Download : Compounding Calculator
Hi
As we are approaching the financial year end (31 March), quite a few people will be contacting their financial advisors for investments (or financial advisors contacting you....to lure you into some attractive tax saving/pension/investing idea for future).
One of the marketing gimmick they will use is telling you how much a particular policy will fetch in so many years provided you pay a regular monthly/year sum.
I am uploading a compounding calculator,you can download it by clicking here
You can change the values of "amount" and "rate" in the table (Orange cells on right hand side)
Although the returns looks very attractive,how much practical they are I don't know.So be cautious,read the terms carefully and make a wise financial decision for yourself and your family
Good luck.
Related File
Download : Compounding Calculator Modifiable (Research Version)
As we are approaching the financial year end (31 March), quite a few people will be contacting their financial advisors for investments (or financial advisors contacting you....to lure you into some attractive tax saving/pension/investing idea for future).
One of the marketing gimmick they will use is telling you how much a particular policy will fetch in so many years provided you pay a regular monthly/year sum.
I am uploading a compounding calculator,you can download it by clicking here
You can change the values of "amount" and "rate" in the table (Orange cells on right hand side)
Although the returns looks very attractive,how much practical they are I don't know.So be cautious,read the terms carefully and make a wise financial decision for yourself and your family
Good luck.
Related File
Download : Compounding Calculator Modifiable (Research Version)
Trader's Talk - 27-28 January 2010
Hi,
Good morning to all,the downtrend continues,you will be able to see divergences (price making lower low while oscillator not making a lower low)in various time frames,that doesn't mean we go up now,it simply means that the momentum on the down side is slowing.
this is perhaps a good time to take a close look at the charts and place tight stops
Good luck
Good morning to all,the downtrend continues,you will be able to see divergences (price making lower low while oscillator not making a lower low)in various time frames,that doesn't mean we go up now,it simply means that the momentum on the down side is slowing.
this is perhaps a good time to take a close look at the charts and place tight stops
Good luck
How do I calculate SAR ?
Hi,
A lot of people have asked in the daily "Trader's talk" post about how do I calculate the SAR.
But before I put down some details about it ,I would like to mention that this method may not be suitable for your trading style for example an intraday trader may find "SAR" too far and the calls will be of no use to her/him.While a Positional trader will find it too close to his entry point and fear a whipsaw( even if he has a time horizon of as less as 5-6 days).
This method has evolved keeping in mind the swing trading mindset (we try to enter during intraday pullbacks in the direction of trend and hold on to the position till the SAR gets triggered,we keep adding to our position every day on intraday pull back and use the gap (up/down in our favor) to add or reduce position.
What is SAR?
SAR (stop and reverse) is a point/level at which it is believed that the trend which is currently in place changes to the opposite one.For swing trade SAR can be any level that is beyond the expected intraday noise(movement),yet it should not be too far from the recent price action(that will result in bad exits and you will end up giving back your accumulated profits)
there are no hard and fast rule for SAR and method changes as per market conditions (stock/index in trend or sideways movement)
Following are some ways how I calculate SAR
1) Recent price action (one,two, three day high/low )
2)Moving average (200 dma)
3)RSI recent peak and price at that point
4)ATR (average true range)
The system does not uses any trend line, pivots,and the use of indicators is minimal.All the importance is given to prices.I give more importance to selecting stock and trading them with this method.You should not stick to your favorite stock/index and be willing to change as per market conditions.
I think thats all about it,if you have questions related to above feel free to ask,but make your own rules and do your own research.that will help you in your long term success in the markets
Good luck
Related Post
How to use the market calls table
Should you take all the SAR trades?
Opinion and Answers about SAR and Trading.
Two scenarios that can lead to a better performance of SAR trades.
A lot of people have asked in the daily "Trader's talk" post about how do I calculate the SAR.
But before I put down some details about it ,I would like to mention that this method may not be suitable for your trading style for example an intraday trader may find "SAR" too far and the calls will be of no use to her/him.While a Positional trader will find it too close to his entry point and fear a whipsaw( even if he has a time horizon of as less as 5-6 days).
This method has evolved keeping in mind the swing trading mindset (we try to enter during intraday pullbacks in the direction of trend and hold on to the position till the SAR gets triggered,we keep adding to our position every day on intraday pull back and use the gap (up/down in our favor) to add or reduce position.
What is SAR?
