Fine Tuning Trading...

Hello Everybody...

Lets fine-tune our tradings.... Generally i follow a v.simple approach based on Candle-Stick Patterns, Vol. Movement & Support and Resistance Levels.... Here is the chart of Aarti Industries I entered this stock on 24-01-2011 @ 58.98( i add brokerage and charges to the purchase amount to get actual picture)

In this chart there are two kind of lines....

blue lines - achieved from daily charts
pink lines - achieved from weekly charts.



have kept the SL @ 57.70.... any inputs.......

Good observation what you think about the current trend of this stock any views on this

Trend lines are breakouts good.
But, in my opinion, to make a proper trading system u need to use moving averages, momentum indicators etc.
Trend lines used in tandem with these will give you more concrete stuff.
I feel with trend lines false breakouts are imminent. Hence they cannot be trusted alone to take trades.
Or at least try using Pivots.
Lot of things u might have to try and backtest before closing in on one system.
But it will be worth it trust me.

completely agree to you sumeet... actually got into the markets about a year back.... went through various phases to decide on which stocks to invest and in which not to and all... lost about 20% of capital.... so now into TA..... have been researching about TA for quite some time and some rigorous learning in the last 15days.... just reading, reading & reading was getting a little boring... so thought of trading a bit... so i screened a lot of stocks what i found is that the indicators like SMA overlap are good but are very lagging, they come after a major change in trend, and especially in such markets prevelant now where there is a steep downward the SMA overlap would come very much later....

i didnt want to start with futures(i am not comfortable with options) or else i would have played the bear in lot of shares... thats the trend now...

in equities these shares seemed the best...

i have to admit it was more of a itch in the hand which led me to this trades.... will have to learn the virtue of patience and control.... though i am maintaining strict SL on these and every morning the first thing i do is put the SL trigger order and then only do i look up for anything else........

but understood that Patience and control is the key....