The Two Realities of Trading

[junky]

Dear Traderji and Member Friends,

Nothing can be nearer to the truth than the wisdom of Traderji. In order to prove or rather substantiatewhatever he stated , I am enumerating below the Market Profile of Hindoilexp of 16 May 05( and I am not a relative or cronny of Traderji as yet). Any knowledgable person would be able to discern the failures of all fundamentals of one of the best system for day trading. Market Profile is an eight hours piloting job of a scrip; one cann't even take two minutes break, it is so disciplined but supposed to judge the day traders future intention for the day.
The market profile chart below had made two clear cut triangles for the day, one comprising of stretch between BDG-ABEG and the second between ABEG and the second last A. Well, it was natural and analytically sound that trader after 2 pm started selling heavily around 157 and above. Then suddenly "G", that time between01 to 0130 PM did the trick and in two minutes flat the prices jacked from 156.5 to 166.7.

This is hijacking the price!

This is money power !

This is against all fundamentals.

TAKE THIS:-

- All oscillators suggested minor down trend or correction on 13 May 05 chart.
_ The wave theories, channeling, Fibbonaci, scientific trading systen, bollinger and pivots and what have u which indicated the prices to touch down minimum to 151 level., all were hijacked collectively by a group of Syndicated .

WHAT HAVE THEY ACHIEVED. A huge profit today.

WHAT THEY CANN'T DO : The prices ultimately sliding down(If the techinal so indicate which it does not....haa.haa.haaa).

BUT WHERE IS THEIR SHREWEDNESS - TECHNICAL ANALYSIS THAT THIS SCRIP IS HEADING VERY MUCH UP NORTH. SO CHEERS (._.) ! THEY ARE HAVING A PARTY. HUH !

LESSON LEARNT
KEEP YOUR POWDER DRY BUT EXPECT A CATRIDGE MALFUNCTIONING TO TO MOISTURE?


MARKET PROFILE HINDOILEXP : 16 MAY 05 (gradtion of .25 paise)

HI(166.75)
GHI
GHIJ
GHIJ
GHIJ
GHIJ
GHI
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
G
BDG
BDG
BCDG
ABCDG
ABCDEG
ABCDEG
ABDEG
ABEG
ABEFG
ABEGABEFG
ABEFGA
A
A(156)

ANY DOUBTS - S.PARTHSARTHI@ REDIFFMAIL.COM/
I am a busy man so do not expect quick replies.
I was veru pleased to read all responses. The all are origanl and good.

Happy Trading.(Condone all Mistakes)

Warm Regards
-Junky

 

[SwamiNathan]

Traderji,
I wonder at you. Your words are like gold. So simple and great.
It Is Impossible to Predict Market Turns, Losing Trades are a Natural Part of Trading
Pls write more to educate junior traders like me.
Thanks

 

[phoenix]

Great thread....lots of wisdom!Thanx.......

 

[xyz]

traderji thanks for giving us (newbies) so much fundamental tips to perform better, a guiding force.

 

[Agilent]

i am wondering if one can put this kind of strategy to work: buy an equity at X price, sell some of it at a profit, put that cash amount into an fixed deposit so u protect part capital and part profit and wait for the equity to go further up, then sell it completely and keep money in cash until market goes thru a major correction say, for 5 days in a row, and then re-enter at lower levels.
Is there something wrong in this strategy? I am a novice so do give me your inputs. Thanks!

Lata,
( just saw your old post)

You are on the right track more or less. But one mistake : sometimes the markets correct for longer than 5 days. 5 weeks is the duration they corrected in Sep/Oct this year. (see link) Why that : the correction of early 2000 to late 2001 ( during which period the index halved) was nearly 2 yrs long ( see second link)
http://finance.yahoo.com/q/bc?s=^BSESN&t=3m&l=on&z=l&q=b&c=

http://finance.yahoo.com/q/bc?s=^BSESN&t=my&l=on&z=l&q=b&c=

My suggestion (based on 2 decades of investing, though still a 'junior member') is : pl read a good classic book about basic concepts (technical or chart trends specially) of Bull and Bear markets, and about Primary, Secondary and minor trends. It feels nice to own stocks in a Bull market, as long as you don't get caught in a (downward) Secondary correction in a bull market ..like sep/oct 2005), or, worse : in a Bear market: 2000/2001. In such times, your theory will falter badly.

Happy investing
AGILENT