start of a equity trader in indian market

[oilman5]

btw.......all4pt of ta, i answer and explain in trader language in various previous in some of my thread.
only one word......discipline,.......if u r regular basis earning from market,........stick to it.

 

[oilman5]

so i have a plan to write based on rds course recently i attend.
.......views r not mine ,as taught by pro........only because many may not afford cost of it.i write for forum........individual may test view/right wrong himself.
.........its 11chapter
...........................
chapter1
...........
learn entry/exit pt.........what drives a trader to act.......fa

 

[oilman5]

create a strategy that suits u......firm grasp on mm.get organised......visualisation is necessary.
fa is anticipated expectation of supply/demand based on some news flow.if demand increase price shall have tendency to move up.interest rate declaration and employment rate r 2value.......past trend,last data vs market reaction and current expectation........3thing u must study.......with probable case scenario.
note....a nominal rate hike may execute to hold inflation.a rate hike is detrimental to index.
......pl study gap to understand when reports come out

 

[oilman5]

chapter 2
...............
know ur opponent if u want to survive in market.use patience and when to fold.a pro knows throw away loser.......search for winner..again.understand risk reward.study market daily.ta helps for timing.develop a particular timeframe playplan where ur guessing and execution is superior.trade evaluation is must,..its is key.if u play breakout.......chance of failure ...very high.......never forget it.std pattern of reversal............a good tool.........to guess how others r seeing market.
build ur confidence in exit as per signal.........simply execute , dont hold......here novice and pro differs

 

[oilman5]

chapter3
.............
football analogy and mometum..........bull bear character can change any moment,.......a match is exciting as anybody can win,......but as spectator,a pro/gambler...bet on who can win......not whom u like.its ur experience to watch........over many match.....ur cool judgement ,personal idea as player.......develop a sense to bet rightly after seeing fast few min of match,......understand momentum and reserve strength[spring coil action in price]....be a cool calculative head.
understand realistic profit target.pl see how momentum is fed in a stock......if its fading.........get out.

 

[oilman5]

chapter4
.............
one of the interesting pt..........after reading lot of ta literature....what they have in common?.......study of close price....its bias.......yesterday high low........can they help to predict tommorow.......NO.......BUT THEY SUGGEST IF PRICE X SMOOTHLY LOW......AND WITH MOMENTUM,......-IVE BIAS IS MORE ACTIVE,......SIMILARLY IF HIGH IS BROKEN ,MOMENTUM BUILT UP CAN BE SEEN.......NEW BUY ORDER IS COMING,........DEFINITELY U SHOULD JOIN AS BULL
...
fibonacci is good tool.........both for retracement and price projection.
basically as watcher of price wave............ur duty is judge how easily it break some resistance,.......or how smoothly price falls before bouncing

 

[oilman5]

chapter5
............
when price begins to fall from trending high,.........u must get out.......earliest u sure by confirmation.
similarly be ready to enter when downfall stops.......only after confirmation by price......u must have some systematic approach,pref mechanical to do it.
......its the essence of execution

 

[oilman5]

chapter6
................
for break out play use strong momentum candidate...in overbought zone........only break out possible ,.......mind high risk,low probability
recent example...........thomas cook
........always have a check list before trade,.........if u feel uncomfortable just reduce trade size

 

[oilman5]

use macd as exit signal

 

[oilman5]

chapter8
..............use ma