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  #11 (permalink)  
Old 15-07-2016, 11:27 PM
oilman5 oilman5 is offline
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Originally Posted by Sunshine View Post
Can someone , please publish a book like " A Guide to understand Oilman5's Obituary of a trader"

.................................................. ..................................
most of us read -DAY OF THE JACKAL.
...................a spoil talent
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Old 19-07-2016, 10:02 AM
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black Trading Basics

Owning stocks or trading on equity is one of the best ways to invest and grow your money. You can take part in the financial market by investing in stocks through online trading. Your growth of income with stocks is based on your understanding of the stock market, how they work and how to best trade in the stock market.

To yield maximum outcome from your investment in stocks, it is important that you understand the basics of stock trading. In this article, we talk about the essentials one needs to know about stocks.

The stock market, what is it?
Stock market helps investors purchase the shares of publicly-traded companies. As an investor, it is important that you decide on where to invest and how much money to invest. Stock market allows you to trade bonds, mutual funds, derivative and shares of a company.

Stocks can be bought or sold with the help of a trading and demand account and stock exchange like NSE (National Stock Exchange of India Ltd) and BSE (Bombay Stock Exchange)Sensex. This ensures that your money and shares are transferred safely. Stock exchange lists the stocks that are available for buying and selling. Note: Stock trading is not gambling, as some perceive, and it is based on sound trading strategies.For example when you have made a thoughtful investment you are entitled to some returns, unless the company completely fails to deliver. Whereas gambling is all or nothing - If you lose, you lose the entire amount you put.

How to determine the stock price?
The stock market has many investors with varied opinions about stocks. Hence, it is advised that stocks and stock market need to be understood completely by the investor before initiating an investment. Note: The rise and fall of share prices are unpredictable and depends on various factors like risk, supply, and demand, political and social factors. Prices of stocks may fall if there are more buyers than sellers for a particular stock, likewise the prices may rise if the situation is vice-versa.

How to invest in the right stock?
To analyse the rise and fall in the price of the stocks, one has to conclude based on the market activity. As an investor when you decide to buy or sell a stock, the stock's actual price and its fair price need to be compared. This gives a fair idea about the value of the stock in the near future. You can take advantage of the online trading platforms such as Alice Blue, sans brokerage charges options just for you.