SAR (stop and reverse) is a point/level at which it is believed that the trend which is currently in place changes to the opposite one.For swing trade SAR can be any level that is beyond the expected intraday noise(movement),yet it should not be too far from the recent price action(that will result in bad exits and you will end up giving back your accumulated profits)
there are no hard and fast rule for SAR and method changes as per market conditions (stock/index in trend or sideways movement)
Following are some ways how I calculate SAR
1) Recent price action (one,two, three day high/low )
2)Moving average (200 dma)
3)RSI recent peak and price at that point
4)ATR (average true range)
The system does not uses any trend line, pivots,and the use of indicators is minimal.All the importance is given to prices.I give more importance to selecting stock and trading them with this method.You should not stick to your favorite stock/index and be willing to change as per market conditions.
I think thats all about it,if you have questions related to above feel free to ask,but make your own rules and do your own research.that will help you in your long term success in the markets
Good luck
Related Post
How to use the market calls table
Should you take all the SAR trades?
Opinion and Answers about SAR and Trading.
Two scenarios that can lead to a better performance of SAR trades.
Trader's Talk - 25 - 26 January 2010
hi,
Good morning to all,start of another week and we have got a holiday tomorrow,futures and option expiry on Thursday.Gap down open expected today as well,we should look to sell the intra day pull back
You can post all comments below
Good luck
Good morning to all,start of another week and we have got a holiday tomorrow,futures and option expiry on Thursday.Gap down open expected today as well,we should look to sell the intra day pull back
You can post all comments below
Good luck
Market Calls Updates
Hello Traders,
I have started global market watch from today covering Japanese,Chinese,UK and US markets
I will be updating all the market calls at following times
US and UK - by 12 Noon (Indian standard time)
Commodities markets - by 5 pm (Indian standard time)
Asian Markets and Indian markets - between 5pm - midnight (Indian standard time)
I will try to update everyday,provided my internet services are available,which is quite reliable.
again the updates are provide to give every body a general sense of markets trends.
Please follow the following link to know how to use the market calls table
Thanks
I have started global market watch from today covering Japanese,Chinese,UK and US markets
I will be updating all the market calls at following times
US and UK - by 12 Noon (Indian standard time)
Commodities markets - by 5 pm (Indian standard time)
Asian Markets and Indian markets - between 5pm - midnight (Indian standard time)
I will try to update everyday,provided my internet services are available,which is quite reliable.
again the updates are provide to give every body a general sense of markets trends.
Please follow the following link to know how to use the market calls table
Thanks
Trader's Talk - We create noise here !!! 23 & 24 Jan 2010
Hi
I have been receiving comments under various posts but from now on I would request every one to put the comments under this post "Trader's Talk - We create noise here !!!"....all discussions will be under this one post and I will create a new one here every day.
Please also note it will be impossible for me to give levels every day for every stock....that is not the reason why the blog was created....it is for educational purpose and to make you an independent and responsible trader Share your ideas and strategies here every one is welcomed to participate
Learn,Share,Help and Benefit from each other's experience
I have been receiving comments under various posts but from now on I would request every one to put the comments under this post "Trader's Talk - We create noise here !!!"....all discussions will be under this one post and I will create a new one here every day.
Please also note it will be impossible for me to give levels every day for every stock....that is not the reason why the blog was created....it is for educational purpose and to make you an independent and responsible trader Share your ideas and strategies here every one is welcomed to participate
Learn,Share,Help and Benefit from each other's experience
Market calls performance -Analysis
Hi
Friday marked the end of first week of my blog,I have got immense support from visitors across the world (Thank you all for paying a visit and hope to see you/hear from you on regular basis)
By Friday i had posted 5 days of market calls and it has been very tough for me to do all this stuff(i will find some convenient way to do this ,please suggest something on how it can be done and i will also ask for your help)
Now coming back to main topic,I have posted how the market calls have performed for the week , result are quite good as per my opinion,thats not because i have made good decisions but because market finally moved in a trend and this is a trend following system,so it worked and will always work under strong trends
How did i calculate the returns?
Since this was the first week ,I assumed that we enter the index/stocks on the first SAR breach which happened on Tuesday and in some case Wednesday(check it yourself)
Second assumption that i have made is that we closed the position on Friday EOD in order to calculate the profits/loss.
Third Assumption (the most dangerous one to assume!!!) is that we were able to act on SAR that was recommended.
