Namaste - My Learning of Trading in Nifty

[crown]

Crown,

You need to have an edge to succeed. Please remember this. It is also going to take you anywhere between 3-5 years to become a Master trader. I may sound rude, but I want to correct you at this stage before you start to blow all of your money. Here is something that can be of some value to you.

1. Starting small

Start with one lot (mini nifty) and whatever you loose, think of it as your tuition fee to the market. Even Dhirubhai started small, hence there is no need to feel bad in that.

2. Capitalize on your start

By starting small, you will loose small but gain a lot in terms of your learning and your knowledge curve. In terms of risk and reward, this is the best stage. You loose little, but you gain the most.

3. Tracking

Keep notes on your progress. Record every trade and make sure to re visit that at the end of each week. Success needs to be forgotten, but mistakes need to be remembered.

4. Your system and your understanding

You need to have your rules to succeed. No matter whose system you follow, you will always end up on the loosing side. Be patient, try and understand a concept and they try and apply it. As time progresses, you will automatically begin to master it.

5. Psychology

Psychology is the most important aspect in trading. Believe me, if you follow steps 1-4, you will automatically acquire a successful traders psychology. This is something no book can teach you. But, some common sense will certainly help.

Wishing you all the best.

Tc

Thanks a million Raunak Sir
I will be following this from now on
Thanks again

 

[Shravan Reddy]

Re: Daily chart of Nifty

previous posts were about weekly analysis of Nifty.

Now, I am trying to understand the daily chart of Nifty. I have put a lot of trend lines in Nifty daily chart and tried to understand what is happening on daily basis in Nifty with the aid of corresponding volumes in Nifty.

As can be seen in the chart, since last week of May 2010 (26-05-2010), the volumes remained steady and from 21 June 2010 onwards, the volumes started decreasing. Even the long positive bar of 21 June 2010 is not carrying sufficient volumes. Thereafter, volumes started reducing, giving an illusion that market might fall from these levels. But as has been discussed in weekly analysis, There are very less chances of Nifty falling below 5400 levels; and it everything goes accordingly i.e. nifty rising and volumes reducing on weekly basis we are very likely to see the levels of around 5460 in coming two weeks i.e by 23rd July 2010.

Now coming back to the daily analysis of Nifty chart, the last candle has around double volumes (21,66,60,000) than its previous candle of dated 8th July 2010 (12,72,97,000). This again creates doubt whether Nifty would be able to rise immediately from these levels or may take one or two days. The apparent reason, which I can think of now, is may be that many people are expecting Nifty to go down from these levels (and they can be correct too) and have shorted blindly against the bulls who are working hard to make the market move up. Therefore, the reason could be of short covering. 5333 have been said to be the current resistance levels and, therefore, many bears were shorting Nifty above 5300. And when on 9th July, Nifty maintained its level well above 5333, they have to cover their positions. Another reason adding to such huge increase in volumes may be bears turning bulls at these levels. Going long in Nifty at these levels is not having reasonable risk/reward ratio because the trend line support is at around 5230 while the parallel line support levels are between 5230-5200. Currently Nifty is at 5352 i.e. difference of around 120-150 points. While, the next and immediate level of resistance that Nifty is expected to face is at 5400 or if we consider the weekly expected level that is also at around 5460. Therefore, the reward is around 100-110 points; while the risk is more than reward. Therefore, the appropriate approach at this time can be of just watching Nifty levels along with volumes and only after confirmation of trend, one can enter suitably. That is, if nifty breaches the resistance levels with increased and suitable volumes, one can think of entering long above 5400; Or in contrary situation one can enter short above 5400 accordingly.

The chart is given below for reference.

Uploaded with ImageShack.us

crown bhai..
U gave a nice explanation here and didnt u follow this? :O
if u would have followed this atleast.. u could have avoided the losses..

 

[AW10]

Crown, Wishing you all the best in your journey to master daytrading.
What you are going thru is perfectly normal path of any trader's progression. Stages of overconfidence without knowing much about mkt, then after few failures going back to learn TA, coming back to mkt with new knowledge but still confused.. These are normal and quite frustrating too..
Do follow the advise given by Rajputz/ Raunak and you will gradually come on track.

I appreciate your commitment and the effort that u are putting in learning to daytrade.
All the best and just hang-on there with same commitment and you will see the difference.
JUST MAKE SURE THAT U DON'T LOOSE YR ACCOUNT. If you loose 10%, you need 11% to come back to breakeven, if you loose 25%, u need 33% to get even, and if u loose 50%, you need 100% to come back to breakeven. Worst case, if u loose 90%, then u need 900% to come back..
So,if a trader's curve is downtrending with 25% loss, you know with your current effort v/s result that what will it take to turn it up and start making 33%. That's why u got to respect money mgmt and risk mgmt.
Do remember - in superset of Trading , TA is a just subset, just a small part of it. There is more to trading then TA. it is time that u start addressing those areas too.

