Two stocks
GMR INFRA
game is partly over.
http://finance.yahoo.com/q/ta?s=GMRINFRA.NS&t=1y&l=on&z=l&q=l&p=m50&a=vm,f14&c=
Price keeps on rising but no volumes rise
Rumours float,this stock will go to 1000 level soon.
one operator buys and another sells,nobody holds stock,just price moves up and up.
public is roped in and they buy and get stuck with the stock.
SAKUMA EXPORTS
game has just begun.
http://finance.yahoo.com/q/ta?s=sakuma.ns&t=1y&l=on&z=l&q=l&p=m50&a=vm%2Cf14&c=
There were no volumes. no takers.
suddenly it zooms.
volume doubles.
select buyers already accumulate the stock
rumours ready,
recommendations flying that stock will touch 150 soon.
They are waiting for public to buy at higher price so that they can unload their stock and run away with profits.
read about things how share price goes up and up?
http://www.tehelka.com/story_main34.asp?filename=Bu271007MINIBULLS.asp
----------------------------------------------------------------------
How does this work?
These operators typically zero in on low-priced scrips (priced between Rs 15 to Rs 125). There are two principal advantages behind choosing such scrips —
the promoters of such companies are willing accomplices in facilitating the operators to rig their share prices.
Secondly, small investors get easily lured to such scrips since they are psychologically more inclined towards investing in lowpriced scrips and don’t have the appetite and aptitude to buy high-priced shares.
Even as SEBI, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are closely monitoring shares that have seen a sudden surge in prices and trading volumes, the operators have been a step ahead of these agencies. These operators are trading through a clutch of stock market brokers who execute the buy-sell orders through thousands of client accounts, majority of which are fronts for these brokers. So on paper, it all looks genuine.
When money is to be made at the cost of retail investors, the modus operandi is to create artificial price increase in shares and then spread the word about the stock among investors. As the gullible investors start buying, the operators continue to further rig the prices upwards. This creates confidence in the investors that the market information about the share price going up was genuine. As more and more investors join the bandwagon, the operators start off-loading their shares at higher prices. The profits generated are shared with the promoters.
The modus operandi is different when the shares are to be placed with institutional investors like mutual funds and foreign institutional investors (FIIs) or the company wants to raise fresh funds at a hefty premium on its shares. When the company wants to make a placement with the institutional investors, the promoter gives a mandate to a market operator to mop up liquidity from the market by gradually picking up shares from the market. After the shares have been purchased by the operator — through his associates and front entities — the price is rigged up. The company, in the meanwhile, starts making announcements that will have positive impact on the share price and paints a rosy picture of the company’s future. Institutional investors are led to believe that the share price has great potential in the future. The institutional investors are then sold the shares in the open market out of the stock which was cornered earlier by the operators at much lower prices.
IN CASE of fresh fund raising, the game is simple. Rig the price of the share over a period of time, manipulate balance sheets to show robust profit figures, paint a rosy picture of the future to justify the price rise, and then raise money through either a preferential allotment of shares to foreign and domestic funds or through issue of foreign currency convertible bonds (FCCBs), which are convertible into shares at a pre-agreed price within a period of five years from the date of issue.
Till the bull run is on, nothing seems wrong, for everyone is making money, even if it is notional wealth. But what goes up must come down. The current bull run will come to an end one day, though nobody knows when that would be. Whenever the market will take a beating, both retail and institutional investors will be left saddled with shares of scores of such companies. SEBI and investigating agencies will then swing into action. Some unscrupulous managements and market manipulators may be even caught and banned from the market, as it happened in the case of the Harshad Mehta and the Ketan Parekh scams. But will investors recover their losses? It’s virtually impossible. It has never happened at the Indian bourse. Nor will it happen.
Saturday, December 29, 2007
how to find market top or bottom coming?
please check up
http://www.amateur-investor.net/Put%20to%20Call%20ratio.htm
The Put to Call ratio measures the amount of volume in Puts versus Calls. When Put volume becomes excessive in relation to Call volume, it's an indication of excessive bearishness in the market (a bullish sign).
Conversely if Call volume becomes excessive to Put volume, it's a sign of excessive bullishness in the market (a bearish sign). A chart of the Put to Call Ratio versus the S&P 500 is shown below.
Notice when the Put to Call Ratio has risen significantly above "1.0" this has generally led to a market bottom followed by a significant upside reversal. Some examples include the Fall of 2001 (point A), Spring of 2001 (point B), Fall of 1999 (point C) and back in the Fall of 1998 (point D). However more recently the Put to Call Ratio hasn't worked as well as their have been some false signals in which the Put to Call Ratio rose well above "1.0" but wasn't accompanied by a strong upside reversal (points E, F and G).
In addition to signaling a potential short term bottom in the markets, the Put to Call Ratio may also signal an impending market top as well.
The most recent one occurred in early July (Point A) when the Put to Call Ratio got close to 0.4 and was followed by a market correction a few days later. Other corrections occurred in mid-July of 1998, late September of 1998 and early December of 1998 as the Put to Call Ratio quickly reversed to the downside.
http://www.amateur-investor.net/Put%20to%20Call%20ratio.htm
The Put to Call ratio measures the amount of volume in Puts versus Calls. When Put volume becomes excessive in relation to Call volume, it's an indication of excessive bearishness in the market (a bullish sign).
Conversely if Call volume becomes excessive to Put volume, it's a sign of excessive bullishness in the market (a bearish sign). A chart of the Put to Call Ratio versus the S&P 500 is shown below.
Notice when the Put to Call Ratio has risen significantly above "1.0" this has generally led to a market bottom followed by a significant upside reversal. Some examples include the Fall of 2001 (point A), Spring of 2001 (point B), Fall of 1999 (point C) and back in the Fall of 1998 (point D). However more recently the Put to Call Ratio hasn't worked as well as their have been some false signals in which the Put to Call Ratio rose well above "1.0" but wasn't accompanied by a strong upside reversal (points E, F and G).
In addition to signaling a potential short term bottom in the markets, the Put to Call Ratio may also signal an impending market top as well.
The most recent one occurred in early July (Point A) when the Put to Call Ratio got close to 0.4 and was followed by a market correction a few days later. Other corrections occurred in mid-July of 1998, late September of 1998 and early December of 1998 as the Put to Call Ratio quickly reversed to the downside.
Wednesday, December 26, 2007
code for support resistance in Trade station
please refer
http://www.breakoutfutures.com/Newsletters/Newsletter0303.htm
====================================================================
I also created an indicator based on the SupRes2 function to plot the support and resistance levels. The code for the indicator is shown below.
{
Indicator: SupRes Indicator-2
Plot the support and resistance given by the SupRes2 function.
Michael R. Bryant Breakout Futures
www.BreakoutFutures.com
Copyright 2003 Breakout Futures
Feb 24, 2003
}
Inputs: NBars (30), { # bars to lookback in search }
PriceRnge (3), { # points to examine above/below close }
PFilter (1.0), { points this close to line }
MinPoints (4); { need at least this many points in fit }
Var: SupPrice (C), { located support price }
ResPrice (C); { located resistance price }
{ Call SupRes function to find nearest support/resistance }
Value1 = SupRes2(NBars, PriceRnge, PFilter, MinPoints, SupPrice, ResPrice);
Plot1(SupPrice, "Support");
Plot2(ResPrice, "Resistance");
In Fig. 3, I show how the indicator works for the same price chart shown in Fig. 1. I used the following input parameter values: 30, 2.25, 0.75, 4. The support prices are in green and the resistance levels in red.
During downtrending markets, the support levels tend to stay close to the price bar lows because none of the nearby price bars have prices lower than the most recent bar's low.
Similarly, in uptrending markets, the resistance levels stay near the highs.
