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Dear Friends,
Sorry for taking a long break. Let's start discussing the practice part.

The first and foremost thing to have is to practice absorbing the NOISE.

There is lot of subjectivity in defining this NOISE.

Practically speaking the NOISE is nothing but what is happening in the security's price above or below the entry levels before either the stop is hit or the target is hit. So anything between the entry and stop or entry and target is noise.

This noise varies according to the chart periodicity. The noise for a person who trades using Daily charts might not be the noise for the Trader who uses 30 min. charts. Hope it is not confusing.

So, first we have to understand what time frame we are using in charts to initiate the trades. And then the entry, stop and exit. Anything in between is a noise. So while practicing, just go least bothered what ever happens to the security in between. Wait to get stopped out or to reach the target.

If we start paying heed to the movement of the asset price in between, then we will start changing the trade plan and spoil the trade. This changing the trade plan might help us once or twice, but finally it makes us losers in the market.

So, once the trade is initiated with a good trade plan, never change it. To go that rigid, before initiating the trade itself- try visualising the scenarios with "what if" thought in the mind. "What if this doesn't go like I planned", then we will start thinking in the other way and understand one more route
for the security's price movement. Like this if we are ready while designing the trade - with the Road Map of the price move - then the price behaviour won't surprice us and it further helps un in going stable and absorbing the noise.

I remember one incident happenned in the recent past. It was discussed in the chat room. It happened to one of the veterans of our Forum.With due apologies to him I am here mentioning it. He initiated trade in Infosys. And booked a huge profit in it. But this was done out of trade plan. The trade was
initiated keeping Daily charts in the mind and exit took place just for the reason the security was tracked intraday. ofcourse it was a profitable trade. And that member must have taken one more entry into it at a good price and must be running it still- as he is that wise in practicing technicals. Why I mentioned it here is to tell that nobody is foolproofwhen dealing with the
markets. So time and again we should protect ourselves.

It is better to make a record for the trade plan and track it. We should look into it whenever we try to do something with that security in which we are already in, to understand the original trade plan- which should preferably be with the Security's Price Road Map.Then we will get reminded of the trade plan. And this helps us in sticking to it. It will work wonders my friends.

Thanks and happy practicing Technicals

AJAYKUMAR

Well, initially it helped me not to go wayward.

I have no idea where exactly to start this post..........The no of emails,pms and posts on this thread since yesterday was overwhelming.I did not expect such a strong outpouring of emotions.......I feel I have inadvertently hurt many by the post yesterday....That definitely was not my intention.

Most posters on this thread and maybe most people in this forum already know most of what I am about to mention.........but to those who are new and reading through this thread,a few pointers:

a.I do not believe there is a Holy Grail in trading.....I do not believe that one shoe fits all.....I believe that there are many paths to the same destination,probably as many paths as there are individuals.........Therefore what is discussed here is just something that has worked for me.Some of you with a similar mindset could walk it the same way.Others may tweak it a bit.And yet others would probably add an indicator or something else if that be their comfort zone.And then there are others who find this "full of crap".

----To those who want any help,feel free to ask.To those who think this is a total waste of time,move on to other threads..........There are so many out there,take your pick,if none,feel free to start a thread and carry on the discussions.

-----One more point,shun anyone....I mean anyone....who tells you that his way is the only way.In Life and in Trading.Be it junior or senior member.Be it even any of the most respected senior members.If he tells you that everything is hogwash,and he has hit upon the path...THE PATH....shun him because he is giving you rotten advice.......If you found a way to trade using Donchian channels or Bollinger bands,and you are making tonnes,your way is great for YOU.......Never,ever listen to someone who tells you otherwise,however well meaning he may sound,however great at testing strategies he is,however senior he is................Remember:There is no one absolute way to Trading Mastery.Shun anyone who tells you otherwise.

b.There are many amongst us who share what they know.....Great. Many who share a bit of what they know.....Great.Many who don't share anything at all.....Great as well.

Your call to take.......But let not the third category above make it sound like they are professional traders with the greatest of secrets,cards held close to their chests,all hush-hush lest anyone figure out their treasured system.

----Share if you want,but do not put down the guy who shares a bit or nothing at all.Don't share if you don't want,but don't make it look like that is the only way to do things,and the guy who does is a madman.

----An add from my end:I have done nothing but shout from every rooftop all that I know........and the more I share,the better I become.I have been told that once everyone figures out this method,then it isn't going to work anymore.....Well,I shared anyway.It still works for me....and getting better by the day.Lessonlease don't think you are bigger than the market.Pivots existed from Day 1 of markets in history.Sharing it isn't going to change that.
My take:Go out of your way to help.....share all that you know.....help anyone and everyone....Infect the world by your Passion....And as you share,more and more,you are not losing a part of you.Instead,you are discovering new areas of you that you never knew existed.You become a much bigger individual.......

More in the next.

Saint

Well, initially it helped me not to go wayward.

You have just documented an awesome post of Jesse,to confess frankly at that time both Karthik & Ashish where regular along with Saint.
There where couple of posts of Jesse at that time on Time Series which
kept me pondering for quite a few WEEKS.
The conceptual Shake -Out helped me & my approach changed,Unlearning Began.
Accept my Heart Full congratulation to bring all these forward.

Sad to say,but to this date nothing has helped me on this site,there were in my initial days in 2006,a few threads which I read and appreciated.


But this site has given me a very good friend and a few well wishers.And thats a totally different matter altogether.

Stock Volume is the daily number of shares of a security that change hands between a buyer and a seller.

It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a stock purchases 100 shares from a seller then the volume for that period increases by 100 shares based on that transaction.

Volume is an important indicator in technical analysis as it used to measure the worth of a market move. If the markets have made strong price move either up or down the perceived strength of that move depends on the volume for that period. The higher the volume during that price move the more significant the move.

Volume is a trader's best friend. Few technical indicators give the experienced trader a better feel for the minds of his fellow traders and investors. The heights of their greed, the depths of their fear, the loudness of their panic, and quietude of their ambivalence. All of these emotional states are seen with volume.

Volume also shows us the footprints of big money, and unlike footprints in the sand, these footprints are there for all to see...and long after the fact. More immediate and less ambiguous than any complex indicator, volume pinpoints extreme tops and bottoms -or the areas of them- with amazing accuracy.

Additionally, unlike many indicators, volume is applicable to every timeframe. How can this be? Simple. Volume is simply a measure of sentiment, of human nature. And fortunately for us, human nature is the one ever-present constant of the stock market. Never forget that fact. Once you have your own emotions under control as a trader, knowledge of this profound fact will guide you ever after as reliably as the Northern Star guides a lone sailor across a vast sea.