General Trading Chat

Jai Mata Di

Well-Known Member
Todays high is important: it is created by exactly 50% fibo retracement


Fibo levels also gave big profit opportunity today.
Todays high is important as it is created by exactly 50% fibo retracement of totall fall. Many analyst (elliot wave :lol:) is saying 8550 as max, actually they are eyeing on golden ratio 61.8 :lol:

Actually no one know the market mind.
But those who are alert enough could always make big money using Fibo Levels. Stop losses must be short & dynamic (according to price action there) and have to be alert to reverse your position quickly if stop loss breached. :p

Present 38.2 fibo sup near 8320, trend line sup 8270. Upper res of 61.8% around 8520-30(noise level +/- 20pt considering total fall is big).

Be alert and make big profit using simple major sup res levels with price action and fibo levels...




Best Wishes & Happy Trading.

H.C.
 

XRAY27

Well-Known Member
XRay,Manish bros how was the day for you? Was able to short nifty only for a small profit on the great fall as even after I zoomed in to 1 min chart got entry a little late only :( entered only on 2:20 candle low in 1min chart and had to exit in few candles.

Were you able to catch the large part of the down move bros?
Day was very good bro !!! caught morning move( more then enough) :D after move was swift unable to take as it is violating R:R
 
Thanks ST da. Your answer makes complete sens (as usual....:thumb:). Markets have this uncanny ability inculcate bad behavior in newbies. True. Its like spoiled by pampering. And Markets do that very well.

I want to know a couple of things further in this matter.

There are two schools of thoughts for changing behavior.
1. By Alexander Elder (In his book - Trading for living) & other by
2. By Maxwell Maltz (In his book - Psycho-Cybernetics)

First approach says that acknowledge that you are at fault and always be reminded of this. He compares impulsive trading to drinking habits and how critically a drunkard has to stay away from bad association if he really wants to quit. So his approach is to be strong with oneself and always remind that you may commit that mistake. (In this case: Not following the rules...)

Second approach is by Maltzs who says that First improve your self-image. Begin to imagine like a winner trader. Convince your sub-con mind that your a winning trader. "Learn to Think Like you have already controlled your problem" Think like a winner and soon your brain will give winning signals to your actions. If you too much focus on negativity, it perpetuates. So stay positive and expect positive.

These two approaches are as different as Trend Trading Vs trying to catch Top/Btm kind of trading.

What do you suggest? What is your experience? You have seen many new traders struggling and coming in winning zone, how did they do it?

Thanks & regards,
Gaur_Krishna

Market has uncanny ability to teach and reinforce wrong things on our minds. The market goes against us, we dont cut our losses and then market reverses giving us chance to profit from a loosing trade. So market imbibes on our inner mind that "look if you had cut the loss, you would have unnecessarily lost money....now you saved that loss" and our mind accepts and thinks that not cutting loss is a right thing to do and cutting loss is a waste of money. Same is with booking profits early..many times we book profits early for no reason and then market comes back evaporating our profits...the market tells our mind that "look it was good that you took profits...else now it is gone....." so slowly mind gets conditioned with wrong practices and then market throws a real big loser at us which cripples us, then we take oath that we will follow good trading principles ...and the cycle continues till we get a next crippling loss which takes away all our capital.

I always think that all the traders have at some point or the other suffered a crippling loss...we have made small money here and there before it but this large crippling loss has wiped out all the gains and all of our capital...this happens with every trader. Now just think that you acted as if you are on the other side of your trade meaning you have many small losses. small profits but instead of large crippling loss, you have a blockbuster trade which gave you career best profits and now think how lucky you would feel yourself to be....instead of crippling loss, you now have a huge profit in your ledger and small profits and small losses...but never a large loss...good trading practices help you achieve exactly that.

While testing and developing your trading method, you have to consider that the method should be profitable considering all losses and costs....then only it is a real trading method.Stoploss is to prevent those large losses which will take away all your profits and your capital.

