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Old 31-12-2014, 06:57 PM
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Default Need Direction and Advice

Hello everyone.

I have joined recently and have an IIFL Demat account. I am a writer who writes for advertisement columns and a printing company. I have a small amount of money (25,000). I have not traded in the market till now, but have read through the beginners guide.

But I am lost in all the information, How can I find what is the best approach for me as a Trader? My risk ratio out of 10 is 2-5/10. I want to understand whether I should do day trading or not, and which type of chart I should follow and what time frame of data I should analyze.

Please help me with this regard, any help is appreciated; but please remember that my knowledge is beginner level and if you explain in market terms I may not understand.

Thanks in advance ^_^
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Old 01-01-2015, 10:47 AM
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Very difficult to advise in such situations, there is no x and y one can do to learn trading, it's a long pathless procedure.
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Old 01-01-2015, 12:21 PM
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Originally Posted by Saleem View Post
Hello everyone.

I have joined recently and have an IIFL Demat account. I am a writer who writes for advertisement columns and a printing company. I have a small amount of money (25,000). I have not traded in the market till now, but have read through the beginners guide.

But I am lost in all the information, How can I find what is the best approach for me as a Trader? My risk ratio out of 10 is 2-5/10. I want to understand whether I should do day trading or not, and which type of chart I should follow and what time frame of data I should analyze.

Please help me with this regard, any help is appreciated; but please remember that my knowledge is beginner level and if you explain in market terms I may not understand.

Thanks in advance ^_^

Here is few suggestion from my end , hope you wont mind --
1) you should not do DAY TRADING.
2) You may go for swing Trading based on EOD chart.
3) Person to person best approach differs , rather there is no such so called BEST APPROACH. More over Best Approach depends on Trader' s mental state .
One Simple approach can be suggested i.e crossing of 50 and 200 DMA ( Share price should remain above of both DMA) , you can buy when 50 DMA crossing 200 DMA and trend of both DMA is upward and you should sale when price falls below 200 DMA., if possible back test this method with the help of previous data for a particular share to find out the amount of return given in past , ratio of winning trade vs. loosing trade etc.
4) Divide your 25000 capital in 5 parts and invest 5000/- to each stock.
5) do not expect immediate gain / huge gain , rather aim to get return better than FD !! ( at least initial stage)
6) At initial stage do not go for future and Option .
7) Your system of trading should be improved continuously based on your experience.

Last edited by mmca2006; 01-01-2015 at 02:09 PM.
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Old 01-01-2015, 01:16 PM
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In addition to what mmca has suggested above and understanding the suitable trading method, you should do paper trading for a few weeks to understand your own actions during real trading. If you spot any short comings in your method improve upon them before starting real trades with real money.

-Anant
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Old 01-01-2015, 01:35 PM
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The most structured approach towards learning to trade can be acquired by working/interning at a prop/desk trading firm. Many of them have trader training programs, in India there are some like Halftick, Future First etc. Though am not sure about their quality of trainings, but outside India, there is a whole industry dedicated to trader development. I had the privilege to get trained with a successful UK based hedge firm recently. Things i learned there, would never have been possible if i wasnt there.

My advise is, dont learn it from books or forums. Turns out to be a typical case of blind dog in a meat market. Over 95% of trading info floating on the internet is counterfactual filled with pseudologics from naive traders who themselves struggle to trade profitably.
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Old 02-01-2015, 10:01 AM
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Thanks Guys,

Could you please explain what these two mean in a simpler term?

2) You may go for swing Trading based on EOD chart.

One Simple approach can be suggested i.e crossing of 50 and 200 DMA ( Share price should remain above of both DMA) , you can buy when 50 DMA crossing 200 DMA and trend of both DMA is upward and you should sale when price falls below 200 DMA., if possible back test this method with the help of previous data for a particular share to find out the amount of return given in past , ratio of winning trade vs. loosing trade etc.

Also what do you guys think of PFC and Tatamtrdvr at current rates?
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Old 02-01-2015, 10:15 AM
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Saleem bhai ,

kuch success mile to hame bhi batana.
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Old 02-01-2015, 11:50 AM
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Originally Posted by Saleem View Post
Thanks Guys,

Could you please explain what these two mean in a simpler term?

2) You may go for swing Trading based on EOD chart.

One Simple approach can be suggested i.e crossing of 50 and 200 DMA ( Share price should remain above of both DMA) , you can buy when 50 DMA crossing 200 DMA and trend of both DMA is upward and you should sale when price falls below 200 DMA., if possible back test this method with the help of previous data for a particular share to find out the amount of return given in past , ratio of winning trade vs. loosing trade etc.

Also what do you guys think of PFC and Tatamtrdvr at current rates?

I hope u know about swing trading , u take Daily Time frame (EOD) charts , plot 50 and 200 day moving average on it , find out for which stock 50 DMA recently crosses 200 DMA , then check whether price of share is above of both DMAs ,if so buy initiated , now if share price falls below 200 DMA, trade should be closed. Here I like to mention that above method is good for trending market ( for current market) .
But this method is always BETTER THAN DAY TRADING FOR A
NEW PARTICIPANT in market.
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Old 03-01-2015, 03:35 PM
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Originally Posted by mmca2006 View Post
I hope u know about swing trading , u take Daily Time frame (EOD) charts , plot 50 and 200 day moving average on it , find out for which stock 50 DMA recently crosses 200 DMA , then check whether price of share is above of both DMAs ,if so buy initiated , now if share price falls below 200 DMA, trade should be closed. Here I like to mention that above method is good for trending market ( for current market) .
But this method is always BETTER THAN DAY TRADING FOR A
NEW PARTICIPANT in market.

The only way to win is to cheat the markets, which you cant do with such omnipresent strategies.

Anyway, Good Luck!!!
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Old 04-01-2015, 11:30 PM
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You should consider yourself to be lucky that you are new to the market. Atleast you can start with a clean slate without chasing any type of a holy grail (though I have it ).

My simple advice would be start with auction market theory and then build on that. Understand why/how market works. What is the relation between value and price? Believe me only market profile works and everything else is garbage.

Don't search for magic indicators. There is no leading indicator which can help you enter the market before anyone does. All price based indis are lagging in nature. The leading price based indicator is PRICE itself. Other than that use volume. You just need to understand how to use it in different ways to make it as somewhat leading indicator. In nutshell concentrate on price & volume only and forget everything else.

ooops did I just reveal the secrets of successful trading

Originally Posted by Saleem View Post
Hello everyone.

I have joined recently and have an IIFL Demat account. I am a writer who writes for advertisement columns and a printing company. I have a small amount of money (25,000). I have not traded in the market till now, but have read through the beginners guide.

But I am lost in all the information, How can I find what is the best approach for me as a Trader? My risk ratio out of 10 is 2-5/10. I want to understand whether I should do day trading or not, and which type of chart I should follow and what time frame of data I should analyze.

Please help me with this regard, any help is appreciated; but please remember that my knowledge is beginner level and if you explain in market terms I may not understand.

Thanks in advance ^_^


Last edited by whatsinthename; 04-01-2015 at 11:32 PM.
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