The SupRes2 function could be employed in a trading system in a number of different ways, such as
(1) to identify the trend based on whether support and resistance levels are rising or falling, and
(2) to trigger entries and/or exits at the identified support and resistance levels.
courtesy
Michael R. Bryant
Breakout Futures
www.BreakoutFutures.com
http://www.breakoutfutures.com/Newsletters/Newsletter0303.htm
====================================================================
I also created an indicator based on the SupRes2 function to plot the support and resistance levels. The code for the indicator is shown below.
{
Indicator: SupRes Indicator-2
Plot the support and resistance given by the SupRes2 function.
Michael R. Bryant Breakout Futures
www.BreakoutFutures.com
Copyright 2003 Breakout Futures
Feb 24, 2003
}
Inputs: NBars (30), { # bars to lookback in search }
PriceRnge (3), { # points to examine above/below close }
PFilter (1.0), { points this close to line }
MinPoints (4); { need at least this many points in fit }
Var: SupPrice (C), { located support price }
ResPrice (C); { located resistance price }
{ Call SupRes function to find nearest support/resistance }
Value1 = SupRes2(NBars, PriceRnge, PFilter, MinPoints, SupPrice, ResPrice);
Plot1(SupPrice, "Support");
Plot2(ResPrice, "Resistance");
In Fig. 3, I show how the indicator works for the same price chart shown in Fig. 1. I used the following input parameter values: 30, 2.25, 0.75, 4. The support prices are in green and the resistance levels in red.
During downtrending markets, the support levels tend to stay close to the price bar lows because none of the nearby price bars have prices lower than the most recent bar's low.
Similarly, in uptrending markets, the resistance levels stay near the highs.
The SupRes2 function could be employed in a trading system in a number of different ways, such as
(1) to identify the trend based on whether support and resistance levels are rising or falling, and
(2) to trigger entries and/or exits at the identified support and resistance levels.
courtesy
Michael R. Bryant
Breakout Futures
www.BreakoutFutures.com
T-3 moving average can help find trends
see this reference
http://www.lind-waldock.com/edu/newsletter/402/nl_402_art02.shtml
Moving averages have always been a favorite tool among technicians.
I have used moving averages since 1975
and believe that a good moving average can:
a) define the trend
b) act as support and resistance and
c) be used/configured as a momentum oscillator.
Over the years, I have seen many attempts at constructing a “better moving average.” I'm sure you've heard of 20-day, 50-day and 200-day moving averages.
After testing and examining hundreds of algorithms, I would like to share with you the one moving average I use every day to guide my trading.
Three years ago, I met Tim Tillson. Tim wrote a great article in the January 1998 issue of “Technical Analysis of Stocks and Commodities” titled: “Better Moving Averages.” Many traders who have been exposed to Tim's work agree that he has designed a moving average that is a better tool than most simple, weighted or exponential averages.
Tim's goal in constructing the T3 was to remove random noise from the underlying time series (your favorite stock or commodity). His moving averages exhibit very desirable characteristics. The T3 is an adaptive moving average that is smooth, but is not sensitive to random noise in the issue you are monitoring. Also, the T3 modifies the “lag and overshoot” properties of a simple moving average. In other words, the T3 draws a very smooth moving average and has a tendency to be rather sensitive to significant directional changes in the market (mostly, eliminating the “whipsawing” that many traders are familiar with when using simple moving averages). I won't get into the mathematical complexities of the formula on which the T3 is based here—more important is how it can be applied to your trading.
http://www.lind-waldock.com/images/lf_402_chart1.gif
Chart 1 shows how well the T3 defines trend
the T3 can define the direction of the market with very little lag. . . don't trade against that direction.
When the T3 has a positive posture (pointing up) we see an abundance of white candles (days when the bulls are in control and the close is higher than the opening). When the T3 has a negative slope, the market has a tendency to produce a majority of black candles.
Let's review the concepts I have presented by looking at Chart 4. In early November, April gold futures turned up. The T3 sensed the directional change and adapted quickly to the upside. For the following four weeks of trading, purchasing gold at or near the T3 line would have been very rewarding. As the price of gold painted a roller-coaster pattern on the charts, the T3 consistently pointed to the direction of the trend and provided support and resistance as gold bounced up-down-up-down-up-down.
T3 Can Help You Find the Trend
Markets draw pictures that we interpret through chart analysis. All my chart analysis starts with the identification of the trend. I only trade in the direction of the trend. The T3, an adaptive moving average, can help you discern trend direction. Always trading with the trend will improve most investors' decisions. Using a moving average as support and resistance is a way to help you improve entry and exit strategies. I use these tools daily and I encourage you to take the time to investigate how they might help you.
http://www.lind-waldock.com/images/lf_402_chart4.gif
http://www.lind-waldock.com/edu/newsletter/402/nl_402_art02.shtml
Moving averages have always been a favorite tool among technicians.
I have used moving averages since 1975
and believe that a good moving average can:
a) define the trend
b) act as support and resistance and
c) be used/configured as a momentum oscillator.
Over the years, I have seen many attempts at constructing a “better moving average.” I'm sure you've heard of 20-day, 50-day and 200-day moving averages.
After testing and examining hundreds of algorithms, I would like to share with you the one moving average I use every day to guide my trading.
Three years ago, I met Tim Tillson. Tim wrote a great article in the January 1998 issue of “Technical Analysis of Stocks and Commodities” titled: “Better Moving Averages.” Many traders who have been exposed to Tim's work agree that he has designed a moving average that is a better tool than most simple, weighted or exponential averages.
Tim's goal in constructing the T3 was to remove random noise from the underlying time series (your favorite stock or commodity). His moving averages exhibit very desirable characteristics. The T3 is an adaptive moving average that is smooth, but is not sensitive to random noise in the issue you are monitoring. Also, the T3 modifies the “lag and overshoot” properties of a simple moving average. In other words, the T3 draws a very smooth moving average and has a tendency to be rather sensitive to significant directional changes in the market (mostly, eliminating the “whipsawing” that many traders are familiar with when using simple moving averages). I won't get into the mathematical complexities of the formula on which the T3 is based here—more important is how it can be applied to your trading.
http://www.lind-waldock.com/images/lf_402_chart1.gif
Chart 1 shows how well the T3 defines trend
the T3 can define the direction of the market with very little lag. . . don't trade against that direction.
When the T3 has a positive posture (pointing up) we see an abundance of white candles (days when the bulls are in control and the close is higher than the opening). When the T3 has a negative slope, the market has a tendency to produce a majority of black candles.
Let's review the concepts I have presented by looking at Chart 4. In early November, April gold futures turned up. The T3 sensed the directional change and adapted quickly to the upside. For the following four weeks of trading, purchasing gold at or near the T3 line would have been very rewarding. As the price of gold painted a roller-coaster pattern on the charts, the T3 consistently pointed to the direction of the trend and provided support and resistance as gold bounced up-down-up-down-up-down.
T3 Can Help You Find the Trend
Markets draw pictures that we interpret through chart analysis. All my chart analysis starts with the identification of the trend. I only trade in the direction of the trend. The T3, an adaptive moving average, can help you discern trend direction. Always trading with the trend will improve most investors' decisions. Using a moving average as support and resistance is a way to help you improve entry and exit strategies. I use these tools daily and I encourage you to take the time to investigate how they might help you.
http://www.lind-waldock.com/images/lf_402_chart4.gif
Tuesday, December 25, 2007
stock market is a Non Linear,COMPLEX,Dynamic system
How to identify significant support resistance levels?
======================================================================
you have many different approaches to identify support and resistance levels in the market, but a great number of them are most unreliable.
These approaches include, but are not limited to methodologies that utilize Fibonnacci numbers and ratios, trend lines, moving averages or Gann concepts.
Those techniques have a static view of the market.
Those approaches assume that the market will repeat its past behavior and experience in the same exact manner and can therefore be viewed with a linearly. They also bear fixed intervals for inputs which creates yet another problem.