Smart_trade
 
Dada,

most of the time I have seen that a deep pull back in Nifty is eating my SL. After that i need to take a RE ENTRY. But how to and where ? Should I wait for the PH to break and enter with a SL order with 2 tick > PH? How you handle these situations?

Edit: This recent volatility has shaken me a bit.
Markets go through different phases...they are volatile,flat,galloping,grinding..and these phases are mean reversing...so after volatile phase expect dull phase and vice versa. We as traders have to negotiate all types of markets.

Volatility will have larger stops so the MM requires that we trade lower quantity if we want to risk same % of our capital...then smaller or larger stops makes no difference...your loss is same.



I am attaching a Nifty 3 min chart where important pivots are market by red ellipses. There are 8 in total in morning move and we have to keep out stops at these points. None was violated in the morning upmove...so if stoploss is kept at proper point it does not get hit too often. Buy the dips, keep SL at pivot below the dip and run the trade.

Smart_trade
 
Thanks ST da. Your answer makes complete sens (as usual....:thumb:). Markets have this uncanny ability inculcate bad behavior in newbies. True. Its like spoiled by pampering. And Markets do that very well.

I want to know a couple of things further in this matter.

There are two schools of thoughts for changing behavior.
1. By Alexander Elder (In his book - Trading for living) & other by
2. By Maxwell Maltz (In his book - Psycho-Cybernetics)

First approach says that acknowledge that you are at fault and always be reminded of this. He compares impulsive trading to drinking habits and how critically a drunkard has to stay away from bad association if he really wants to quit. So his approach is to be strong with oneself and always remind that you may commit that mistake. (In this case: Not following the rules...)

Second approach is by Maltzs who says that First improve your self-image. Begin to imagine like a winner trader. Convince your sub-con mind that your a winning trader. "Learn to Think Like you have already controlled your problem" Think like a winner and soon your brain will give winning signals to your actions. If you too much focus on negativity, it perpetuates. So stay positive and expect positive.

These two approaches are as different as Trend Trading Vs trying to catch Top/Btm kind of trading.

What do you suggest? What is your experience? You have seen many new traders struggling and coming in winning zone, how did they do it?

Thanks & regards,
Gaur_Krishna
I would say the combination of both will work better. A trader has to understand that there is not even one successful trader who does not keep stoploss and does not run his profits.So the choice is not whether to follow good practices...but it is whether we follow good practices or we leave trading ( if we dont leave, market will soon give us crippling losses and throw us out of the market.) But this thinking needs winners mindset. Losers will keep blaming operators, manupulators,brokers, exchanges, SEBI etc and they will tell everyone that no one can make money from the markets and continue their loosing ways.

Smart_trade
 
I would say the combination of both will work better. A trader has to understand that there is not even one successful trader who does not keep stoploss and does not run his profits.So the choice is not whether to follow good practices...but it is whether we follow good practices or we leave trading ( if we dont leave, market will soon give us crippling losses and throw us out of the market.) But this thinking needs winners mindset. Losers will keep blaming operators, manupulators,brokers, exchanges, SEBI etc and they will tell everyone that no one can make money from the markets and continue their loosing ways.

Smart_trade
No amount of theory and reasoning will help new traders to leave their bad trading habits. It is only few nerve wrecking and career threatening losses they will learn that this is a do or die situation,,,all go through this route...losers quit trading after such crippling losses blaming everyone...winners change their trading habits and go on the road to become winners.

ST
 

simplebuthard

Working as Trading Assistant. Hire me !!
No amount of theory and reasoning will help new traders to leave their bad trading habits. It is only few nerve wrecking and career threatening losses they will learn that this is a do or die situation,,,all go through this route...losers quit trading after such crippling losses blaming everyone...winners change their trading habits and go on the road to become winners.

ST
Can you remember still anything about your break even pt in your trading career? How was that? What was that about,, hitting any big fish?? or MM ?? or do or die??
 

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