Learning to catch High Probability Breakouts

[amitrandive]

 

[amitrandive]

Investment wisdom
http://thetradingwife.net/category/wifes-psychology/

1 – Your main purpose must be to keep the mind clear and well balanced. Hence, do not act hastily on apparently sensational information; do not trade so heavily as to become anxious; and do not permit yourself to be influenced by your position in the market.

2 – Act on your own judgment, or else act absolutely and entirely on the judgment of another, regardless of your own opinion. “Too many cooks spoil the broth.”

3 – When in doubt, keep out of the market. Delays cost less than losses.

4 – Endeavor to catch the trend of sentiment. Even if this should be temporarily against fundamental conditions, it is nevertheless unprofitable to oppose it.

5 – The greatest fault of ninety-nine out of one hundred active traders is being bullish at high prices and bearish at low prices. Therefore, refuse to follow the market beyond what you consider a reasonable climax, no matter how large the possible profits that you may appear to be losing by inaction.

I know quite personally the mistake of many traders/investors to rely on research analysts to tell them where a stock or the broad market will go, but we forget that analysts don’t trade. They are not experienced in the art of trading so how is it that we trust them to tell us how we should do so?

The market is behaving normally. The market has always behaved normally for this is how the market behaves. Don’t fight it for acceptance will allow you to finally be unbiased. Trust in the price action and “go with the flow”.

 

[amitrandive]

Markets can never be predicted
http://www.traderji.com/words-wisdom/100599-random-gyaan.html#post1121015

Markets go up, down, and sideways. They trend. They flow. They surprise. No one can forecast a trend’s beginning or end until it becomes a matter of record, just like the weather.
Michael covel

I knew i could not predict anything, and that is why we decided to follow trends, and that is why we’ve been so successful. We simply follow trends. No matter how ridiculous those trends appear to be at the beginning, and no matter how extended or how irrational they seem at the end, we follow trends.

If you take emotion out of it...you have a big advantage over most human beings.

John w henry

 

[indianbank]

Amit sir,
whats the meaning of trend? daily we can see people say the word "follow the trend"... ..
Please someone define whats the meaning of trend? and how to follow trend.... and whats the current trend?...
lets see how many so called trend followers answer this...

 

[amitrandive]

Amit sir,
whats the meaning of trend? daily we can see people say the word "follow the trend"... ..
Please someone define whats the meaning of trend? and how to follow trend.... and whats the current trend?...
lets see how many so called trend followers answer this...

A definition of a trend is "A market trend is a tendency of financial markets to move in a particular direction over time."

Some aspects of trend in detail

https://en.wikipedia.org/wiki/Market_trend

Graphically

There is no need to know the exact definition of a trend in order to make money,just like you do not need to know the engine technical specifications of a car to drive it.

 

[amitrandive]

Amit sir,
whats the meaning of trend? daily we can see people say the word "follow the trend"... ..
Please someone define whats the meaning of trend? and how to follow trend.... and whats the current trend?...
lets see how many so called trend followers answer this...

Sirji

We are not debating definitions and knowledge.
We are trying to learn the ways to read charts,price action and ultimately make money from that knowledge.

There is only one side of the market and it is not the bull side or the bear side, but the right side.

Jesse Livermore

 

[nitingosavi]

I know many times I wander away from standard rules of TA.

here is a probable short.
I am already short in it it yesterday @772.3 futures.

I think 783-800 is a established supply zone.

to many ST supports ahead. may be all will get blown. or my s/l

Yesbank futures Daily.

on almost every rally volumes decreasing. and on falls increasing. may be, as its futures charts volumes we may not rely on.

update..... all expectations met.

 

[nitingosavi]

will it rise?
till...?

I doubt... will it pass current res. ?

Nifty daily.

update... it could never hit 8008..

 

[nitingosavi]

bearish !?

tatamotors

update... but this is futures chart.... good returns.

 

[nitingosavi]

IndianBank sir,

NO objection. not criticizing.

But I feel whole auto sector is going to have a downturn ... may be a big time.

I am short in maruti tatamotors and ashok and hero. I have already booked 50% positions today... but rest I am going to carry... positional s/l's are some what huge. but affordable !

my positions might prove wrong .. but its my view only which I have traded and have posted too maruti and tatamotors.

I am not a investor.. just a short term trader.(only FnO stocks)

with all due respects to you. I have learnt and started to observe 52Wk breakouts and breakdowns due to u. a new way of thinking for me.. but its not working for me .

besides those 3 updates posted..

ONGC long view not triggered.. and crashed
tatasteel long view triggered and working well.
heromotor/ maruti/ ashokley / tvsmotors etc most reached expected levels. bearish expectations abt whole auto sector did well in recent past.

I am out of all trades now. some booked early. some entered late.. somewhere had multiple entries and exits. finally with good positive ledger.. all trades are closed.
and yes booked loss in ONGC calls

but still think some more steam left with auto sector bearishness.. lets see.