CONTD..PAGE80 ONWARDS
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52 week high or 3 month high means you are selecting the channel length. You want to consider stocks above/below the channel. Higher the channel length, stronger/weaker the filtered stocks. Stock market consists of tons of data. There are alway attempts to filter the price and volume data. All the indicators are just filters of price and volume data. 52 week high or 3 month high is another attempt to filter out those stocks that fall with in the channel.
You have picked good momentum stocks overall. I have ranked them. Always restrict to 1 stock per sector. Concentrate on Banks, Cements and Pharma. Wait for the indexes (BSE500, SENSEX, NIFTY) to come out of the trading range. If they don't go above the trading range next week, do not go long on stocks.
Dave is suggesting minimum channel length as 2 month for filter. If you start from stocks that made high compared to yesterday, 1 week high, 2 week high .... 1 month high .... 2 month high, Dave is asking to consider 2 month high. Channel length depends on your descretion and the market in general. After the recent downfall in May and June, if you have asked for 2 month high in July, you might get nothing. In that case you have to try 1 month.
Channel is not some concept, but just a name for setup criteria. Think channel as 2 parallel lines, 1 top and 1 bottom determined by the period (2 month or 12 month etc). There are stocks that fall between the 2 parallel lines and those fall above and below. From the 90s, they has been general understanding that buy stocks that make new highs and short stocks that make new lows. So, those stocks that appear above the top of the channel are considered for buying. Similar is the case for short for stocks that fall below the bottom channel line.
Quote:
also does "bollinger bands" comes under the channel length concept,
for acco. to elder in "come into..", buy stocks on the SMA of Boll B., sell at the upper channel or when it is going below the upp.channel, and buyback when it again reaches the SMA. how is it related to volatality?
Bollinger bands are drawn considering the volatility of the stock. I use it to avoid buying (rather sell) when a stock goes above the bollinger band
Elder likes to buy stocks when they come between two short term sma/ema. For example, if a stock comes between 10 and 20 ema. He calls it sweet zone. Stock always go up and test the emas now and then.
Quote:
also, how do we know that the trading range is over, does it means that it breaks above the resistence level?
kindly oblidge as u always do.
regards,
sonu m.
Yes. However, there are false break outs. Dave suggests to wait for pull back after the break out. Currently, the indexes are hovering around the top of the trading range. Same with U.S indexes. All are waiting for Tuesday's Federal Resever Interest Rate Hike. If there is no hike, you can expect a big rally. So, I advise wait for Wednesday. You will get hint from tuesday's U.S market.
Based on overbought condition. No body can say what market can do in the next day or week or month. It is just the probability of pull back after an overbought condition increases. With stock market, we are just dealing with probability. If you have not read probability in Math, it is time for you to revisit.
Sometimes you can predict based on fundamental or news. For example, look at how indexes are just dancing around the top of the trading range. If you go and put money now, you will scratch your head as they go up and down ... It is common sense that they (big money) are waiting for something to happen before making decision either way. Closest event is the Fed increase of interest rates on Tuesday.
In affect, when trading, think at high level. Look at market indexes. Look at what sectors are doing good and bad. Look at economics of the market, like interest rates, inflation etc. I know it is lot of work. But, thats what it takes
RSI, Williams, Mommentum, MACD, Stocastics etc are categorised as Oscillators. EMA is a Trend Indicator. Anything which as boundaries (eg: 0 - 100) is an Oscillator. You can use 10 or 15 period for oscillator. Normally, anything above 80 is considered overbought and below 20 is oversold. Now, these numbers depend on period you choose and stock/index you are looking at. Look at the history to get the number suitable for overbought and oversold indicator. Recently, I found another way to look at overbought and oversold indicator. If you have data, find out Percentage of Stocks Above Moving Average 20, 50, 100, 200 etc for Today, Yesterday, Last Week, Last Month. If these percentages go above 80, then considered it overbought. If the percentage of stocks go below 20, then consider it oversold.
Quote:
3. dave says, that even though that market is falling, go for sectors that
are strong, and then strong stocks in that sector, what is
ur view on this?
sorry for posting such long questions, plz guide as u always do
regards,
sonu m.
If you can only go long, ya why not
I guess you are far away from what Trading means. You are more into investing mind frame. Stops doesn't make sense anymore. Talk to someone who knows fundamental analysis. Ask them what to keep and what to drop.
