Thoughts N Opinions

sanefellow_213 · #1 24th December 2005, 06:57 PM

Hi every1,

I'm a new member with very few postings(senior members pls excuse me) as am naive about this whole subject n trying to figure it out but i track this forum for mrkts like nothing else, the effort of all the ppl here to educate a person like me who doesnt even knew support n resistance is quite commendable, But I would like to put one of the more pertinent questions

Is tracking mrkts really the worth our time n money????, the reason behind this question is that I have known a lot of ppl(some of them experienced traders /investors been in the mrkt for decades) who have lost their entire personal holdings in the mrkts(stocks like pentamedia, vikas wsp), so for a person like me who trying to take few steps forward its really frightening and hence the question props up again. Is this knowledge/learning(technical/fundamental) a complete hogwash.

I have seen prices behaving to chart patterns whether this price movement is a rule or exception. PPl tell me is more of an exception coz at the other side of the screen ur against more experienced traders with deep pockets(institutions,HNI,informed investor,smart trader) so most of the time ur chart pattern n stuff will fail coz they also know all this stuff and will go all out to take u down.

Help me out guys, this is for all the senior members

Warm regds,

Sanefellow_213

Agilent · #2 26th December 2005, 12:19 AM

Sanefellow

Tech /Funda analysis is certainly not Hogwash , as you fear.

But the sad reality of markets (learnt in my decade+ experience) is that the guys who make most money are the insiders (and mind u ... all over r the world, not only in India)

You cant be an insider except maybe for some stray cos sometimes, but if u crack ways to 'ride piggyback' on insider moves, thats one way to play the markets. Some charts reveal interesting insider moves at times... if u are lucky to spot them u can do some fundamental research ( dont tell mw how ... mebe again by chkg with insiders) and then make money. I consider nothing unethical in this . And many of us have often spotted winners in this manneri in all arenas : medium and long term, as well as intraday

Kee on the lookout for some charts which I will attach in a new thread I plan to start on Insider Trading.

Meanwhile, stop being a pessimistic cynic

Happy money making in 2006 !

Agilent · #3 26th December 2005, 12:34 AM

Oops , I already attached a chart . Never mind... see that together with this one attached now.. same co, longer period...

Note in the first chart ....some guys bought large lots in June to Sep 04 between RS 8 - Rs 11...and probably held on for a yr... and see how much money they wd have made.

What's yr guess.... do u think they were ordinary men (women?) like u or me... or were they insiders?

So there u are...

Moral of the story.... look for volume indicators on charts, sometimes u can get cues that something good (or bad) is on the cards. ANd , once u r sure ... get on that horse ! Simple. ( CARE: Doesnt work all the time)

Cheers !

Market Wizard · #4 26th December 2005, 03:15 AM

Hello Sanefellow,

Welcome to the wonderful world of trading. as a newbie you will undoubtedly feel uninspired by what you may see or hear. Billions of dollars change hands daily on the world markets and trading these markets is the largest business on the planet, but it is also the most misunderstood business in the world.

The price movements are a mystery to most and happen when least expected and frequently do the exact opposite to a traders judgement.

Most people who make a living in the industry, particularly brokers and tipsters have little knowledge about the real workings of the market. The martkets seem so complex that they appear to be random. One fact is that there is too much money involved in the game for the whole process to be random and out of control. Chaotic? Yes. For this reason it is important to have an understanding of the aspects that create the complexity that we see.

To really succeed you have to shift your thinking from the fact that the markets are controlled by insiders and you have no chance, to the belief that there are factors that can be understood and learnt to help you win.

Learn about support and resistance levels and begin to understand price movement. Learn about money management and risk management, this will be your lifeline whilst trading. Treat your trading like a business and have a plan.

The thing to remember is that once you have done the relevant work, trading is actually easy - only we make it difficult. ALL the information you need to succeed is available on the internet for FREE. You just need the discipline and will power to make the effort to want to learn. Forums like this are a great way to start. Post your questions and the experienced traders will no doubt try to help.

Good Luck

AMITBE · #5 26th December 2005, 03:28 AM

Very well said, Market Wizard.

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