Practical trading education part II-www.technicaltrends.com

The software by www.technicaltrends.com is excellent from that education perspective.

Mr Sudarshan Sukhani of Technical trends speaks on CNBC. It is a little ironical that I went to him just before I bought Metastock in May last year. However since I was totally raw at that time, I could not assess it properly. Actually just before that, I had purchased the best financial accounting package Tally which proved far superior to the customized accounting package I was using earlier. So I was already biased in favor or a branded product and preferred Metastock.

However like in the stock market, the trend need not always be true. Recently, I had to return to Mr Sukhani again for intraday data as the alternatives are extremely expensive for a rookie. Well, I seem to have discovered a goldmine. I have been operating the software for last three weeks and it is quite a find. In all trading books it is given that one has to discover one's temprament and then decide what type of trading one is suited for. I think at Rs 20,000/- per year for both eod data, intraday data and practical education this is worth it. The alternatives are too expensive to experiment whether day trading suits you or not.
Just as to learn driving, you need a car and a coach, this software operates like that. Its actually a newsletter cum enabling software. It has recommendations of swing trading, position trading and day trading which one can easily crosscheck on both the intraday and eod graphs of the software. The position recommendations are given in with detailed graphs and swing setups like inside day, NR7, 1234, volatility setups. etc. For a beginner it is very easy to crosscheck and learn. That apart there are recommendations on derivatives and some pretty good writeup on nifty and the stock mkt that I have not seen in other newsletters.

He also gives recommendations on day trading every hour most of which are correct. You need luck also because one never knows what the stock will do after it crosses a signal. He is the first technical person I have come across who so confidently speaks about day trading- a majority advice against it and he recommends futures trading in intra-day. I think intraday futures can be recommended only by that person who thoroughly knows the subject.

Most important is that this software enables learning by doing and learning while doing by giving graphic and text explanations of position trading which is real education.

If you know how to do Elliot wave count , there is a provision although it will not ofcourse have the fancy explorations of Advanced get.

In the newsletter there is data on top25 scrips, top gainers and losers and top twenty scrips etc stc.

It also has data on options and futures. Metastock has only futures data.

One of the best features I liked is the stock scans. They are extremely thorough and enables a beginner to think how to select a stock ( file attached).

It has provision for data conversion to mm, binary format, eodintra etc.

It has general tiling and template features.

Though comparison to Metastock in certain ways is like comparing a Wagon R to a Hondacity but a small car can take you places faster than a big car- this is excellent in that respect.

All the indicators are classified wonderfully under their respective heads- momentum, volatility , trend etc which itself can be very educative. This classification is there in Metastock manual but not in software. Some gerneral indicators are explained better than Metastock and vice-versa.

The best part is that for total laymen indicators have been explained in laymen terms using the analogy of Alligators. For complete beginners, it is very easy to understand.

Another very good thing is that as you compare the 5,15,30 and 60 min and daily chart everyday at an affordable cost, it develops excellent charting sense since there are so many situations one faces everyday and apply it to other broader charts It does not cover all the nifty stocks.

Metastock is wonderfully convenient and userfriendly. It has better visuals and better advanced features if you know how to use them. Metastock expert advisor used alongwith exploer and custom tester can prove very effective but in my view, the basics need to be well developed first. Technical trends has only one expert advisor compared to Metastock’s multitides.

It is one’s own individual prerogative to choose depending upon what one wants. Just as one can watch both NDTV and CNBC, one can buy both- one for learning , the other for convenience if one can afford it. The intraday data cum the newsletter makes it a much cheaper alternative but considering that one has to compare oranges to oranges, I will say strictly from an educational perspective, it is the package.

A last sweetner – the technical trends website has some excellent guidelines for beginners.I started with them. Some of them are only for registered members but are worth reading.

There are some operational glitches and people from outside Delhi may find it difficult initally, overall I think it is worth it.

I tried to learn trading from almost half a dozen people and spent a couple of months with the last person.In more ways than one, I have learnt more practical trading in the last three weeks than the last six months. This has been written only with the perspective of helping beginners.

Mr Sukhani also conducts seminars but he does them one topic at a time which enables one to digest concepts properly instead of thrusting all of them at one go.

Mr Sukhani has lived up to his name and made this one of the happiest(sukhi) new years of my life. Hope it helps some of you too.

Attached Files

Scans.doc (22.0 KB, 687 views)

seems interesting! as i checked its swing guide for satyam on 24/01/05

price was achieved.

thanks for the guide.

I shall give the next example of derivatives when the next example comes. All the three recommendations have by and far proved reliable. Their website may not look very impressive style wise but has a lot of meat. As I have tried to convey, if you are interested in long term success and developing your basics thoroughlly, this software is for you.

After I wrote the above, in the evening the derivative calls came in the email.

Today itself Mr Sukhani has adviced two derivative calls. Buy ACC at around 351-352 with a stop loss at around 345.

He also advices He also advices buying Maruti on a dip ( at 412-415
presumably with a stop at around 405).

Mr Sukhani also spoke on Television today(27/01/2005) at 7: and adivced to be wary of all PSU banks including PNB and Syndicate. According to the today's newletter, shipping, Aluminium and steel are sectors to watch out for.
Hot stock is Geshipping.

This is an example as you asked and I can obviously not reveal regular calls.