-10 Oscillator is a price oscillator of 3 day and 10 moving average similar to MACD. You can construct it by using OSCP function or change the parameters of MACD from 12,26 to 3,10. Oscillates above and below the Zero line.
I understand your frustration. I couldn't give you any suggestion. Because, if I were in your place, I wouldn't know what to do either. Best I would do is take the major loses. Take 6 month break. During the break, read books, develop a methodogy with money management. Do some paper trading. Then come back. But, I couldn't give that advise as it requires complete overhaul.
Every major player in today's market has gone through what you are going now. Its like Jesus (was it Jesus?) asking, show me anyone who has not erred in their life.
However, good news for you. Market indexes are showing positive. They have crossed the trading range. We are going up to tackle 2 more resistances. If they can do it, you can regain the money. So, watch the indexes.
Sectors Up
Banks
Cement
Pharma
Consumer Goods (came out of the trading range recently)
Health Care (came out of the trading range recently)
IT
BSEPSU (came out of the trading range recently and tested the top of trading range successfully)
Sectors Still in Trading Range
Consumer Durables
MIDCAP
SMALLCAP
AUTO
METAL
OILGAS (ONGC is doing good
Rolta
-- Can't argue with what happened today on high volume. Hope there will be follow through. When you add more to a position, here are my suggestions.
1. Never add more than 50% of your existing position.
2. Consider adding after multiple of Risk is reached. If you have risked 20 points, wait at least the stock has gained 20 or 40 or 60 points above your buy point.
3. Add only on pull backs. So, don't add now. Stock went above its normal volatility (above upper bollinger band) and may slightly fix in the coming days. Look at LUMAXIND for idea.
The idea is, never make a winning position a losing position.
Aftekinfo
-- You are right. The stock lacks momentum right now. You should have entered after the stock cleared the trading range. One of the reason I go after the sector is for momentum. Look at Banks sector. How they are flying. For short term traders, momentum is everything.
Don't you think good, a consistent (or sudden) above average volume in a stock is a sign of something immenent---a sign of some dramatic change in the price movement---upwards or downwards movement in the stock price. I want to buy into stocks before they make a upward correction in the stock price, not just find a good trading range.
I agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.
Guys, look at the stock CLASSIC (Gems sector). Its amazing how it is flying. It doesn't it even give chance to enter. Still, I wouldn't enter until it has a correction.
Currently, we don't have tools that can display sector charts. Only website that offers sector data is http://www.ndtvprofit.com/bb/default.asp?Pass=Indices. I had to go through so much strain in getting sector data. I wrote java code to scrape sector info from websites. Every day, after I load data, I run AmiBroker code to generate sector charts. When I talk about sector performance, I am not talking about 1 day. I am looking at the sector just like a stock.
use ADX for scanning. For volatility of a stock, I use ATR. U can get ATR of a chart from icharts.in.
The idea is, never make a winning position a losing position.
[/color]
I took position in this stock because of the following reasons:
a) Its quarterly and yearly results was expected on the 8th Aug. Around 1-2nd Aug. The trading volume had started increasing in the anticipation.
B) Low valuation: It was in the range of 220 to 280 for many months.; and the fundamentals have seemed to have improved. Like all good stocks it had corrected.
c) IT companies had reported good results: trong dollar.
I'll keep in mind your advice about re-entry and adding more
agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.
Thanks for ur encouragement. whatever i have learned is from u, the books u have suggested are real gems
the site i visit is twonahalf.com, i suggest u to visit that site. it provides basic information of which stocks are in uptrend, candelstick bullish/bearish patterns
52 week high/low, speed of trend,etc. register urself first, they send u an activation number, activate ur account, and get started.
although i do not entirely follow their recommendations, i do go to icharts.in
and do my own discretional analysis. i think some member in traderji has started that site, i got the site info from here itself, so for more information,
visit http://www.traderji.com/equities/762...ight=twonahalf
what is ur opinion on "historical volatility" that dave suggests, do u use it?
u said u use ATR, from what i have learned, u use 3*ATR as ur initial risk R.
This i think u use it for stop loss, however i dont' know how do u use it to
measure volatility of stocks? what range tells u it is highly volatile?
2. does the 3/10 oscillator that dave suggests, is MACD value of FAST 3 EMA,
SLOW 10 EMA, smoothed by 1 EMA, i.e 3,10,1. If this calculation is right,
can u suggest any indicator similar to "HISTORICAL VOLATILITY" and its
values?
