Nifty: Daily Price Analysis

[laxsri]

I have been having loosing trades only (I am a beginner and may be I deserve it), as I have been trading with out much of planning. I am learning a lot of new elements from TJ.

Please do not get me wrong. I always used to feel that one could be precise and could never be get on the other side of the coin. But sincerely I feel that one should be ready for both profits and calculated losses......

Thanks again and salutations to the honesty.....expressed...

 

[vijayakishorebabu]

Thank you AW10,

I have seen almost your messages in so many threads. Really i was admiring your trading knowledge. I brushed up my knowledge from your messages. we always needs yours guidance.

 

[SwingKing]

I have been having loosing trades only (I am a beginner and may be I deserve it), as I have been trading with out much of planning. I am learning a lot of new elements from TJ.

Please do not get me wrong. I always used to feel that one could be precise and could never be get on the other side of the coin. But sincerely I feel that one should be ready for both profits and calculated losses......

Thanks again and salutations to the honesty.....expressed...

Laxsri,

Just a few elements I wanted to share.

1) Identify your trading personality. (Day trader, Swing Trader, Positional Trader or Investor)
2) Knowledge - Once you identify your trading personality, then focus towards educating in that domain. There are tonnes of resources available. Don't be intimidated by the volume. Just focus on the best.
3) System - After gaining some wisdom you must form a set of rules which fit your trading personality. Again don't get intimidated with so many systems around. Keep it simple. Believe me, the less rules you have, the more robust the system is. Even you can make a simple system as MA work for you with the right kind of filters.
4) Psychology - There is a reason why I have highlighted this point. This is the most important aspect of trading. No psychology no profit. As simple as that.
5) Risk Management - Keep your losses small. I invest/trade with systems which have winning % of 40-45%. Yet by proper risk management, my equity curve is in a very good shape despite of years like 2008.

I hope this helps. This is just a broad framework. You need to work on the rest. The journey won't be easy, but it will surely be worth all the effort.

Tc.

 

[pegasus]

this new rule of 25% of capital from markets.can anybody explain how it will affect the market valuations of the shares?

 

[nimish_rulz]

this new rule of 25% of capital from markets.can anybody explain how it will affect the market valuations of the shares?

This means companies which are less than 25% public will have to dump more shares. Negative in the short run and will allow for less manipulation by the smart money as they will now need to accumulate lot more shares before they can make or break markets. When the supply of stocks go up the price usually goes down unless there is a huge demand for Indian stocks.

 

[laxsri]

Laxsri,

Just a few elements I wanted to share.

1) Identify your trading personality. (Day trader, Swing Trader, Positional Trader or Investor)
2) Knowledge - Once you identify your trading personality, then focus towards educating in that domain. There are tonnes of resources available. Don't be intimidated by the volume. Just focus on the best.
3) System - After gaining some wisdom you must form a set of rules which fit your trading personality. Again don't get intimidated with so many systems around. Keep it simple. Believe me, the less rules you have, the more robust the system is. Even you can make a simple system as MA work for you with the right kind of filters.
4) Psychology - There is a reason why I have highlighted this point. This is the most important aspect of trading. No psychology no profit. As simple as that.
5) Risk Management - Keep your losses small. I invest/trade with systems which have winning % of 40-45%. Yet by proper risk management, my equity curve is in a very good shape despite of years like 2008.

I hope this helps. This is just a broad framework. You need to work on the rest. The journey won't be easy, but it will surely be worth all the effort.

Tc.

Thanks Raunak, these words have really brought tears in my eyes. I have lost a lot of money just to learn the basics and frankly speaking I am still trying to control myself in entering into trades based on my assumption. I know it is foolish on my part but .........
I really hope, I change myself and follow a disciplined process.

Thanks again Raunak.

 

[simple_trader]

Thanks Raunak, these words have really brought tears in my eyes. I have lost a lot of money just to learn the basics and frankly speaking I am still trying to control myself in entering into trades based on my assumption. I know it is foolish on my part but .........
I really hope, I change myself and follow a disciplined process.

