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

[VVKB]

Great learning experience. Very lucid explanation. God bless our Saint.

 

[nafees87]

@djsinha

first of all i would like to thank you regarding the reply u gave..
i am replying very late because i was aware of the delay cvaused by the posts to get displayed.. since i tough my post is getting blocked i dint look back to the post to see for reply..
as per ur guidance i have downloaded the file.. and i am in the process of learning it..
also i have approached sharekahn.com and one their executives came home and explained many plans in detail.. he said about 2000 plan and 6000 plan.. am still confused of what plan to choose.. since i am a fresher..

also as per some advice given by friends am also doing some virtual trading in moneybhai to get some trading experience.. after few weeks i shall try my hand in real world market...

these are the efforts i have taken...

please tell me if i am on the right path or am i doing something wrong??

 

[maddy_invest]

Hi Saint,

Thanks for the great effort you are putting in for educating beginners like me.Gained a lot from your posts.

Is this analysis technique applicable to all stock regardless of group(A,B,T,S)?

 

[Bitz]

Hello Saint,
Does the attached formation qualify to be a rounding bottom?

Thanks,
Bitz.

 

[maddy_invest]

Hi Saint,

I was looking at the Arvind mill daily chart. After the great crash in January it is now forming a cup like shape with a pullback to form a handle.Am I correct in my analysis that it has formed a cup and handle pattern? Will it be a reversal pattern now as it is after a downtrend? The pattern also has completed more than 7 weeks. Volume has also cotracted in handle.

Thanks again for your great effort.

Maddy

 

[ruchir131986]

Hello Saint,
Does the attached formation qualify to be a rounding bottom?

Thanks,
Bitz.

hi i have seen your graph.... i m new to ta.... can u pls tell me what does this red & black line indiacate??????
thanx in advance......

 

[ruchir131986]

Hi Saint,

I was looking at the Arvind mill daily chart. After the great crash in January it is now forming a cup like shape with a pullback to form a handle.Am I correct in my analysis that it has formed a cup and handle pattern? Will it be a reversal pattern now as it is after a downtrend? The pattern also has completed more than 7 weeks. Volume has also cotracted in handle.

Thanks again for your great effort.

Maddy

hi i m new to TA m feeling it as C&H pattern... but still little beat confused... can u give me furthe details about it??? & also wanna which software do u use??? from where did you learn all this patterns?????

 

[maddy_invest]

hi i m new to TA m feeling it as C&H pattern... but still little beat confused... can u give me furthe details about it??? & also wanna which software do u use??? from where did you learn all this patterns?????

Hi ruchir131986,

Me too is new to TA. I've learnt the patterns from this thread itself.
Saint has described it in a very lucid manner.You can look into the following link.
http://www.traderji.com/technical-analysis/6072-teach-man-fish-15.html

I was basically looking the charts in http://www.icharts.in when I found it.I don't use any formal trading software atleast till now.

Maddy

 

[Saint]

Yikes....7 pages to answer to!.

Apologies for the delay......shall try to catch up


All the best!
Saint

 

[Saint]

Hi Saint,

First of all a big thanks for your pivot trading technique. I have been practicing it since last two three months with my online trading account with a quantity of just 1 share and was reversing my position with 2 shares when I am stopped out - so i was always in trade whether up or down with open position of 1 share. Since I was trying it out with a minuscle quantity it did not matter whether i was wrong or right as i wanted to learn why i am right and why i am wrong.

This system works wonderfully in trending market but gives whiplashes when I am trading shorter time frame . I tried to time my trade with few other indicators and it is working at its best.

My Query :

Set up is -

A stock is in weekly uptrend and I have entered a long trade when it has broken a pivot high on daily time frame.
I have set my stop loss on break of immediate pivot low on daily time frame.

Now -

Once I am in trade at break of pivot high - stock just inches up and retraces back the whole up move back to pivot low and just inches down and my trade stops out - at a deep loss. Some scrips have a range of 30-40 rs between pivot highs and lows and when they are forming expanding traingles - you get stopped out at both the ends. How can you avoid such a trade ?

You can't........one enters as planned,stops put in as planned,and if stops are hit,exits as planned.Position sizing is vital though.Position sized properly,one shouldn't feel any pain if stopped.Some stocks have a stop a Rs 100 away,that's not the problem.Question is:If I bought 100 shares of a stock,and it has a stop a 100Rupees away,then the risk I am putting myself through is Rs10000/=...........If I find losing 10k tough and painful,then position sizing is not done properly.Probably I should have bought lesser amount of shares.......Calculation of position sizing is somewhere in this thread,it's very basic,nothing fancy,just go through it.....

I tried to follow my trade daily - and since was getting stopped out , i tried putting my stops on smaller time frame so that I can save on my losses - but that didnt help. It did reduce my losses , but logically i was not correct and was not knowing why should i change to shorter time frame.

If you are trading the daily charts,that means,you are looking at pivots on the daily.......stops are as per the daily.If trading the hourly,then stops are as per the hourly.You could fine tune an entry usng the 60min chart.But stops are as per the daily charts.

Also while stock is perfectly exibiting a trend , sometimes the false opening prices use to distort my charts and even indicators and they were giving me false moves. I tried to rectify this by ignoring this price or the movement for first half hour. But than it was not helping always. Does this false opening prices signify something? Is it some kind of a signal that says - the stock should go in that direction and near that price. ( my assumption )

Sharestar,give me a chart,an example......we could go through better when I can see what you see.

Also sometimes , stock remain in sideways for long time and you get stopped out at the both the points leaving nothing on table.

My understanding we can avoid this loss only by knowing that the scrip is a avoid / it is making expanding traingles ( but that I will know only after few loosing trades ) / scrip is in sideways ( that will take atleast two loosing trades ) But then how u can know this ? How to know when not to trade ?

Your help will be appreciated as always.

Thanks for everything.

- Regards

One sets up entry points,and stops,and all that......one also sets up rules that prevent us from trading a few moves,like "If 60 is in a dntrend,and 5 gives me a buy signal,I am not taking it,except if the fall in the 60 is too strong to the down,and a bottoming tail on the 60 indicates a change in trend."

The rules keep me out of many bad trades,and sometimes some good ones.....but that's trading.And a clear cut signal for an entry,.......I take them all.Some fail,some don't.

Importantly,change the mindset from....."This has gotta win,because of the fundamentals,technicals,economy,neighbour who is an investment banker said so...it must win" to "Every trade has a possibility to move either way,one enters when the probability of a move in that direction looks greater.One also realises that it could very well change and go the other direction.Therefore one has safety nets to get out and probably reverse."

Take the "I do..." out of the trade,and go with the Flow.

All the very best!
Saint