karvind79 said:
Dear Friends and TRADERJI,
Happy to see the posting.But I have one question that how u find that Correction is over? when u have an idea to buy the script analyse it's fundamental if u are an investor and if u are day trader use TA.If u are Short term use both FA and TA.Are u able to predict the mind of people? Now my opinion is Buy the best scripts when u feel that rate is good and the script was eligible for the rate.We can't buy shares at LOWER END as well as can't sell at HIGHER END.we shd fix our price range target for both buy and SELL.
So don't expect correction more and more in the falling market and don't expect move more towards higher in UPWARD trend.Always try to move with market and Swingtrader concept(RSI) is good one to buy at this time.
Seniors post ur views and bye
Take care
From,
Arvind K
Hi Arvind,
Agree with you that for a daytrader,tech analysis is everything......fundamentals and news may alert him to a particular stock,but TA is everything.Also agree with you that investors buy based on FA........but would be wonderful though if investors could buy a stock based on fundamentals,and using monthly charts,time an entry.I suppose then he would be called a long term trader instead.
How do we know that the trend is over?When weekly pivots are taken out we say that an intermediate top has been reached,when monthly pivots are taken out we say that a long term top has been reached.Certain indicators and volume analysis aid in assessing the change in trend.Just as a change in trend can be figured out,so too can the end of the correction...........we can't divine the exact low,but what we want is a higher pivot low,threatening a possible change in trend and an end to the correction.
But pain you will feel,my friend,extreme pain you will go through(forgive the Yoda-style)if you feel that a stock corrects from 100 to 80,and you believe it's a perfect buy and that this particular rate is good...........either because your broker said so,or that valuations are now great,and all that blah blah......and buy it then,you are catching a falling knife,and the very nature of the falling knife is to pierce through your hand.When the stock now falls to 60,you'd say that the market is unfair,makes no sense,market manipulations,government conspiracy theories abound...............so please don't buy when you think the script rate is good,please don't guess the bottom,the pain that will follow will be too much to bear.
So too,please don't have a fixed target as well.........Great to have a target just as a guide,and then try to stay with the trend.Guessing bottoms,limiting profits,.........dangerous,my friend.Else the end result would be minimum profits and maximum losses,pain and finally the disenchantment with the stock market.
Wishing you the very best......
Saint