Prium's Place
- Thread starter Prium
- Start date
The story till now
I started trading only because the entire bay in the office was! This started in 2009 and then, I used to buy/sell based on what people in the bay said were good or bad - not to mention tips tv.I had no clue what was technical analysis. Believe it, I did manage to make a profit of a thousand buck or so .. beginners luck perhaps.
Soon the fad got over and I started trading once again only around September last year .. This time around I did read up a little - but soon realized that what works for others might not necessarily work for me. I was trying to do intraday trading using moving average with periods as less as 20 and 10. What saved me and kept me going was the fact that I never lost a lot of money and knew soon enough that it was all going in the wrong direction!
Thus started my journey - on a notion what I relate most to - that knowledge is the solution to all problems. I self-read different TA aspects, understood different principles (TJ was of might help) and started trading based on MAs, TLs, S&Rs, BBs, volume and MACD.
Thereafter it has been fruitful - not as much as I'd like it to be - but yes a slow change of pattern is there.
Now is the time to raise the game!
I started trading only because the entire bay in the office was! This started in 2009 and then, I used to buy/sell based on what people in the bay said were good or bad - not to mention tips tv.I had no clue what was technical analysis. Believe it, I did manage to make a profit of a thousand buck or so .. beginners luck perhaps.
Soon the fad got over and I started trading once again only around September last year .. This time around I did read up a little - but soon realized that what works for others might not necessarily work for me. I was trying to do intraday trading using moving average with periods as less as 20 and 10. What saved me and kept me going was the fact that I never lost a lot of money and knew soon enough that it was all going in the wrong direction!
Thus started my journey - on a notion what I relate most to - that knowledge is the solution to all problems. I self-read different TA aspects, understood different principles (TJ was of might help) and started trading based on MAs, TLs, S&Rs, BBs, volume and MACD.
Thereafter it has been fruitful - not as much as I'd like it to be - but yes a slow change of pattern is there.
Now is the time to raise the game!
Trade #1
Scrip: HCLTECH
Buy Date: 8/14
Buy 18@546
Buy Reason:
1. Recently declared good results had given the stock extra "mileage".
2. All DMAs (5,10,20,50,100,200) in order and expanding.
3. MACD in order.
4. On BB, prices were on the 20 DMA above mean line - not a buy setup but the were prices were sticking to it.
5. 8/14/2012 resistance level suggests that it has potential to 630-650 as was in 3/2006 and 4/2007 if it breaks 560.
Sell Date: 8/22
Sell 18@552
Sell Reason:
1. Watched the stock for 4 trading days - went from 546 to 560 as planned - then hit its head at 560 a couple of times and then started drifting down to as low as 551. Made me believe that 560 is a resistance that it might not overcome.
2. My belief in the dld adage - what must not go up, must go down.
3. My decision is technically challenged - NOTHING in the TA (apart from S&R) suggest till 5/22 that it is on the downward path (apart from the candles sliding below the BB 20 DMA top line and a little bend of the 5 EMA) - Feels like an emotional decision.
Net Result: 25 bucks lost (brokerage let it down even though there is a tiny little profit!!! )
Have decided to watch the stock - will re-enter if it heads above 560 and stays there without breaking the 560 resistance
Question:
1. What are the loopholes in the above thought process?
2. Should I have given the scrip some more time?
Scrip: HCLTECH
Buy Date: 8/14
Buy 18@546
Buy Reason:
1. Recently declared good results had given the stock extra "mileage".
2. All DMAs (5,10,20,50,100,200) in order and expanding.
3. MACD in order.
4. On BB, prices were on the 20 DMA above mean line - not a buy setup but the were prices were sticking to it.
5. 8/14/2012 resistance level suggests that it has potential to 630-650 as was in 3/2006 and 4/2007 if it breaks 560.
Sell Date: 8/22
Sell 18@552
Sell Reason:
1. Watched the stock for 4 trading days - went from 546 to 560 as planned - then hit its head at 560 a couple of times and then started drifting down to as low as 551. Made me believe that 560 is a resistance that it might not overcome.
2. My belief in the dld adage - what must not go up, must go down.
3. My decision is technically challenged - NOTHING in the TA (apart from S&R) suggest till 5/22 that it is on the downward path (apart from the candles sliding below the BB 20 DMA top line and a little bend of the 5 EMA) - Feels like an emotional decision.
Net Result: 25 bucks lost (brokerage let it down even though there is a tiny little profit!!!
)Have decided to watch the stock - will re-enter if it heads above 560 and stays there without breaking the 560 resistance
Question:
1. What are the loopholes in the above thought process?
2. Should I have given the scrip some more time?
Trade #1
Scrip: HCLTECH
Buy Date: 8/14
Buy 18@546
Buy Reason:
1. Recently declared good results had given the stock extra "mileage".
2. All DMAs (5,10,20,50,100,200) in order and expanding.
3. MACD in order.
4. On BB, prices were on the 20 DMA above mean line - not a buy setup but the were prices were sticking to it.
5. 8/14/2012 resistance level suggests that it has potential to 630-650 as was in 3/2006 and 4/2007 if it breaks 560.
