Technical Analysis - Graduation Day :)

Arsenals I use for success in Trading ?

  • Trading System and Trading Plan

    Votes: 0 0.0%

  • Total voters
    11

jagankris

Well-Known Member
#1
Dear Friends,

The realm of technical analysis,Systems,Indicators and Theories seems to be never ending.The hype behind each theory,indicator,systems makes one to put sufficient time,money,effort to learn,understand,risk his money and then come to a conclusion to take it or not.

In my understanding TA is only a quasi science or ART or a Probabilistic assumption or a kind of price behavioral patterns.

Is there any one who is happy and stopped learning knowing that there is no perfect system.

I request our members to share their experiences so that the learning curve will be enhanced and will be helpful in shortlisting the best and will help every one not to get lost in the jungle of Technical analysis or Analysis paralysis or Indicator fascination etc etc.

TIA.
 

jagankris

Well-Known Member
#2
I joined TJ.I have gained so much.Definitely in terms of knowledge.

Some random points which I have jotted down for the members to contribute towards the objective.

1.You want to make money or you want to learn about the theories propounded by others ?

2.What is that you want to learn ?

3.Is it not a wise idea to go to a mentor to learn TA or trading.Or trading course from Delhi ? - By this way the learning curve will be much faster.

4.Why learning through a mentor is better ?

A.Do I have necessary statistical knowledge ?
B.Do I have necessary SW knowledge like excel sheet.
C.Do I know how to create charts or systems ?
D.What are the advantages and disadvantages of each sw.
E.Which is the cheapest SW with rich features ?

5.Is just TA enough ? or there is some thing more.

6.What is trading physcology ? how to tame my mind ?

7) What is risk management ? Money management ? Position sizing ?

Newbie - Asks to guide him.

Trader A- All the above said are nonsense.Pay 10,000 rs and buy a mechanical trading system and follow it rigorously.

Trader B - Point 8 is the most idiotic statement.There is no perfect system.It is missing the element of discretion.Discretionary system is the best.

Trader C - Hybrid is the best.

Trader D - Ichimoku is the best.

Trader E - Break out trading is the best.It gives quick results.

Trader F - No pull back trading is the best for it offers the best risk reward ratio.

Trader G - Brokers are the people who make money.Market makers are thief's.Only insider makes money.TA is nonsense.

Trader H - No volatility,Stochastics,ATR,Stochastics,MACD combination is good.TA is a science.Fibonacci is the King.

Good bye markets.

Lots and lots of theories.Do I have necessary time to learn all this.If at all to learn all these.How long will it take ?

Newbie Faints :confused:
How many times I have to loose my capital before understanding all these.
 
#3
Dear Friends,

The realm of technical analysis,Systems,Indicators and Theories seems to be never ending.The hype behind each theory,indicator,systems makes one to put sufficient time,money,effort to learn,understand,risk his money and then come to a conclusion to take it or not.

In my understanding TA is only a quasi science or ART or a Probabilistic assumption or a kind of price behavioral patterns.

Is there any one who is happy and stopped learning knowing that there is no perfect system.

I request our members to share their experiences so that the learning curve will be enhanced and will be helpful in shortlisting the best and will help every one not to get lost in the jungle of Technical analysis or Analysis paralysis or Indicator fascination etc etc.

TIA.
There is nothing like a perfect system....all systems can work and they can and do fail on some trades. The system should have positive expectancy to be profitable ,we need to manage our risk well and follow a good MM plan to be successful in the market.

A system which is a great system for trader A may not be even profitable for Trader B because both have different mental set ups and belief systems.

TA only tilts the odds in our favour and is to be used as a decision support system foe entry,adds, exits, stoplosses.....one needs to understand that TA does not move the market.

Larry Williams summerises TA as under :

" TA has made enough money for me to believe that TA works most of the times.....but it has not worked many times to believe that it works all the time.".... dont remember the exact words....but something to this effect.

Smart_trade
 

linkon7

Well-Known Member
#6
I dont read books on TA. Somehow i have a misconception that those who cant trade...teach...!

Saint sir once said in one of his post....

"Hope something will come out of this, otherwise we will find out one more thing that does not work.

So truely Win-Win for us..."


I visit lots of forums and try to locate people with an ascending learning curve. Funny thing about these very tiny group of learners is that they are never satisfied with what they know. Somehow money making is not the objective of their quest. They are always trying to find chinks in their own Armour and find ways to protect themselves.

Locating successful traders is very difficult and once I locate such a person...i tail him. I look for every post that person has made. He has undergone a transformation and his path to success is documented in forums. That quest is my learning curve accelerator. I might not use his method, but i get to know one more thing that does not work for me.

Saint sir is the most successful trader in my eyes. Its not because of his awesome flow method that he has taken to a whole different level now. He has my respect because he was able to transform a bunch of newbies into very profitable traders. He installed faith in them. Those profitable traders were the source of saint's knowledge. Every time a situation repeated itself, they made notes and worked on handling such situation. Once they are satisfied with defining the conditions, they made a rule for handling such a condition and the search for new chinks in the Armour continued....

Its a never ending journey for a trader.... process of kissing frogs continues till he finds one that turns to a princess... and he continues building his harem the only way he knows... theory of elimination...!
 