Market has come out of the trading range. It is up 3 days. Will pull back pretty soon. At that time, consider these stocks for entry.
Day Trading Info
-- http://www.traderji.com/44907-post62.html
Its been a while I read it. Historical volatility can be calculated using EMAs of ATR. You know stock's volatility by comparison to another stock. A stock that has ATR = 100 is more volatile than a stock that has ATR=10. Volalitility is about how much swing (High - Low) in a day. You need this to place a stop and also to calculate position sizing.
Lets say you are buying a stock that that has ATR=20 and close = 100. If you are putting a stop between 80 and 100, you are basically asking for the stop to be hit. U are not giving the stock a chance to test your methodology. 3 * ATR is used to give the stock atleast 3 days to prove U are wrong. You could reduce it to be between 2*ATR and 3*ATR based on previous support.
U need stock's volatility for position sizing. If you buy 100 shares of a stock that has ATR 100, you should expect a swing of Rs 10,000 per day. U need to ask yourself the question, are U comfortable with that kind of change to your porfolio. If not, how much swing can you take in principal per stock per day.
Quote:
2. does the 3/10 oscillator that dave suggests, is MACD value of FAST 3 EMA,
SLOW 10 EMA, smoothed by 1 EMA, i.e 3,10,1. If this calculation is right,
can u suggest any indicator similar to "HISTORICAL VOLATILITY" and its
values
A stock can be bought or short. Only 2 options. So, flip a coin before you buy or short. Heads or Tails. That gives you 50% probability to win or lose. Most setup and entry algorithms have less than 50% chance of making you money. What makes your trading success or failure is the Position Sizing (money management) and Stop Exit (risk) and Profit Exits (trailing stop mechanism). Do not evaluate your strategy over 1 or 2 trades. Evaluate over 10, 20 or 30 trades. The key is making trades using the same strategy over and over again. Thats really hard. Thats called high probability trading. Read book, 'Trading in the Zone' by Mark Douglas. The book is little bit boring, but does help in this perspective. The author challenges readers to make 10 trades consistently based on a predeveloped setup and entry criteria
thing is, it does not matter. Think about. If you got 90% success trades over a span of 1 year with 10% failure. The success made Rs 10,000 profit. 10% Failure made 8,000 loss. How will you evaluate this system. How about this. A system produced 70% failure and 30% success. Profits are 10,000 and loss is 5,000. Did the percentage success matter.
So, success or failure are just outcomes of a trade where you don't have control over. Market is dynamic environment which is constantly changing. By selecting a setup and entry criteria, you try to give more than 50% probability of success. If it fails, so fine. Your position sizing algorithm already gives you how much you are constantly risking. If its a success, you want to make profit more than the risk. U only have control over what loss you can take when the trade fails and what profits you can make when trade succedes.
No. Most of what I write are my understanding of the market and my readings. I constantly read books along with my trading. They keep me in the loop. If not, as you trade, there is a tendency to move away into the greed/gambling stuff.
Quote:
Also, Should I buy only if there is a buy signal on the previous day or is it fine if I buy if buy signal is generated say 3-4 days back also?
As long as U are not trying to catch up. Feeling of missing out is always there. U should try to get out of the feeling as there will always be opportunities. If you do take it, don't forget to change the entry and exit points in the Position Sizing Calculator to use the new position size.
Market is kind of overbought. But, different sectors are having different timing. Pharma has been down for some time. Look at Ranbaxy. I know from some of you that it is fundamentally a good stock (if it helps setup, why not). It has nice crossover with pull back. What I am not liking about the pharma and cement stocks is low volatility. But, sometimes that is good too. Low volatility compared to its historical volatility leads to higher prices. During the low volatility, consolidation may take place
have 5 updays. I wouldn't buy it now until crossover and pullback. If U already have it, hold on. Market's new uptrend is confirmed. What that means is, most of the stocks will come up.
In the recent days, MIDCAP and SMALLCAP have come out of the trading range. As U see (if you have followed me), we started with couple of sectors in July in uptrend with now, most of them in the uptrend. I am seeing lot of stocks in setup. If market pulls back couple of days, there will be tons of them for entry.
can give you tons of stocks showing this pattern. No doubt because most of the sectors are up. This is the good time to put your money as it is the start of new uptrend and your entry will be closer to 50 day EMA
......................................
