Intraday profit system

[Debarghya Mukherjee]

Sooon, I will post them. But it is a mixed up of fundamental situation along with technical implementation on it.

Mukherjee, what are the changes to your original strategy ?? Can you please post them here.

 

[Debarghya Mukherjee]

I must say Jhonny, you are great, you made an excelent post here.
Most important part of your post is

In simple way : Rule no. 1 . Make system befor applying. Entry , exit, profit booking and above all n the most important "Stop Loss". Once you reach, now trade.

Rule no. 2 - Never forget rule no. 1.

Hey,

Sorry 4 jumping in between u guys. Okay, everyone have their own reson whether got from experiance or from freind or what ever. In last 23-24 years I personally seen lts of style, rules, fancy indicators etc. etc. Its human nature that he knows he is best in all living creatures n he know it so he always try to do new, something different. To fullfill his "this" requirement, he dig too much.

I have seen n told several time that evey indicator or style have their own pro. n con.

Plot MACD. Plot ADX both agree go ahead. Forget everything.

Yes Yes, there u can tweak a bit n can get extra bucks. Now, Q is, is it neccessry to dig like hell just to fulfill our know more syndrome?

In simple way : Rule no. 1 . Make system befor applying. Entry , exit, profit booking and above all n the most important "Stop Loss". Once you reach, now trade.

Rule no. 2 - Never forget rule no. 1.


Rest what you do is just to satisfied ur lust to discover something new. Being a common man its enough but if u r more then causal trader or investor then only then dig more.

If everyone will satisfied like this then we will stop knowing new things.

My point is rather then telling the guy what is pro n cons of his n her sys., why we don't try to finetune n then let original guy know about it n then thank u him that he brought the concept in our knowledge and you made that better.

BTW, The simple setup I mentoned, try it.

johnnypareek at yahoo.com

 

[Debarghya Mukherjee]

Hello shweta narang,
What Does Simple Moving Average - SMA Mean?
A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.
What Does Exponential Moving Average - EMA Mean?
A type of moving average that is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average".


Now these are text book definition of MA(Moving averages) but we deal in real world, where we use this MA to interprete past performance of price. That is how was the price performance. SOme tmes we use multiple MA. Why we use multiple MA? Becuase it helps us to determine trend. Question is how? We use atleast two MA like EMA(3) and EMA(13) where ema(3) is avergave of 3 days and ema(13) is for 13 days. Once they cross each other we assume trend change. Why we think so? Because if ema(3) cros the ema(13) then short term trend is bullish than the long term trend. So we expect that the price has a high chance to go up. And it is true when ema(13) goes up crossing ema(3) that is we are entering to an bearish mode.

But is not an good idea to use a single indicator. So We some times use ADX or Stochastics along with MA. These are momentum indicators, that helps us to understand the momentum of the trend, that is HOW POWERFUL THE TREND IS.

I guess this will help you.


Read more on : http://www.investopedia.com

hello debarghya
i m very new to market ,can u clarify what is 3 EMA, 13 EMA, 39 SMA, Stochastic(8,3,4) MACD also.pls clear my doubt ,whether it will be useful for optin trading.

 

[Debarghya Mukherjee]

What is the most funny thing in stock market?

Ans: Experts view is the most funny thing. Once they think that our economy and Govt. policy is so strong that global economical problem will hit less in Indian market. On the next they they suddenly become too much bearish on market and said that market can go 10-20% low from here. Again they think either a consolidation or an bounce back can be there. WTF.

 

[4xpipcounter]

What is funnier is they try to act so smart, and the more they talk, the more they prove what they do not know.
I'd venture a safe guess most people in this forum know more about how the markets move than most of our government officials.
I challenged a talk show host here in the USA, Rush Limbaugh, about some comments he made about the stock markets. I boldly told him the why and the wherefore of the markets moving, then they did what I told him they would do. Funny. He never got back to me.

Government officials and talk show hosts are good at playing on people's ignorance for the benefit of their personal bias.

What is the most funny thing in stock market?

