Does our market really follow Technicality?
- Thread starter jatin_the_great2003
- Start date
Trading is all about how you handle your trades. Very little to do TA. Technical Analysis is just a smart way of loosing money..with lot of confidence.
Its like, when someone throws 4 heads in a row and is about to toss the coin for the 5th time, you feel confident that tails will be outcome, since 5 heads in a row is technically a very low probability event. Fact is, probability of tails is still 50-50.
No matter how strong the signal, acknowledging that every trade has equal chance of hitting stop loss is the first key to success. Respect the risk and keep the damage any trade can do (if it hits the SL) under tolerable limits.
What we see on the charts is basically what the eyes want to see. If you are holding puts and things are not going as you hoped, you will find technical reasons to hold on to the trade. You will find other analyst who will support your decision and that will give you extra confidence to loose more money.
Fact is, TA is just a tool we use to time our entry in the direction of our bias. How we handle the trade is a product of our experience as a trader. A good trader knows when to give room to a trade, when to trail it aggressively or when to book out at fixed targets. He knows when a trade has lost its edge and is looking to get out with minimum damage.
Its like, when someone throws 4 heads in a row and is about to toss the coin for the 5th time, you feel confident that tails will be outcome, since 5 heads in a row is technically a very low probability event. Fact is, probability of tails is still 50-50.
No matter how strong the signal, acknowledging that every trade has equal chance of hitting stop loss is the first key to success. Respect the risk and keep the damage any trade can do (if it hits the SL) under tolerable limits.
What we see on the charts is basically what the eyes want to see. If you are holding puts and things are not going as you hoped, you will find technical reasons to hold on to the trade. You will find other analyst who will support your decision and that will give you extra confidence to loose more money.
Fact is, TA is just a tool we use to time our entry in the direction of our bias. How we handle the trade is a product of our experience as a trader. A good trader knows when to give room to a trade, when to trail it aggressively or when to book out at fixed targets. He knows when a trade has lost its edge and is looking to get out with minimum damage.
I completely agree with every1's opinion as i respect an individual's thought.
Now i have something to understand, which, to be honest i have not found any answer till date, not even in TJ. My concern is, how come a stock open with gap up/down from prior day's close price. I mean no1 can trader between 3.30PM to 9.15AM, then how come a stock opens high/low and we have to buy at tat cmp itself. (1 of my friend told me that seniors traders are allowed to trade off-market hours)
Now i have something to understand, which, to be honest i have not found any answer till date, not even in TJ. My concern is, how come a stock open with gap up/down from prior day's close price. I mean no1 can trader between 3.30PM to 9.15AM, then how come a stock opens high/low and we have to buy at tat cmp itself. (1 of my friend told me that seniors traders are allowed to trade off-market hours)
Does our market really follow Technicality?
The only suggestion I have is to change this thought process.
Market does not follow Technicality, it is the technicals that try and follow the market.
A vague example is think about it as a predective GPS (technical) which is created at run time while you are driving. Will you turn when the GPS tells you to or will you turn when the road (Market) actually turns. The road is in no way going to create a turn just because the GPS says so.
Not sure if I helped. But always remember market is the king and everything else depends on it.
VK
The only suggestion I have is to change this thought process.
Market does not follow Technicality, it is the technicals that try and follow the market.
A vague example is think about it as a predective GPS (technical) which is created at run time while you are driving. Will you turn when the GPS tells you to or will you turn when the road (Market) actually turns. The road is in no way going to create a turn just because the GPS says so.
Not sure if I helped. But always remember market is the king and everything else depends on it.
VK
Re: Share Market, nifty , nifty option, stock, profit, mathod ?
I will give 100% profit plus 100 Bonus, my condition : you should follow my call simply, loss is yours, if any profit you have to share, if possible earn first pay after if you have money. (this is what will happen if somebody will follow you).
I will give 100% profit plus 100 Bonus, my condition : you should follow my call simply, loss is yours, if any profit you have to share, if possible earn first pay after if you have money. (this is what will happen if somebody will follow you).
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