Trading Strategies Using Technical Analysis

[jagankris]

Raunak Sir,

I thought the downtrend initially is just a ploy to shake off weak players. I kept averaging my positions at every dip...

And then, finally, there was no bounce back... :rofl:

Using gut feeling to trade is really a bad idea... I tell you...

I more than ever need a systematic way to enter and exit trades... Maybe SH315 or Bollingerbands... I don't know... :sigh:

Dear GauharJK,

I have met only personally in my life 1 person who is a discretionary trader.
Couldn't interact him much bcoz he was very much a stranger to me.

He is pursuing his PHD.
He studied the markets 6 years with out trading.
Started with a capital of 8 lakhs lost 5.3 lakhs in 6 months in day trading.
Trust me with a trading capital of 2.7 lakhs he made 2.4 crores in 8 months in day trading his positional stocks using broker's leverage.

He said I realised I was just doing in the opposite direction.When I changed myself profits started flowing in.
Keeps track of few stocks.
Daily read the fundamentals.
When asked he said I don't know but the scripts just tell me if they are going to move up or not.He is absolutely in sync with the markets.

When SAIL was trading around 228 he said it is going to touch 196 levels next month.Till then I will sell on a daily basis and cover it at the end of the day.

Daily does his home work based on delivery volume and other stuffs which he didn't reveal.

It happened as he predicted.
He is a contrarian trader with strong knowledge of economy and fundamentals.

Like Raunak Bhai and Dan who stresses to develop the intuition or gut - these people are 1 in a million.

For us to start with we need a system and strict rules and the most important thing is to preserve our capital till we learn trading.

Please try to differentiate between discretion and false hope.
Please remember to discard ego in due process.
I am finding it difficult.

So as you said it is better to follow a system to start with.
It takes time to develop gut and fundamentals and economy.

Best Regards,
JK

 

[alroyraj]

Hi, Friends

Short Nifty @ 6167 for a target of 6110.. SL 6180


Regards,
Gangadharan

Seems to be getting there. it must definitely be gangadharan...:thumb:

 

[alroyraj]

As you know, I'm preparing a strategy for the Intraday trade. For time being I've stopped trading due to the lack of time during the market hours. However, I'm paper-trading with the strategy since last couple of days by analyzing the Intraday charts of various stocks.

I've to take care of couple of things to make this strategy successful on a regular basis. One of them is: "Selection of stocks." I can't just rely on the calls given by the pros on the forum. Sometimes they are not able to post everyday, sometimes they are on holidays. I'll have to develop an ingenious process for that.

I'm pretty close, but not there yet. We'll have one more systematic way to enter and exit trades soon. Gut feeling will be factored out. Less emotions, we live longer.

I believe rather than jumping from stock to stock in search of the next great move, perfecting a system and selecting the stocks that work with it is preferable.Sometimes as a trader you are able to read some stocks beautifully. This is common to traders.I call these bread and butter scripts. This is the first stage ,perhaps later one can use volumes studies,price action etc to trade other scripts.

 

[TraderSid]

Re: Swing Trading Nifty and Bank Nifty

Script: Nifty
Buy Signal Generated: 5947.05 on 20th December 2010
BB Upper Band Value at Buy Signal: 5946.07 on 20th December 2010
Current SL: 6034.3
Current Gain: 199.45

--------------------------------------------------------------------------------------------------------------------------------------------------

Script: BankNifty
Buy Signal Generated: 11791.5 on 31st December 2010
BB Upper Band Value at Buy Signal: 11683 on 31st December 2010
Current SL: 11629
Current Gain: -227 Position Closed

 

[PGDIMES]

Seems to be getting there. it must definitely be gangadharan...:thumb:

Check which one came first... SL or Tgt!!!:rofl:

 

[jagankris]

Friends,

SBI still down side left or ????

TIA.

Best Regards,
JK

 

[alroyraj]

Re: Swing Trading Nifty and Bank Nifty

Is it possible to incorporate something like the average volume in the chart. For eg. inferences like a rise on small volumes could have been made out.

 

[JackPotter]

I believe rather than jumping from stock to stock in search of the next great move, perfecting a system and selecting the stocks that work with it is preferable.Sometimes as a trader you are able to read some stocks beautifully. This is common to traders.I call these bread and butter scripts. This is the first stage ,perhaps later one can use volumes studies,price action etc to trade other scripts.

Thanks for your comments. I really appreciate it. My approach for intraday is going to be a bit different. What I find is that if we restrict ourselves to few selected stocks, we can do better in swing trading or investments. For intraday, we must capitalize on the market hype.

I may be wrong. However, we have to think a little different if we want to stand-out from the crowd. Hence, I'm going to give this strategy a little longer run. Market hype, volumes, volatility history and timing are going to be the basis of my technique.

 

[hawaisanjay]

He said I realised I was just doing in the opposite direction.When I changed myself profits started flowing in.
Keeps track of few stocks.
Daily read the fundamentals.
Best Regards,
JK

Jaganji....Do the fundamentals change daily?

 

[jagankris]

Jaganji....Do the fundamentals change daily?

Sanjay,

Fundamental's doesn't change daily but policies do !!!
When policy maker's allowed to export Sugar Renuka is flying.
When SBI announced interest rate hike banking sector is falling.

When a person knows these information in hand he will not enter the wrong position or will wait for appropriate time to book profits.

Hence Technical's combined with Fundamentals and intuition are the core teachings of Raunak Bhai.

TC,
JK