Teach A Man To Fish And.........

[gupta.deep]

Sorry about that,my friend.......will answer all the queries after market today.

All the best!
Happy Trading!
Saint

Hi Saint,

I hope everything is allright at your end. Your longer calm is just making us getting worried. Please let us know your well being.

SKG

 

[Saint]

Hi Saint,

I hope everything is allright at your end. Your longer calm is just making us getting worried. Please let us know your well being.

SKG

Back....and fine,my friend.Thanx for asking.

All the best!
Saint

 

[Saint]

Dear Saint,

It does clear few things and alot more. My heartful thanx.
As far as addressing you as sir is concerned, I ,like many other members here, prefer to prefix or suffix some respect indicating words with your nick. This is to give respect to your knowledge and appreciate your contribution in learning the intricacies of the stock market, which is quite unparllel. Mere addressing you as Saint gives rather uneasy feeling. I hope you would not mind calling you as "Dear Saint" although a Saint is more respectable than Dear.
Regards!

- Anoop Kumar

No problem,Anoop....and thank you for all those warm remarks!

Saint

 

[digest]

no reply,

Saint ji, do you think market will improve? or it is difficult to say at this level.
today's drop has actually brought negative mood in the market.

it is said that fii are taking their money back.
is there any hope for them coming back?
even mutual funds have lots of cash reserves will they invest in the market now?

thanks

 

[Saint]

This is a real good learning session to trade in a discipline manner. Thanks a lot for this.

Most welcome,Percy!

Saint

 

[Saint]

Dear Saint,

This is my first letter to you. I must thank you for helping people like us. Great job done.

Thank you for your kind words....

For last one week I have been reading and trying to understand your "teachings" about fishing a fish and happy that I have learnt a lot though many things are to be cleared as yet. Because of my location, job nature and knowledge in share trading, i don't go for daytrading or swingtrading but in position trading only. Normally I use "limit" option facility of ICICIDIRECT.com wherein I can put my BUY/SELL signal the previous night.

In the present chart, I would request you to clarify some points. When you say, " If the index/stk goes above the pivot marked as Option 1,Buy with your stop at recent pivot lows".

My queries are,

1) When you say index goes above the pivot, is it the intra day movement above the pivot (i.e.shadow ) at which we have to buy the stock or closing high (i.e. bar) above the pivot? Because the stock may go above the previous pivot high (marked by pink arrow) momentarily during the day and settle lower (Closing) than that.

Depends on the time frame that you are trading......so if you were a position trader,you did your analysis the previous night,and you are looking to an entry over the previous pivot high,you do exactly that.....You enter over the previous pivot high.Yep,likelihood of breaking over intraday and then falling back and heading south.....But all that is part of trading.Can be frustrating at times,but stick to plan,and you will see more profits than otherwise.

2) Shall we consider pivots or highs/lows for drawing trendlines?

Your call......whatever works for that particular chart.Rule book wise,you connect only the highs and lows,but don't get too rigid on that.

3) I have observed that whenever we consider longer time frame (say 2 yrs) on a weekly or daily chart, the trendlines appear to be steeper (on the screen) than that with shorter time frame , say 6 months or 3 months, for same pivot highs or lows. Would you please tell me which time frame is the best for weekly and daily charts to draw trendlines?

Don't get you on this one......do clarify.

I shall be glad if you clarify these doubts.

Thanks in advance.

Regards,

Raju

Sincerely apologetic for this extremely late reply.....

Saint

 

[Saint]

Thank you Mr.Saint,
This is a wonderful thread ,Now I should train my eyes.
Thanks again

Wildfire

Great going,Wildfire....all the best!

Saint

 

[Saint]

If I try to give answers to questions posed towards Saint, I hope Saint wouldn't mind provided that I have become so nice a fan of his after reading his post "Teach a man to...".

Guys, I must admit that it's a piece of jewell that Mr Saint has created. I've read it some 5-6 times from first to last till now and believe me every time I read it afresh, I discover some 2-3 vital points that I left out in the previous reading.

Thanks for all the kind words,DJ.......feel free to share answers or questions.If there is something which can be added on or slightly modified,I hope you don't mind.Feel free to call me Saint.....as said before,one friend helping another.So drop all formalities.

Ans to Q 1) Since u don't do intraday trading, by principle, u shudn't make trades based on 2 mins or 5 mins or 15 mins data. Never ever mix two timeframes. Whatever decision u have to take, say buy/sell (because of pivot crack on the upside/downside) take it based on EOD charts and not on intraday movements.
But once u r into trade, put ur stoploss daily using the "limit option" as u mentioned and that will be based on ur previous to previous bar's low. That means, if your previous 2 bar's low is cracked on the downside even on intraday movement and even if momentarily, never hold on to that trade. Immediately get out.

Couldn't have explained it better,DJ....great stuff,my friend!

Ans to Q2)U shud draw trandlines connecting pivots only.

That's what I do most of the time,although not bang on as far as tech analysis books are concerned.

Ans to Q3)That's obvious, because, over the long term any share price always trends up. Which timeframe u will use for drawing trendlines will depend on what is the timespan for ur trading. If u r planning to maintain ur holdings for 6-12 months, u shud draw trandlines on 2-3 yrs chart and if u r planning to trade for 1-2 week u shud draw trandlines on 1-2 months data.

Ah,that's what Nick meant......sorry about that Nick.Answer to your query,refer to DJ's reply.Great going,DJ!

Saint, pls point out if I've committed any error in answering the qs. Ur valuable addition to these will definitely add to our knowledge base.

Cheers
d j sinha

No adds,DJ....great stuff!

Saint

 

[Saint]

Dear Saint. I have just started learning abt stock market this year 2007. I feel really fortunate to visit this site . For the past 20 days i am going through your posts and always felt really happy abt the way you were helping out forum members.Infact i am bit embarrased because even though i could not understand it so cleary unlike other board members who seems to have got a hunch of it..

I could not understand how to find the trend because it seems complex coz of following..once if you clarify these points i think i can understand a bit more

1. first of all where do we get to see weekly charts ? (i am sorry if this is a insane question but i really dont know ...moneycontrol has some charts but its not easy to analyse)
2. suppose i want to invest in some XYZ scrip ..is there any time frame for this scrip after which this becomes tradable..for eg a newly listed scrip will not give us much idea due to unavailabilty of data
3.how many weeks should i consider?


extremely sorry for these kind of doubts
but this is where i am
really a novice..could nt even ask better doubts

Nothing wrong in being a novice,we were all there once,and most of us haven't forgotten how lost we were,too.And never,ever feel sorry about asking a doubt.Look to clear the cobwebs,and many here would be only too happy to help.

A request from my end,could you have a look at this entire thread,and then we could probably discuss your doubts......Once done,feel free to ask your questions.

All the best!
Saint

 

[Saint]

i must say am really impressed with what am already seeing here.just wanted to say hi and go back to read every post to meet up.thanks

Hi Blest,

Welcome to Traderji......feel free to ask your doubts,if any.

All the best!
Saint