I can help you with stock chart reading

nonstopkaran · #**471** 1st June 2006, 12:22 PM

i have a query... even i am a beginner.. see everyone say that the market in as its down stream and its the right time to buy....... in a month r so it ll give u a good rwturn.. but y contrasting views in this thread.. can u explain it clearly.......

SGM · #**472** 1st June 2006, 01:10 PM

Quote:

Originally Posted by nonstopkaran

i have a query... even i am a beginner.. see everyone say that the market in as its down stream and its the right time to buy....... in a month r so it ll give u a good rwturn.. but y contrasting views in this thread.. can u explain it clearly.......

Hello karan

I am sure vv will answer your query meanwhile just sharing my views.

Different people follow different strategies in the market.

What most of the traders using technical analysis would want to do is follow a trend. Currently the trend is definitely not up. May be side ways or down as VV has indicated. So if you want to follow the trend, you will not be thinking about buying now, If one would not or cannot short at least one can stay on the side lines, waiting for a uptrend to show itself.

Bottom picking is some thing trend followers will always miss out, but that is because they strongly believe that it is not easy to predict tops or bottom for the market.

Using fundamental analysis one may try to do value investments but this is not a thread about that.

Regards
Sanjay

makri · #**473** 1st June 2006, 01:15 PM

Hello

What is the best entry price to this script??

makri

vvonteru · #**474** 1st June 2006, 06:17 PM

Quote:

Originally Posted by SGM

Hello karan

I am sure vv will answer your query meanwhile just sharing my views.

Different people follow different strategies in the market.

What most of the traders using technical analysis would want to do is follow a trend. Currently the trend is definitely not up. May be side ways or down as VV has indicated. So if you want to follow the trend, you will not be thinking about buying now, If one would not or cannot short at least one can stay on the side lines, waiting for a uptrend to show itself.

Bottom picking is some thing trend followers will always miss out, but that is because they strongly believe that it is not easy to predict tops or bottom for the market.

Using fundamental analysis one may try to do value investments but this is not a thread about that.

Regards
Sanjay

I think U got all Sanjay. Thanks.

Andhra Sugar
-- I don't recommend buying anything now. Reason, see above.

rangarajan · #**475** 1st June 2006, 06:24 PM

I am unable to understand that inspite of your point blank advise as NOT to BUY,in this market,still, why people are anxious to buy.Do they want a favourable reply from Vashishtar?
ranga

vvonteru · #**476** 1st June 2006, 09:39 PM

Quote:

Originally Posted by rangarajan

I am unable to understand that inspite of your point blank advise as NOT to BUY,in this market,still, why people are anxious to buy.Do they want a favourable reply from Vashishtar?
ranga

I think most get confused with methodology versus making money. Its just as in life. U can make money money several ways. But, do U do that? Or do you stick to your priniciples?

Other confusion is about a stock being cheap versus expensive. Most don't understand that neither a stock is cheap nor expensive. It is above when you buy versus when you sell. The difference is all that matters. The question is how do you choose those points. What are your guiding principles that let you choose those points. Can you make exceptions to those principles? (Can you make an exception in life's principles and take bribe to make money)

These are some thought provoking questions one need to answer. One can experience. Buy 5 shares of a stock. Feel the experience. How do you feel when you make an exception to your principles and buy shares. How do you feel when you follow principles and buy stock. Even though people say its all about money, seriously its not. As in real life, its about how you make it. How you make it consistently. It has to be a repeatable process. If not, you can make a 1000 today, lose 5000 tomorrow. Consistency and Repeatability are the key.

I think I took it far. Most of the people don't have set of principles to trade. What they are after is making quick money. They don't understand that trading stocks is the most challenging art in the world. Its about snatching money from the other guy. If you are not smart, somebody else will grab the money from you. Until they lose, they don't realize. Experience is everything!!

kuldeep49 · #**477** 1st June 2006, 10:01 PM

Quote:

Originally Posted by vvonteru

I think most get confused with methodology versus making money. Its just as in life. U can make money money several ways. But, do U do that? Or do you stick to your priniciples?

Other confusion is about a stock being cheap versus expensive. Most don't understand that neither a stock is cheap nor expensive. It is above when you buy versus when you sell. The difference is all that matters. The question is how do you choose those points. What are your guiding principles that let you choose those points. Can you make exceptions to those principles? (Can you make an exception in life's principles and take bribe to make money)

These are some thought provoking questions one need to answer. One can experience. Buy 5 shares of a stock. Feel the experience. How do you feel when you make an exception to your principles and buy shares. How do you feel when you follow principles and buy stock. Even though people say its all about money, seriously its not. As in real life, its about how you make it. How you make it consistently. It has to be a repeatable process. If not, you can make a 1000 today, lose 5000 tomorrow. Consistency and Repeatability are the key.

I think I took it far. Most of the people don't have set of principles to trade. What they are after is making quick money. They don't understand that trading stocks is the most challenging art in the world. Its about snatching money from the other guy. If you are not smart, somebody else will grab the money from you. Until they lose, they don't realize. Experience is everything!!

Vvonteru
You are absolutely right. But consider this if everyone trading in the market were wise and prudent, what would the market be like? I was looking at the Nifty chart today. I have attached it with my observations. I see 3 ascending peaks followed by a short duration descending peak and then a steep fall before the index started moving between 2900+ and 3300. What would be your comments? Can one infer that for some time, we will see this trading range (with lower than previous average volumes) and would it narrow before an uptrend emerges? As it is we are entering that traditional Indian season when businesses slow down due to monsoons etc.

vvonteru · #**478** 1st June 2006, 10:43 PM

Quote:

Originally Posted by kuldeep49

Vvonteru
You are absolutely right. But consider this if everyone trading in the market were wise and prudent, what would the market be like? I was looking at the Nifty chart today. I have attached it with my observations. I see 3 ascending peaks followed by a short duration descending peak and then a steep fall before the index started moving between 2900+ and 3300. What would be your comments? Can one infer that for some time, we will see this trading range (with lower than previous average volumes) and would it narrow before an uptrend emerges? As it is we are entering that traditional Indian season when businesses slow down due to monsoons etc.

You are right that not everyone can be wise and prudent. Hence, there is money gained or lost. It is also due to the fact that each person looks at the data and analyzes differently. Then, you have money from Funds that make the large chunk of the market. Their reasons are different.

Coming back to the question of nifty. Hopefully we see some signs of bottoming out. Till then, we all wait.

Czar · #**479** 1st June 2006, 11:21 PM

Sir what would be a prudent signal for covering the short positions ? please advice

vvonteru · #**480** 1st June 2006, 11:37 PM

Quote:

Originally Posted by Czar

Sir what would be a prudent signal for covering the short positions ? please advice

Right now, the market is in oversold condition. Its testing 200 day EMA. It may bounse. If it goes below 200 day EMA, thats more bearish. It all depends on how it does, rather than just noise.

If you are short, you had enough downside that you should take partial profits. And on the remaining shares, trail the stop down. But, are you not day trading when shorting?

Similar Threads for: I can help you with stock chart reading
Thread	Thread Starter	Forum	Replies	Last Post
Tape reading	susheel04	Technical Analysis	17	6th January 2009 08:24 PM
The Art of Tape Reading- part 1	sh50	Technical Analysis	2	3rd January 2009 02:51 PM
Down Load of Data for Meta Stock or FC Chart	Jayesh	Software	7	16th December 2008 08:44 PM
Tape reading for forex.	gamebit4x	Introductions	0	4th March 2006 11:22 PM
General reading for traders	CreditViolet	General Chit Chat	4	27th October 2004 12:22 AM