NIFTY PE Ratio

[trade4joisar]

P/E ratio as on 5th August, 2011 - 18.76

 

[trade4joisar]

P/E ratio as on 16th August, 2011 - 18.11

 

[4xpipcounter]

Trader4joisar, this post will probably not add anything of any real value to your thread, but I did want to share a perspective.

I work with some college students in the area in showing them how to trade. Most of them are Economic and Accounting majors, and they come at me with all these ratios: EPS, MPS, SE, DY, and PE ratios. LOL, I got to study their textbooks just to keep up with them.
One of the things I've told them is if you want to trade in the markets just take all that and throw it out the window. You don't need to know any of it. All you need is a chart with some indicators, and the money will be there. The market is going to go north or south. All you have to do is determine which way in advance, enter the market, then jump out after some decent profit.

I think the simplicity I use in approaching the markets comes from the fact of not being highly educated, but I have excellent math skills and an ability to read a chart.

My charts are showing that Nifty is going to make a pit stop around 4907, and then later continue to 4651. That's about all I need to know.

I hope I did not upset the rhythm of your thread. I just wanted to share my little view on it.

 

[trade4joisar]

Trader4joisar, this post will probably not add anything of any real value to your thread, but I did want to share a perspective.

I work with some college students in the area in showing them how to trade. Most of them are Economic and Accounting majors, and they come at me with all these ratios: EPS, MPS, SE, DY, and PE ratios. LOL, I got to study their textbooks just to keep up with them.
One of the things I've told them is if you want to trade in the markets just take all that and throw it out the window. You don't need to know any of it. All you need is a chart with some indicators, and the money will be there. The market is going to go north or south. All you have to do is determine which way in advance, enter the market, then jump out after some decent profit.

I think the simplicity I use in approaching the markets comes from the fact of not being highly educated, but I have excellent math skills and an ability to read a chart.

My charts are showing that Nifty is going to make a pit stop around 4907, and then later continue to 4651. That's about all I need to know.

I hope I did not upset the rhythm of your thread. I just wanted to share my little view on it.

Thanks for your comments.

Till last year i was long term investor. But when look into my portfolio, it seems i was missing something.

So i search around for what is going wrong and then found traderji.com which helped me a lot to understand what i was missing (trend, indicators, strategy etc.)

This thread i started only to get some expert views. Hopefully it has started now.

 

[4xpipcounter]

I assume you have been profitable. If that is the case, then I would stick to it.
My point is all that peripheral information is not necessary to be profitable in these markets.
The important part of the scenario I did not describe to you. The only thing I need to trade with and do well is a set of charts. The catch is unless you have already been acclimated that way, it is not something you learn overnight to read the charts, then interpret them into profitable trades.
I don't want to discourage you from pursuing a different path with regards to your trading. The only warning is that it will take time to learn and to harness a winning methodology for yourself.

Thanks for your comments.

Till last year i was long term investor. But when look into my portfolio, it seems i was missing something.

So i search around for what is going wrong and then found traderji.com which helped me a lot to understand what i was missing (trend, indicators, strategy etc.)

This thread i started only to get some expert views. Hopefully it has started now.

 

[trade4joisar]

I assume you have been profitable. If that is the case, then I would stick to it.
My point is all that peripheral information is not necessary to be profitable in these markets.
The important part of the scenario I did not describe to you. The only thing I need to trade with and do well is a set of charts. The catch is unless you have already been acclimated that way, it is not something you learn overnight to read the charts, then interpret them into profitable trades.
I don't want to discourage you from pursuing a different path with regards to your trading. The only warning is that it will take time to learn and to harness a winning methodology for yourself.

Thanks. :thumb:

Actually after loosing a good amount only i came to know that waiting for your ultimate goal in Share Market will not be accomplished unless you involve yourself in it.
So from last 6 months i am learning strategies, indicators & so on. Which helped me a lot. Only i now need to learn discipline which will help me to cover my losses with good amount of profit. I am sure i will get it very soon only i need to take more efforts to get 2-3 different strategies (at present using 315 strategy) & take decision accordingly.

I am also looking out for some strategy for stop & reverse. I am going through P&F charts (I came to know from DanPickup).

Any help in this regard will be appreciated.

 

[4xpipcounter]

I could make many suggestions, of which is part of my trading methodology, that could be very helpful. First of all, I have gotten to like Dan a lot through the dialogues we've had and the various posts of his that I have read, so you are off to a good start. Let me also add that there are many other good traders in this forum that you may or may not be aware of.

