the foundation. Dave lays out the different rooms of the building on the foundation. He gives various patterns that are realistic. For day trading, use Marcel Link's book - High Probability Trading.

I see that U have started a new thread on day trading. No matter which book U go, no body will layout the methodology and money management techniques (I think Elder talks about a little bit, different from mine though). What I gave U is the one I followed. It is practical and U will not find it anywhere in any book.

For day trading, U don't need TA. U don't have time for TA. What U need is identifying sleek entry and exit points. U only need EMAs and MACD (again based on EMAs). Don't see double bottom, trending lines, divergence etc etc in a daily chart. They don't work. They work on lot of data. More data, more effective these indicators and Ur analysis. In a day, there is too less data for them to work.

That is the issue with these indicators. Beginners struggle with them. They look at all these indicators and consider them as toys or candies. They don't know what to do with them. They don't understand that the complexity is not with the indicator but, in its application. U got to know where and when to use them. More importantly, be consistent with their use, in getting Ur signals to trade. When a signal is not given for a day, don't go for a new indicator to get signal.

 

[vvonteru]

Re: Mr Vvonteru

What do you think of India cements and Essar oil? Do you think they will recover; It is probably not the right time to buy.

Kumar

India cements
-- Nicely set for short. Going down.

Essar Oil
--Doesn't look good either. But, U got lot of supports.

The market has to find its way up. Until then, all the stocks look bad. We don't want to buy them either.

 

[copperdesk]

Vvonteru Sir,

Thank you. I'll try get one these at the moment. You just spoke my heart out. This is EXACTLY the way i think about day dratrading. It is great to know that i'm on right path. I'll strongly follow your instructions.

One more thing i'd like to add sir, that papertrading is somewhat counter effective. It has one most important thing missing and that is emotion. I've tried paper trade. But when i started with real money two major changes i felt with my emotions. One is fear and the other is greed. If one can control these two then he could be Warren Buffet of day trading. Isn't it?

Salute Sir.

CopperDesk.

 

[vvonteru]

Vvonteru Sir,

Thank you. I'll try get one these at the moment. You just spoke my heart out. This is EXACTLY the way i think about day dratrading. It is great to know that i'm on right path. I'll strongly follow your instructions.

One more thing i'd like to add sir, that papertrading is somewhat counter effective. It has one most important thing missing and that is emotion. I've tried paper trade. But when i started with real money two major changes i felt with my emotions. One is fear and the other is greed. If one can control these two then he could be Warren Buffet of day trading. Isn't it?

Salute Sir.

CopperDesk.

Yes. U are right. But, most of them struggle to make money in day trading. Leave alone getting greedy. For my friend with whom I developed this methodology, he has problem with greed. Our methodology worked fine. But, he would never get happy with the money he was making. Lets say he makes Rs5000 on a day, he wouldn't quit on that day. He would continue to trade and end up with Rs500 at the end of the day.

He had also problem with position sizing. They were giving unrealistic losses when stops get hit. And sometimes he moved the stops hoping the stock would come back. The biggest problem he had was that he was applying EOD TA to day trading. He would confused with both. The reason I point these is, these are common issues U come across in day trading.

I don't know when U started day trading. If U are starting, my advise is to reduce position size. Smaller position eliminates fear and provides objective thinking. U will stop thinking about money and think what is right thing to do. Money should flow as an after thought. Slowly, U will see things clearly and develop Ur own method for trading (lets say fine tuning existing method). Thats what I call Ur edge. Till then, do it small. So, that Ur loses are minimal.

 

[kumar7]

Re: Mr Vvonteru

India cements
-- Nicely set for short. Going down.

Essar Oil
--Doesn't look good either. But, U got lot of supports.

The market has to find its way up. Until then, all the stocks look bad. We don't want to buy them either.

Thanks for your time and comments!

Kumar