My charts (and yours too........)

[aniket_tyagi]

Especially, your fifth wave seems to end with a bearish engulfing pattern at the peak of the rally suggesting for a corrective a-b-c pattern to follow.

Thanks for the input.

Weird is just my parlance for good things.

:lol::lol::lol:

 

[preethi21]

Hai Babukraman and friends ,,

jesselivermore had made lots of millions (100) from stock market,,,
but what attracted me is he lost all his earnings through trading it self ,, and got suicide ,,

jesselivermore himself tells the reason behind his failure is" VIOLATING MONEYMANAGEMENT RULEZ "
He lost 90% of his money on a single trade on cotton adding more more position to a losing trade
(single trade is enlough to blow all ur earnings )

Dont ever violate moneymanagement rules ,,,
because one trade is waiting for all of us which will test our patience and it will force us to make mistake in moneymanagement and blow up all our earning,,,,,

A Single mistake,,, and game finish ,,
tc

 

[babukraman]

Hai Babukraman and friends ,,

Dont ever violate moneymanagement rules ,,,

tc

Thanks Preethi!
That's the reason (Your msg of "Don't violate the MM rules...), I've quoted those two books by their names for reading by the novices. There are quite a lot of books available on "Technical side" of the TA. But these two books explicitly explain about the psycological pointers on trading. Also, they are easy to understand. Please note that there might be many more books on psychology of trading but I've come across and read these two books only. Hence, my reference is confined just to these two books.

 

[dhootankur]

Yes the 2% rule given by Saint sir is really famous and trustworthy way to manage money. I have understood in this journey is while making a trade the way entry point is important same way exit point and SL are more important. You should not change ur SL depending on trade or with the flow of mkt. One famous quote is, When a trade is executed then controlling flow is not in our hands, so better concentrate on points and work on them for SL and exit point.

Adding stocks on lower level is good when ur are pure investor, or you know that whatever money u wanna invest u have divided in some no. of parts and know that till some value I am gonna buy into that many parts if comes there, but after hitting SL even u think I will average my position then u have to revise ur techniques and learn how to control ur emotion. But if u r in profit and u think market can more upside or with ur trend then adding is not bad technique.

Never let ur profit turn into loss, simple answer trail ur SL always always always, and if ur exit point has came (target met ahhhhh what a feeling ), then instead of booking into full why not we book half or 3/4 and let ur ride go more with trailing SL, I use to use this technique, this let us to earn more with minimum risk. We should have one thing in mind, our profit should be always that much that we can bear atleast 2 - 3 losses.

The human side of every person is the greatest enemy to successful trading

(It could have got boring but I can't restrain myself from saying this, some from my experience and some from learning)

 

[csu02114]

great offshore daily chart

my observation is that this is a falling wedge pattern with positive divergence with volume (obv is up,up n away). then the chart b/o with good volumes. so here is my query - is my observation right??? what should have been the entry ,target and sl when it broke out??? how to play it if it comes back in the wedge again??? and how do you validate the pattern for sure???

p.s. i'm a newbie

 

[Romeo and Elliott]

Hai Babukraman and friends ,,

... adding more more position to a losing trade

A Single mistake,,, and game finish ,,
tc

True Preeti, ive seen an experienced trader do that, trying to average on an adverse position. unwise... very very unwise. Price is the one thruth and reality, rest is hope and that doesnt have a very good track recd in the mkts.

The 'Rules' one follows should not strictly be some one elses but more of your own, depending on your analysis, and capital.

Price action gives me peace, SL is usually 0.7% below decision day's open price (on longs) and / or yesterdays close.. an impulse (esp the 3rd) almost never goes below these prices on their post confirmation day.

Best SL usually is asking yourself what strategy are you working on, and on THAT strategy, what price-point negates your analysis.

Thanks for the wise word to all, Preeti. These are surprisingly commonly made blunders.

Before i made my first trade i thot its all about getting the right position, today, i second what is widely accepted - its 80% psychology, getting a position isnt really the biggie.

for those interested :

http://en.wikipedia.org/wiki/Jesse_Lauriston_Livermore
http://www.jesse-livermore.com/
http://www.marketthoughts.com/jesse_livermore.html

 

[Romeo and Elliott]

Hi Guys,

Below is a weird chart of HINDALCO. ..

Looks Yummy, seems to have hit 5 on almost everything, daily, weekly, sub.
Last traded day is interesting, watch volumes (daily), and the last body fall with a flat top, opening not much higher than the prev days close.

Volumes steadily rose before the last day but price really did not react proportionately.
Approx 223 should be the next technical support.

good find.

 

[babukraman]

great offshore daily chart

my observation is that this is a falling wedge pattern with positive divergence with volume (obv is up,up n away). then the chart b/o with good volumes. so here is my query - is my observation right??? what should have been the entry ,target and sl when it broke out??? how to play it if it comes back in the wedge again??? and how do you validate the pattern for sure???

p.s. i'm a newbie

Congrats on your first post here. Good luck!
Sure indeed it's a b/o and it's retesting the b/o zone giving another chance to enter.

 

[babukraman]

Nifty 20110107

On the 16th Dec, I was looking for a (b) wave of a flat corrective natured pattern and it did happen. With this in mind, on the 3rd Jan, I'd changed my stance to a bullish view instead of looking for (c). What a lesson learnt! The market indeed seems to move toward the (c) wave. Why wasn't I looking for wave (c)?..........

 

[Romeo and Elliott]

Nifty 20110107

It remains an ABC assuming its corrective and not a trend reversal, in which case it becomes 1-2-3-4-5 ... but lets see where we go with this.
On a down-trend you get up-trending ABCs with 5 waves down.

50DMA resisted pretty well on the upside but just slid thru on the downside, presently NIFTY rests on. Breach of 100 on the downside would be very bearish in my opinion.

I use the following on my MA template :
50, 100, 200, 250, 500 and 1000, they take care of long term / short term levels.

Essentially im just using 50, 100 and 200
So what is
250 - 250 is my weekly 50MA which is plotted on a daily chart as 250.
500 - 500 is my weekly 100MA plotted on a daily chart as 500MA
1000 - 1000 is my Weekly 200MA plotted on a daily chart as 1000.

This way i dont have to change periodicity to weekly to view weekly MAs, they get plotted on a daily chart.

MAs generally (long term), i believe, are based on the fair value assessment principle.

Ive seen 48MA on yr analysis, what is the significance of 48MA ? ie. why is it important ? Thanks.