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  #21 (permalink)  
Old 30-03-2010, 11:13 AM
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Few things to be considered before we plunge in Trading World:=

Make an exploration in Metstock with following Formula,when today's close is Greater than yesterday's close,suppose we want to find out in our data base how many such occurence happened in past then we write : cum(if(c > ref(c,-1),1,0));and for today's close less than yesterday's close we write : cum(if(c < ref(c,-1),1,0)); to find out the total data base we write cum(1);

With this you will find in a database of say 800 hundred and above days it is 51: 49.
Bah !! then how do i trade ??? if it is almost 50:50 .Another thing how does then Price came up so much from its 800 days AGO Price ?

This people do not understand first slowly slowly people understands that it is 50:50 case and HOLD is best strategy.

So we have to first and foremost thrive for an EDGE which is ATLEAST 65:35 otherwise we are Gambling a 50:50 case.
We now enter Technical Analysis arena to get that 65:35 edge giving tool.
Here people makes 2nd biggest mistake,they see a set up or indicator or Osc in a chart and starts believing that probably this MA Envelope or BB or MA crossover or MACD or RSI or Stoch ,ON MY CHART has given 17 good trades out of 23 and i got my edge giving tool.
A simple eyeballing of a sample data (the chart on my monitor ) and arriving to a conclusion based on THAT sample Data but NOT based on a subastantial data nor this observation is validated on other instruments ,hence this observation is rubbish,this will not or may not stand over a period of time nor this can be used on other instruments.
After messing up this initial Eureka type Discoveries Disappear ,Evapoartes.
So plz first code your observation and see how many times it gave me result on a substantial past data.If it qualifies then that is ROBUST ,depend on that do not vaccilate.
Let me put forward the importance of 65:45 ATLEAST.
Say in an year i take 100 trades and my delivery brokerage is 1 % and i employ ALL of my capital in Each trade.
So i donate 100 % of my capital to broker community in 1 yr.
2nd many times my stop would be Hit and if i am putting 3 % on an average Stop then in 50:50 case i donate 150 % of my Capital to Mkt.
So uptil now i am ALREADY MINUS 250 % hence my rest 50 trades on which the stop was not hit ,i have to get ATLEAST 250% means per trade 5 % Profit just to stay in break even status.
Now with 65:35 i loose 105 % in Stop and 100 % towards brokerage so 205 % so even if i get 4 % profit on those 50 trades where stop is not hit i get 260 minus 205 so i get 55 % ANNUAL RETURN WOW !! better than bench mark.
So plz thirive to get that Edge and Plz DO NOT BOOK PROFIT in below % than what u risked.

Last edited by uasish; 30-03-2010 at 11:15 AM.
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  #22 (permalink)  
Old 01-04-2010, 06:40 PM
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The day trading recommendation which you receive from stock market technical experts perfectly helps you to do day trade without making such calculations and analysis. Various support and resistance levels of your recommended stocks are given to you in advance and your job is to simply observe the price action of your recommended stocks and take decision basing on the predetermined support and resistance levels.

To successfully use this technique

1. First you should purchase day trading recommendation with 2-3 clear support and resistance levels in highly liquid stocks, actively traded stocks and large cap stocks from stock market technical analysis. Some free tips can be taken from..... icicidirect.com , valuenotes.com

2. if the price of your recommended stock took support near support levels, or if the price is strongly moving in upward direction towards 2nd resistance levels after crossing 1st resistance level, you can consider buying that stock to exit at next resistance level after booking the profit.

IMPORTANT: - if the recommended stock is moving in between 1st and 2nd resistance level, you should consider the 1st resistance level as immediate support level, similarly if it is moving in between 2nd and 3rd resistance level, you should consider the 2nd resistance level as immediate support level. in the same way if you enter into stock at 3rd support level, you should consider the second support level as immediate resistance level or your target level and if you enter at 2nd support level, you should consider the 1st support level as your immediate resistance level or your target level.


3. you should compulsorily observe the price charts every time before taking buying decision. if the chart formation is positive as learned in previous thread, you can enter into that stock. if the chart formation is negative then you should stay away from the stock.

4. Do check via line chart the reversal formations at tops, downtrends etc.

5. if the chart formation supports the price action then you can consider it as a strong buy signal.
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  #23 (permalink)  
Old 01-04-2010, 07:20 PM
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Originally Posted by rajputz View Post
The day trading recommendation which you receive from stock market technical experts perfectly helps you to do day trade without making such calculations and analysis. Various support and resistance levels of your recommended stocks are given to you in advance and your job is to simply observe the price action of your recommended stocks and take decision basing on the predetermined support and resistance levels.

