can anyone shed some light

[adultvish]

hi people

can anyone help me in understanding or knowing; what caused today's suprized downside action in Nifty after noon hours.
all foreign markets were positive
everything was fine; when suddenly the big bear ate all my profits

 

[adultvish]

please guys
my head is still spinning
dunno what to do and how to think and analyze the markets again
please, give me some insight or reason to remain sober

 

[Capricorn]

Help me out here.. what made u buy??

 

[adultvish]

Help me out here.. what made u buy??

my greed buddy

 

[trader.trends]

my greed buddy

Greed is an over used word in the market. We all will not come to the market if we were not greedy. We come to the market because we want more than the bank rate. That makes us greedy and greed is good. Be greedy but watch your back. It is the complacency about our positions that ruins us. Once we have taken positions we become biased towards it.

Today premarket when you saw the US had closed in green, Asia was up the thought must have been we are going to open gap up and stay up. That is the assumption that made you buy. Good. When the price started sliding your assumptions for buying were no longer valid. So instead of clinging to your assumptions and holding on, you bail out. If the market went up again you can always buy as your first assumption is revalidated.

Greed does not ruin us. Greed is what gets us the money. It is our assumptions about the market that ruins us. Managing expectations, managing risks and readiness to remove the trade when the assumptions for putting on the trade no longer exits are essential to make money in the markets.

 

[adultvish]

Greed is an over used word in the market. We all will not come to the market if we were not greedy. We come to the market because we want more than the bank rate. That makes us greedy and greed is good. Be greedy but watch your back. It is the complacency about our positions that ruins us. Once we have taken positions we become biased towards it.

Today premarket when you saw the US had closed in green, Asia was up the thought must have been we are going to open gap up and stay up. That is the assumption that made you buy. Good. When the price started sliding your assumptions for buying were no longer valid. So instead of clinging to your assumptions and holding on, you bail out. If the market went up again you can always buy as your first assumption is revalidated.

Greed does not ruin us. Greed is what gets us the money. It is our assumptions about the market that ruins us. Managing expectations, managing risks and readiness to remove the trade when the assumptions for putting on the trade no longer exits are essential to make money in the markets.

thanx bro
can you throw some light on the reasons behind todays surprized down move

 

[AW10]

The reason is simple - There were more desperate seller then willing buyers. Thats why price came down. It is not just the market, but almost universal truth and basic law of price, suppy and demand. Sellers were ready to dump their stocks at whatever price possible.. Buyers keep lowering their bid price and seller agreed for that.

It is anybody's guess, who were these sellers. My guess would be that some lazy FII /Banks who haven't sold so far are pulling out their money and moving to safer asset class. BRIC /commodities are considered riskier assets and given current stage of global finanial market, I wouldn't be surprise if banks are trying to save their A... once again and getting ready for uncertainty.

Main question is, how should we safegaurd ourself. HAVE PLAN FOR TRADE. TRADE WHAT YOU SEE. TRADE YOUR PLAN. You will never know if FII starts buying tomorrow and DII starts selling to meet redemption pressure. So instead of worry about WHO / WHY etc.. just stick to the basic and trade WHAT YOU SEE.

Just my 2 cents..
Happy Trading.

 

[adultvish]

AW
your 2 cents are very useful bro
thankx for sharing

 

[findvikas]

I am not sure how true or convincing it is ... here is my theory and my trades based on my theory... closed the day in Green and picked Evinix for the entire profit... @ 4 its a bargain

http://www.traderji.com/day-trading/36303-bulls-bears-lion-46.html#post410303

 

[trader.trends]

thanx bro
can you throw some light on the reasons behind todays surprized down move

adultvish

Leave the reasons for the market movement to the media. It is human nature to find reasons for everything. Market can move up/down on good/bad news.

Market goes up on low inflations numbers
Market ignores low inflation numbers and tanks
Market tanks on interest rate hike.
Market rebounds ignoring interest rate hike.

Take your pick. The headlines keep changing every hour because it is the media's job to feed us reason. The reason for market movement is very complex and to give one reason for its movements would be simplifying to an extreme degree.

As a trader, ignore the news, ignore the views, ignore the rumours, ignore the results, ignore the other markets, see what your screen is telling you. IF the screen tells you to buy you buy and if it tells you to sell, you sell.

The market will do what it has to do. Be ready to do whatever you have to do when the market does what it does. The only thing you control is the keyboard.