Sell Date: 8/22
Sell 18@552
Sell Reason:
1. Watched the stock for 4 trading days - went from 546 to 560 as planned - then hit its head at 560 a couple of times and then started drifting down to as low as 551. Made me believe that 560 is a resistance that it might not overcome.
2. My belief in the dld adage - what must not go up, must go down.
3. My decision is technically challenged - NOTHING in the TA (apart from S&R) suggest till 5/22 that it is on the downward path (apart from the candles sliding below the BB 20 DMA top line and a little bend of the 5 EMA) - Feels like an emotional decision.
Net Result: 25 bucks lost (brokerage let it down even though there is a tiny little profit!!! )
Have decided to watch the stock - will re-enter if it heads above 560 and stays there without breaking the 560 resistance
Question:
1. What are the loopholes in the above thought process?
2. Should I have given the scrip some more time?
Scrip: HCLTECH
Buy Date: 8/14
Buy 18@546
Buy Reason:
1. Recently declared good results had given the stock extra "mileage".
2. All DMAs (5,10,20,50,100,200) in order and expanding.
3. MACD in order.
4. On BB, prices were on the 20 DMA above mean line - not a buy setup but the were prices were sticking to it.
5. 8/14/2012 resistance level suggests that it has potential to 630-650 as was in 3/2006 and 4/2007 if it breaks 560.
Sell Date: 8/22
Sell 18@552
Sell Reason:
1. Watched the stock for 4 trading days - went from 546 to 560 as planned - then hit its head at 560 a couple of times and then started drifting down to as low as 551. Made me believe that 560 is a resistance that it might not overcome.
2. My belief in the dld adage - what must not go up, must go down.
3. My decision is technically challenged - NOTHING in the TA (apart from S&R) suggest till 5/22 that it is on the downward path (apart from the candles sliding below the BB 20 DMA top line and a little bend of the 5 EMA) - Feels like an emotional decision.
Net Result: 25 bucks lost (brokerage let it down even though there is a tiny little profit!!!
)Have decided to watch the stock - will re-enter if it heads above 560 and stays there without breaking the 560 resistance
Question:
1. What are the loopholes in the above thought process?
2. Should I have given the scrip some more time?
hi..
good results.. fundamental analysis.
5, 10, 20 50, 100, 200 dma
BB, 20 dma mean line, S&R, bend on 5 Ema...
maybe a case of 'too many cooks spoiling the broth'
regards
Hey anurag!
Well I do have a reason to see these indicators before i go in - the EMAs are obviously everybody's favorite for again - very obvious reasons.
S&R - what would anybody do without them!
BB is the only indicator which has any form of mathematical probability attached to it - which is why that is the next thing i bother about
MACD is there because there has to be something to tell you the momentum of the movement right?
So that is the reason why i look at them - but i will be glad to hear what you think would be a better fit (that is the reason why i am here on TJ in the first place)!
One question for you - why did you say good FA instead of TA - there was only 1 FA issue in my decision making - which was that it recently had good results!
Thanks!
Well I do have a reason to see these indicators before i go in - the EMAs are obviously everybody's favorite for again - very obvious reasons.
S&R - what would anybody do without them!
BB is the only indicator which has any form of mathematical probability attached to it - which is why that is the next thing i bother about
MACD is there because there has to be something to tell you the momentum of the movement right?
So that is the reason why i look at them - but i will be glad to hear what you think would be a better fit (that is the reason why i am here on TJ in the first place)!
One question for you - why did you say good FA instead of TA - there was only 1 FA issue in my decision making - which was that it recently had good results!
Thanks!
hi
what I had intended to say was that u used FA as well as every comprehensible form of TA in ur analysis before entering a trade, and during the trade, but the end result was 'frustration'..
I, on the other hand do not do any such analysis before entering a trade,
I also end up being frustrated a number of times.
if the end result is the same, I do not see the need of increasing my work load 10 times and in the process getting all the more confused...but that is another story.
the point that I want to make here is.. however comprehensive one's analysis maybe,
it is bound to fail a number of times resulting in the never ending search of new indicators, methods.. holy grail.
the idea is to take such 'frustrations' in ur stride, believing that these occurances are also an integral part of the 'process' of trading..
regards
what I had intended to say was that u used FA as well as every comprehensible form of TA in ur analysis before entering a trade, and during the trade, but the end result was 'frustration'..
I, on the other hand do not do any such analysis before entering a trade,
I also end up being frustrated a number of times.
if the end result is the same, I do not see the need of increasing my work load 10 times and in the process getting all the more confused...but that is another story.
the point that I want to make here is.. however comprehensive one's analysis maybe,
it is bound to fail a number of times resulting in the never ending search of new indicators, methods.. holy grail.
the idea is to take such 'frustrations' in ur stride, believing that these occurances are also an integral part of the 'process' of trading..
regards
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