I can help you with stock chart reading
- Thread starter vvonteru
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I think most get confused with methodology versus making money. Its just as in life. U can make money money several ways. But, do U do that? Or do you stick to your priniciples?
Other confusion is about a stock being cheap versus expensive. Most don't understand that neither a stock is cheap nor expensive. It is above when you buy versus when you sell. The difference is all that matters. The question is how do you choose those points. What are your guiding principles that let you choose those points. Can you make exceptions to those principles? (Can you make an exception in life's principles and take bribe to make money)
These are some thought provoking questions one need to answer. One can experience. Buy 5 shares of a stock. Feel the experience. How do you feel when you make an exception to your principles and buy shares. How do you feel when you follow principles and buy stock. Even though people say its all about money, seriously its not. As in real life, its about how you make it. How you make it consistently. It has to be a repeatable process. If not, you can make a 1000 today, lose 5000 tomorrow. Consistency and Repeatability are the key.
I think I took it far. Most of the people don't have set of principles to trade. What they are after is making quick money. They don't understand that trading stocks is the most challenging art in the world. Its about snatching money from the other guy. If you are not smart, somebody else will grab the money from you. Until they lose, they don't realize. Experience is everything!!
Other confusion is about a stock being cheap versus expensive. Most don't understand that neither a stock is cheap nor expensive. It is above when you buy versus when you sell. The difference is all that matters. The question is how do you choose those points. What are your guiding principles that let you choose those points. Can you make exceptions to those principles? (Can you make an exception in life's principles and take bribe to make money)
These are some thought provoking questions one need to answer. One can experience. Buy 5 shares of a stock. Feel the experience. How do you feel when you make an exception to your principles and buy shares. How do you feel when you follow principles and buy stock. Even though people say its all about money, seriously its not. As in real life, its about how you make it. How you make it consistently. It has to be a repeatable process. If not, you can make a 1000 today, lose 5000 tomorrow. Consistency and Repeatability are the key.
I think I took it far. Most of the people don't have set of principles to trade. What they are after is making quick money. They don't understand that trading stocks is the most challenging art in the world. Its about snatching money from the other guy. If you are not smart, somebody else will grab the money from you. Until they lose, they don't realize. Experience is everything!!
Vvonteru
You are absolutely right. But consider this if everyone trading in the market were wise and prudent, what would the market be like? I was looking at the Nifty chart today. I have attached it with my observations. I see 3 ascending peaks followed by a short duration descending peak and then a steep fall before the index started moving between 2900+ and 3300. What would be your comments? Can one infer that for some time, we will see this trading range (with lower than previous average volumes) and would it narrow before an uptrend emerges? As it is we are entering that traditional Indian season when businesses slow down due to monsoons etc.
You are absolutely right. But consider this if everyone trading in the market were wise and prudent, what would the market be like? I was looking at the Nifty chart today. I have attached it with my observations. I see 3 ascending peaks followed by a short duration descending peak and then a steep fall before the index started moving between 2900+ and 3300. What would be your comments? Can one infer that for some time, we will see this trading range (with lower than previous average volumes) and would it narrow before an uptrend emerges? As it is we are entering that traditional Indian season when businesses slow down due to monsoons etc.
Attachments
You are right that not everyone can be wise and prudent. Hence, there is money gained or lost. It is also due to the fact that each person looks at the data and analyzes differently. Then, you have money from Funds that make the large chunk of the market. Their reasons are different.
Coming back to the question of nifty. Hopefully we see some signs of bottoming out. Till then, we all wait.
Coming back to the question of nifty. Hopefully we see some signs of bottoming out. Till then, we all wait.
Right now, the market is in oversold condition. Its testing 200 day EMA. It may bounse. If it goes below 200 day EMA, thats more bearish. It all depends on how it does, rather than just noise.
If you are short, you had enough downside that you should take partial profits. And on the remaining shares, trail the stop down. But, are you not day trading when shorting?
If you are short, you had enough downside that you should take partial profits. And on the remaining shares, trail the stop down. But, are you not day trading when shorting?
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