tools of a trading pro

[uasish]

CV,

Why did you delete.It was a jolt of a post.Proved once again how little i know.

Asish

Sorry it is in a different thread,found it.

 

[Venu_CA]

Hi Oilman
Let me answer some of your questions.
1. why they r superior ?

Frankly ,I dont know whether my method is superior or inferior.For the last two years I am consistently profitable.Making around 60 % per Annum on a fixed trading capital of 2 lacs.

2. what time frame they trade?

Generally my trades last for 5 to 10 days.I have neither the time nor the interest to day trade.

3. how far they r subjective in trading ?

My entry Criteria is very simple .I just note down the names of scrips which made a significant up move on the day say 5% + .Next step is to find the catalyst behind the move.I visit many web sites like NSE,BSE,MoneyControl etc etc etc in search of the catalyst.If I find some news or other development which can be beneficial to the company ,I enter next day .Will never lose more than 1% of capital.Trail with a stop and simply get out if there is no up move within a week.

4. what r the reason for their actual consistency ?

I think it is because my system is not against the basic nature of the market.
some truths i learned so far
a) central tendency of the market is to go up,So I am always long
b)Always earnings will drive the stock up (in the long run)
c)Fundamentals matters.Hard core TA traders can make marked improvement in their trading results by paying little attention to fundamentals.
d)Price appreciation is a function of demand caused by the positive investor sentiment towards the company.Find the catalyst behind the new investor sentiment.
e) Catalyst can be company specific,sector specific,or industry specific.Try to assess the impact on the earnings.

5. on what condition they dont trade ?

Dont trade for the sake of trading.I Trade only if I am convinsed about the catalyst.When the market is overheated one will see hundreds of stocks making 5% + moves day by day.Then it is time to reduce commitments

6. what is their contingency plan[enough is enough..now i am booking loss]

I am looking for 10 to 20% move .If there is no move within a week , I will get out and buy something else.I am using a trailing stop.initial stop will be the low of the breakout day.

7. what self sabotage u find most difficult to overcome..yet how u have done it ?

Wasting time on the non existent holy grail instead of improving my own system by creating a good database.Foolishly chasing every new indicator.

8. do u think beginner trader[4yr amateur] can be like u oneday ?if yes. HOW!

I have the right to advise only those 4 year amateurs who are less profitable than me. I will advise them not to ignore the fundamentals.FA alone will not work.some times market may take years to discount it.So go for the momentum.

Kindly guide me and make me more profitable.

Regards
Venu.

 

[oilman5]

dear venu,
excellent answer.ur main stength is clarity of thought process.
use of momentum.faith in fundamental and dig more to get truth.

only problem is criteria of catalist...as PRICE moves before news comes out in media[tv,paper or internet].......market is highly efficient now..reach speedily where to reach....suggesting execution is difficult.ur rate of return is envious...fact is fund manager getting 10-16%...
u shall be star oneday
oilman5

 

[oilman5]

dear asish
ur return is consistent i know...also ta depth.being right' trap is most dangerous trap also happy when right...this 2elements..u shall overcome as u master volatiliy play.i like ur snake and ladder play ...as it suggests u destined to move up..by effort only...showing strength on persistency.since u believe in countertrend...willium%r....best indicator..use 2time frame...3day and 8 day....
as u handle well metastock check by backtest.
with regards
from a bangali bhai

 

[oilman5]

TRUE STENGTH...SEE THE BIGGER WAVE ..BEFORE ITS FORMING...
THE PROBABLE PT WHERE IT CAN FORM...
READY WITH MONEY TO TAKE POSITION..
ALTERNATE SCENARIO...[AS SUGGESTED BY GREAT CV]...KEEP EYE..JOIN WHERE AND WHEN BIG WAVE IS FORMING...OTHERWISE SIT IDLE.

hope asish ..its workable
oilman5

 

[uasish]

Thks for the compliment ,however Very Risky to catch a Falling Knife.

 

[uasish]

dear asish
ur return is consistent i know...also ta depth.being right' trap is most dangerous trap also happy when right...this 2elements..u shall overcome as u master volatiliy play.i like ur snake and ladder play ...as it suggests u destined to move up..by effort only...showing strength on persistency.since u believe in countertrend...willium%r....best indicator..use 2time frame...3day and 8 day....
as u handle well metastock check by backtest.
with regards
from a bangali bhai

It can be MACD also.Plz see chart.

 

[uasish]

Hi,
It is MACD only ,giving a winning trade ,Nifty (-) 32.90 points & Tata Elxsi now (+) 3.56 %.Only W%R is a wrong notion.At the time of posting the chart it was (-) 0.79 %.
Asish

 

[uasish]

MACD Buy signal has given net > (+) 3% ,when the over all Mkt sentiment is (-)ve.

 

[oilman5]

excellent asish...i forgot u r master in macd and a good collegue of karthik.
further praise is unnecessary to a high callibre like u.
by the way...since u believe to play anti trend thats why i suggested to play eod in willium%r...3 day and 8day....when both signaLS up...buy..
backtest in metastock ..with last one month data..enjoy.
oilman5