Decimals have been rounded off
Now keeping the above points in mind if we calculate (provide I did it right,and please correct me if i am wrong for benefit of all) we get these returns which to me are excellent,but just check out how Tata steel performed,if you were trading as per levels mentioned you would have had a tough time.See how difficult Friday morning would have been for you if you were long in it (as it was going up till Thursday)It gapped down below the SAR and went straight down to 620 from around 650(Thursday's close approximately)...In calculation i have taken just the absolute values ,so how i calculated it ? 624.5 (fridays close) - 641.5 (thurs days market call SAR for longs) comes to 17 points profit !!!...But i doubt if anyone could have managed that in real trading.People generally wait for first 15-30 mins before acting on SAR...this one would have landed you in a mess if you did that
Rest results were good and it was easy to enter at SAR...But do check Tata steel to understand what risk you face while trading.All in all it was a good weekly performance and most of shorts will continue for Monday and another down day is expected (i will post market call for Monday by evening).
I need to warn you about how people show there performance.My brokerage company keep posting how well their calls perform.Stuff like...90 % accuracy ...if you invested 1 lakh it will be 4 lakh in 6 months if you followed our calls.Be very careful of such misleading information....ask for detail ...do your own maths...and see how practical the entries and exits would have been if you followed the calls as per your trading style
Anyways you should not follow anybody's advice build your own system and to do it now ,you should check this link if you have not done till now .
Good Luck
PS....the way i have calculated the returns is perhaps the laziest way to trade ....and we still end up in profit!!!....and it takes 15 sec to put that trade .Returns can be much more if you can fine turn that and use intraday moves to enter/exit/add/reduce your positions(in short money management,keeping 'swing'and "sar' levels in mind)
Friday marked the end of first week of my blog,I have got immense support from visitors across the world (Thank you all for paying a visit and hope to see you/hear from you on regular basis)
By Friday i had posted 5 days of market calls and it has been very tough for me to do all this stuff(i will find some convenient way to do this ,please suggest something on how it can be done and i will also ask for your help)
Now coming back to main topic,I have posted how the market calls have performed for the week , result are quite good as per my opinion,thats not because i have made good decisions but because market finally moved in a trend and this is a trend following system,so it worked and will always work under strong trends
How did i calculate the returns?
Since this was the first week ,I assumed that we enter the index/stocks on the first SAR breach which happened on Tuesday and in some case Wednesday(check it yourself)
Second assumption that i have made is that we closed the position on Friday EOD in order to calculate the profits/loss.
Third Assumption (the most dangerous one to assume!!!) is that we were able to act on SAR that was recommended.
Decimals have been rounded off
Now keeping the above points in mind if we calculate (provide I did it right,and please correct me if i am wrong for benefit of all) we get these returns which to me are excellent,but just check out how Tata steel performed,if you were trading as per levels mentioned you would have had a tough time.See how difficult Friday morning would have been for you if you were long in it (as it was going up till Thursday)It gapped down below the SAR and went straight down to 620 from around 650(Thursday's close approximately)...In calculation i have taken just the absolute values ,so how i calculated it ? 624.5 (fridays close) - 641.5 (thurs days market call SAR for longs) comes to 17 points profit !!!...But i doubt if anyone could have managed that in real trading.People generally wait for first 15-30 mins before acting on SAR...this one would have landed you in a mess if you did that
Rest results were good and it was easy to enter at SAR...But do check Tata steel to understand what risk you face while trading.All in all it was a good weekly performance and most of shorts will continue for Monday and another down day is expected (i will post market call for Monday by evening).
I need to warn you about how people show there performance.My brokerage company keep posting how well their calls perform.Stuff like...90 % accuracy ...if you invested 1 lakh it will be 4 lakh in 6 months if you followed our calls.Be very careful of such misleading information....ask for detail ...do your own maths...and see how practical the entries and exits would have been if you followed the calls as per your trading style
Anyways you should not follow anybody's advice build your own system and to do it now ,you should check this link if you have not done till now .
Good Luck
PS....the way i have calculated the returns is perhaps the laziest way to trade ....and we still end up in profit!!!....and it takes 15 sec to put that trade .Returns can be much more if you can fine turn that and use intraday moves to enter/exit/add/reduce your positions(in short money management,keeping 'swing'and "sar' levels in mind)
Blog Update
I will post the market calls for monday tomorrow....feeling tired and computer is giving problem as well
Hope you are using the market calls table...I have not calculated the returns but i think you must have made good profits this week in HDIL, Nifty, Bank Nifty and others too. Can some body calculate the returns just by taking the SAR values on the first trade and todays close(assuming we entered at SAR and exited at todays close)?...
