Queries From "Teach a Man to..." thread!!

[freespaceobject]

Respected Saint sir,
I an silent follower of your pivot system, I gone through Teach a man fish Thread, And read all the posts.

I am in USA, and investing in India market. I am using weekly as perspective and Daily for trading.

My query is..........

If we set our stop loss or Trailing stop loss, we should exit once it is hit, But are we suppose to consider close price ? what if intraday it hits
stop loss, Do we have to exit next day?

Thanks in Advance,
Pathik

 

[Saint]

Respected Saint sir,
I an silent follower of your pivot system, I gone through Teach a man fish Thread, And read all the posts.

I am in USA, and investing in India market. I am using weekly as perspective and Daily for trading.

My query is..........

If we set our stop loss or Trailing stop loss, we should exit once it is hit, But are we suppose to consider close price ? what if intraday it hits
stop loss, Do we have to exit next day?

Thanks in Advance,
Pathik

Hi Pathik,

Had answered this question many times over,my friend......do go through the thread.

Basically,we buy at point x and stops at point y..........If y is hit,we are out.Intraday or close is not the question.........if it is hit,you are out of the trade.Most times,this protects you from danger.......but the few times you are faked out by the market,look to get back in.

So,the answer to your question would be:Out if stops hit,even if intraday.And one more thing,if stops are hit intraday,why would you exit the following day?You are out that instant,my friend.

Saint

 

[lvgandhi]

Dear saint,
I have afew questions for you.
Earlier you have written as exceptions for day trade. One among them is gap trading.
EXCEPTION:We get a super move on the 60min charts and therefore a fantastic move on the 10,and then we get a monster gap up........I would be waiting for that first bar to form and if it moves down,would have no hesitation in shorting that gap up(although we are still in a 60min uptrend).
I think in Similar way, if there is a super move in down trend and hence a fantastic move in 10mn, there is big gap down opening, should we wait for first bar and if the price moves up, should we go long?
secondly if the price goes down after first bar in the later case of downtrend, what should we do in day trade?

 

[kapil123]

Dear saint,
I have afew questions for you.
Earlier you have written as exceptions for day trade. One among them is gap trading.
EXCEPTION:We get a super move on the 60min charts and therefore a fantastic move on the 10,and then we get a monster gap up........I would be waiting for that first bar to form and if it moves down,would have no hesitation in shorting that gap up(although we are still in a 60min uptrend).
I think in Similar way, if there is a super move in down trend and hence a fantastic move in 10mn, there is big gap down opening, should we wait for first bar and if the price moves up, should we go long?
secondly if the price goes down after first bar in the later case of downtrend, what should we do in day trade?

Let me try to answer this.
You are right if there is a super move in down trend and hence a fantastic move in 10 min, then a big gap down opening. We should go long if the after the first bar the price moves up.

If the price goes down after in the above case, I would rather wait for the pivot to crack on the downside to take a short position.

 

[ravalsb]

Hello Seniors,

I need some more help in understanding pivots. I have marked PH and PL on Nifty for past 6 months. It would be highly appreciated if some one can point out my mistakes.

Regards

 

[Saint]

Hello Seniors,

I need some more help in understanding pivots. I have marked PH and PL on Nifty for past 6 months. It would be highly appreciated if some one can point out my mistakes.

Regards

Great going,Ravalsb.......

Saint

 

[farhad101]

I like the MACD with the RSI, so when RSI goes under 30 and rises above 30 with a MACD cross, although i havent tested this yet

 

[tallmaster]

Hi Saint,

I am new to technical analysis...started 1 weak ago with your thread " Teach a man to fish...". 3 years after you started that thread somebody is benefiting from that and I am sure 3 years down the line there will be people who will start their journey in technical analysis from that thread. I dont know whether I will succeed in my endeavor, but I am really grateful to you for helping me in taking the first step in this direction.

I have reached page no 24 ( thread no 231) and I think I have fairly understood your teachings. I have also benefited from the discussion that have happened in that thread and I hope people like rahul, alleppian and many others have grown up and become better and experienced traders.

I have some queries related to your teachings in that thread and as it was closed I thought I will post them here. I tried to find out the thread - "Questions from the Students of ..." in the TA Section " , as mentioned by you in you last thread there. As I could not find that and the name of this thread closely resembles what you have said in your last thread, I am posting my queries here. If i am in the wrong thread please let me know and show me the appropriate thread. Next time I will post my queries there.

Now my questions :

Q1. Suppose I dont know anything regarding chat patterns and I am following trends only. Suppose a stock was in a down trend and it has just broken the down trend and made a pivot high.Now there can be two scenarios. This pivot high may be higher or lower than the previous pivot high( the last pivot high during the downtrend).

1st case :

Now suppose this new pivot high is higher than the previous pivot high ( ie. the last pivot high during the down trend). Then it goes down and make a higher pivot low. Is the uptrend move confirmed now ? Should we buy after the higher pivot low is made ?

2nd case :

Now suppose this new pivot high is lower than the previous pivot high. So we think that this is still a down trend and this is just a rally in the down trend. But then it goes down to make a higher pivot low. Now the down trend rally is in question. The uptrend will be confirmed only after it makes a higher pivot high. Now what do we do ? When do we buy ?

In page 24( thread no 231) you have mentioed that :::::: " do we wait for the higher pivot highs to be taken out before entering.....Definitely not.Get to get ready mode once you get a higher pivot low.If ITD forms a sideways base and a higher pivot low from here,you could buy here. "

From this I understand that even if it doesnt go to make a new pivot high, but makes a sideway move and forms a new higher pivot low, we will buy ? Am I correct ?

Q2. I want to buy a book on TA.If I decide to buy only 1 book which one will you advise ; for a fresher ??


The post became a bit longer. Anyway , I hope you will reply Saint.

 

[tallmaster]

Hi Traderji,

I am a beginner in TA and I am now learning the basics. After reading some of your previous posts I have few questions that I want to ask you. I hope you will reply.

My questions :

1. I know both you and Saint are discretionary traders and not system traders( though you may rely on a few indicators). I just wanted to know do you think someone can make money in the next 20 years by following the simple methods ( i.e price,pivot,trandelines, chat patterns,a few simple indicators coupled with risk and money management strategy) as taught by Saint. I strongly believe that but I just asked this question because now a days so many people in Traderji.com are discussing more about complex systems and indicators and it is confusing my mind whether I can compete in the market with these simple tools.



2. In one of your post you have mentioned that ::

How do professionals make money?
As a professional I believe that the trend is your edge. If you follow trends with proper risk management methods and good market selection, you will make money in the long run. Good market selection refers to trading in good trending markets generally rather than selecting a particular situation likely to result in an immediate trend.

when you say " trading in good trending markets generally " .... does that mean some times we dont trade for months.... even for a year..... if the market is very volatile and not giving a decent trend ( situation like the current finacial crisis when there are a lot of volatility and may not result in good trending market ?)

Warm Regards.

 

[san77s]

Mr.Saint,
Just now i start read ur Teach a Man to Fish thread..
Its really a nice and useful thread for beginner like me. Unfortunately i am not able to view ur example charts in this threats... like ur examples in page no.6 post no.51 for the chart of amazon and Merrill lynch . At the end of all post i see a message "Last edited by Saint; 9th September 2009 at 01:40 AM. "
For any purpose you removed this examples.
Please guide me if i get this charts its a great help for me to understand what you had explained there.

Thanks & Regards,
S.Saravanan