The market is not a static phenomenon and we cannot expect the market to disregard all the changes of economic and industrial Macroforces that constantly exert pressure on price movements.
The market is most Complex and Dynamic phenomenon - but it is clear that price fluctuates between levels of support and resistance. How can we identify these levels in advance and not in hindsight?
Let us see what levels of support and resistance are the most critical and how we as traders can identify them.
--------------------------------------------------------
The factors governing support resistance levels are
Psychology of participants
Fair Represantation of market participants
Finding common number for price for effective trading entry
-------------------------------------------------------------
FAIR REPRESENTATION
Looking at the Market Participant’s Universe, we are able to identify fair representations for all segments of the market.
One way of segmenting the participant’s Universe is to use the Time Frame aspect. Since traders employ charts with specific time frames such as 5 minute or 15 minute bars, their particular levels of pleasure and pain (profit or loss) are represented on the simple bar chart. Therefore, our task is to identify the price chart time frames that most fairly represent the majority of market participants.
In the case of the S&P market, since such a high percentage of players are day traders, intraday charts will be sufficient for obtaining our information. For other financial markets or physical commodities, an understanding of the market dynamics is essential when trying to select the proper time frame to observe. Testing, research and examination are crucial when trying to select the proper time frame to employ. Based on Mr Gandevani"s research of the S&P market, he found the 1, 10, 30 and 45 minute charts as well as the Daily chart to be a fair representation of the participants.
Note that a chart like the 10 minute time frame encompasses the price patterns of the 5, 7, 15, etc. so that each time frame listed includes a variety of different participants.
Now that we have identified a fair representative of the Market Participant’s Universe, we can identify support and resistance for each particular time frame chart and then find the Common denominators among the values recorded. Since a level of support or resistance is merely a price level in the market, we can therefore refer to it as a Common Number. Following is a Flow Chart to help you in identifying Common Numbers for the market of your choice. Please remember that the quantity of Common Numbers uncovered has a direct relation to the market’s internal dynamics. For example, when day trading the S&P market, most of the time four numbers are required to properly identify the most important support and resistance levels. (ie. 10, 30,45 and 60 minute charts )
---------------------------------------------
The process involved is
1)Study the selected Market Participants Universe.
2)Identify the fair representations of those participants, by dissecting your Universe into segments that trade on various time-frame charts.
3)Identify support and resistance levels in each chart.
4)Find the common denominators among those levels
COMMON NUMBERS FOR EFFECTIVE TRADING
-----------------------------------------------------
Depending upon the dynamics of a particular market, it’s possible to derive a number of Common Numbers.
Each market’s dynamics will dictate a specific relationship between its Common Numbers, which will in turn limit their appearances within the context of intraday market extensions.
We can therefore use Common Numbers to help locate better entry and exit levels for our trades.
Entry Points
You can identify a Common Number (CN) to enter the market, as price approaches the CN. This would result in a high probability of good entry with regards to price and time. Additionally, you might want to employ some type of dynamic indicator or particular price pattern to filter market noise from the CN level.
Please refer the great research article by By Ned Gandevani,
http://www.winningedgesystem.com/articles/article3.htm
======================================================================
you have many different approaches to identify support and resistance levels in the market, but a great number of them are most unreliable.
These approaches include, but are not limited to methodologies that utilize Fibonnacci numbers and ratios, trend lines, moving averages or Gann concepts.
Those techniques have a static view of the market.
Those approaches assume that the market will repeat its past behavior and experience in the same exact manner and can therefore be viewed with a linearly. They also bear fixed intervals for inputs which creates yet another problem.
The market is not a static phenomenon and we cannot expect the market to disregard all the changes of economic and industrial Macroforces that constantly exert pressure on price movements.
The market is most Complex and Dynamic phenomenon - but it is clear that price fluctuates between levels of support and resistance. How can we identify these levels in advance and not in hindsight?
Let us see what levels of support and resistance are the most critical and how we as traders can identify them.
--------------------------------------------------------
The factors governing support resistance levels are
Psychology of participants
Fair Represantation of market participants
Finding common number for price for effective trading entry
-------------------------------------------------------------
FAIR REPRESENTATION
Looking at the Market Participant’s Universe, we are able to identify fair representations for all segments of the market.
One way of segmenting the participant’s Universe is to use the Time Frame aspect. Since traders employ charts with specific time frames such as 5 minute or 15 minute bars, their particular levels of pleasure and pain (profit or loss) are represented on the simple bar chart. Therefore, our task is to identify the price chart time frames that most fairly represent the majority of market participants.
In the case of the S&P market, since such a high percentage of players are day traders, intraday charts will be sufficient for obtaining our information. For other financial markets or physical commodities, an understanding of the market dynamics is essential when trying to select the proper time frame to observe. Testing, research and examination are crucial when trying to select the proper time frame to employ. Based on Mr Gandevani"s research of the S&P market, he found the 1, 10, 30 and 45 minute charts as well as the Daily chart to be a fair representation of the participants.
Note that a chart like the 10 minute time frame encompasses the price patterns of the 5, 7, 15, etc. so that each time frame listed includes a variety of different participants.
Now that we have identified a fair representative of the Market Participant’s Universe, we can identify support and resistance for each particular time frame chart and then find the Common denominators among the values recorded. Since a level of support or resistance is merely a price level in the market, we can therefore refer to it as a Common Number. Following is a Flow Chart to help you in identifying Common Numbers for the market of your choice. Please remember that the quantity of Common Numbers uncovered has a direct relation to the market’s internal dynamics. For example, when day trading the S&P market, most of the time four numbers are required to properly identify the most important support and resistance levels. (ie. 10, 30,45 and 60 minute charts )
---------------------------------------------
The process involved is
1)Study the selected Market Participants Universe.
2)Identify the fair representations of those participants, by dissecting your Universe into segments that trade on various time-frame charts.
3)Identify support and resistance levels in each chart.
4)Find the common denominators among those levels
COMMON NUMBERS FOR EFFECTIVE TRADING
-----------------------------------------------------
Depending upon the dynamics of a particular market, it’s possible to derive a number of Common Numbers.
Each market’s dynamics will dictate a specific relationship between its Common Numbers, which will in turn limit their appearances within the context of intraday market extensions.
We can therefore use Common Numbers to help locate better entry and exit levels for our trades.
Entry Points
You can identify a Common Number (CN) to enter the market, as price approaches the CN. This would result in a high probability of good entry with regards to price and time. Additionally, you might want to employ some type of dynamic indicator or particular price pattern to filter market noise from the CN level.
Please refer the great research article by By Ned Gandevani,
http://www.winningedgesystem.com/articles/article3.htm
Monday, December 24, 2007
Position Sizing for Effective Money Management
Position Sizing for Effective Money Management
===============================================
Most option traders FAIL because
1)They buy too often, and
2)They don't set stop loss rules.
3)They ineffectively manage their position sizing.
=================================================
It's not just when you ENTER the market, but when you EXIT.
What happens normally?
When you trade options you begin with a lot of capital to invest. Typically traders buy several options - their position- and REDUCE their capital immediately, by the option decreasing in value. They then BUY MORE in hopes of recouping their losses and soon have little money left.
It's not how much you make that is important, but how much you RISK. You learn risk management guidelines through position strategy, and options risk management techniques.
Using the techniques the trader learns how to evaluate position sizing. Position sizing analysis can help the trader manage risk when trading options.
Stop Loss Guidelines are how you MAKE money trading options.
Setting smart profit goals help the trader achieve profits, not watch the option 'run up" and by the time the trader is ready to profit, already be falling. Most traders don't know WHEN to sell.
Learn the parameters for both effective profit taking, and when to minimize your losses by reducing your position size. You must have clear buy/sell guidelines and detailed rules for when to exit.
--------------------------------------------------------
Effective Stop Loss and Profit Guidelines:
1)Use the Average True Range (ATR) to find a target spot to set stop loss. We teach you how.