52 week high or 3 month high means you are selecting the channel length. You want to consider stocks above/below the channel. Higher the channel length, stronger/weaker the filtered stocks. Stock market consists of tons of data. There are alway attempts to filter the price and volume data. All the indicators are just filters of price and volume data. 52 week high or 3 month high is another attempt to filter out those stocks that fall with in the channel.
You have picked good momentum stocks overall. I have ranked them. Always restrict to 1 stock per sector. Concentrate on Banks, Cements and Pharma. Wait for the indexes (BSE500, SENSEX, NIFTY) to come out of the trading range. If they don't go above the trading range next week, do not go long on stocks.
Dave is suggesting minimum channel length as 2 month for filter. If you start from stocks that made high compared to yesterday, 1 week high, 2 week high .... 1 month high .... 2 month high, Dave is asking to consider 2 month high. Channel length depends on your descretion and the market in general. After the recent downfall in May and June, if you have asked for 2 month high in July, you might get nothing. In that case you have to try 1 month.
Channel is not some concept, but just a name for setup criteria. Think channel as 2 parallel lines, 1 top and 1 bottom determined by the period (2 month or 12 month etc). There are stocks that fall between the 2 parallel lines and those fall above and below. From the 90s, they has been general understanding that buy stocks that make new highs and short stocks that make new lows. So, those stocks that appear above the top of the channel are considered for buying. Similar is the case for short for stocks that fall below the bottom channel line.
Quote:
also does "bollinger bands" comes under the channel length concept,
for acco. to elder in "come into..", buy stocks on the SMA of Boll B., sell at the upper channel or when it is going below the upp.channel, and buyback when it again reaches the SMA. how is it related to volatality?
Bollinger bands are drawn considering the volatility of the stock. I use it to avoid buying (rather sell) when a stock goes above the bollinger band
Elder likes to buy stocks when they come between two short term sma/ema. For example, if a stock comes between 10 and 20 ema. He calls it sweet zone. Stock always go up and test the emas now and then.
Quote:
also, how do we know that the trading range is over, does it means that it breaks above the resistence level?
kindly oblidge as u always do.
regards,
sonu m.
Yes. However, there are false break outs. Dave suggests to wait for pull back after the break out. Currently, the indexes are hovering around the top of the trading range. Same with U.S indexes. All are waiting for Tuesday's Federal Resever Interest Rate Hike. If there is no hike, you can expect a big rally. So, I advise wait for Wednesday. You will get hint from tuesday's U.S market.
Based on overbought condition. No body can say what market can do in the next day or week or month. It is just the probability of pull back after an overbought condition increases. With stock market, we are just dealing with probability. If you have not read probability in Math, it is time for you to revisit.
Sometimes you can predict based on fundamental or news. For example, look at how indexes are just dancing around the top of the trading range. If you go and put money now, you will scratch your head as they go up and down ... It is common sense that they (big money) are waiting for something to happen before making decision either way. Closest event is the Fed increase of interest rates on Tuesday.
In affect, when trading, think at high level. Look at market indexes. Look at what sectors are doing good and bad. Look at economics of the market, like interest rates, inflation etc. I know it is lot of work. But, thats what it takes
RSI, Williams, Mommentum, MACD, Stocastics etc are categorised as Oscillators. EMA is a Trend Indicator. Anything which as boundaries (eg: 0 - 100) is an Oscillator. You can use 10 or 15 period for oscillator. Normally, anything above 80 is considered overbought and below 20 is oversold. Now, these numbers depend on period you choose and stock/index you are looking at. Look at the history to get the number suitable for overbought and oversold indicator. Recently, I found another way to look at overbought and oversold indicator. If you have data, find out Percentage of Stocks Above Moving Average 20, 50, 100, 200 etc for Today, Yesterday, Last Week, Last Month. If these percentages go above 80, then considered it overbought. If the percentage of stocks go below 20, then consider it oversold.
Quote:
3. dave says, that even though that market is falling, go for sectors that
are strong, and then strong stocks in that sector, what is
ur view on this?
sorry for posting such long questions, plz guide as u always do
regards,
sonu m.
If you can only go long, ya why not
I guess you are far away from what Trading means. You are more into investing mind frame. Stops doesn't make sense anymore. Talk to someone who knows fundamental analysis. Ask them what to keep and what to drop.
-10 Oscillator is a price oscillator of 3 day and 10 moving average similar to MACD. You can construct it by using OSCP function or change the parameters of MACD from 12,26 to 3,10. Oscillates above and below the Zero line.
