Teach A Man To Fish And.........

nick721156 · #**1021** 29th December 2007, 07:06 PM

can anyone tell me how to post images alongwith posts?

regards,

raju

djsinha · #**1022** 30th December 2007, 02:01 AM

Quote:

Originally Posted by nick721156

Dear Saint,

This is my first letter to you. I must thank you for helping people like us. Great job done.
For last one week I have been reading and trying to understand your "teachings" about fishing a fish and happy that I have learnt a lot though many things are to be cleared as yet. Because of my location, job nature and knowledge in share trading, i don't go for daytrading or swingtrading but in position trading only. Normally I use "limit" option facility of ICICIDIRECT.com wherein I can put my BUY/SELL signal the previous night.

In the present chart, I would request you to clarify some points. When you say, " If the index/stk goes above the pivot marked as Option 1,Buy with your stop at recent pivot lows".

My queries are,

1) When you say index goes above the pivot, is it the intra day movement above the pivot (i.e.shadow ) at which we have to buy the stock or closing high (i.e. bar) above the pivot? Because the stock may go above the previous pivot high (marked by pink arrow) momentarily during the day and settle lower (Closing) than that.

2) Shall we consider pivots or highs/lows for drawing trendlines?

3) I have observed that whenever we consider longer time frame (say 2 yrs) on a weekly or daily chart, the trendlines appear to be steeper (on the screen) than that with shorter time frame , say 6 months or 3 months, for same pivot highs or lows. Would you please tell me which time frame is the best for weekly and daily charts to draw trendlines?

I shall be glad if you clarify these doubts.

Thanks in advance.

Regards,

Raju

If I try to give answers to questions posed towards Saint, I hope Saint wouldn't mind provided that I have become so nice a fan of his after reading his post "Teach a man to...".

Guys, I must admit that it's a piece of jewell that Mr Saint has created. I've read it some 5-6 times from first to last till now and believe me every time I read it afresh, I discover some 2-3 vital points that I left out in the previous reading.

Ans to Q 1) Since u don't do intraday trading, by principle, u shudn't make trades based on 2 mins or 5 mins or 15 mins data. Never ever mix two timeframes. Whatever decision u have to take, say buy/sell (because of pivot crack on the upside/downside) take it based on EOD charts and not on intraday movements.
But once u r into trade, put ur stoploss daily using the "limit option" as u mentioned and that will be based on ur previous to previous bar's low. That means, if your previous 2 bar's low is cracked on the downside even on intraday movement and even if momentarily, never hold on to that trade. Immediately get out.

Ans to Q2)U shud draw trandlines connecting pivots only.

Ans to Q3)That's obvious, because, over the long term any share price always trends up. Which timeframe u will use for drawing trendlines will depend on what is the timespan for ur trading. If u r planning to maintain ur holdings for 6-12 months, u shud draw trandlines on 2-3 yrs chart and if u r planning to trade for 1-2 week u shud draw trandlines on 1-2 months data.

Saint, pls point out if I've committed any error in answering the qs. Ur valuable addition to these will definitely add to our knowledge base.

Cheers
d j sinha

nick721156 · #**1023** 31st December 2007, 12:53 PM

Quote:

Originally Posted by djsinha

If I try to give answers to questions posed towards Saint, I hope Saint wouldn't mind provided that I have become so nice a fan of his after reading his post "Teach a man to...".

Guys, I must admit that it's a piece of jewell that Mr Saint has created. I've read it some 5-6 times from first to last till now and believe me every time I read it afresh, I discover some 2-3 vital points that I left out in the previous reading.

Ans to Q 1) Since u don't do intraday trading, by principle, u shudn't make trades based on 2 mins or 5 mins or 15 mins data. Never ever mix two timeframes. Whatever decision u have to take, say buy/sell (because of pivot crack on the upside/downside) take it based on EOD charts and not on intraday movements.
But once u r into trade, put ur stoploss daily using the "limit option" as u mentioned and that will be based on ur previous to previous bar's low. That means, if your previous 2 bar's low is cracked on the downside even on intraday movement and even if momentarily, never hold on to that trade. Immediately get out.

Ans to Q2)U shud draw trandlines connecting pivots only.

Ans to Q3)That's obvious, because, over the long term any share price always trends up. Which timeframe u will use for drawing trendlines will depend on what is the timespan for ur trading. If u r planning to maintain ur holdings for 6-12 months, u shud draw trandlines on 2-3 yrs chart and if u r planning to trade for 1-2 week u shud draw trandlines on 1-2 months data.

Saint, pls point out if I've committed any error in answering the qs. Ur valuable addition to these will definitely add to our knowledge base.

Cheers
d j sinha

Dear sinha,

Thanks for your reply. Shall be in touch.

Regards,

Raju

takingstocks · #**1024** 31st December 2007, 11:31 PM

Dear Saint. I have just started learning abt stock market this year 2007. I feel really fortunate to visit this site . For the past 20 days i am going through your posts and always felt really happy abt the way you were helping out forum members.Infact i am bit embarrased because even though i could not understand it so cleary unlike other board members who seems to have got a hunch of it..