2)Support and Resistance Lines help define a strategy for sale, at profit or loss. But, other astute traders all use support and resistance. know the variables that help you use support and resistance as guidelines for sale.
The Three Thirds:
Sell 1/3 at a defined profit. Sell 1/3 at the next higher profit goal, and let the final 1/3 run.
The 75/25 Rule:
Set two profit objectives when you purchase the option. Sell 75% at the first goal, a conservative profit, and let the final 25% run.
Almost NEVER buy above the prior day closing price. *Use a formula of number of days to hold, and stop loss by no of days
-----------------------------------------
from "REMINISCENCES OF A STOCK OPERATOR":
"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation"
===============================================
Most option traders FAIL because
1)They buy too often, and
2)They don't set stop loss rules.
3)They ineffectively manage their position sizing.
=================================================
It's not just when you ENTER the market, but when you EXIT.
What happens normally?
When you trade options you begin with a lot of capital to invest. Typically traders buy several options - their position- and REDUCE their capital immediately, by the option decreasing in value. They then BUY MORE in hopes of recouping their losses and soon have little money left.
It's not how much you make that is important, but how much you RISK. You learn risk management guidelines through position strategy, and options risk management techniques.
Using the techniques the trader learns how to evaluate position sizing. Position sizing analysis can help the trader manage risk when trading options.
Stop Loss Guidelines are how you MAKE money trading options.
Setting smart profit goals help the trader achieve profits, not watch the option 'run up" and by the time the trader is ready to profit, already be falling. Most traders don't know WHEN to sell.
Learn the parameters for both effective profit taking, and when to minimize your losses by reducing your position size. You must have clear buy/sell guidelines and detailed rules for when to exit.
--------------------------------------------------------
Effective Stop Loss and Profit Guidelines:
1)Use the Average True Range (ATR) to find a target spot to set stop loss. We teach you how.
2)Support and Resistance Lines help define a strategy for sale, at profit or loss. But, other astute traders all use support and resistance. know the variables that help you use support and resistance as guidelines for sale.
The Three Thirds:
Sell 1/3 at a defined profit. Sell 1/3 at the next higher profit goal, and let the final 1/3 run.
The 75/25 Rule:
Set two profit objectives when you purchase the option. Sell 75% at the first goal, a conservative profit, and let the final 25% run.
Almost NEVER buy above the prior day closing price. *Use a formula of number of days to hold, and stop loss by no of days
-----------------------------------------
from "REMINISCENCES OF A STOCK OPERATOR":
"It takes a man a long time to learn all the lessons of all of his mistakes. They say there are two sides to everything. But there is only one side to the stock market; and it is not the bull side or the bear side, but the right side. It took me longer to get that general principle fixed firmly in my mind than it did most of the more technical phases of the game of stock speculation"
Trading is Hard; The Key is Developing a Strategy That Works For YOU
Trading is Hard;
The Key is Developing a Strategy That Works For YOU
Trading successfully is not easy – in fact, it is VERY hard!
No software can not take someone who knows nothing and turn them into a SUPER SUCCESSFUL, ULTRA PROFITABLE trader.
Trading using the very basics can do the wonders.
If you are desperate to make money and need to make it fast, please look elsewhere.
If, on the other hand, you are looking for a powerful tool that can provide you with an edge over many other traders, then you have found what you are looking for.
Having strong basics, does not mean that you don’t have to think and continue to educate yourself about the markets, money management, and strategy development.
In fact, some people will use the basics the wrong way, lose money in the markets and blame the tool.
The tool is not to blame as there is much more to trading successfully like
1) Maintaining control over your emotions (i.e. fear and greed) so you can make rational trading decisions,
2) sound money management, and
3)common sense.
These are necessary ingredients to success as a trader.
-----------------------------------------
WHAT IS THE SUMMARY?
Use Demand and Supply as the basic tool for trading.
Test your strategy-PAPER TRADE. Perfect your plan.
Dont buy too many positions or dont buy just one position
use money management= use position sizing,use risk control with stoplosses
For example
A person started buying Put options. He got just one day more to expiry.The main index Nifty was moving up. PUT price was falling. He went on buying more puts at lower and lower prices. His limited capital got finished. puts are still falling.
Analyse now
Buy puts is correct when market begins moving down.Otherwise it is wrong.
Just one day to expiry-risk is high no time for market to turn in your favour.
Buying too many puts is unsafe.
money management
by MM, we get max number of puts to buy as 10.
Decide your loss% say 20%,if a put is priced 20 rupees, risk is set by you at 4 rupees per put, then u got for 50 puts loss level=200.
and if your capital is 20000 rupees,max loss you set at say 10%, then you should not loose more than 2000 rupees. now number of positions one can buy is 2000/200=10
Having bought puts he must try to limit loss by selling them at profit.
when he saw put price is going on falling and Nifty INDEX is going on rising, he must stop BUYING PUTS at some point and start doing right things
Right things are
sell puts with minimum loss or slight profit
start buying calls as market is rising.LIMIT NUMBER OF CONTRACTS TO 10,
Since expiry is just one day away,try to settle things fast.
The Key is Developing a Strategy That Works For YOU
Trading successfully is not easy – in fact, it is VERY hard!
No software can not take someone who knows nothing and turn them into a SUPER SUCCESSFUL, ULTRA PROFITABLE trader.
Trading using the very basics can do the wonders.
If you are desperate to make money and need to make it fast, please look elsewhere.
If, on the other hand, you are looking for a powerful tool that can provide you with an edge over many other traders, then you have found what you are looking for.
Having strong basics, does not mean that you don’t have to think and continue to educate yourself about the markets, money management, and strategy development.
In fact, some people will use the basics the wrong way, lose money in the markets and blame the tool.
The tool is not to blame as there is much more to trading successfully like
1) Maintaining control over your emotions (i.e. fear and greed) so you can make rational trading decisions,
2) sound money management, and
3)common sense.
These are necessary ingredients to success as a trader.
-----------------------------------------
WHAT IS THE SUMMARY?
Use Demand and Supply as the basic tool for trading.
Test your strategy-PAPER TRADE. Perfect your plan.
Dont buy too many positions or dont buy just one position
use money management= use position sizing,use risk control with stoplosses
For example
A person started buying Put options. He got just one day more to expiry.The main index Nifty was moving up. PUT price was falling. He went on buying more puts at lower and lower prices. His limited capital got finished. puts are still falling.
Analyse now
Buy puts is correct when market begins moving down.Otherwise it is wrong.
Just one day to expiry-risk is high no time for market to turn in your favour.
Buying too many puts is unsafe.
money management
by MM, we get max number of puts to buy as 10.
Decide your loss% say 20%,if a put is priced 20 rupees, risk is set by you at 4 rupees per put, then u got for 50 puts loss level=200.
and if your capital is 20000 rupees,max loss you set at say 10%, then you should not loose more than 2000 rupees. now number of positions one can buy is 2000/200=10
Having bought puts he must try to limit loss by selling them at profit.
when he saw put price is going on falling and Nifty INDEX is going on rising, he must stop BUYING PUTS at some point and start doing right things
Right things are
sell puts with minimum loss or slight profit
start buying calls as market is rising.LIMIT NUMBER OF CONTRACTS TO 10,
Since expiry is just one day away,try to settle things fast.
Sunday, December 23, 2007
Make 4k per day -trade nifty options-strategy
Gentlemen,
Following is an idea.
it works for me.
-----------------------------------------------------------------
Nifty shot up 50 points and my trading profit is 500 rupees only
Why so low?
Because
YOU NEVER TRADED NIFTY ITSELF.
