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

[Anupama Singh]

God Bless You,Saint.

Thank you for this thread.Looking forward to your posts.

Anu

 

[vince]

Excellent initiative Saint. One can never stop learning and no one can say he knows everything.
It is not the knowledge that makes men stand apart from the crowd, but the willingness to share it with others.

 

[vedhaas]

Kudos to your initiative.this thread is really going to be very good and informative

 

[ramram]

although, i am veggie, i would rather eat this fish. WAITING FOR THE DELICACY!

 

[Saint]

Hello friends,

Thank you all for your many words of encouragement.Hadn't really expected that this thread would even get noticed at this stage.

Before we get started,please have a back up in anything and everything related to trading.If you trade online,at least two computers,two internet access,cable and dsl,in India,think you guys better have an Inverter as well.All this of course for the Intraday traders.Of course,your broker's phone no. must be easily accessible as well if you have to take that route.Basically a back up in everything.

Of course,your charts as well,the greatest weapon of the trader!!


Okay,let's get started...........

Just have a look at the attachment.....looks like a familiar story for many of us.The successful trader does exactly the opposite as stated below.......He has something that gives him an edge over the others.He has that something that tells him when to get in,when to stay out,and when to accept a mistake........He has his charts and the knowledge of how to use it.

What are these charts?A chart of Reliance is not the chart of the company,but the chart of the investor and trader emotions in that company.A chart tells us about the whole play of fear and greed,again and again,all over again.The chart of a particular time frame is therefore a study of fear and greed in the particular company or market in that time frame.

Various types of traders based on their time frame:

Day Trader :He trades intraday.He buy and sells,shorts and covers within that day.He closes all positions by the end of the day.He takes no risks overnight.He basically uses the 5 and 10 min charts for his trading with the 15min and the 60 min charts as backdrop.

Swing Trader :A trader who trades the daily charts,fine tuning his entry using the 60min charts.His trades last 2-5 days.

Position Trader :Nearly equivalent to investing,but nearly can be an important distinction.He trades the weekly charts which means he holds trades from weeks to months.

More for later,

Saint

 

[pkjha30]

Hi Saint
Evidently sharing knowledge is joy for you.This forum will truly appreciate your spirit of leaning and sharing with others .It is such a thing that the more you share the more it grows.I am quite sure others will also contribute by responding and prodding your knowledge.

You are truly a saint

With high regards
pankaj

 

[Saint]

Most important thing that we all have to remember,Trading is very simple.Our minds being complicated is the reason why we try to over complicate a simple thing.So as in anything simple,we try to leave it as simple as we can.

There are various types of charts :
Line Charts,
Bar Charts,
Japanese Candlesticks Charts..........

Basically your preference,whatever you are most comfortable with.I personally use the Candlestick charts,because it makes it more visually obvious to me.I have to strain to see the same in a bar chart.But basically upto you....

Whether we take a bar chart or a candlestick chart,each bar/candle tells us of the Open,Close,High and Low of that particular time frame.Therefore,in a daily chart,the high is the high of the day.The close being the close of that day.But in a 15min chart,each bar represents the trade in a 15minute time frame,therefore the high of that bar is of course the 15minute high...so on so forth.

We have three trends :

UPTREND,DOWNTREND,SIDEWAYS TREND

UPTREND :An uptrend on a chart of any time frame is nothing but a series of higher highs and higher lows.

DOWNTREND:A downtrend on a chart of any time frame is nothing but a series of lower highs and lower lows.

SIDEWAYS TREND :A sideways trend is nothing but relatively equal highs and lows.

TRENDLINES :

An UPTRENDLINE is nothing but a line that connects two or more LOWS,in a chart in an uptrend.The more points that meet up to this line,the stronger this line is.This trendline acts as support,as prices blast off,then pullback to this line before taking off again.Therefore,in an UPTRENDLINE,the 2nd point is always higher than the 1st point,and the 3rd higher than the 2nd.

A DOWNTRENDLINE is nothing but a line that connects two or more highs in a downtrend.Once again,the more number of points that connect,the stronger the line is.This downtrendline acts as resistance.Each down move is followed by a pullback rally to this trendline which acts as resistance only to be met with more selling and lower prices.In DOWNTRENDLINE,the 2nd point is always lower than the 1st,and the 3rd lower than the 2nd.

A break in the UPTRENDLINE signals a possible change in trend.So too with the break in the DOWNTRENDLINE.

Just have a look at the attachments below.....nothing like a picture to make things look better.

All the best!
Saint

 

[oldmirage]

As always great stuff Saint. I can vouch that every single person who has looked at these posts would have appreciated it.

Thanks a lot of for upholding torch in the tunnel. Trying to follow.

 

[arun16]

Saint ,

This is great informative thread.
I am a newbie & will learn more from here ...
thanks for sharing information


arun

 

[Saint]

As always great stuff Saint. I can vouch that every single person who has looked at these posts would have appreciated it.

Thanks a lot of for upholding torch in the tunnel. Trying to follow.

Saint ,

This is great informative thread.
I am a newbie & will learn more from here ...
thanks for sharing information


arun

........and thank you for your kind words of encouragement.

Saint