To successfully use this technique

1. First you should purchase day trading recommendation with 2-3 clear support and resistance levels in highly liquid stocks, actively traded stocks and large cap stocks from stock market technical analysis. Some free tips can be taken from..... icicidirect.com , valuenotes.com

2. if the price of your recommended stock took support near support levels, or if the price is strongly moving in upward direction towards 2nd resistance levels after crossing 1st resistance level, you can consider buying that stock to exit at next resistance level after booking the profit.

IMPORTANT: - if the recommended stock is moving in between 1st and 2nd resistance level, you should consider the 1st resistance level as immediate support level, similarly if it is moving in between 2nd and 3rd resistance level, you should consider the 2nd resistance level as immediate support level. in the same way if you enter into stock at 3rd support level, you should consider the second support level as immediate resistance level or your target level and if you enter at 2nd support level, you should consider the 1st support level as your immediate resistance level or your target level.


3. you should compulsorily observe the price charts every time before taking buying decision. if the chart formation is positive as learned in previous thread, you can enter into that stock. if the chart formation is negative then you should stay away from the stock.

4. Do check via line chart the reversal formations at tops, downtrends etc.

5. if the chart formation supports the price action then you can consider it as a strong buy signal.

Buy Day Trading recommendations

What are you talking about:exclaim:

The whole idea of this forum to develop oneself to be trade independently..

And this is your idea of independence..To go in for snake oil vendor..
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  #24 (permalink)  
Old 01-04-2010, 08:53 PM
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I am not forcing any one to buy it anshu. This just a simple technique, or idea to understand. The new ones are not known of the support and resistance levels at the starting, so cant find it out easily. I have clearly mentioned that same support levels and resistance levels can be taken from free sites like icicidirect, valuenotes, dailyfreetips group at yahoo...just to take the levels....

i am not insisting to take the tips, pay for it and work on it only. Rather read it clearly

Quote:
2. if the price of your recommended stock took support near support levels, or if the price is strongly moving in upward direction towards 2nd resistance levels after crossing 1st resistance level, you can consider buying that stock to exit at next resistance level after booking the profit.

IMPORTANT: - if the recommended stock is moving in between 1st and 2nd resistance level, you should consider the 1st resistance level as immediate support level, similarly if it is moving in between 2nd and 3rd resistance level, you should consider the 2nd resistance level as immediate support level. in the same way if you enter into stock at 3rd support level, you should consider the second support level as immediate resistance level or your target level and if you enter at 2nd support level, you should consider the 1st support level as your immediate resistance level or your target level.

And moreover this is just a technique. i have given one simmilar technique also in the post: -

Beginners Guide

So the main idea is to introduce to whatever ways or method we can. Rest let the reader be comfortable with what he feels comfortable and profitable with. There might be many method you yourself know, but are working on some else at the present time.

For intraday purposes, i too study stocks, check their buy or sell and then accordingly, so what is the harm in checking the support and resistance levels.

Rather check the whole post and then comment on it. the other material was like this: -

Quote:
3. you should compulsorily observe the price charts every time before taking buying decision. if the chart formation is positive as learned in previous thread, you can enter into that stock. if the chart formation is negative then you should stay away from the stock.

4. Do check via line chart the reversal formations at tops, downtrends etc.

5. if the chart formation supports the price action then you can consider it as a strong buy signal.

I will be introducing many new things, as i go. But that doesnt mean that i am forcing anyone to trade them. They themselve have to paper trade them and take benefit.

You yourself be knowing the methods like, gartley, wolf, elliot, camarilla, stochastic rsi combination, but use the one most suitable to you. Thats what i am doing. Providing all the methods i know. It depends upon readers what to take, what not to, and combine what to get another.
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Old 01-04-2010, 08:56 PM
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Originally Posted by rajputz View Post
I am not forcing any one to buy it anshu. This just a simple technique, or idea to understand. The new ones are not known of the support and resistance levels at the starting, so cant find it out easily. I have clearly mentioned that same support levels and resistance levels can be taken from free sites like icicidirect, valuenotes, dailyfreetips group at yahoo...just to take the levels....

i am not insisting to take the tips, pay for it and work on it only. Rather read it clearly



And moreover this is just a technique. i have given one simmilar technique also in the post: -

Beginners Guide

So the main idea is to introduce to whatever ways or method we can. Rest let the reader be comfortable with what he feels comfortable and profitable with. There might be many method you yourself know, but are working on some else at the present time.