I understand your frustration. I couldn't give you any suggestion. Because, if I were in your place, I wouldn't know what to do either. Best I would do is take the major loses. Take 6 month break. During the break, read books, develop a methodogy with money management. Do some paper trading. Then come back. But, I couldn't give that advise as it requires complete overhaul.
Every major player in today's market has gone through what you are going now. Its like Jesus (was it Jesus?) asking, show me anyone who has not erred in their life.
However, good news for you. Market indexes are showing positive. They have crossed the trading range. We are going up to tackle 2 more resistances. If they can do it, you can regain the money. So, watch the indexes.
Sectors Up
Banks
Cement
Pharma
Consumer Goods (came out of the trading range recently)
Health Care (came out of the trading range recently)
IT
BSEPSU (came out of the trading range recently and tested the top of trading range successfully)
Sectors Still in Trading Range
Consumer Durables
MIDCAP
SMALLCAP
AUTO
METAL
OILGAS (ONGC is doing good
Rolta
-- Can't argue with what happened today on high volume. Hope there will be follow through. When you add more to a position, here are my suggestions.
1. Never add more than 50% of your existing position.
2. Consider adding after multiple of Risk is reached. If you have risked 20 points, wait at least the stock has gained 20 or 40 or 60 points above your buy point.
3. Add only on pull backs. So, don't add now. Stock went above its normal volatility (above upper bollinger band) and may slightly fix in the coming days. Look at LUMAXIND for idea.
The idea is, never make a winning position a losing position.
Aftekinfo
-- You are right. The stock lacks momentum right now. You should have entered after the stock cleared the trading range. One of the reason I go after the sector is for momentum. Look at Banks sector. How they are flying. For short term traders, momentum is everything.
Don't you think good, a consistent (or sudden) above average volume in a stock is a sign of something immenent---a sign of some dramatic change in the price movement---upwards or downwards movement in the stock price. I want to buy into stocks before they make a upward correction in the stock price, not just find a good trading range.
I agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.
Guys, look at the stock CLASSIC (Gems sector). Its amazing how it is flying. It doesn't it even give chance to enter. Still, I wouldn't enter until it has a correction.
Currently, we don't have tools that can display sector charts. Only website that offers sector data is http://www.ndtvprofit.com/bb/default.asp?Pass=Indices. I had to go through so much strain in getting sector data. I wrote java code to scrape sector info from websites. Every day, after I load data, I run AmiBroker code to generate sector charts. When I talk about sector performance, I am not talking about 1 day. I am looking at the sector just like a stock.
use ADX for scanning. For volatility of a stock, I use ATR. U can get ATR of a chart from icharts.in.
The idea is, never make a winning position a losing position.
[/color]
I took position in this stock because of the following reasons:
a) Its quarterly and yearly results was expected on the 8th Aug. Around 1-2nd Aug. The trading volume had started increasing in the anticipation.
B) Low valuation: It was in the range of 220 to 280 for many months.; and the fundamentals have seemed to have improved. Like all good stocks it had corrected.
c) IT companies had reported good results: trong dollar.
I'll keep in mind your advice about re-entry and adding more
agree buying into stocks that get above average volume.
Everyone wants to buy into a stock before they make a upward correction. There is underlying risk of picking the bottom. Today the market has recovered and may make you feel that way. What if the market went down. Rather, have a consistent approach that defines when you will buy, that gives you an edge. That way, you might have failures. But, overall, the success should override failures.
Thanks for ur encouragement. whatever i have learned is from u, the books u have suggested are real gems
the site i visit is twonahalf.com, i suggest u to visit that site. it provides basic information of which stocks are in uptrend, candelstick bullish/bearish patterns
52 week high/low, speed of trend,etc. register urself first, they send u an activation number, activate ur account, and get started.
although i do not entirely follow their recommendations, i do go to icharts.in
and do my own discretional analysis. i think some member in traderji has started that site, i got the site info from here itself, so for more information,
visit http://www.traderji.com/equities/762...ight=twonahalf
what is ur opinion on "historical volatility" that dave suggests, do u use it?
u said u use ATR, from what i have learned, u use 3*ATR as ur initial risk R.
This i think u use it for stop loss, however i dont' know how do u use it to
measure volatility of stocks? what range tells u it is highly volatile?
2. does the 3/10 oscillator that dave suggests, is MACD value of FAST 3 EMA,
SLOW 10 EMA, smoothed by 1 EMA, i.e 3,10,1. If this calculation is right,
can u suggest any indicator similar to "HISTORICAL VOLATILITY" and its
values?
