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

[scorpio155]

Re: Trading Mistakes .....by Proffitt

Really nice stuff to learn
Thanks Saint

 

[bvpraveen]

Hi Praveen,

Apologies for this extremely belated response from my end......

Great question,and thanks for attaching the chart as well........nothing like being able to see what you see.

Question 1:Great question once again..........the chart that you had posted is that of the daily chart.The question you have to ask is:Which time frame is it that you are playing?If your answer is :Short term,then,you are out at Rose Coloured Buy 5,once SL5 is taken out,so on so forth.Now if your answer is :Intermediate term,then the black coloured Buys and SL's are correct.

Only thing is the one marked as SL 6 in rose colour,instead that could also be a black coloured SL(intermediate).

Now once you get the move on a weekly chart,every pullback is a buying opportunity(black ones).Every time we take out the previous pivot high,keep raising stop losses to the immediate previous pivot low.So on so forth........If you are playing the weekly charts,and the intermed time frame,forget the rose coloured ones.What you are looking out for ,licking your lips,are those black coloured ones.

Ques 2:Below the low of the green bar.

Great ones.......looking fwd to more from you,Praveen.

All the best!
Saint

Hi Saint,

Thanks a lot for your explanation.

I've got many doubts. Here I will ask three more:

1. Refer to "chart 1". With reference to your comments above : "Every time we take out the previous pivot high,keep raising stop losses to the immediate previous pivot low".... Why do we need to wait for the pivot high to be taken out? Is it not enough if we find a "valid pivot"(which ofcourse is according to your pivot theory)? Because we might be missing "great" profits, if downtrend begins.

2. Refer to "chart 2". As you had told, the pivots formed should be used for stop loss depending upon our time frame. But how to find out whether the pivot formed is valid for "our time frame" and should we move the SL or not?
My view is that, we need to come to the conclusion depending upon the pullback of the uptrend The minimum criteria would be : "pullback be 1/3rd of the uptrend". Hence, with reference to the attached chart, for medium time frame traders, the stop loss should be "black coloured" stop losses, and not red coloured stop losses, as the stoplosses at red coloured pivots are at lower pullbacks. What is your comments, Saint?

3. Disadvantage of being a short term trader: Again refer to the Chart 2. Consider a short term trader, who has entered into the trade after the first black coloured SL1 according to your theory[at the beginning of the red coloured line]. Hence his stoploss will be red coloured SL1....then SL2. He is out at SL2 when its taken out. If you see his net profit, its a small amount, compared to the up trendline between black coloured stoplosses SL1 and SL2[actually it will be more clear in some live chart]. Do you think its a limitation of being a short term trader?

Waiting for your kind reply,
Thanks,
Praveen.

 

[shrinivas]

Hi!

Have compiled the thread "Teach a man to fish .." by Saint. This is updated till today.

Have done my best to categorise everything in the best possible manner that Saint has taught us.

Following is the url for downloading the same ...

http://rapidshare.de/files/31208843/Saint.zip.html

Attached is a screenshot to see the folders that the file contains. Under each folder, there are 2 word documents, 1 for what Saint has taught us and the 2nd for Questions asked by members & the answers given by Saint.

Have kept the page layouts in Landcape mode for all the pages, because the graphs fit better and are easier to comprehend.

For those who are familiar with the thread, you don't need to be told what you are downloading

For those that are new out here or have missed out on this thread, please just go right ahead & download the file. I have no words to express how
useful this is going to be to you. This is a gem of a thread.

From now on, for those who wish to update the folders, please do so. It would prove invaluable to you in the future.

Am also posting the same under the main heading, Technical Analysis, so that new members may not miss out on this one.

Please do let me know your feedback ...

Once again, THANKS A TON SAINT

Thanks & regards,
Amit

Ahh...thought saint1.jpg would lead me to the link showing saint's photo.. never mind, a good job done...thanks a ton...i had saved it in cut copy paste format..

ganeshhity

 

[gobatman2001]

Ahh...thought saint1.jpg would lead me to the link showing saint's photo.. never mind, a good job done...thanks a ton...i had saved it in cut copy paste format..

ganeshhity

Hi! Ganesh,

That's not a bad idea ...