Ans: Experts view is the most funny thing. Once they think that our economy and Govt. policy is so strong that global economical problem will hit less in Indian market. On the next they they suddenly become too much bearish on market and said that market can go 10-20% low from here. Again they think either a consolidation or an bounce back can be there. WTF.

 

[4xpipcounter]

Re: Web design sydney, web design melbourne

What did that have to do with the discussion in this thread?
Maybe I missed something.

It is my request to other members of this forum, those who have programmable charting software, please check the result...

 

[Debarghya Mukherjee]

I am an Computer Science Engineer. I have 4 years of experience in software programming. I am in stock market when since I was in school. Even though I had no idea about Open interest, Call/Put Ratio, Inflation, Credit crunch, automated trading system .

But As I have seen both the field, I can make this statement

"Computer program can not defeat human brains in case of trading".

Why because we human has emotions, that computer doesn't have. So how a computer can measure greed and fear factor? Yes I know what others will say me, Debarghya Mukherjee you know nothing, Total sell quantity and Buy quantity reflects buy and greed fear factors. My answer remains same, Because I have tried using my own software. I know how to make these blackbox systems.
I want comment on this. What others members think about it?
A computer can beat you in taking trading decisions?

 

[sumosanammain]

I am an Computer Science Engineer. I have 4 years of experience in software programming. I am in stock market when since I was in school. Even though I had no idea about Open interest, Call/Put Ratio, Inflation, Credit crunch, automated trading system .

But As I have seen both the field, I can make this statement

"Computer program can not defeat human brains in case of trading".

Why because we human has emotions, that computer doesn't have. So how a computer can measure greed and fear factor? Yes I know what others will say me, Debarghya Mukherjee you know nothing, Total sell quantity and Buy quantity reflects buy and greed fear factors. My answer remains same, Because I have tried using my own software. I know how to make these blackbox systems.
I want comment on this. What others members think about it?
A computer can beat you in taking trading decisions?

1000 times over. Because you forget that since we have brains, we have emotions too. And emotions cloud judgement at the time when it is needed the most.

And if a person feels that he is better at making decisions than the computer, then either he has a below medicore system, or his ego is so inflated, that the truth can never reach him, among the arguments that he will put up to justify his stand.

 

[timepass]

Computers spoil you. In real trading, there is no Ctrl+Z button.

 

[Debarghya Mukherjee]

The crisis isn’t over​

Stock markets around the world soared yesterday. The Dow jumped more than 300 points.

News out of Europe says they’re working on a fix to resolve the crisis there. Reports here say the holiday season may be off to a strong start. Sales on “Black Friday” may have hit a record.

So, is that it? Is the crisis over? Is it time to ramp up your equity exposure, take on more risk?

Heavens. Anything can happen. And, OK, there are stocks out there that look pretty decent value.

But here are ten reasons to be skeptical. This so looks like a dead cat bounce.

1. The market was due a rally. The Standard & Poor’s 500 index SPX +0.22% had fallen seven days in a row. But equity markets never fall in a straight line. After a long run of down days, people who’ve been betting against stocks by selling short get tempted to lock in some of their profits by buying stocks back. Others who want to buy stocks see sharp falls and get tempted to “bargain hunt.” This inevitably produces quick, sharp rallies. This one may last a day, a week, a month or more. That doesn’t mean a thing about long-term trends.


2. The report from Italy, one of the items sparking bullish sentiment, has already proven a crock. A news report there over the weekend said the International Monetary Fund was working on plans to step into the European debt crisis with a gigantic $600 billion bailout. The report has been dismissed, on the record, by an IMF spokesman.

3. The reports from northern Europe are absurd. Markets are excited by reports that Germany, France and Brussels are working on a new “bailout” plan. But look at the details! Under the proposals, the European Union will help insure the debts of countries in crisis, but in return it will be given veto powers over the budgets of the countries in question. This idea can’t survive 10 seconds of serious thought. The Greeks are rioting over budget cuts proposed by their own governments. What possible chance is there that they — or the Italians, or the Spanish — would accept austerity measures imposed by Brussels?

