Learning Group -VIJAYWADA

[niftyoption]

Dear niftytaurus

I read your post and i express my happiness , because so many days after i saw a person , who is trying to make his Trade System with his own affords and with Back Testing , you are just one in 1000 traders , i saw few persons like you brother , very soon you will reach your Goal , may GOD bless you .... what about your neck pain ? after neck pain relief , try for light basic Yoga exercises slowly for neck , it will improve neck strength..

ALL THE BEST niftytaurus

niftytaurus post

"I thought seriously to lessen intraday & start swing trading ..& I have been trying to develop a method with Price action & MAs.& manually back testing & researching it "

:thumb: :clapping:

 

[niftyoption]

 

[niftyoption]

 

[XRAY27]

Top 10 Money Management Rules

1. Bulls make a little. Bears make a little. Pigs get slaughtered

2. Any fool can get into a market, but it’s the real pros that know when to get out.

3. Use protective buy and sell stops

4. Don’t put all of your eggs in one basket

5. Cut losses short. Let winners ride

6. Only the markets know for sure

7. Be humble

8.On selling options, use caution

9.Don’t over-trade

10.To succeed at trading markets, one must first survive at trading markets

SOURCE:INTERNET

 

[niftyoption]

 

[shreeux]

Dear shreeux ,

the exponential moving average (EMA) gives a higher weighting to recent prices than the simple moving average (SMA) does,

SMA

EX:

I am giving the following series of Prices of a stock :

10, 11, 12, 16, 17, 19,20

SMA Calulation :

10+11+12+16+17+19+20 =105

7days SMA = 105/7 = 15

SMA=15

Most traders will tell you to trade simple moving average crossovers of and the profits will fall from the heavens. Well, unfortunately this is not accurate. Often time’s stocks will tick over or under moving averages to only continue in the primary direction. This will leave you on the wrong side of the market and down on your positions.

EMA

is similar to a simple moving average, except that more weight is given to the latest data. The exponential moving average is also known as "exponentially weighted moving average"

Exponential Moving Average Calculation

Exponential moving averages reduce the lag by applying more value to recent prices. The weighted value depends on the number of days in the period. There are three steps to calculating an exponential moving average.

• Calculate the moving average.

• Calculate the weighting multiplier

• Calculate the exponential moving average. The formula below is for a 10-day EMA.

SMA: 10 period sum / 10

Multiplier: (2 / (Time periods + 1) ) = (2 / (10 + 1) ) = 0.1818 (18.18%)

EMA: {Close – EMA(previous day)} x multiplier + EMA(previous day).

I am using EMA s in my trading , but If you identified any advantage in SMA, you can use SMA that is your choice ..

Please go through the chart i have mentioned SMA AND EMA
if you observe EMA looks like Smooth condition than SMA

Good explanation...thanks...!!! I start to try EMA ..!!!

 

[niftyoption]

 

[niftyoption]

MY RISK MANAGEMENT RULES IN TRADING

1. Never risk more than 1% of your trading capital in a single trade

2. Always use stop loss orders

( Here you should know your loss you can give in a situation where the trade starts going against you )

3. Never do over trading

4. Never let a profit run into a loss

5. Don't enter a trade if you are unsure of the trend

6. When in doubt, get out, and don't get in when in doubt

7. Only trade active markets

8. Distribute your risks equally among different markets

9. Never limit your orders. Trade at the markets

10. Extra monies from successful trades should be placed in a separate account

11. Never trade to scalp a profit

12. Never average a loss

13. Never get out of the market because you have lost patience, or get in because you are anxiously waiting

14. Avoid taking small profits and large losses

15. Never cancel a stop loss after you have placed it

16. Avoid getting in and out of the market too soon based on NEWS

17. Be willing to make money from both sides of the market
(BULL & BEAR)

18. Never buy or sell just because the price is low or high

19. Never hedge a losing position

20. Never change your position without a good reason

21. Avoid trading after long periods of success or failure

22. Don't try for bottom Fishing

23. Don't follow a blind man's advice (TIPS)

24. Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake

25. When you lose don't blame it on luck or other factors like your problems

 

[niftyoption]

GREATEST DISASTROUS ERROR IN TRADING

Most Important in trading is order placing , I saw so many senior Traders in my life , i observe their Trading behavior , i find major losses in trading , they are neglect in the time of order placing time " FAT FINGER " , It means If they want to place 100 quantity but , they wrongly press one more 0 that is 1000 quantity , or 200 or 300 quantity , and they are neglect at that movement order conformation or trade conformation , their concentration was in the chart or other matters ..... they put stop loss for 100 quantity only ,after some time stop loss hit for 100 quantity, they think positions all are square up ,
but reaming 900 quantity get huge losses at the end of the trading ....

so many trades profit ....lose in on that trade ....

so be careful at order placing time and after order punching please do check once again and every one hour please check over all position and pending orders also , you know this point but once again i am remembering that...

 

[XRAY27]

Remember:

1.Listen to analyst for potential stock idea's,but always trade with your own home work.

2.Ego has no place in trading.we are here for earning ,pride has no place.

3.Majority agree does'nt mean that they are right...