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oilman5

Well-Known Member
#7
I dont read books on TA. Somehow i have a misconception that those who cant trade...teach...!

Saint sir once said in one of his post....

"Hope something will come out of this, otherwise we will find out one more thing that does not work.

So truely Win-Win for us..."


I visit lots of forums and try to locate people with an ascending learning curve. Funny thing about these very tiny group of learners is that they are never satisfied with what they know. Somehow money making is not the objective of their quest. They are always trying to find chinks in their own Armour and find ways to protect themselves.

Locating successful traders is very difficult and once I locate such a person...i tail him. I look for every post that person has made. He has undergone a transformation and his path to success is documented in forums. That quest is my learning curve accelerator. I might not use his method, but i get to know one more thing that does not work for me.

Saint sir is the most successful trader in my eyes. Its not because of his awesome flow method that he has taken to a whole different level now. He has my respect because he was able to transform a bunch of newbies into very profitable traders. He installed faith in them. Those profitable traders were the source of saint's knowledge. Every time a situation repeated itself, they made notes and worked on handling such situation. Once they are satisfied with defining the conditions, they made a rule for handling such a condition and the search for new chinks in the Armour continued....

Its a never ending journey for a trader.... process of kissing frogs continues till he finds one that turns to a princess... and he continues building his harem the only way he knows... theory of elimination...!
.....................a prized post from u (linkon7)
 

jagankris

Well-Known Member
#8
Like Linkon ji said the crowd keep on searching for methods and if they get one they won't follow it.

Why there is an urge for learning in this business ?
Why trading related books keeps selling ?
Why trading related SW keeps selling ?

Crowd keep on buying books,SW's in the hope of finding a holy grail.

The perfectionism syndrome "I" don't know if the term exist but to find the holy grail or a perfect system subconsciously.

For example(s)

1.Saint ji's - Flow method.
2.SH's - 315 Method.
3.NR7 Method.

The best at least in my opinion.

Now these methods are more than sufficient for any one to make money.

1.Clear cut rules.
2.No prediction - judgment
3.Strict SL.

Are these method's 100% fool proof.

Nope.There could be few whipsaws or stop hits.
But has historical positive expectancy when followed consistently - Yes.

I heard the follwoing comment on 315

What a simple MA cross over method.Common man there are many superior methods to MA crossover :) ?

I countered him -Did you made money by riding the fall by entering short at 6100+ levels to 5175 ?

Now the question is.


To all the experts - each one have their own trading arsenal(s) - method(s).



1.How did each successful trader finally came to a conclusion of pick a method to be his favorite while the "Crowd" keeps loosing money in search of the miraculous.

2.How did each one stopped from not switching methods ?
 
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#9
Like Linkon ji said the crowd keep on searching for methods and if they get one they won't follow it.

Why there is an urge for learning in this business ?
Why trading related books keeps selling ?
Why trading related SW keeps selling ?

Crowd keep on buying books,SW's in the hope of finding a holy grail.

The perfectionism syndrome "I" don't know if the term exist but to find the holy grail or a perfect system subconsciously.

For example(s)

1.Saint ji's - Flow method.
2.SH's - 315 Method.
3.NR7 Method.

The best at least in my opinion.

Now these methods are more than sufficient for any one to make money.

1.Clear cut rules.
2.No prediction - judgment
3.Strict SL.

Are these method's 100% fool proof.

Nope.There could be few whipsaws or stop hits.
But has historical positive expectancy when followed consistently - Yes.

I heard the follwoing comment on 315

What a simple MA cross over method.Common man there are many superior methods to MA crossover :) ?

I countered him -Did you made money by riding the fall by entering short at 6100+ levels to 5175 ?

Now the question is.


To all the experts - each one have their own trading arsenal(s) - method(s).



1.How did each successful trader finally came to a conclusion of pick a method to be his favorite while the "Crowd" keeps loosing money in search of the miraculous.

2.How did each one stopped from not switching methods ?
There is nothing wrong in learning new techniques,methods and pick up trading ideas and incorporate those useful ideas in the methods you currently trade....this is different from methods hopping where one is not happy with the current system he trades and goes on changing methods in search of "holy grail" like a child plays with a toy for sometime and then discards it and goes for another new toy.

To answer your questions :

1) Every trader selects a method with which he is comfortable by process of elimination. If you like the method and most importantly enjoy trading that method then the chances are that the method suits your mindset and beliefs....if there is tension, unhappiness, anxiety,anger in trading.....these are the signs that the method and your mind are not compatible....Good trading as always effortless and enjoyable....if there is strain,efforts then be sure that something is missing....

2) Once you identify a method which suits you and makes money, then method hopping stops....the search for knowledge ,new things continues. This is a continuous process and the best traders also are always looking out /trying/backtesting new trading ideas ( it could be new MM plan or new market ) which they can incorporate in their method. Markets continuously change and some minor adjustment is necessary to address the change in market structure. This activity is continuous and never stops and in fact consumes major time which a trader spends apart from his trading time......
All successful traders have a bunch of few methods and they can trade any of the methods and be successful. They have their favourite methods too.....

Smart_trade
 

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