All the best and happy trading.

 

[crown]

Re: Daily chart of Nifty

crown bhai..
U gave a nice explanation here and didnt u follow this? :O
if u would have followed this atleast.. u could have avoided the losses..

namaste Shravan bhai
Yes, I followed but could not do it properly and ended in a loss. Reasons explained in my previous post.

And this is the real problem with me, I analyse things appropriately to the best level of my knowledge; but I am not good in implementation.

And I am working on it.

Thanks bhai

 

[crown]

Crown, Wishing you all the best in your journey to master daytrading.
What you are going thru is perfectly normal path of any trader's progression. Stages of overconfidence without knowing much about mkt, then after few failures going back to learn TA, coming back to mkt with new knowledge but still confused.. These are normal and quite frustrating too..
Do follow the advise given by Rajputz/ Raunak and you will gradually come on track.

I appreciate your commitment and the effort that u are putting in learning to daytrade.
All the best and just hang-on there with same commitment and you will see the difference.
JUST MAKE SURE THAT U DON'T LOOSE YR ACCOUNT. If you loose 10%, you need 11% to come back to breakeven, if you loose 25%, u need 33% to get even, and if u loose 50%, you need 100% to come back to breakeven. Worst case, if u loose 90%, then u need 900% to come back..
So,if a trader's curve is downtrending with 25% loss, you know with your current effort v/s result that what will it take to turn it up and start making 33%. That's why u got to respect money mgmt and risk mgmt.
Do remember - in superset of Trading , TA is a just subset, just a small part of it. There is more to trading then TA. it is time that u start addressing those areas too.

All the best and happy trading.

Thanks a million AW bhai for your kind guidance and advise.
Bhai, I will definitely be following ur great advise

Regarding bolded matter

AW bhai, please please tell me what are other things to be learned for trading. I will be highly obliged, bhai.
Please do guide me.
Thanks bhai

 

[columbus]

EOD=14/7/10.Nifty chart of last 7 months.

Blue,Maroon lines .......AVG(E,10)
White,Maroon lines .....AVG(S,20)

2 Maroon lines mean .....FALL
White & Blue lines mean.....RISE.

 

[crown]

My today's trade in Mini Nifty (As has been guided by Great Raunak Sir, it helped a lot indeed; because the pressure of loosing money was much less against trading full Nifty)
Raunak Sir, aapka bahut bahut shukriya mujhe samjhane ke liye. Bhagwaan aapko taraqqi de.

Now, coming back to my trades in Nifty. First of all. I am really very very grateful to all big brothers over here, who are giving me so much support and advise and that too free of cost. I don't think, I could have found such useful gathering of highly educated and deeply kind persons anywhere else. And, it is because of all this that I could be able to create my own indicator for day trading. The best part is that it has clear cut signals and, maximum signals are hitting great. The limitation is that I have only tried and tested it with Nifty and a few other stocks. Though, it work well with Nifty, its suitability with other scripts is not much clear yet and it requires to be fixed accordingly.

Below is the image of my Nifty trade today.

Though, I just managed to come out equal. But, it surely increased my confidence in my system.

Uploaded with ImageShack.us

 

[crown]

My trade in JP Associate.
The mistakes which I committed during this trade are:

I chose the wrong script for going short, because on daily charts JP Associate was looking strong. Actually, I opted this chart for trading and expecting a valid upmove signal, which did not came. In the meantime, I had downside signal and I went along. Though, I could manage to earn .25%; but had the script been chosen accordingly, I would have gained much more. I this chart too, there are two blue triangles (upmove signal) which are not be entered because the price did not break the high of signal candle.

Uploaded with ImageShack.us

 

[crown]

Now, this is very interesting. I have chosen the script well in advance to go short. But I was a little skeptic because the script had already gone much low in Daily chart. Anyway, I thought, I may have some signal for long entry in this script i.e. ACC.

It also gave me good signal, but I ended up messing all the hardwork done by me in the past couple of weeks to develop the system. Like yesterday, I am again cursing myself of not being able to remain confident, calm and free of all kind of emotions during realtime trading. This is actually the real problem with me. And I am really not aware, how could I get rid of this problem. But as has been kindly guided by AW bhai, Raunak Sir, Rajput bhai, Rajeabc bhai, Simple Trader bhai and other big brothers; may be time will be teaching me all these required aspects of successful trading.

Here is the chart

Uploaded with ImageShack.us

 

[crown]

Namaste
see this daily chart of ACC

Kya ye Head&Shoulder ban raha hai?
During the formation of last shoulder (right shoulder) upmove volumes were significantly low; while during the downside move of last shoulder, volumes are incredibly high.

Would be trying to trade this stock in tomorrow's session as per the signals and rules.

The downside will be worthwatching of this stock, in case it maintains its direction towards downside

here is the chart for all big brothers; and please do guide me in this regard.

Uploaded with ImageShack.us