Market has come out of the trading range. It is up 3 days. Will pull back pretty soon. At that time, consider these stocks for entry.
Day Trading Info
-- http://www.traderji.com/44907-post62.html
Its been a while I read it. Historical volatility can be calculated using EMAs of ATR. You know stock's volatility by comparison to another stock. A stock that has ATR = 100 is more volatile than a stock that has ATR=10. Volalitility is about how much swing (High - Low) in a day. You need this to place a stop and also to calculate position sizing.
Lets say you are buying a stock that that has ATR=20 and close = 100. If you are putting a stop between 80 and 100, you are basically asking for the stop to be hit. U are not giving the stock a chance to test your methodology. 3 * ATR is used to give the stock atleast 3 days to prove U are wrong. You could reduce it to be between 2*ATR and 3*ATR based on previous support.
U need stock's volatility for position sizing. If you buy 100 shares of a stock that has ATR 100, you should expect a swing of Rs 10,000 per day. U need to ask yourself the question, are U comfortable with that kind of change to your porfolio. If not, how much swing can you take in principal per stock per day.
Quote:
2. does the 3/10 oscillator that dave suggests, is MACD value of FAST 3 EMA,
SLOW 10 EMA, smoothed by 1 EMA, i.e 3,10,1. If this calculation is right,
can u suggest any indicator similar to "HISTORICAL VOLATILITY" and its
values
A stock can be bought or short. Only 2 options. So, flip a coin before you buy or short. Heads or Tails. That gives you 50% probability to win or lose. Most setup and entry algorithms have less than 50% chance of making you money. What makes your trading success or failure is the Position Sizing (money management) and Stop Exit (risk) and Profit Exits (trailing stop mechanism). Do not evaluate your strategy over 1 or 2 trades. Evaluate over 10, 20 or 30 trades. The key is making trades using the same strategy over and over again. Thats really hard. Thats called high probability trading. Read book, 'Trading in the Zone' by Mark Douglas. The book is little bit boring, but does help in this perspective. The author challenges readers to make 10 trades consistently based on a predeveloped setup and entry criteria
thing is, it does not matter. Think about. If you got 90% success trades over a span of 1 year with 10% failure. The success made Rs 10,000 profit. 10% Failure made 8,000 loss. How will you evaluate this system. How about this. A system produced 70% failure and 30% success. Profits are 10,000 and loss is 5,000. Did the percentage success matter.
So, success or failure are just outcomes of a trade where you don't have control over. Market is dynamic environment which is constantly changing. By selecting a setup and entry criteria, you try to give more than 50% probability of success. If it fails, so fine. Your position sizing algorithm already gives you how much you are constantly risking. If its a success, you want to make profit more than the risk. U only have control over what loss you can take when the trade fails and what profits you can make when trade succedes.
No. Most of what I write are my understanding of the market and my readings. I constantly read books along with my trading. They keep me in the loop. If not, as you trade, there is a tendency to move away into the greed/gambling stuff.
Quote:
Also, Should I buy only if there is a buy signal on the previous day or is it fine if I buy if buy signal is generated say 3-4 days back also?
As long as U are not trying to catch up. Feeling of missing out is always there. U should try to get out of the feeling as there will always be opportunities. If you do take it, don't forget to change the entry and exit points in the Position Sizing Calculator to use the new position size.
Market is kind of overbought. But, different sectors are having different timing. Pharma has been down for some time. Look at Ranbaxy. I know from some of you that it is fundamentally a good stock (if it helps setup, why not). It has nice crossover with pull back. What I am not liking about the pharma and cement stocks is low volatility. But, sometimes that is good too. Low volatility compared to its historical volatility leads to higher prices. During the low volatility, consolidation may take place
have 5 updays. I wouldn't buy it now until crossover and pullback. If U already have it, hold on. Market's new uptrend is confirmed. What that means is, most of the stocks will come up.
In the recent days, MIDCAP and SMALLCAP have come out of the trading range. As U see (if you have followed me), we started with couple of sectors in July in uptrend with now, most of them in the uptrend. I am seeing lot of stocks in setup. If market pulls back couple of days, there will be tons of them for entry.
can give you tons of stocks showing this pattern. No doubt because most of the sectors are up. This is the good time to put your money as it is the start of new uptrend and your entry will be closer to 50 day EMA