Long or Short Opinion

[rajputz]

Namaste Rajput bhai

Big Bro, one thing which I am still unable to understand is the concept of this smart money. Why it is called smart money? Is it because they are FIIs or DIIs or there is some other aspect of looking and finding it.
One more question bhai, why everyone is appearing very sure that this smart money, if it actually exists and can be actually identified, will never suffer loss?

Thanks bhai

A Topic whose answer in itself is very contradicting. And i am myself not clear about it. The way i look into it is by volumes. And i dont consider only FIIs and DIIs as smart money. There are many others.

It is called smart money, cause they are the one creating the direction. They are the one creating and entering at tops and bottoms. They are the one creating support and resistances. We as a trader follow them. They play with the present demand and supply in the market. They use support and resistance levels to distribute and accumulate. If they want market to fall, they will distribute near resistance leves, and after that they will create a move so that herd can join. Vice versa for Buying.

It can have total different meaning for another trader. So it is basically how we interpret it.

Well it is some thing very complicated to teach. Go by a book named volume spread analysis, and you will have idea of the smart money. I have found that book good in understanding volume price relation.

http://www.mediafire.com/?wmwzqjj2y5x

 

[gb333]

Hello Sir..
I am a trader in Nifty/Stock options. I loose nearly 6Lak in 2 years, and still find it difficult to trade and making money. i tried many things including the tips provider. But no result. Will u plz define me some tricks so I can trade and make money , not much but rs 500 per day. Please help me sir.

Regards
Gautam

 

[crown]

A Topic whose answer in itself is very contradicting. And i am myself not clear about it. The way i look into it is by volumes. And i dont consider only FIIs and DIIs as smart money. There are many others.

It is called smart money, cause they are the one creating the direction. They are the one creating and entering at tops and bottoms. They are the one creating support and resistances. We as a trader follow them. They play with the present demand and supply in the market. They use support and resistance levels to distribute and accumulate. If they want market to fall, they will distribute near resistance leves, and after that they will create a move so that herd can join. Vice versa for Buying.

It can have total different meaning for another trader. So it is basically how we interpret it.

Well it is some thing very complicated to teach. Go by a book named volume spread analysis, and you will have idea of the smart money. I have found that book good in understanding volume price relation.

http://www.mediafire.com/?wmwzqjj2y5x

Thanks Rajput bhai
I already had this book as such you have earlier also given me the download link.
But the point is, if the money is really smart - shouldn't they be entering into the trade gradually and silently so that no one knows. If only the volumes are to be considered as smart money at bottoms and tops, then they can be easily identified.

 

[crown]

waise I find the market again turning strong to be entered long in some selected scripts
Todays closing was not expected at all.

 

[rajputz]

You will be astonished with the tomorrows move.

Somethings can never be hidden. Everything is there. All we need to do is, Figure it out.

 

[PGDIMES]

Thanks Rajput bhai
I already had this book as such you have earlier also given me the download link.
But the point is, if the money is really smart - shouldn't they be entering into the trade gradually and silently so that no one knows. If only the volumes are to be considered as smart money at bottoms and tops, then they can be easily identified.

Hi Crown,

I think that all the trades and their traders are identifiable. The problem with small traders are that they have limited resources to find the so-called "smart money" and understand how they manipulate the market (they are so many instances in the capital markets where the 'Smart Money' worked in herd and later banned by the regulatory authorities). Won't it be better for small time investors/traders like us to understand the 'flow' and ride the tide rather than beating the bushes?

 

[crown]

You will be astonished with the tomorrows move.

Somethings can never be hidden. Everything is there. All we need to do is, Figure it out.

Rajput bhai

Please clear my doubt on this.
Are you seeing any downside today?
I am asking this because this is the point where I get confused, even in back testing the historical data.
I am seeing that Nifty can have some good upside moves for a couple of days and at least today it is expected to have reasonable upside move.
Where I am missing the factor in case it is not going up?

 

[crown]

Hi Crown,

I think that all the trades and their traders are identifiable. The problem with small traders are that they have limited resources to find the so-called "smart money" and understand how they manipulate the market (they are so many instances in the capital markets where the 'Smart Money' worked in herd and later banned by the regulatory authorities). Won't it be better for small time investors/traders like us to understand the 'flow' and ride the tide rather than beating the bushes?

namaste PGD bhai

yes it is much much better
but the point it, how to identify them?
please help

 

[rajputz]

Keep a close eye on 5477 on spot...break of it can do wonders...

 

[crown]

Keep a close eye on 5477 on spot...break of it can do wonders...

Thanks bhai
and in case it does not break, then what one should presume?

And, what if Nifty closes below 5477 tomorrow?

I think that if Nifty gives a close below 5450 tomorrow, short entry can be made in Nifty. Am I correct?

Thanks bhai