My Notes

vishal7176

Well-Known Member
#2
VIX of 25 is on the higer side of the VIX band. When the trend is building up, we dont get high VIX. High VIX in a sideways range means that the market will make fast and furious up/down moves within the range which means the following :

1) Our stops are going to be large...so a 10 points stop when VIX is 12 is fine but at VIX of 24-25 it will need 20-25 points stop even on 3 min timeframe.

2) We have to take profits when there is a strong move as if we delay the profit taking, then the profits will evaporate by equally strong move in the other direction.

You will observe the above in last few days markets.....

High volatility sideways range gives a powerful trending move in some direction.But the markets will not bottom in high volatility environment. After high volatility, the market will go into low volatility and market participants will loose interest in the market....market will be dull....there will be capitulation of market participants and that will finally reverse the trend to long term uptrend.

This is the broad scenario expected...there could be some variation and it may not work exactly as described above.

Smart_trade
 

vishal7176

Well-Known Member
#3
Quote:
Originally Posted by vishal7176 View Post
ST da , and all senior

i want to start SIP , MY monthly investment is 5000 . can you please suggest good SIP , please suggest 2-5 SIP . i dont think all eggs in one basket. i will distrubute it and my investment horizon is 5-8 yr.

thank you
If you are not doing any 80 C investments for tax saving then you should go for ELSS schemes which give you tax exemption. The best ELSS schemes are as under :

1) Axis Long Term Equity Fund

2) Reliance Tax Saver

ELSS funds have a lock-in of 3 years and exemption limit under section 80 C is Rs 1,50,000=00

If you have already exhausted 80 C then there are many good funds like Birla Sunlife Top 100 Fund, Franklin India Bluechip Fund, Franklin India Prima Fund, Franklin India Prima Plus, select max 2 -3 from the list of top performing funds.

Smart_trade
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vishal7176

Well-Known Member
#4
Dear Niftytaurus,
First thing is that as ST sir already said BNF is too fast & furious to trade. Many times I have seen BNF exploded without giving any chance to enter. This made me to jump on board without any second thought and most of the times I was not able to manage such trades so either it took my SL or I cut my own position in loss because of fear. After getting many hits in such situations I made a simple rule that " I will not run behind the price after some extent. Once the opportunity is gone then it's gone, don't try to create it forcibly. Just wait for next opportunity. " I can tell you this rule saved and saving me today also from taking any jittery trades.

BNF can make havoc within few minutes so 5 min TF is too slow to handle such unstable animal. In 5min TF either we get late entries or late exits which creates unnecessary pressure so I use 3 min TF. But it's not any recommendation or advice that you should also use 3min TF but I found it more useful in my trading.

And as X-Raybhai exactly said no need to run behind every setup and pattern. I think we have discussed on this over PM, choose any setups or patterns which you can understand very easily and take decision immediately according to that. And just focus on only those setups/patterns. But these should not be more than your single hands fingers counts.

One more thing, from the next minute stop to ridicule yourself.
Remember nobody is took birth by learning everything from mother's womb, we always learn from others or our own mistakes.
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Last edited by RAAMAKANT; Today at 12:54 AM.
 

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