learning of a discretionary trader

[oilman5]

Re: learning of a discreationary trader

since discreationary trader works on view/blockade/bias...........some of this r writen.
this is my personal view...i find useful...loose links r assemled to give some idea....
...........
1. MARKET...I VIEW IT WAR ARENA..RUTHLESS FIGHTER CAN ONLY SURVIVE.
MY SKILL...WEAPON...BROAD BASE KNOWLEDGE + ANALYSIS POWER
...MY WEAK PT..POOR EXECUTION SKILL & EMOTIONAL DOLDDRUM
SOLN..USE COMPUTER BASED SIGNAL
MERCYLESS STOP
WATCH MARKET BEFORE ENTRY.
2. CONDITION OF MARKET
.....................................
UP...DOWN ...VOLATILE...3DIFFERENT STRATEGIC PLAN ..THIS CASES...
4TH CASE IS UNPREDICTABLE...HERE I MUST NOT PARTICIPATE...WAIT AND WATCH
3. MONEYFLOW CONCEPT.......
FII AND MF...WHAT THEY R DOING...AFTERALL THEY R SMART MONEY
UNDERSTAND RISK INHERENT IN TRADING
GLOBAL VILLAGE CONCEPT..AND GLOBAL FUND PERSPECTIVE ABOUT INDIA
4. INDIA CONCEPT
........................
FINANCE MINISTRY...RBI POLICY...BUDGETARY ALLOCATION...WHERE AND WHAT GOVT...OFFICIALLY VS. ACTUALLY ENCOURAGING[NOT LIP SERVICE]
INTEREST RATE...AND ITS SIMPLE IMPLICATION..REFLECTION OF IT IN STOCK MARKET
5.QUARTERLY RESULT STUDY
..............................
GROWTH UP ..PROFITABILITY AND VISION OF MANAGEMENT
6...SECTOR CONCEPT STUDY...VERY USEFUL..
THOSE WHO KNOW METASTOCK...CAN STUDY RELATIVE SECTOR STRENGTH..TOOL TO EARN WITH EDGE...PARTICULARLY SECTOR LAGGARD R NOT TO BE TRADED FOR SHORT TERM
.....WHILE LONG TIME INVESTMENT STYLE 9MONTH...HOLDING...THEY R WORTH TO BUY.
U SEE THE SAME SECTOR BAD FOR SHORT TERM IS GOOD FOR LONG..PROVIDED FUNDAMENTAL NOT BIG CHANGE...FOR MOMENTUM PLAYER ITS STRICT NONO
ON THE CONTRARY...SHORT TERM MOMENTUM PLAYER...USE THIS REL STRENGTH COMPARING HOW BETTER STOCK IS FAIRING RELATIVE TO NIFTY

 

[oilman5]

