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  1. smartcat

    Low Whipsaw Moving Average Crossover Position/Swing/Day Trading System

    From the above screen, I got a buy signal at about 3:15 PM when silver was at 44038 and exit/short signal at about 4:00 PM when silver was at 44080 (profit of approximately 40 points, not counting losses in spread). After I went short at 44080, I held onto my position even when silver went to...
  2. smartcat

    Low Whipsaw Moving Average Crossover Position/Swing/Day Trading System

    I prefer 5 EMA High/Low & 15 EMA High/Low for day trading. This gives fewer trading signals but needs larger movement from underlying stock that you are trading. For position traders, 5/15 High/Low EMA crossover should only be used for high volatility stocks like JP Associates or Adani...
  3. smartcat

    Low Whipsaw Moving Average Crossover Position/Swing/Day Trading System

    POSITION TRADING: Chart Setup: 1) Open the EOD Candlestick chart. I prefer Candlesticks because it gives clarity to the graph when we have 4 moving averages. 2) Paint the graph blue (both up and down movements) 3) Add 4 moving averages to the graph - a) 21 EMA High (Red Colour)...
  4. smartcat

    Low Whipsaw Moving Average Crossover Position/Swing/Day Trading System

    Gentlemen, After fooling around with Metastock, I've come up with a moving average crossover system that generates 50 to 80% lower whipsaws. I have been using this system for the past 7 months with excellent results (the big move in the stock markets this year might have something to do with...
  5. smartcat

    return in bonds

    Interest is generally paid out yearly (but there are some that pay quarterly or half yearly interest), and principal is returned back to you at the end of the tenure. Note that the market price of a bond changes everyday, just like a stock. But this is important only for those investors who...
  6. smartcat

    How do NSE/BSE Calculates the EPS of indices on daily basis?

    An individual company's results are announced once every quarter. So TTM (Trailing Twelve Months) EPS is updated only once in a quarter. But Sensex/Nifty indices are made up of a number of companies, and each of those companies announce their quarterly results on different dates. So as and when...
  7. smartcat

    Buying Option & Carrying Option is kind of Slow Poison

    I've made both profits and losses when I have bought naked options. But then, I have made both profits and losses when I have sold naked options. :D The thing that matters most is what strategy you adopt when you are trading in naked options - naked buy/sell options are just tools of the...
  8. smartcat

    Fundamental analysis vs Technical analysis

    You are right. Some stocks from FMCG (ITC, Dabur, Colgate etc), Pharma (Sun Pharma, Cipla, Lupin etc) and consumer space (TTK prestige, Hawkins, Page Industries etc) seem to go Up and Up all the time.
  9. smartcat

    Fundamental analysis vs Technical analysis

    With Fundamental Analysis - 1) You make money when markets go up 2) You neither make money nor lose money when markets are stuck in a range 3) You lose money when the markets go down. .. assuming you are in the right stocks. With Technical Analysis, 1) You make money when the markets are...
  10. smartcat

    Logical Question To All Traders.

    Traders might look for a broker with lower charges not because they have won or lost money in the past. It's mostly because they have a winning strategy which involves frequent transactions/trades. And brokerage charges are eating into their profits. Some traders might go for low cost brokers...
  11. smartcat

    Any Falcon users here ?

    Check this - http://downloads.motilaloswal.com/
  12. smartcat

    how trading business is different from other business

    You could say that I guess. Basically, all businesses carry risk, and rentals are one of the biggest. You can't account for that in a business plan. Because there is a big paradox here - If rentals are low, then it means it is a new developing area or that location is not that good...
  13. smartcat

    how trading business is different from other business

    Sure! My business: Internet advertising company Started: 2002 Ended: 2011 Survived for 9 years, but 2009 US recession eventually killed my business My friend's business: Fast food restaurant (Sandwiches etc) Started: 2005 Ended: 2006 Very high rentals, bank loan interest killed the...
  14. smartcat

    how trading business is different from other business

    I could be wrong, but there is no way of saying for sure. ;) We don't have forums on the internet for people running restaurants, vegetable shops, software companies - where they could discuss their successes and failures. But we have such forums for trading, and hence we have an idea about...
  15. smartcat

    Any Falcon users here ?

    I think you can open a free account with Motilal Oswal and get Falcon trading software for free. http://www.motilaloswal.com/Financial-Services/Products-And-Services/Equity-And-Derivatives/Integrated-Trading-Platform/content/C138
  16. smartcat

    how trading business is different from other business

    I've been an investor (in the stock market) for 11 years, a "businessman" for 9 years, and a trader for 2 years. This is what I feel: It's a myth that trading is a "tough" business. The truth is that all businesses are tough, and trading is just one such business. Let's say you are a software...
  17. smartcat

    Dream 2020 by Tamil Trader: Every Indian Home needs one professional trader

    Trading is not a very productive profession in the sense that it doesn't add much to the GDP of the country. The lesser the number of traders like us, the better it is for the economy! :) The only exception is if we are trading (& winning) and FIIs are on the losing side of the trade!
  18. smartcat

    Position Sizing, Risk & Money Management Strategies For Futures Trading

    Vik, can you explain this statement of yours? Any experiences? I think a trading system that is based on moving averages will make money when the markets are trending nicely (either UP or DOWN). But they will lose money when markets are stuck in a phase. Whipsaws will result in losses.
  19. smartcat

    Buying Option & Carrying Option is kind of Slow Poison

    The often mentioned "90% of options expire worthless" is based on a research/thesis by a bunch of university students, who have never traded options in their life. Things to remember: 1) Option buyers need not wait till expiry to make money. They can square off positions at profit anytime...
  20. smartcat

    Put option writing

    Since you are using technicals, you should try to make money both sides. If you are getting bullish signals, write put options. And if you are getting bearish signals, write call options. This way, you will have positions all the time, and hence your earnings could increase. Also, choose stocks...