Note: Investing money in the right stocks comes with a thorough understanding the stock market, the nature of the company you are investing in and analysing the progress of the stocks.
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  #13 (permalink)  
Old 19-07-2016, 11:08 AM
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Till dt only 2 approach r considered PURE for trading
1} anticipatory- all counter trend approach, Elliott
2} Reactionary- flow with the trend,use direction of MA, strength of trend
both must not be used without confirmation of PRICE
.In anticipatory, at a critical price, evidence of demand/supply - strongly pushed by impulse= new direction
In continuation,when momentum slows dn, we must give benefit of doubt to earlier trend, if and only if its broken structurally ,then only counter trend is confirmed by price, otherwise market just goes to SIDEWAYS.
there is another mixed approach ie. PULLBACK,1-2-3
But with modern era of trading, we know 2 new strategy entered the market
1] volatility cycle 2] efficiency factor
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  #14 (permalink)  
Old 19-07-2016, 11:20 AM
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while i was learning in OTA, 3 approach to get money has seen validity.
1] Earning regular income from option, by writing where Price should not expected to go.
2] Regular income from ur skill of reading momentum, so directional play in stock (1-3 days duration)
3] Playing for long haul in directional bias ,use of trend. Here u believe occasionally u will be right and more time will be wrong
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Old 19-07-2016, 12:01 PM
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Let us what i learnt at OTA
.........................................
Anticipatory swing trade- u have a bias pt , known as demand/supply where price as given strong directional move, gap = highest bias, now price when come back again there ,will that bias of old direction. They also give wt ,so some other factor to see EDGE.
This they call high probability trade, use reward/risk : 3:1- then trade mechanically.
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Old 19-07-2016, 12:09 PM
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Fortunately trading is not that simple. But those who perform better than Nifty, definitely show BIAS to move better, can be traded to make money in small time validity.
Longerterm validity only possible with Fundamental. Logical growth rate, forward looking view- valuation model , techno-funda analysis - r some of the potential tool.
Most imp aspect of tradings r RISK MANAGEMENT , as well as psychological fitment of a trader to a system. This is key difference between PRO vs novice.
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Old 19-07-2016, 12:16 PM
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Even part time trading reqd FULL time effort (8hr a day). click to trade/observation on market takes little time, but to DECIDE, whether price shall go up/dn/sideways - its probability of happening, putting the money to trade out of it, when to accept i am wrong ,- this takes lot of time, - it must be put WRITTEN.
otherwise , market emotional whirlpool time again, proven me paralytic dead deer.
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Old 19-07-2016, 12:43 PM
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so also comes 2 types of trading -discretionary and mechanical
.................................................. ......................................
both have some plus pt, mix up dont work. to learn discretionary takes more than 12yr ,i think. where as i know mechanical r better within 5yr. In discretionary - it spend lot of time, to understand its bull, its bear, its sideways, its changing, - 2 cycle after - u r supposed to understand -what is going on NOW. Since mechanical do backtest , put condition with objectivity ,so they learn quickly, - they use filter for NOT understanding, naturally far better they work in short term,occasionally at transition they r wrong. Theit MM /Risk management r better, only add on winner ,- its little difficult.
..........................................
but if u like to be trader ,u have to see fitment. Its a big lie ,-trading can be learnt easily. FACT is u must have some key character inbuilt in u to be a trader.
EFFORT, INTEGRITY, MIND TO SEARCH, GOING IN DETAIL, PASSION, MENTAL BALANCE, LIVE LIKE STOIC, VISUALIZATION TECHNIQUE, BASIC SOFTWARE KNOWLEDGE, ECONOMICS.
u reqd - a plan/goal/milestone concept /written habit.
tremendous confidence on SELF,yet adaptability to book loss when price tells U R WRONG.
Scanner to find Trade opportunity, Mechanically execute them, a place to decide, - a habitual practice to feel STRESS-FREE.
an attitude to take RISK but within comfort level, a proven timeframe to trade(use tremendous discipline to stick to it)
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Old 19-07-2016, 02:09 PM
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Some of the basic i try to clarify
.............................................
Most imp mistake ,novice ( 12 year attempt as parttime & first 3yr of fulltime trader) does- not understanding Stop loss hit, ie. losing money is a part of of survival guideline.
U must not take trade with low probability event, yet on reality even with best effort ,many will trade will run into loss. But u can avoid BIG loss.
Logically to understand U, is another imp part of journey of a trader.
To trade smaller time frame , to choose higher duration is an ART, u will choose optimum only after lots of R&D.
To choose Indraday- do u have the capability & software to convert it? Basic idea = volatility,volume driven , greed or fear measurement , -ya if u can do this
OBJECTIVELY then only trade intraday. OTHERWISE NO.
I do intraday Right , so i shifting to higher duration holding,- recently a BIG KICK OUT by market, gap up against me 8350- 8500 , -150 per pt on 50 lot. (a loss of 4.5 lakh)
Theoretical aspect = i am slow nowadays ( slow to react) - decision making must be checked DAILY, alternate chain of sequence = Consequence , MARKET/WAR HAS NO PLACE FOR FEVER/EXCUSE .
for SHORT TERM COUNTER TREND, PRICE MUST BE STUDIED SUPREMELY WELL, not casual ,whatever may happen its only some lakh loss.
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  #20 (permalink)  
Old 19-07-2016, 03:07 PM
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Any style trading is SET UP specific. I am not specialist, so i dont know particular company,nor i have inside info. So my tool must be PARTICULAR VOLUME, WHICH makes a stock to move.
Ofcourse- some fundamental nature info- which makes price to move. Have u seen recently Cairn move on claim on Govt of India on some tax refund? - immediate greed driven 15% jump.
So there is some SWING SET UP, some break out set up, some continuation set up. PL clearly learn to play them. Pull back /retracement - has similarity with Swing + continuation factor.
Similarly some structure r repeatative for Intraday.
Also there r some DAY -DEFINED Structure, specific for nifty.Also some defined valid pivot on longterm chart.
Yes this much is reality of trading, not the melodrama of TA preacher tells in idiot box
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