I could not understand how to find the trend because it seems complex coz of following..once if you clarify these points i think i can understand a bit more

1. first of all where do we get to see weekly charts ? (i am sorry if this is a insane question but i really dont know ...moneycontrol has some charts but its not easy to analyse)
2. suppose i want to invest in some XYZ scrip ..is there any time frame for this scrip after which this becomes tradable..for eg a newly listed scrip will not give us much idea due to unavailabilty of data
3.how many weeks should i consider?

extremely sorry for these kind of doubts
but this is where i am
really a novice..could nt even ask better doubts

worajiv · #**1025** 1st January 2008, 07:51 PM

Quote:

Originally Posted by takingstocks

1. first of all where do we get to see weekly charts ? (i am sorry if this is a insane question but i really dont know ...moneycontrol has some charts but its not easy to analyse)

Hi..Get a charting software like Amibroker, metastock etc. U will be able to
get the EOD charts with that. For details refer Software section.

Regards

blest · #**1026** 1st January 2008, 10:03 PM

i must say am really impressed with what am already seeing here.just wanted to say hi and go back to read every post to meet up.thanks

djsinha · #**1027** 1st January 2008, 10:38 PM

Quote:

Originally Posted by takingstocks

Dear Saint. I have just started learning abt stock market this year 2007. I feel really fortunate to visit this site . For the past 20 days i am going through your posts and always felt really happy abt the way you were helping out forum members.Infact i am bit embarrased because even though i could not understand it so cleary unlike other board members who seems to have got a hunch of it..

I could not understand how to find the trend because it seems complex coz of following..once if you clarify these points i think i can understand a bit more

1. first of all where do we get to see weekly charts ? (i am sorry if this is a insane question but i really dont know ...moneycontrol has some charts but its not easy to analyse)
2. suppose i want to invest in some XYZ scrip ..is there any time frame for this scrip after which this becomes tradable..for eg a newly listed scrip will not give us much idea due to unavailabilty of data
3.how many weeks should i consider?

extremely sorry for these kind of doubts
but this is what i am
really a novice..could nt even ask better doubts

U need a professional software like Amibroker or metastock. I've used both. I found amibroker in more userfriendly and easy to use and learn. U can download amibroker from www.************. For uploading EOD data to amibroker refer to the software section.

No such thing as timeframe after which a stock will become tradable. See two weeks data or in other words, see the weekly chart after two weeks. You'll see two candles. You see the second high and low is higher than the previous high and low - that's it. Analyse the daily and get in. Nothing nore than that.

funnyfriendbilu · #**1028** 3rd January 2008, 12:44 PM

Thanks alot....

ukit · #**1029** 10th January 2008, 01:47 AM

Quote:

Originally Posted by newbee

Hello GD

I am not qualified to answer your query. Just adding my 2 cents . .

Your question reflects similar dilema I was facing, perhaps all of us newbies will have to face, till such time we have not finally setteled down with a choice of time frame for our trades.

In this method given out by SAINT for trend following, we are refering to 2 time frames. A higher TF for the broader picture and a smaller one for entries and exits.

In your case if you are trading on the Daily Time Frame using EoD charts, your exit will be on a break of Pivot Low on that time frame, weekly TF is for trend guidance, so you will be looking again for a Long entry if weekly is still in an uptrend.

I trade this method for Intraday. In my case was struggling with 1 minute / 5 minute choice with a similar thought process, finally seclected the 5 minutes with 30 mins for an anchor chart for trend guidance.

It makes perfect sense to me, or maybe I am also equally confused

Do keep posting regularly, maybe with your charts, it will helps us all to exchange views and get feedback from SAINT

Thanks
nb

Hi

Saint or NB

For an Intraday If we use 30 mins or 60 mins Chart for trend guidance/direction what should be the time period of such a chart we will be looking at .I mean should it be 60 mins charts of few days from today or few weeks from today

Thanks
Ukit

pappilon · #**1030** 10th January 2008, 10:40 PM

Quote:

Originally Posted by Saint

Hello Friends,

As the famous Chinese Proverb goes,"Give a man a fish,you feed him for a day.Teach a man to fish,and you feed him for a lifetime."

This thread is a result of multiple emails from fellow members with a desire to learn how to trade,rather than to just take the calls here and there.This thread may not catch the interest of many,as the "many" are always interested in the 'fish' rather than learning how to.But this thread is intended for the few........the few that want to learn,or at least make a beginning to learn how to trade,the few that do not wish to bow to any other individual or organiztion as authority when it comes to decision making but instead wish to come to these decisions by himself/herself.

This thread will be of no help to those who make trading decisions based on the fundamentals.This thread will be of no help to the many that wish to know what this company did or wat was the news when a stock broke out.This thread will be of no use to a few members here,all brilliant traders,all great minds--Amit,Jaideep,Ajay,Vinay(JoyVerma),Joy_Mitali,Vince ,Karthik,Ivan among others for there is nothing new that this thread has to offer to them,that they do not already know and are implementing day after day,trade after trade.

This thread is for the newcomer to charts and who has that desire to learn.It is for the student of the market by a student of the market.I am no master,no teacher,no expert,all words that I abhor........this thread is to my friends who want to learn,from a friend who is just sharing what little he knows.

All the best!
Saint

excellent start ! impressive !