Thanks again Raunak.

My 2 cents -

- If we are a new trader, then we should try buy at support and sell at resistance and vice versa. Avoid break out/down trades. Mostly you will find discussions about breakout trades. Breakout trades are not bad, but these have high number of failures. Also whatever trades click in breakout, new guys do not keep them for long time to gain handsome. Over all it works negatively. So I feel, we can avoid them.

- Trade with trending chart. You may have to avoid NIFTY and move to stocks due to this sometime. You may ask if market is in such situation like today, where can i find trending ones. I guess you will find many down trending ones. If you are interested in up trending ones, there are stocks, which are still trending up in this market. I will give one example here - Dabur.

 

[AW10]

My 2 cents -

- If we are a new trader, then we should try buy at support and sell at resistance and vice versa. Avoid break out/down trades. Mostly you will find discussions about breakout trades. Breakout trades are not bad, but these have high number of failures. Also whatever trades click in breakout, new guys do not keep them for long time to gain handsome. Over all it works negatively. So I feel, we can avoid them.

- Trade with trending chart. You may have to avoid NIFTY and move to stocks due to this sometime. You may ask if market is in such situation like today, where can i find trending ones. I guess you will find many down trending ones. If you are interested in up trending ones, there are stocks, which are still trending up in this market. I will give one example here - Dabur.

My 1 cent, Simple_trader, I have slightly different view on both points.. keep in mind NOVICE trader

1) First thing they shd learn is to start taking SMALL losses / Habit of putting stoploss and accepting losses... In real trading, all support and resistence gets broken.. Hence I think, it is more important to cut the loss.

2) I think, Index trading is lot less volatile then stocks. A sector news, company new, or few smart market makers can easily move a stock.. (even a big stock like Reliance is more volatile then index). .. but moving index is not that easy.. So for fresher, it is better to learn swimming first in swimming pool and then goto more volatile river.

Happy Trading

 

[AW10]

Raunak Sir, thanks for another gem from you.

Can you create one complete system covering all points of ur framework for any one of the trader personality type and post here. This would help traders like us in designing a system.

thnx

Adiselur, seems you want Raunak to spend lot more of his time and spoonfeed other traders ?
In my experience, developing a system is not 30mins job, it takes days and weeks to get something that really works and fits our psychology.
That is the hardwork of trading.. which gives return in market.

So, I will prefer to let the trader who want to enjoy the return, put the hardwork and spare Raunak to do things that he enjoys..
This is one of the reason, that I am ready to guide people and help.. but
not willing to put my hardwork and spoonfeed them. Sensed similar stuff here hence sharing my views,
Quite possible, Raunak might disagree with me and still share the system.

By the way, he already runs another thread talking about many trading systems. So one can easily pick a system from there and take it to next level.

Happy Trading

 

[simple_trader]

My 1 cent, Simple_trader, I have slightly different view on both points.. keep in mind NOVICE trader

1) First thing they shd learn is to start taking SMALL losses / Habit of putting stoploss and accepting losses... In real trading, all support and resistence gets broken.. Hence I think, it is more important to cut the loss.

Thanks for your comments. It is a known thing that all supports/resistances would get violated, so one needs to consider that in trading plan. that's about trading plan.

I was emphasizing on breakout trades vs. range trades. I feel support/resistance suites best for new guys.

2) I think, Index trading is lot less volatile then stocks. A sector news, company new, or few smart market makers can easily move a stock.. (even a big stock like Reliance is more volatile then index). .. but moving index is not that easy.. So for fresher, it is better to learn swimming first in swimming pool and then goto more volatile river.

Happy Trading

Here again, i agree with you. we should try to trade index. But I feel it not always easy to trade NF, specially when range bound. then I think better to look at opportunities out side the index, when NF signals are not clear. Please consider the fact that new traders have more itching to trade daily that exp traders.

My be my comments have bias of day trading as I do it.