YOU did not know where to begin
you did not have dynamic support and resistance chart readily available to you.
you did not have enough money
you did not know that call or put which haS MAXIMUM TRADING RANGE AND VOLUME
SOLUTION
Trade nifty options
or nifty futures with more risk
Data needed
LIVE Nifty index movements chart
option call or put with highest number of contracts traded price data
support and resistance chart for nifty and
SUPPORT RESISTANCE FOR option traded
broker with lowest brokerage,like reliancemoney,option brokerage rupees 1 per option
PROBLEMoption PRICE chart not available
NIFTY CHART WITH DYNAMIC SUPP RESISTANCE IS NOT AVAILABLE
---------------------------
How chart should look?
like this below one
http://www.ensignsoftware.com/help/dyo.htm
see dynamic support and resistance chart
this gives a pivot too
shows 60min low and 60min high lines
resistance 1 = R1 is shown
market making new highs=demand increasing = START BUYING
market making new lows=supply increasing=START SELLING
is there a safe zone to buy and sell?
yes
from dark red line to light green line ON CHART =1201 buy 1203 sell, 1203 sell 1201 buy
------------------------------
1 ,max trade contract call option 6000 strike IF UP or nifty put option 5800 strike IF DowN
2.range say 300 to 340 =OF OPTION PRICE
-----------------------------
strategy
in uptrend example shown
use this chart, only after a channel is setup up or down
http://www.financial-spread-betting.com/Money-management.html
--------------------------
idea
is make 4k a day(12 days IN A MONTH, losses if any 8days)
1 Decide safe number of contracts to buy- 3,3,3 or 4,4,4
2 Profit and risk level set by first hour range =say 25% of range(7 rupees if range is 30)
3.Emergency precations to be taken if mkt crashes
WHAT EXCEPTIONS?
NIFTY OPTIONS TRADING NUMBER IS MAX 40000 CONTRACTS A DAY.
Following is an idea.
it works for me.
-----------------------------------------------------------------
Nifty shot up 50 points and my trading profit is 500 rupees only
Why so low?
Because
YOU NEVER TRADED NIFTY ITSELF.
YOU did not know where to begin
you did not have dynamic support and resistance chart readily available to you.
you did not have enough money
you did not know that call or put which haS MAXIMUM TRADING RANGE AND VOLUME
SOLUTION
Trade nifty options
or nifty futures with more risk
Data needed
LIVE Nifty index movements chart
option call or put with highest number of contracts traded price data
support and resistance chart for nifty and
SUPPORT RESISTANCE FOR option traded
broker with lowest brokerage,like reliancemoney,option brokerage rupees 1 per option
PROBLEMoption PRICE chart not available
NIFTY CHART WITH DYNAMIC SUPP RESISTANCE IS NOT AVAILABLE
---------------------------
How chart should look?
like this below one
http://www.ensignsoftware.com/help/dyo.htm
see dynamic support and resistance chart
this gives a pivot too
shows 60min low and 60min high lines
resistance 1 = R1 is shown
market making new highs=demand increasing = START BUYING
market making new lows=supply increasing=START SELLING
is there a safe zone to buy and sell?
yes
from dark red line to light green line ON CHART =1201 buy 1203 sell, 1203 sell 1201 buy
------------------------------
1 ,max trade contract call option 6000 strike IF UP or nifty put option 5800 strike IF DowN
2.range say 300 to 340 =OF OPTION PRICE
-----------------------------
strategy
in uptrend example shown
use this chart, only after a channel is setup up or down
http://www.financial-spread-betting.com/Money-management.html
--------------------------
idea
is make 4k a day(12 days IN A MONTH, losses if any 8days)
1 Decide safe number of contracts to buy- 3,3,3 or 4,4,4
2 Profit and risk level set by first hour range =say 25% of range(7 rupees if range is 30)
3.Emergency precations to be taken if mkt crashes
WHAT EXCEPTIONS?
NIFTY OPTIONS TRADING NUMBER IS MAX 40000 CONTRACTS A DAY.
Saturday, December 22, 2007
Day trading
Please see
http://stockhunter-dt.blogspot.com/
If you want to daytrade, you can but it is a danger game
For learning purpose see the great charts here
1. see time frame
2.be alert and fast
3.use stop or traling stop
click on charts to enlarge them
http://howidaytrade.blogspot.com/
http://stockhunter-dt.blogspot.com/
If you want to daytrade, you can but it is a danger game
For learning purpose see the great charts here
1. see time frame
2.be alert and fast
3.use stop or traling stop
click on charts to enlarge them
http://howidaytrade.blogspot.com/
trading support-resistance-TONIHANSEN style
Gents,
Learn it from the big coach herself
http://www.tonihansen.com/blog/2007/12/utilizing-support-and-resistance-levels.html
She says,
Learn it from the big coach herself
http://www.tonihansen.com/blog/2007/12/utilizing-support-and-resistance-levels.html
She says,
Simply put, support and resistance levels are places in the market when the current trend or price move that is in play in the market will either turn or stall. The traits of support and resistance levels apply to all type of markets and time frames, so the concepts will figure into any market you trade.
TRADE SUPPORT= TRADE MARUBOZU
GENTS,
SEE LINK
a BLOG BY jONATHAN
http://www.atradeaday.com/2007/10/04/trading-the-marubozu/
sEE WHAT HE SAYS
------------------------------------------------------
In order to understand why this is significant,
you need to remember that the stock market works on supply and demand.
A Marubozu has just demonstrated a enormous jolt of demand.
Now as the stock consolidates, we look for a setup above the consolidation. Demand has become apparent through the appearance of the marubozu. Now it’s just a matter of a continuation of this demand
The second way in which I use a marubozu is when they occur two or more days in a row. Marubozus are rare. If you see true marubozus two or more days in a row, you are doing well. However, the pattern I’m describing typically consists of an opening or closing marubozu and then more long candles with very small shadows.
The setup here is based off extremes. The stock moves two or more days down with a marubozu and other “marubozu like” candles. My setup occurs when the trend changes abruptly. The most desired setup is for a marubozu in the opposite direction. The higher the opening, the better.
The logic behind this is we’ve had an extreme move in one direction and then a sudden reverse in the other direction. If the stock was moving down and the reverses up, I can trap the sellers. If the stock was moving up and reverses down, I trap the buyers.
What’s important to keep in mind when looking at this pattern is the psychology.
----------------------------------------------------
VISIT EXCELLENT BASIC CHARTS IN
http://www.tonihansen.com/blog/
LEARN FROM TONIHANSEN VIDEO
http://www.tonihansen.com/marketactionvideo/
SEE LINK
a BLOG BY jONATHAN
http://www.atradeaday.com/2007/10/04/trading-the-marubozu/
sEE WHAT HE SAYS
------------------------------------------------------
In order to understand why this is significant,
you need to remember that the stock market works on supply and demand.
A Marubozu has just demonstrated a enormous jolt of demand.
Now as the stock consolidates, we look for a setup above the consolidation. Demand has become apparent through the appearance of the marubozu. Now it’s just a matter of a continuation of this demand
The second way in which I use a marubozu is when they occur two or more days in a row. Marubozus are rare. If you see true marubozus two or more days in a row, you are doing well. However, the pattern I’m describing typically consists of an opening or closing marubozu and then more long candles with very small shadows.
The setup here is based off extremes. The stock moves two or more days down with a marubozu and other “marubozu like” candles. My setup occurs when the trend changes abruptly. The most desired setup is for a marubozu in the opposite direction. The higher the opening, the better.
The logic behind this is we’ve had an extreme move in one direction and then a sudden reverse in the other direction. If the stock was moving down and the reverses up, I can trap the sellers. If the stock was moving up and reverses down, I trap the buyers.
What’s important to keep in mind when looking at this pattern is the psychology.