Saint, if you don't mind, could you please upload a picture of yourself. We would like to see the face of this selfless, helpful, brilliant human being.

Warm regards,
Amit

 

[pranayd]

Hi Saint,

August 06 was the first complete month of trading with the learnings from this thread. Though I wont say that I have learnt even a fraction of what is required to be a pro (and as you preach, I will always remain a student and keep learning), but my first month has been fairly successful. I made a decent profit this month, more than enough to cater to my entertainment expenses and other vices.

More importantly, it has now given me the confidence that I can trade profitably without the help of any technical analyst, broker tips or TV channel.

Thanks a ton for everthing you have done for us novices.

If you dont mind and can spare some time, I would like to share some of my trades which I have made last month. I would like to have your feedback on what were the positives and negatives of my trades and how these could be improved.

Thanks again SIR (please dont mind the salutation!!) and god bless.

Pranay

 

[gobatman2001]

Saint

Hi! Saint,

I would be grateful if you could please guide on drawing support & resistance lines on charts where there is a lot of noise. A few examples would be much appreciated.

Am attaching a chart of Alok Textiles (NSE Symbol = ALOKTEXT). I would be grateful if you could please draw the resistance lines & upload the same for me.

Also, does one draw the lines on the daily charts or weekly charts?

The reason why I am asking is because on some of the daily charts, it takes some doing to identify support & resistance levels.

Please do advise ...

Thanks & regards,
Gobatman

 

[bvpraveen]

Hi Saint,

I'm waiting for your reply for my post, which was posted some days back.

Can you please reply for it, so that I can proceed further with those basics clear. Now I'm learning leaving that, although I need those answers so that further readings are meaningful for me.

Thanks,
Praveen.

P.S: I shouldn't have posted this request mail in this thread, as it will spoil the quality of this thread. But I'm not able to "private message" as your quoto is full. I apologize for it.

 

[Saint]

Hi Saint,

I'm waiting for your reply for my post, which was posted some days back.

Can you please reply for it, so that I can proceed further with those basics clear. Now I'm learning leaving that, although I need those answers so that further readings are meaningful for me.

Thanks,
Praveen.

P.S: I shouldn't have posted this request mail in this thread, as it will spoil the quality of this thread. But I'm not able to "private message" as your quoto is full. I apologize for it.

Hi Praveen,

Shall get down to it before the end of the day........as for the PM's,shall clear the inbox.Sorry abt that ,my friend.

Saint

 

[Saint]

Ahh...thought saint1.jpg would lead me to the link showing saint's photo.. never mind, a good job done...thanks a ton...i had saved it in cut copy paste format..

ganeshhity

Hi! Ganesh,

That's not a bad idea ...

Saint, if you don't mind, could you please upload a picture of yourself. We would like to see the face of this selfless, helpful, brilliant human being.

Warm regards,
Amit

lol Amit/Ganesh,.........would gladly upload a pic if that would in any way enhance one's trading education in some way.But doubt that...........

A face as ordinary as ordinary can be,a person behind the face as ordinary as ordinary can be,.........nothing spectacular,or out of the world.Just another ordinary person sharing what little he knows.

Saint

 

[Saint]

Hi Saint,

August 06 was the first complete month of trading with the learnings from this thread. Though I wont say that I have learnt even a fraction of what is required to be a pro (and as you preach, I will always remain a student and keep learning), but my first month has been fairly successful. I made a decent profit this month, more than enough to cater to my entertainment expenses and other vices.

More importantly, it has now given me the confidence that I can trade profitably without the help of any technical analyst, broker tips or TV channel.

Thanks a ton for everthing you have done for us novices.

If you dont mind and can spare some time, I would like to share some of my trades which I have made last month. I would like to have your feedback on what were the positives and negatives of my trades and how these could be improved.

Thanks again SIR (please dont mind the salutation!!) and god bless.

Pranay

Great going Pranay.......this is the first step,lots more to climb,and never stop climbing.Once again,great going and all the best!

Saint