I can help you with stock chart reading
- Thread starter vvonteru
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Yes. Look for only shorting while the market is in downtrend. Avoid long signals as they fetch less reward versus high risk. But, follow my methodology of crossover. That way, when the market is pulling up (short covering), U will not get shorting signal. When the 8 min ema crosses down 50min ema, then short. Cover when 8 crosses up over 50. Please read my methodology in my thread. Search the thread on day trading.
vvonteru said:
Looks like Ur confusion is, U did not make a determination of what kind of a player U are (long term, short/intermediate). Its high time U did that before the confusion costs U. If U (or All) want suggestion, go for short to intermediate term. For long term approach, use Funds to that.
Research on the funds. Even in the funds case, there is an exit strategy. On the weekly chart, if 8 Week EMA is crossing down 200 Week EMA, then exit out of the fund (if this happens, market should be in worst condition). Look for a good company holding the funds with long history. Look for funds that give 10 to 30 percent or more consistently year after year. Invest in funds on a monthly basis to leverage cost averaging. Thats what I call a long term approach, where U don't care these market corrections.
Now, coming to the stocks, its very hard to say what is the right thing to do. U will be damned if U do it, U will be damned if U don't do it. For short term approach, in this condition, I resort to taking partial positions of the table. Atleast, U are partial correct or wrong. If further drawdown occurs, take more of the table. For long term, they say, keep it and hope it corrects. I feel the market comes back too. But, I just don't like to hope. We may escape now. But, one (dooms) day, there will be a final trap.
When do U know the market is going to come back? One pulse to check is, people start recommending stocks to buy in this thread
. Other would be the market makes a double bottom or has MACD divergence and goes up with considerable volume.
Research on the funds. Even in the funds case, there is an exit strategy. On the weekly chart, if 8 Week EMA is crossing down 200 Week EMA, then exit out of the fund (if this happens, market should be in worst condition). Look for a good company holding the funds with long history. Look for funds that give 10 to 30 percent or more consistently year after year. Invest in funds on a monthly basis to leverage cost averaging. Thats what I call a long term approach, where U don't care these market corrections.
Now, coming to the stocks, its very hard to say what is the right thing to do. U will be damned if U do it, U will be damned if U don't do it. For short term approach, in this condition, I resort to taking partial positions of the table. Atleast, U are partial correct or wrong. If further drawdown occurs, take more of the table. For long term, they say, keep it and hope it corrects. I feel the market comes back too. But, I just don't like to hope. We may escape now. But, one (dooms) day, there will be a final trap.
When do U know the market is going to come back? One pulse to check is, people start recommending stocks to buy in this thread
. Other would be the market makes a double bottom or has MACD divergence and goes up with considerable volume.
What you advice makes a lot of sense. I took a short holiday to clear my thinking. As I am uncomfortable with shorting using F&O, I've decided to stay out of the market till some clear uptrend emerges. Will keep track of your posts, though, as they are most informative.
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