----------------------------------------------------
VISIT EXCELLENT BASIC CHARTS IN
http://www.tonihansen.com/blog/
LEARN FROM TONIHANSEN VIDEO
http://www.tonihansen.com/marketactionvideo/
TRENDLINE AND ITS VALIDITY
gENTS,
pLEASE LEARN FROM OTHER BLOGGERS
http://www.atradeaday.com/2007/11/06/how-i-trade-support-and-resistance/
Validity of trendlines-(in other words dynamic support lines)
http://blog.afraidtotrade.com/assessing-the-validity-of-trendlines/
There are three simple ‘tests’ one can run to assess the significance or validity of an approaching or drawn trendline:
1) Number of Times Touched MORE TIMES,BETTER
2) Angle of the Trendline LOWER THAN 45DEGREES,THE BETTER
3) Length (timeframe) of Trendline LONGER THE BETTER
(Trendlines that develop on a weekly chart are far more significant (likely to hold) than those that develop on a one-minute chart)
Also see how you can use hammer as a guideline at link
see the chart
http://www.atradeaday.com/2007/10/11/how-to-trade-hammers/
Another way of trading support zones
http://www.atradeaday.com/2007/12/12/trading-bases/
Learn from charts
find support from previous lows and trade them
http://www.atradeaday.com/2007/12/18/top-5-trading-ideas-for-1218/
pLEASE LEARN FROM OTHER BLOGGERS
http://www.atradeaday.com/2007/11/06/how-i-trade-support-and-resistance/
Validity of trendlines-(in other words dynamic support lines)
http://blog.afraidtotrade.com/assessing-the-validity-of-trendlines/
There are three simple ‘tests’ one can run to assess the significance or validity of an approaching or drawn trendline:
1) Number of Times Touched MORE TIMES,BETTER
2) Angle of the Trendline LOWER THAN 45DEGREES,THE BETTER
3) Length (timeframe) of Trendline LONGER THE BETTER
(Trendlines that develop on a weekly chart are far more significant (likely to hold) than those that develop on a one-minute chart)
Also see how you can use hammer as a guideline at link
see the chart
http://www.atradeaday.com/2007/10/11/how-to-trade-hammers/
Another way of trading support zones
http://www.atradeaday.com/2007/12/12/trading-bases/
Learn from charts
find support from previous lows and trade them
http://www.atradeaday.com/2007/12/18/top-5-trading-ideas-for-1218/
Friday, December 21, 2007
Query: I hold ICICIBANK shares, I want to sell,when should I SELL?
-------------------------------------------
Gentlemen,
Often I hear people saying things like
I bought icicibank shares at 1350 rupees a share.Now the price is at 1150.i want to sell but I cannt.What should I do?
--------------------------------------------
Let me answer this question in detail.
1.The person bought it at a relatively high price.
How can I say this?
see the chart below
http://finance.yahoo.com/q/bc?s=ICICIBANK.NS&t=3m&l=on&z=l&q=c&c=
The price was moving the zone 975 to 1350(trading range) in the past 3 months.
Our friend chose to buy the stock at top of the trading range at 1350.
---------------------------------
2.Now he has two options.
First thing sell at buying price
second thing DO SOMETHING ELSE AND GET PROFIT ON HIS INVESTMENT
---------------------------------
Either
HE CAN wait for price to reach top of trading range at 1350 and sell it at his buying price of 1350, and get out with loss of brokerage. If his broker is ICICIDIRECT, then he ends up paying brokerage of 27 rupees per share for buying plus selling. If he bought and sold 100 shares his loss would run into 2700 rupees.
This option is not obviously wise thing to do.
Second option.
Since you came to my blog learn something good here.
1. First check if your stock is a good one-means not a stock that goes down to 5 rupees level from 1100?
2.Once you checked previous chart, found your stock is a good one and it trades in a range and confirmed it does not go below a range, then note the support and resistance levels.
nOw my friend wakes up and asks
what is support?
SUPPORT SIMPLY THE LOWEST PRICE AFTER HITTING WHICH PRICE OBNLY MOVES UP,NEVER DOWNWARDS.
3.ONCE YOU MADE THE BUYING AT HIGHEST PRICE,YOU HAVE NO RIGHT TO RELAX BECAUSE YOUR FUNDS ARE STAKE.
sO EVERY TIME PRICE HITS THE LOWER LEVEL, AT SUPPORT BUY SOME SHARES depending on how much you can spare.
Now calculate your average buying price.
you bought 100 shares at 1350, you bought 30 shares at 980, your average buy price is now 1265.60(excludes brokerage) for 130 shares.
Now if the price goes to 1350, you can sell all 130 shares at 1350, make profit of 11050/-.
That is it,
if you can more money, buy more shares at support zone and average down your buying price and exit loss making price zone.
Suppose you bought 100 shares at 980 instead of 30 shares then your buying price goes to 1165. Your profit by 37000 rupees when sold at 1350(why 1350? because a good stock always goes back up to top of its trading range)
=================================================
LESSON
RULE NO-1 BUY HIGH QUALITY STOCKS
RULE NO-2 NEVER SELL FOR LOSS, AND NEVER HURRY
RULE NO-3 AVERAGE DOWN YOUR BUYING PRICE(APPLIES ONLY TO GOOD STOCKS)
RULE NO-4 ALWAYS BUY AT SUPPORT LEVEL
=================================================
PS if you liked this article, please let me know your appreciation by mail at
ramesh151@gmail.com
Happy trading!!!
Gentlemen,
Often I hear people saying things like
I bought icicibank shares at 1350 rupees a share.Now the price is at 1150.i want to sell but I cannt.What should I do?
--------------------------------------------
Let me answer this question in detail.
1.The person bought it at a relatively high price.
How can I say this?
see the chart below
http://finance.yahoo.com/q/bc?s=ICICIBANK.NS&t=3m&l=on&z=l&q=c&c=
The price was moving the zone 975 to 1350(trading range) in the past 3 months.
Our friend chose to buy the stock at top of the trading range at 1350.
---------------------------------
2.Now he has two options.
First thing sell at buying price
second thing DO SOMETHING ELSE AND GET PROFIT ON HIS INVESTMENT
---------------------------------
Either
HE CAN wait for price to reach top of trading range at 1350 and sell it at his buying price of 1350, and get out with loss of brokerage. If his broker is ICICIDIRECT, then he ends up paying brokerage of 27 rupees per share for buying plus selling. If he bought and sold 100 shares his loss would run into 2700 rupees.
This option is not obviously wise thing to do.
Second option.
Since you came to my blog learn something good here.
1. First check if your stock is a good one-means not a stock that goes down to 5 rupees level from 1100?
2.Once you checked previous chart, found your stock is a good one and it trades in a range and confirmed it does not go below a range, then note the support and resistance levels.
nOw my friend wakes up and asks
what is support?
SUPPORT SIMPLY THE LOWEST PRICE AFTER HITTING WHICH PRICE OBNLY MOVES UP,NEVER DOWNWARDS.
3.ONCE YOU MADE THE BUYING AT HIGHEST PRICE,YOU HAVE NO RIGHT TO RELAX BECAUSE YOUR FUNDS ARE STAKE.
sO EVERY TIME PRICE HITS THE LOWER LEVEL, AT SUPPORT BUY SOME SHARES depending on how much you can spare.
Now calculate your average buying price.
you bought 100 shares at 1350, you bought 30 shares at 980, your average buy price is now 1265.60(excludes brokerage) for 130 shares.
Now if the price goes to 1350, you can sell all 130 shares at 1350, make profit of 11050/-.
That is it,
if you can more money, buy more shares at support zone and average down your buying price and exit loss making price zone.
Suppose you bought 100 shares at 980 instead of 30 shares then your buying price goes to 1165. Your profit by 37000 rupees when sold at 1350(why 1350? because a good stock always goes back up to top of its trading range)
=================================================
LESSON
RULE NO-1 BUY HIGH QUALITY STOCKS
RULE NO-2 NEVER SELL FOR LOSS, AND NEVER HURRY
RULE NO-3 AVERAGE DOWN YOUR BUYING PRICE(APPLIES ONLY TO GOOD STOCKS)
RULE NO-4 ALWAYS BUY AT SUPPORT LEVEL
=================================================
PS if you liked this article, please let me know your appreciation by mail at
ramesh151@gmail.com
Happy trading!!!
