Trading with Volume Spread Analysis (VSA)

[bunny]

Volumes today: 20 JAN 2010

S & P CNX NIFTY:
Today was a down-day, on volumes higher and spread narrower than yesterday. We closed well above the lows. Volume in NIFTY F&O contracts is slightly higher than yesterday.

Action in other cash stocks suggests that strength is intact. We should see the NIFTY trading above 5300 soon.

 

[bunny]

In the background we have signs of strength. The volumes traded today are very high, almost double than yesterday. This seems like a shake-out, and a good time to buy.

 

[anoopkumar]

It was a down-day. The volumes in the cash market were lower than yesterday, while those is F&O market were higher than yesterday. Eeven today, many stock have broken their trading ranges - either recent ones or those created months ago. Outlook is bullish, with a big move on cards.

you were caught wide off the mark but nonetheless brave effort. I appreciate.

 

[bunny]

you were caught wide off the mark but nonetheless brave effort. I appreciate.

Yes, it was way off, but i would still maintain bullish outlook...reason: volumes today. US markets have taken a beating again today. We will soon start the bullish leg. Observe the volumes in most of the stocks.

PS: I dont trade nifty or its constituents, but have positions only in cash stocks who do not have derivatives.

 

[nimish_rulz]

Yes, it was way off, but i would still maintain bullish outlook...reason: volumes today. US markets have taken a beating again today. We will soon start the bullish leg. Observe the volumes in most of the stocks.

PS: I dont trade nifty or its constituents, but have positions only in cash stocks who do not have derivatives.

But would it be sensible to hold on to the positions and see your equity wipe off. I would rather buy it slightly higher than take any further loss. I have managed to wipe out my profits of this month can't afford to wipe out the profits from last month. Let me know what you think I have these stock futures:
LicHousing Finance 1 lot
BHEL 1 lot
Suzlon 2 lot
Unitech 4 lot
HDFC 1 lot
Jindal Steel 3 lot
Gvk Power 1 lot
Gmr Infra 1 lot
Educomp 1 lot
RNRL 1 lot
Aditya Birla Nuvo 1 lot
Reliance 1 lot

 

[bunny]

But would it be sensible to hold on to the positions and see your equity wipe off.

Yes, it seems frustrating to see that, but you have no control if the move comes after you open your position. The only thing you can do best is to read the chart in as detailed manner as you can.

 

[rajeabc]

I closed my all long position after reading
"Dealers are seeing major selling orders from FIIs and DIIs, reports CNBC Awaaz. There is weakness in banking, capital goods and consumer durables. Dealers feel if Nifty support of 5160 is broken then the market could weaken further. " LInes on rediff.com

I feel , expiry is quite near and USA market is down too today. So our market will be going down tomorrow as well. And if pressure is coming from FII so will fall will continue for few more days.

This is not supported with any technical analysis just analysis of Human behaviours and trading pattern.

 

[bunny]

I closed my all long position after reading
"Dealers are seeing major selling orders from FIIs and DIIs, reports CNBC Awaaz. There is weakness in banking, capital goods and consumer durables. Dealers feel if Nifty support of 5160 is broken then the market could weaken further. " LInes on rediff.com

I feel , expiry is quite near and USA market is down too today. So our market will be going down tomorrow as well. And if pressure is coming from FII so will fall will continue for few more days.

This is not supported with any technical analysis just analysis of Human behaviours and trading pattern.

I don't know how true is this dealar stuff, because I think SavantGarde had mentioned once that dealers have very strict code of conduct. They cannot even carry mobile phones while on their terminals. Disclosing to media what their clients are buying or selling will get them into trouble.

 

[anoopkumar]

But would it be sensible to hold on to the positions and see your equity wipe off. I would rather buy it slightly higher than take any further loss. I have managed to wipe out my profits of this month can't afford to wipe out the profits from last month. Let me know what you think I have these stock futures:
LicHousing Finance 1 lot
BHEL 1 lot
Suzlon 2 lot
Unitech 4 lot
HDFC 1 lot
Jindal Steel 3 lot
Gvk Power 1 lot
Gmr Infra 1 lot
Educomp 1 lot
RNRL 1 lot
Aditya Birla Nuvo 1 lot
Reliance 1 lot

Hi Nimish,

Reading your last few posts on different threads gives me the feeling that u r a guy with really deep pockets. I am not a veteran in stock market but I would still like to comment that proper money management will make u carry less anxiety.

 

[nimish_rulz]

Hi Nimish,

Reading your last few posts on different threads gives me the feeling that u r a guy with really deep pockets. I am not a veteran in stock market but I would still like to comment that proper money management will make u carry less anxiety.

Nah its just that I started slowly got good profits this month and last month so was willing to take risk on the earned profit as I was one of the bulls. But knowingly or unknowingly I got quite a few contracts in feb which still gives hope. The reason I trade in futures is the high risk high return correlation and I need very little margin payment hence I could open positions on the profits I earned. I started with 5-6 contracts made profits in them and was able to open the remaining on the profits.

The problem is I have tried stop losses and they get executed ever so often even if the stock is in strength. Also I never saw the Obama dialouge coming was so caught unaware. But you are right this time when I had huge positions opened I didn't do money management. I had profits of 5+lacs 3 days back now barely in profits.