Re: learning of a discreationary trader

another imp. list i find interlink of stock...sector
i find..vehicle..auto ancilliary..bearing
construction..cement/steel price..profitability of builder company[i do this activity,and rarely i good correct...market humbles me]
tourism;hotel..current laggard
computer growth..internet..peripherial sale...computer business model
pharma''..medicine research..hope to click
commodity based stock....with commodity price move up..profitability also..so shall stock price...here again i am a fool, metastock..and viratechindia..good chart..rarely predictable.
...........................................................................
7. lists of good company...what i know...what they do...on what condition company profitability move up...its a key arsenal
company based risk...business risk of a company...those who dont know...use www.equitymaster.com
check company's and industry's business model
8.CONTRARIAN THOUGHT PROCESS...MORE A GUT FEEL...A SENSE...IT REQD LOT OF EXPERIENCE TO DEVELOP IT
9PSYCHOLOGICAL FACTOR ON MARKET
.....................................................
MARKET HAS TRENDINESS AND ALSO UNPREDICTABILITY ELEMENT. NEWS AFFECT MARKET[UNKNOWN EVENT]........MAJORITY TRY TO GUESS WHAT MAJORITY MAY DO. I TAKE RISK OF PREDICTION BY PUTTING MONEY BUT READY TO RETREAT IF WRONG...WHICH HAPPENS MORE...AND PUT MORE MONEY WHEN RIGHT...[AND GET A GOOD KICK NOW FROM MARKET..WITH 2000SIZE OF ONGC, DIRECTIONAL BIAS..950..BREAK OUT...A GREAT BULL TRAP...A RETIRE HURT CONDITION FOR ME...MY 6TRADING PROFIT..TAKEN BY SINGLE LOSS]
............................
I HAVE TO WORK HARD AGAIN TO RECHECK MY PREDICTIVE MODEL....CHANCE OF BEING WRONG HAS TO BE EVALUATED
........COMPANY RESULT.....20
MACRO ECONOMY 20
MONEY FLOW 20
SECTOR BUSINESS/MONOPOLY ..20
OTHER FACTOR/RANDOM/OPERATORS GAME...20
..................TOTAL 100
CHANCE OF BEING WRONG....40%...WHAT TO DO IF WRONG...IMPLEMENTATION MUST
...............NOW THE TOUGHEST PART' I..' FACTOR...EMOTIONAL DECISION.BEFORE TAKING AN ENTRY I HAVE AN OPENION...BUT PRICE MUST CONFIRM MY OPENION THEN ONLY I SHALL BUY....EVEN AFTER BUY ...WHILE HOLDING..IF ITS NOT BEHAVING AS EXPECTED...I MUST USE [TIME STOP]...BOOK LOSS AND THROW AWAY OPENION...
THIS ESSENCE OF TRADING I FIND TOUGHEST TO IMPLEMENT...WHILE CONVERTING FROM INVESTOR TO A TRADER.
......SO I DO A LITTLE MODIFICATION...REENTRY AT LOWER PRICE[AN IMP SUPPORT LEVEL AND AGAIN TEST PRICE]

 

[oilman5]

Re: learning of a discreationary trader

SOME FINER PT
.....................
bill checking is must...on sevaral occation yearly 2/3...i find discrepency....as i find trading stressful...i must try level based to minimise it.FAMILY, OFFICE AND MUST BE GIVEN DUE PRIORITY since i pick fundamental scanlist..hence ta is must for my buy and sell.
if psychological set up is bullish i do aggressive entry...and paid dearly many a times...
PATIENCE AND THOUGHTFULLNESS...EASIER TO SAY.....SO CONTINGENCY PLAN FOR WORST CASE SCENARIO....IS THE SURVIVAL PLAN

 

[oilman5]

Re: learning of a discreationary trader

I Find Support Based Buy In Normal Market...and Momentum Based Pullback Buy In Bullish Market Useful Entry Technique....ma X..identifying Pattern...r My Edge
......stop Loss ...execution Still Lot To Learn
Next Is What Maxm Help I Can Get From Others....and Leverage Skill
....another Typical Thing...i See Tv To Get Result Flash/news...never For Openion...hence I Alone Responsible For My Failure'....

 

[oilman5]

Re: learning of a discreationary trader

on 9th august...its a copy book case of down day...market open gap up...within 2 hr heavy sell coming...see nifty future intraday...then short is only way...[get out first...if u r firm believer of bull like me a fool]....ftse 14hr...opening and moving down...bad days ahead[atleast for tommorrow]..so those who short on good low risk trade..get an oppurtunity of gap down today
.........ideal upday is just opposite...from opening down quick recovery comes...and then come short covering...close is >50 up nifty.....it has seen....many a time in april..july this year
....idea is trade with bias...directional trade . bias from price...and money flow

 

[oilman5]