If you go to my profile, you will notice one of the thread's I started about trendlines. You could read through that and get some very good ideas. Another thing I'll do in your thread is post a chart with my personal S&R's on. The motive will not be for me to blow my horn, but to at least give you an idea of what a good set of static S&R's will do in making a trading decision. After viewing them and how they operated live, you could plot you own pivots, whether it be DeMarks, Woodies, Murray, or Camarilla.
The thing I will point out with them is to watch for the reaction after they are hit.

There's much more I could say, but I don't want to load you down too much.
Next will be a post just to show what a good static set of S&R's will do for you in your trading.

Thanks. :thumb:

Actually after loosing a good amount only i came to know that waiting for your ultimate goal in Share Market will not be accomplished unless you involve yourself in it.
So from last 6 months i am learning strategies, indicators & so on. Which helped me a lot. Only i now need to learn discipline which will help me to cover my losses with good amount of profit. I am sure i will get it very soon only i need to take more efforts to get 2-3 different strategies (at present using 315 strategy) & take decision accordingly.

I am also looking out for some strategy for stop & reverse. I am going through P&F charts (I came to know from DanPickup).

Any help in this regard will be appreciated.

 

[4xpipcounter]

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I already mentioned a set of static S&R's that are very nice to trade with, and they do have a way of completely deleting emotions from trading. They are very simple because the personality is such that "this is where I enter, and this is where I exit". After I explain mine to you, look at the ones you are observing, and if you see they have the same basic characteristics, then you are on to something.

My S&R's come from my own proprietary formula that assesses a trend's range and the range of corrections within the trend. They are an excellent instrument for counter-trend trading, and in grabbing short quick pips.
The 2 groups of candles in the ovals show the 2 trades this week on the GBP/USD using exclusively my S&R's. The 2nd line from the bottom is at 1.6273. It is what I call my WP (weekly pivot). It is the opening price for the week. The vertical to the left shows the 1st candle of the week. At the beginning of the week, you don't know for sure which way price will go, so let the market decide, then place the trade once the next level has been hit. The market decided to go north to start the week, thus, my WR1 (1st weekly resistance was hit. The object in trading static S&R's is to have an entry to go short at the WR1, or an entry to go short at WS1. The Fibo lines have nothing to do with the status quo in their usage. They are drawn from my WP to the WR1, WP to the WS1, WR1 to the WR2, etc. Once the WR1 was hit, then your trade for a short kicked in. The conservative target and one that is almost certain to be hit everytime is the 38.2% mark. It is labeled, in this case, 61.8%. In essence, it is the 1st Fibo line it meets up with. Notice how the line was taken out, by a small margin, and then came back down to hit not only the 38.2% line, but also the 50% perfectly.
After that trade is cashed in, you still have up the entry to go long at the WS1, but you will now have an entry to go short at the WR2 with the same game plan. This time the WR2 was hit perfectly, and then the Fibo at 38.2 was hit quickly, and even made it all the way back to the WR1.
At this point, you could be tempted to think, "That was a lot of pips left on the table." You're right, but this is a way to make pips with a conservative target and not sweating it out much.

Again, these are the kind of results you should be able to witness with nay static S&R's. They are also the kind of trades the least amount of thought goes into.
Some may think I cherry-picked a market to make observation look good. This is what I would invite anyone to do. You name the market, I'll plot my S&R's are my chart and show you the production thereof.
FYI, I post the S&R's ahead of time on my thread, "Some of my forecasts". They are done for many of the Indian markets as well as the forex markets. I trade only forex, as I live in the USA. I follow many of the Indian markets because they are the main interest in this forum.

 

[trustmeasfrnd]

where can i get basics for this methodology. to find out support and resistance. please explain it and is it only work for weekly chart or it will work for daily chart. although i am not interested in hourly chart.. as my Trading involves daily chart due to restrictions.

Some may think I cherry-picked a market to make observation look good. This is what I would invite anyone to do. You name the market, I'll plot my S&R's are my chart and show you the production thereof.
FYI, I post the S&R's ahead of time on my thread, "Some of my forecasts". They are done for many of the Indian markets as well as the forex markets. I trade only forex, as I live in the USA. I follow many of the Indian markets because they are the main interest in this forum.

 

[4xpipcounter]

Trustme, I would need to do a whole series on trading with my S&R's or with any other static S&R's in order to properly answer your question.
The one thing I will do is that if I have the charts for a particular market that is requested, I will post those S&R's, whether they be the weekly, monthly, or yearly.

where can i get basics for this methodology. to find out support and resistance. please explain it and is it only work for weekly chart or it will work for daily chart. although i am not interested in hourly chart.. as my Trading involves daily chart due to restrictions.