How do you find best time frame to trade? clues here
----------------------------------------------
Gents,
Often you hear select the time frame that suits your trading style.
This is pretty vague.
Now let us get specific.
1. Fix your plan.say
you want to day trade,
you want to trade 5 min time frame,
your entry,exit,stoploss rules are set,
then
your maximum risk and position size is to be fixed first
Say you plan to trade with total capital of 2 lakhs rupees,
Select 5% of capital as position size, ie just use 10000 rupees for each trade you take=This is position sizing
Maximum risk= say fix at 5% to begin, 2% is safest but difficult to use till you become perfect with practice.
5% max loss means 500 rupees loss per trade
2.part 2
Now take a chart in past in 5 minutes time frame
check for 20 entries and exits as per your plan, what is max loss you might have made if you traded?
Say the result shows 700 rupees is max loss you may incur,
This means the 5 minute time frame you selected does not fit your risk profile.
Now select 10 minute time frame
take chart
apply your testing
now if you find the maximum risk is 400 rupees, then this is your time frame
this fits your plan
test it again
Do paper trading for a week
NOTE DOWN YOUR RESULTS
If things match your requirements, then use it.
------------------------------------------------
Refer
http://getresponse.com/t/10046458/602819/184507769/
(www.TopDogTrading.com)
-------------------------------------------------
Tip
Using a trading plan and time frame that is not tested,re tested, not tested by paper trading,not confirmed by test-investigation, is like jumping in a deep well without knowing its depth, and without knowing if there are rocks or water in it.
----------------------------------------------------
PS; If you like it,appreciate it, pleaselet me know at
ramesh151@gmail.com
Gents,
Often you hear select the time frame that suits your trading style.
This is pretty vague.
Now let us get specific.
1. Fix your plan.say
you want to day trade,
you want to trade 5 min time frame,
your entry,exit,stoploss rules are set,
then
your maximum risk and position size is to be fixed first
Say you plan to trade with total capital of 2 lakhs rupees,
Select 5% of capital as position size, ie just use 10000 rupees for each trade you take=This is position sizing
Maximum risk= say fix at 5% to begin, 2% is safest but difficult to use till you become perfect with practice.
5% max loss means 500 rupees loss per trade
2.part 2
Now take a chart in past in 5 minutes time frame
check for 20 entries and exits as per your plan, what is max loss you might have made if you traded?
Say the result shows 700 rupees is max loss you may incur,
This means the 5 minute time frame you selected does not fit your risk profile.
Now select 10 minute time frame
take chart
apply your testing
now if you find the maximum risk is 400 rupees, then this is your time frame
this fits your plan
test it again
Do paper trading for a week
NOTE DOWN YOUR RESULTS
If things match your requirements, then use it.
------------------------------------------------
Refer
http://getresponse.com/t/10046458/602819/184507769/
(www.TopDogTrading.com)
-------------------------------------------------
Tip
Using a trading plan and time frame that is not tested,re tested, not tested by paper trading,not confirmed by test-investigation, is like jumping in a deep well without knowing its depth, and without knowing if there are rocks or water in it.
----------------------------------------------------
PS; If you like it,appreciate it, pleaselet me know at
ramesh151@gmail.com
How to trade breakouts? watch video-learn fast
Gents,
Please watch this wonderful video BY BARRY BURNS, TOPDOGTRADING.COM
-----------------------------------
https://www.freeiq.com/howtobuybreakouts
or
try link
http://getresponse.com/t/10046458/602819/184507769/
(www.TopDogTrading.com)
----------------------------------------------
Summary
Point is stay away from herds.
1.watch the live chart 2. identify the trading range,top line and bottom line
3.Never buy above the top line of trading range=this is what herd does.
4.Buy the LOW ,at the bottom line of trading range-because this is established support area
REMEMBER MY BASIC RULE
BUY AT SUPPORT AFTER CONFIRMING IT IS REALLY THE SUPPORT.
5.Having bought at lower line of trading range, when price moves up, sell half your position at top line of trading range. then keep a trailing stop below the topline of trading range.
6.Now watch for real breakout to happen or a fake breakout to fizzle out and vanish.
If real breakout happens and price moves above the top of trading range high, take profits by moving up your trailing stop. if breakout fails,escape at top of trading range by using stoploss.
Either way you wont loose.
And that is what matters.
----------------------------------------------
PART B TRADING SYMMETRICAL TRIANGLES
In a symm triangle formation, the top line slopes down, and bottom line slopes upwards.
Try buying at bottomline after support is confirmed.
Buying above the top line after price breaks out is for the masses.not for you.
sell half at topline of trading range.
keep trailing stoploss
wait for breakout or fading of breakout
if breakout occurs move up stoploss and make money
if breakout fails, escape with gains
Either way, you dont loose
and THAT IS WHAT MATTERS.
----------------------------------------------------
Trading basic Rule: a)IDENTIFY TRADING RANGE,AND b)THEN BUY AT SUPPORT AREA. c)NEVER buy AT RESISTANCE AREA which is top of trading range.---------------------------------------------------
Request
If you saw this ,liked this, let me know your appreciation by mail at
ramesh151@gmail.com
Tip: Smart traders learn from experts, and use always trading basics to succeed.
Please watch this wonderful video BY BARRY BURNS, TOPDOGTRADING.COM
-----------------------------------
https://www.freeiq.com/howtobuybreakouts
or
try link
http://getresponse.com/t/10046458/602819/184507769/
(www.TopDogTrading.com)
----------------------------------------------
Summary
Point is stay away from herds.
1.watch the live chart 2. identify the trading range,top line and bottom line
3.Never buy above the top line of trading range=this is what herd does.
4.Buy the LOW ,at the bottom line of trading range-because this is established support area
REMEMBER MY BASIC RULE
BUY AT SUPPORT AFTER CONFIRMING IT IS REALLY THE SUPPORT.
5.Having bought at lower line of trading range, when price moves up, sell half your position at top line of trading range. then keep a trailing stop below the topline of trading range.
6.Now watch for real breakout to happen or a fake breakout to fizzle out and vanish.
If real breakout happens and price moves above the top of trading range high, take profits by moving up your trailing stop. if breakout fails,escape at top of trading range by using stoploss.
Either way you wont loose.
And that is what matters.
----------------------------------------------
PART B TRADING SYMMETRICAL TRIANGLES
In a symm triangle formation, the top line slopes down, and bottom line slopes upwards.
Try buying at bottomline after support is confirmed.
Buying above the top line after price breaks out is for the masses.not for you.
sell half at topline of trading range.
keep trailing stoploss
wait for breakout or fading of breakout
if breakout occurs move up stoploss and make money
if breakout fails, escape with gains
Either way, you dont loose
and THAT IS WHAT MATTERS.
----------------------------------------------------
Trading basic Rule: a)IDENTIFY TRADING RANGE,AND b)THEN BUY AT SUPPORT AREA. c)NEVER buy AT RESISTANCE AREA which is top of trading range.---------------------------------------------------
Request
If you saw this ,liked this, let me know your appreciation by mail at
ramesh151@gmail.com
Tip: Smart traders learn from experts, and use always trading basics to succeed.
WATCH my favourite song VEYILUMILLAI
http://www.dailymotion.com/relevance/search/URCHAGAM/video/x30znf_tamilpeekcom-urchagam-part-2_news
the song comes after 7 minutes
see the beauty of SHERIN,
HEAR the Lovely music OF RANJIT BAROT
and the pleasant romantic voice of Kunalganjawala singer
Song is
veyilumillai madayumillai
viligal kanden vaanavillai
means
there is no sunshine, no rain, but I saw rainbow in the eyes of my beloved girlfriend!!!!!!!!!!
the song comes after 7 minutes
see the beauty of SHERIN,
HEAR the Lovely music OF RANJIT BAROT
and the pleasant romantic voice of Kunalganjawala singer
Song is
veyilumillai madayumillai
viligal kanden vaanavillai
means
there is no sunshine, no rain, but I saw rainbow in the eyes of my beloved girlfriend!!!!!!!!!!