The focus should be equally on learning technicals well because that alone can take you proftiable in the long run( lambi race ka ghoda). No other technical newlsetter gives graphwise reasoning i.e price patterns like head and shoulders and other things like ma and trendlinecrossovers alongwith indicators below. Majority of people who talk on CNBC also give only support resistance levels which anyone who can read weekly charts can do.

His writeups on nifty are extremely educative. Some extracts from previous newsletters:-

"A trading range is an area that requires great patience and discipline to go through. First, we must avoid the temptation of jumping the gun, taking a position before a breakout / breakdown. Second, when we take a position after a move out of the trading area, there is always the risk that the breakout / breakdown may be a false signal. After a few days, we may well find that the correct move was a breakout on the other side. In such cases, we have to suffer a loss."

"We are currently facing a bearish sequence of lower lows & lower highs. This sequence is broken when we have a higher high. The last pivot high was at 1950. If the Nifty were to close above this we would say that the short term down move is over. The Nifty will have to make higher lows for an uptrend to be confirmed. Till this, we remain in a downtrend."

"We should also look for smaller range days with more ordered moves (either up or down). This means, in our short term trades, we may have to accept smaller profits, also hope for tighter stop losses. We should also look for smaller range days with more ordered moves (either up or down). This means, in our short term trades, we may have to accept smaller profits, also hope for tighter stop losses. For Position Traders, low volatility is good. A sleeping market will eventually wake up, which would be a good time to enter.

For a beginner, every small point(For Position Traders, low volatility is good or in high volatility one should buy in small lots) is a siginficant point although to experienced people, it may seem like common sense. As Mr Sukhani has wisely said in a writeup, that that common sense and judgement comes after years of practice. As they say "Common sense is most uncommon" and should not be taken for granted.

Glad to note that you have a Mentor too, and a very good one at that. Incidentally, in Nautical terms "Sukhani" means "Helmsman", the sailor (seaman) who steers the ship operating the helm or the ship's steering wheel. You can draw your own analogy.

Altraderji, I think it is better you check their website www.technicaltrends.com. Past recommedations are also there and their particulars are also there. You can contact them during mkt hours by telephone. I think if both parties use Reliance mobile, then it would be really good for people outside delhi too because at the initial stage there are a few teething problems which need sorting out.

I checked with the Viratech people. The cost of the real time metastock is Rs 78,000+Rs 55000 for data per year. That makes it Rs 1,33,000 a year. Now if you were to consider this as a sort of margin capital, if your broker allows you to trade 6 times , it would mean almost Rs 8,00,000 capital which for daytrading is enormous. In contrast the technicaltrends real time package is only Rs 10,000 per year although in their case it is not possible to have real time without having eod.

This implies Rs 20,000 for intraday and eod. For Metastock I paid Rs 27000+7500 for eod data. If you just add Rs 27,000 to Rs 1,33,000, it would mean Rs 1,60,000. People who are confident enough to buy the metastock real time straightaway would offcourse payRs 1,33,000. Techncial trends is also giving a newsletter plus real time recommendations. Both give real time data only for nifty stocks.

In day trading, one has very little time to think. So even if the advanced features of metastock are effective and useful, I don't know how they would be useful in day trading. On an average, technicaltrends recommends 10 stocks per hour and one has to swing into action straightaway after deciding which stock one is interested in.

Maybe some senior can elighten(about Metastock features in daytrading) since I have been seriously daytrading only for a month. I feel it is costly because to decide whether or not you even want to do daytrading, you actually have to attempt it and this is too steep a cost for attempt. What if you decide later that day trading is not for you. Intraday charts are sometimes required by even position traders but this seems too costly to just look at the chart. Does ***** finance have 30min,60min charts?

In my view, the best combination is realtime techincaltrends+eod metastock to combine both economy and advanced features as recommended earlier. Friends in this forum and outside have prevailed upon me what an idiot I was to buy Metastock when considerably cheaper alternatives are available. Well, Viratech's data service is excellent so unless one is sure about the alternatives, it could be "pennywise pound foolish" if you are serious about your trading.Other people have also said that their data is flawless. Their general after sales service is also prompt which is a critical factor. Its upto the individual to decide.

Anybody else can please let me know if there is any other alternative apart from Viratech and Technicaltrends for realtimedata?. It would be like the third front as on our political scene.

Please check out the following

http://www.spidersoftwareindia.com/

regards

K Kannamthanam

Thanks, K Kannamthanam.

One point needs elaboration. Technical trends gives around 5-6 intra-day recommendations on 30min charts thrice a week apart from daily position trades and swing trades. These intraday trades are for shares and not intraday futures which come on line everyhour. One can of course look at the chart of the intra-day share of the futures recommendation which come real time but knowing some of them in advance enables one to prepare oneself before the market begins.

Dear Sh50
I have read your article about the Practical trading education-www.technicaltrends.com. I would like to know how much of percentage will be correct among the recomendations adviced by Sudarshan Sukhani. I would like to subscribe with him. But I would like to know your recomendations about the authenticity of the recomendations, beforehand. Hope you will advice me.
Thanking you
gvnarendra
email-gvnarendra@**********

It is very difficult to do read everyday news, do everday analysis and track all recommendations percentage wise on an ongoing basis. I can only say most are correct. To be on the safe side, trade only in well known companies and companies you know well personally. Only tradersedge newsletter gives an ongoing analysis of profit and loss. Sukhaniji's package is better for learning more than anything else.

Thank you very much Sh50, for your replies.
gvnarendra