4. Are the Germans suddenly reflationists? The only politically feasible way out of the European crisis is to turn on the printing presses. That either means letting the European Central Bank print more euros, or letting countries like Greece drop out of the euro, so they can print their own currencies. But so far neither is on the agenda. Germany won’t let the ECB print. And countries aren’t ready to drop out of the single currency. Until one of these happens, there will be no resolution to the crisis.

5. Italy is still in trouble. Gross government debts are 120% of gross domestic product, and even net of intra-government liabilities they are 100%. Ken Rogoff and Carmen Reinhart, in their sweeping history of financial crises, This Time Is Different, found that 100% was the “tipping point” for serious trouble. No wonder investors are demanding 7.5% annual interest to lend money to Italy for five years — compared to just 1.3% for Germany. And they’re demanding more than 6% to lend to Spain.


6. China’s real estate market is looking ominous. In the past few years, economic growth in China — fueled in part by its gigantic housing boom — has helped keep the rest of the world economy from falling apart completely. Now Chinese real estate prices are tumbling, developers are going bust, and the OECD has warned that this poses a risk to the world’s second largest economy. In its latest report the OECD calls the health of China’s real estate companies “a prominent domestic risk overshadowing the economic outlook.” Read “China may be at a policy turning point.”

7. The U.S. consumer is still broke. Among the more baffling reasons for cheering yesterday was a report saying that “Black Friday” Christmas sales jumped sharply from 2010, hitting a new record. Investors saw the chaotic — and nationally embarrassing — scenes over the weekend, fistfights, pepper sprays and the like. Bloomberg reported on a woman 12 weeks pregnant camping out in the freezing cold to get a deal on a flat screen TV. If anything, this should make rational people more gloomy. Have we learned nothing? The numbers are not heartening. Despite the lies you read and hear, telling you that American consumers “are repairing their balance sheets,” the truth is total household debts in this country have fallen by a mere 4.5% from the record peak at the height of the bubble a few years ago. They are still 20% higher than they were as recently as 2005, and twice what they were in 1999. According to the Federal Reserve, consumer credit levels are rising. And according to the Commerce Department, households are saving less than 4% of their disposable incomes — a fraction of the levels seen decades ago, and well down even from 6% or more seen in 2008-9. Read “Black Friday sales hit record, giving season hope.”

8. Millions here are still out of work. The unemployment situation is far, far worse than the government is telling you. Forget the official jobless rate, 9%. It’s meaningless. Even the so-called “underemployment” rate doesn’t tell the full story. Consider this: According to the Labor Department, the number of men age 25 to 54 who are out of work is officially 4.2 million. The reality? Deep in the footnotes the Labor Department says there are 61.6 million men in America age 25 to 54, while just 46.7 million are in full-time work. That leaves 14.9 million left over. Another 3.7 million work part-time. Seven million aren’t accounted for at all.

9. Meanwhile equities still aren’t cheap. This shouldn’t be overstated: There are reasonable deals out there, especially among some of the blue chips here and overseas. But U.S. stocks overall trade on 21 times their average earnings of the past 10 years, according to data compiled by Yale economics professor Robert Shiller. This, the so-called “cyclically adjusted price/earnings ratio,” has proven historically to be a reasonable yardstick. The average since the 1880s has been about 16 times.

10. The economic outlook is gloomy. Western governments have spent the last few years borrowing heavily from the future to try to stimulate growth today. According to the IMF, in the past three years the gross debts of the advanced economies have risen in aggregate from 80% to 100% of their entire GDP. We are likely to see them tighten their belts next. This was the agenda of the budget “supercommittee” here and of austerity plans in Europe. No wonder the OECD warns that it expects world economic growth to slow next.

Sure, you can overdo the gloom. The economic fundamentals always look terrible — they call it “the dismal science” for good reason. Maybe events will turn out better than feared. Let’s hope so. But it’s still a little early to break out the Champagne.

I read it from here