For intraday purposes, i too study stocks, check their buy or sell and then accordingly, so what is the harm in checking the support and resistance levels.

Rather check the whole post and then comment on it. the other material was like this: -



I will be introducing many new things, as i go. But that doesnt mean that i am forcing anyone to trade them. They themselve have to paper trade them and take benefit.

You yourself be knowing the methods like, gartley, wolf, elliot, camarilla, stochastic rsi combination, but use the one most suitable to you. Thats what i am doing. Providing all the methods i know. It depends upon readers what to take, what not to, and combine what to get another.

IMO, it beats the whole purpose of trying to trade the charts ..

May be others can opine on this..
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  #26 (permalink)  
Old 02-04-2010, 06:36 AM
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Thanks rajputz for wonderful thread and dangerous question by anshuman.c
.................................................. .................................................. ....
yes those free level giver wont know even TA/forget about trading. i comment i knew some of them personally........and not like to meet/debate even they may have improved now.....trading/as well as life is a dynamic situation.
std backtest shall suggest those pt has no validity.......its random entry/exit........even suicidal for papertrader.socalled good callgivers r trade generator for broking houses,....best of them r maxm arbitrage players/market neutral concept etc,........where as individual speculators r plan for quick gaining......mismatch exists.
..............................
for regular income from market .......u have to develop statistical edge/skill to execute,ofcourse +ive expentency with real trade,......if u believe in pattern.......read the market in same context.......not vice versa......trading is a skill which takes many yr to develop.......even flexibility & discipline.....r yet very difficult for newbees.
FOR NOVICES(UPTO 5YR EXPERIENCE ON MARKET MAY STUDY/JOIN MARKETCLUB.COM/INO.COM FOR LEARNING FURTHER
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(sorry for some hardhitting word, its not against any individual,thanks again rajputz for his endevour to teach)
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Old 02-04-2010, 10:11 AM
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Introducing some basic chart patters, which work on most of the time frames
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Old 02-04-2010, 10:23 AM
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Channeling/RangeBound Stocks
Horizontal Trading range is actually part of channeling stocks or range bound stocks.

Channeling stocks are stocks that trade within a certain range between high and low price points for a period of time and may become predictable over time.

Well, trading range bound stock can be great short term money making opportunity by shorting and going long within the range.
A channel forms when stock price bounces up from support line and then drops back to near/or support line after hitting the resistance line. You can draw a parallel line connecting the top and a line connecting the bottom, rather like drawing trend lines to see the channel.

There are 3 types of channelling stocks or rolling stocks some may say:

1. Ascending Trading Range -Stocks bounce up and down the channel in a an uptrend.



2. Descending Trading Range -Stocks bounce up and down the channel in a downtrend.



3. Horizontal Trading Range -Stocks bounce up and down support and resistance level in a horizontal trading range.

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Old 02-04-2010, 10:25 AM
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A double bottom and triple formation formation occurs when the price of a stock creates one bottom by falling and rising to certain level(like V shape) falls again to the same approximate level and rise from there creating second bottom.

if the price of the stock rises from second bottom and moves above the peak level(middle of the two bottom price levels), the upward momentum gains strength and it moves to further higher levels. So breakout above the peak between first and second bottom gives buy signal in double bottom formation.

The double bottom forms because the buyers who did not buy stocks at first bottom price consider it as good opportunity to buy stocks at second bottom level and this buying interest creates demand for the stock to rise sharply from second bottom level. When the buying interest is more then the supply of the stock at 2nd bottom level, buyers will chase the stock upward with their offers to buy. So the price advances aove the intervening peak levels.

Down are some examples of the double bottom formation and tripple bottom formation: -





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Old 03-04-2010, 11:23 AM
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Again this is diverting to all type of Terminology , Set - Up etc etc ,i am fade up.
As a newbie i simply wasted lots of midnight oil and MONEY trading ALL THESE type of set ups KNOWN BY ANY INDIVIDUAL ,trust me i traded ALL THESE AND I LOST NOT LESS THAN 7.5 LACKS 8 yrs back.
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