Re: learning of a discreationary trader

recently traderji gives..excellent [email protected] ...idea on swing trade
some scan list...which has shown higher strength...rsc type scanner.
if market move up...which one to move faster up...just compare...they r successful
....this is a good trade style to earn in this indian market.
on metastock based scanner...work on rsc...1week..up with base of nifty..u get the scan list
..hints..go to www.meta-formula.com
....hitendra vasudev...of stockmechanics.com recently advocating this technique.
also our www.tradersedgeindia.com publish a list regularly to trade on it...
it basically ...showing strength ...buy high ..sell higher...trade technique...with good +expectency...a short term trade style
...but unsuitable for timid heart.,support buyer
recent comment by saint...many a system exists...but u have to find what suits u
...is most appropriate
my recent talk with cv...proves to me why he is a gifted day trader...a total dedication..master in his craft....and Zero subjectivity.......high accuracy and implementation technque...derisking in his way..a legendary day trader.
note:never try to copycat him...u have to a highly rated programmer first,an excellent system designer then for a couple of yr......later digest volatility.
he always know what he is doing..........what market may do now

 

[oilman5]

Re: learning of a discreationary trader

instead for ordinary mortal its better to follow ss[sunil] and saint...they give some idea...idea of high risk in market...when to fold.
now it is safer to trade...intermediate term sky is clear,..keep ur umbrella[stop]..and u can start journey...soon sun shall follow
stick to ur strength zone, otherwise learn...be patient......money shall come autometically
with good oppurtunity.
yes i like this idea,...its better way to trade and live.
.........
to learn better trading joe ross idea r important......also famed writer dr. elder

 

[oilman5]

Re: learning of a discreationary trader

yes define a timeframe first...which one u like to trade...to derisk ie. set up condition...
and in which u sense risk..ur time to react..ie when u understand its time...i am right,now i am wrong.
tripple screen is a good idea to follow.
but stick only to a single timeframe...let me explain.
u think next week market shall move up?
why....what shall the rationality....the buy is coming.
so short term biasness is up.
now go to eod...shift to weekly data...very -/also monthly..negative.
so at every rise stiff resistance shall be faced.
now who shall win....bull or bear...i dont know....but creeping commitment i may start.
why because my defined bottom ...14300 is approaching
where i see top a linear top...16500 can possible .
so this r biasness...it means i shall take to good position on some predefined stock.
and then watch......at some particular price level 15700...how market shall behave...if i smell rat ,get out...coursey hints given by ss[sunil]....+ i have my exit criteria.
but if on rare occasion it easily....x 15800.........i invest ......as sky may look clearer to me.
.........
why not daytrade then ?
...................................
because it takes my time...my time to earn,.....to ask or analyse easy...without in front of screen its difficult to trade.....more over shortterm volatility ...giving conflicting signal.
................
why not swing trade then?
my accuracy is poor...no amount of knowlege...equity curve suggests poor return.
......
THATS WHY I AM RETURNING TO MY STRONG ZONE....POSITION TRADE.
I KNOW I HAVE OCCATIONAL DRAWDOWN...BUT MONEY MANAGEMENT GIVES BETTER RETURN.
SUPPORT BUY...BREAK OUT WITH MOMENTUM ...BOTH IS EASIER TO SEE.
MOST IMPORTANTLY I KNOW WHAT I AM DOING.
........
WILLIAM'S ACCUMULATION/DISTRIBUTION...AND MONEY FLOW...CLEARLY SHOW ON WEEKLY CHART WHAT MAY HAPPEN...
SO MY WEEKLY HOLIDAY CUT OF.....FOR A STUDENT OF MARKET.
......EXPERIMENT ON STRENGTH BY RSC TO BE SEEN....ALSO SWING PT @DYNAMIC TRADING SOFTWARE.
................
bye bye

 

[uasish]

Re: learning of a discreationary trader

oilman5,
Nice to learn ,you have zeroed on your strenght.Which i believe every body should do first.

Asish

 

[oilman5]

Re: learning of a discreationary trader

btw...those who love resources...a site for them
www.makcomtech.4t.com