Re: Time to Stick my Neck Out ,Nifty 7300
Interest observation (read on the Net by Deepak Singh)
"Life is really simple, but we insist on making it complicated."
Price, Volume and Common Sense
"How many legs does a dog have if you call the tail a leg? Four! Calling a tail a leg doesn't make it a leg."....Abraham Lincoln
We see and hear this too often in markets. There are millions of technical indicators that have been developed to call a tail a leg. I am not painting all technical indicators with the same brush but most of them are no good. It only leads to poor trading experience and results. After going through number of indicators, I reached a conclusion - it is much better to stick to Price, Volume and Common Sense (the most difficult indicator). There is saying - "Price and Volume are fact, and everything else is a distorted version of the two".
The market requires you to be much more objective most of the times even if that means a long wait. It pays to wait for clear signals than interpret confusing signals. The moment we start looking at technical indicator that's what we attempt to do - fall in trap of confusing signals and make wrong trades. If the trade is successful, it's generally more luck than design, though we want to believe the other way.
Even common sense is very difficult to trust because emotions destroy common sense.
Most of the times I have found - the common sense indicators tells - just keep quiet and do nothing. But the urge to trade and prove that I am smart - we make stupid mistakes.
Right now - Nifty is trading in a small band with no directional bias....period. We need to respect this and wait till Nifty gives a directional move. The key to trading is not to argue with it, but try to take advantage of the moves that it makes. Right now, there are plenty of reasons (event risks) to stay patient and let the market decide where it wants to go. Easier said than done.
Interest observation (read on the Net by Deepak Singh)
"Life is really simple, but we insist on making it complicated."
Price, Volume and Common Sense
"How many legs does a dog have if you call the tail a leg? Four! Calling a tail a leg doesn't make it a leg."....Abraham Lincoln
We see and hear this too often in markets. There are millions of technical indicators that have been developed to call a tail a leg. I am not painting all technical indicators with the same brush but most of them are no good. It only leads to poor trading experience and results. After going through number of indicators, I reached a conclusion - it is much better to stick to Price, Volume and Common Sense (the most difficult indicator). There is saying - "Price and Volume are fact, and everything else is a distorted version of the two".
The market requires you to be much more objective most of the times even if that means a long wait. It pays to wait for clear signals than interpret confusing signals. The moment we start looking at technical indicator that's what we attempt to do - fall in trap of confusing signals and make wrong trades. If the trade is successful, it's generally more luck than design, though we want to believe the other way.
Even common sense is very difficult to trust because emotions destroy common sense.
Most of the times I have found - the common sense indicators tells - just keep quiet and do nothing. But the urge to trade and prove that I am smart - we make stupid mistakes.
Right now - Nifty is trading in a small band with no directional bias....period. We need to respect this and wait till Nifty gives a directional move. The key to trading is not to argue with it, but try to take advantage of the moves that it makes. Right now, there are plenty of reasons (event risks) to stay patient and let the market decide where it wants to go. Easier said than done.