Look at supply and demand, then trade after gauging
Gentlemen,
Guess why the price moves up?
Because more demand for the stock has come in
Guess why the price drops down?
Because more supply has come into the market.
SUPPLY=RESISTANCE =PRICE CANNT MOVE UP
DEMAND=SUPPORT= PRICE CANNOT DROP
How do you confirm more supply is coming in?
look at price candles. They cannot move upwards. count them.
more of them cant move up, resistance is confirmed.
How do you confirm more demand is coming into the market?
Look at the price candles. THEY CANNT MOVE DOWN BELOW A PRICE ZONE.
That zone is support zone.
Count the candles that stay above the zone,more candles more strong is support.
Buy above support zone. keep stoploss below support zone.
sell close to resistance level,if you are planning to.
------------------------------------------------------
Read this
http://www.tradingacademy.com/lessons/lessons20071026.shtm
http://www.tradingacademy.com/lessons/lessons20070913.shtm
The Objective Filter for any Indicator or Oscillator: Supply and Demand
http://www.tradingacademy.com/lessons/lessons20071130.shtm
Guess why the price moves up?
Because more demand for the stock has come in
Guess why the price drops down?
Because more supply has come into the market.
SUPPLY=RESISTANCE =PRICE CANNT MOVE UP
DEMAND=SUPPORT= PRICE CANNOT DROP
How do you confirm more supply is coming in?
look at price candles. They cannot move upwards. count them.
more of them cant move up, resistance is confirmed.
How do you confirm more demand is coming into the market?
Look at the price candles. THEY CANNT MOVE DOWN BELOW A PRICE ZONE.
That zone is support zone.
Count the candles that stay above the zone,more candles more strong is support.
Buy above support zone. keep stoploss below support zone.
sell close to resistance level,if you are planning to.
------------------------------------------------------
Read this
http://www.tradingacademy.com/lessons/lessons20071026.shtm
http://www.tradingacademy.com/lessons/lessons20070913.shtm
The Objective Filter for any Indicator or Oscillator: Supply and Demand
http://www.tradingacademy.com/lessons/lessons20071130.shtm
Learn how to trade stocks using basics
----------------------------------------------------------
Gentlemen,
The first and foremost thing you need before you trade is
HOW TO IDENTIFY SUPPORT AND RESISTANCE ON LIVE CHARTS.
You really dont need indicators.
1. know where the support and resistance levels are
2.know how to draw trend lines
3.know if a support level isbroken by price, it becomes resistance level
4.know that if a resistance level is broken it becomes a support level.
5.market has to prove that a particular price level is support or resistance
6.dont trade until yiou are sure that market has agreed to respect a price as support or resistance level
-----------------------------------------------------
To begin with just read this link and see the two charts given
http://www.tradershelpingtraders.net/
Remember
support and resistance is not a single price, it may be probably a zone a band of price.
http://www.atradeaday.com/2007/11/06/how-i-trade-support-and-resistance/
-----------------------------------------------------------
http://www.investopedia.com/articles/technical/02/061802.asp
http://www.swing-trade-stocks.com/support-and-resistance.html
http://ezinearticles.com/?Technical-Analysis---Using-Support-and-Resistance-Correctly&id=550338
-----------------------------------------------------------
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:support_and_resistance
http://www.investmentu.com/tradersu/2006/20060518.html
http://www.howtotradestocks.com/index.php?id=resis_supp
----------------------------------------------------------
http://www.istockanalyst.com/article/viewarticle.aspx?articleid=963798
I trade with three fundamental attributes of support and resistance:
1. For me, support and resistance are zones, not finite numbers. The greater the timeframe, the more this attribute applies. I am looking at daily charts and longer, I draw the support and resistance zone as 1/4 ATR beyond the level of support. I expect that price will begin to change direction in this area. Combined with moving averages and certain patterns, like the hammer, this has worked well.
2. Support/resistance is validated by the number of times the zone is touched. Corey at afraid to trade used this “number of times touched method” as one measure to assess the validity of trend lines. I share his conclusions. When I observe price bounce off a zone of support and resistance multiple times, I know that zone is strong. It’s my interpretation that the higher the time frame (days, weeks, months…), the more powerful the zone has become.
3. Don’t forget pivots when trading intraday. Perhaps using pivots deserve their own article.
Pivots are areas of support and resistance calculated from the previous day’s high, low, open, and close. The true value in the pivot numbers is that they are widely followed. The whole concept of support and resistance is that support and resistance holds because so many traders buy or sell when price hits a certain number. This is exactly why pivots are useful from an intraday perspective. Pivot points are generally calculated the same way. So when you look at a widely traded contract like the emini S&P, price will bounce, consolidate, and break around pivot points.for intraday trading use pivot point calculator.
http://www.tradingwhatisee.com/2006/10/18/support-and-resistance-fibonacci-or-both/
see how fibonacci helps
Gentlemen,
The first and foremost thing you need before you trade is
HOW TO IDENTIFY SUPPORT AND RESISTANCE ON LIVE CHARTS.
You really dont need indicators.
1. know where the support and resistance levels are
2.know how to draw trend lines
3.know if a support level isbroken by price, it becomes resistance level
4.know that if a resistance level is broken it becomes a support level.
5.market has to prove that a particular price level is support or resistance
6.dont trade until yiou are sure that market has agreed to respect a price as support or resistance level
-----------------------------------------------------
To begin with just read this link and see the two charts given
http://www.tradershelpingtraders.net/
Remember
support and resistance is not a single price, it may be probably a zone a band of price.
http://www.atradeaday.com/2007/11/06/how-i-trade-support-and-resistance/
-----------------------------------------------------------
http://www.investopedia.com/articles/technical/02/061802.asp
http://www.swing-trade-stocks.com/support-and-resistance.html
http://ezinearticles.com/?Technical-Analysis---Using-Support-and-Resistance-Correctly&id=550338
-----------------------------------------------------------
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:support_and_resistance
http://www.investmentu.com/tradersu/2006/20060518.html
http://www.howtotradestocks.com/index.php?id=resis_supp
----------------------------------------------------------
http://www.istockanalyst.com/article/viewarticle.aspx?articleid=963798
I trade with three fundamental attributes of support and resistance:
1. For me, support and resistance are zones, not finite numbers. The greater the timeframe, the more this attribute applies. I am looking at daily charts and longer, I draw the support and resistance zone as 1/4 ATR beyond the level of support. I expect that price will begin to change direction in this area. Combined with moving averages and certain patterns, like the hammer, this has worked well.
2. Support/resistance is validated by the number of times the zone is touched. Corey at afraid to trade used this “number of times touched method” as one measure to assess the validity of trend lines. I share his conclusions. When I observe price bounce off a zone of support and resistance multiple times, I know that zone is strong. It’s my interpretation that the higher the time frame (days, weeks, months…), the more powerful the zone has become.
3. Don’t forget pivots when trading intraday. Perhaps using pivots deserve their own article.
Pivots are areas of support and resistance calculated from the previous day’s high, low, open, and close. The true value in the pivot numbers is that they are widely followed. The whole concept of support and resistance is that support and resistance holds because so many traders buy or sell when price hits a certain number. This is exactly why pivots are useful from an intraday perspective. Pivot points are generally calculated the same way. So when you look at a widely traded contract like the emini S&P, price will bounce, consolidate, and break around pivot points.for intraday trading use pivot point calculator.
http://www.tradingwhatisee.com/2006/10/18/support-and-resistance-fibonacci-or-both/
see how fibonacci helps
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