This is one tough job...I manually enter data ...it gets calculated in excel...and then I check it with chart....then manually enter it to Excel again .. make a paint file the upload...its taking a lot of time (please check the data values carefully, if you have any doubts about values ...leave a comment...as data is entered manually there can be a typing mistake)
Can anybody suggest a less cumbersome way? to get data....problem with data is that we get freak trades in the first 5 mins ...that should be ignored.
Looking forward to your long association.
Regards
AJ
Hope you are using the market calls table...I have not calculated the returns but i think you must have made good profits this week in HDIL, Nifty, Bank Nifty and others too. Can some body calculate the returns just by taking the SAR values on the first trade and todays close(assuming we entered at SAR and exited at todays close)?...
This is one tough job...I manually enter data ...it gets calculated in excel...and then I check it with chart....then manually enter it to Excel again .. make a paint file the upload...its taking a lot of time (please check the data values carefully, if you have any doubts about values ...leave a comment...as data is entered manually there can be a typing mistake)
Can anybody suggest a less cumbersome way? to get data....problem with data is that we get freak trades in the first 5 mins ...that should be ignored.
Looking forward to your long association.
Regards
AJ
Let's have some fun on a day which is not so funny!!!
Hi,
Today is 22 January 2010 things are quite calm in the markets though we came down a bit yesterday,but things we not so calm 2 years back.I am referring to 22 January 2008 the day the market fell and fell so sharply that trading was halted because of a down circuit
I am posting this link
http://www.moneycontrol.com/cnbc/videos/livevideo.php?prg=bazzar&dt=2008-01-22
which i want every body to see it today or over the weekend and review your trading decisions that you made pre/post/during that event.This weekend sit down and analyze how you have grown as a trader and what mistakes you made during that time, if you were trading and try not to repeat them in future.
If you were not a trader at that time then this becomes all the more important for you.It will make you prepare for the worst case scenario.One of the basis on which technical analysis is based is that history repeats itself,so do this exercise this weekend its worth the effort that will be required,you just have to watch the show(easier than analyzing the chart over the weekend)
Once you have watched the show.Please participate in the poll that I have added on the right hand side of the blog.I have casted my vote.I found the video to be "funny" and also "i hate business news channel (laughing at my self on how unaware I was....but I was not alone the "experts" were with me....dont forget to look at Satyam results which were flashing ) At that time I was extremely frustrated and a worried man.Watching the video from time to time still sends shivers down my spine.
Some of the wall street wizards believe (and is true as well) that market is all about psychology.
You will see how Udyan/Sudarshan etc are reacting to the panic situation and how the so called experts can go terribly wrong in there analysis.I will watch it as well tomorrow again.Udayan says he will sell his house and buy stock that day(if i remember correctly),I hope he didn't do that,because I made a similar mistake and suffered.What happened after that we all know the market fell another 50 percent from that level some stocks 70- 80 percent.(check Suzlon and Unitech...large cap index stocks)
That makes me mention that you should never try to catch the falling knives.Always know where your stops are and how much volumes you should trade with.Don't ever lose your sleep over trading(on second thoughts its past 1:30 and I am still online....:))....)
Time to sleep.Good night ,Happy and safe trading for everyone
Today is 22 January 2010 things are quite calm in the markets though we came down a bit yesterday,but things we not so calm 2 years back.I am referring to 22 January 2008 the day the market fell and fell so sharply that trading was halted because of a down circuit
I am posting this link
http://www.moneycontrol.com/cnbc/videos/livevideo.php?prg=bazzar&dt=2008-01-22
which i want every body to see it today or over the weekend and review your trading decisions that you made pre/post/during that event.This weekend sit down and analyze how you have grown as a trader and what mistakes you made during that time, if you were trading and try not to repeat them in future.
If you were not a trader at that time then this becomes all the more important for you.It will make you prepare for the worst case scenario.One of the basis on which technical analysis is based is that history repeats itself,so do this exercise this weekend its worth the effort that will be required,you just have to watch the show(easier than analyzing the chart over the weekend)
Once you have watched the show.Please participate in the poll that I have added on the right hand side of the blog.I have casted my vote.I found the video to be "funny" and also "i hate business news channel (laughing at my self on how unaware I was....but I was not alone the "experts" were with me....dont forget to look at Satyam results which were flashing ) At that time I was extremely frustrated and a worried man.Watching the video from time to time still sends shivers down my spine.
Some of the wall street wizards believe (and is true as well) that market is all about psychology.
You will see how Udyan/Sudarshan etc are reacting to the panic situation and how the so called experts can go terribly wrong in there analysis.I will watch it as well tomorrow again.Udayan says he will sell his house and buy stock that day(if i remember correctly),I hope he didn't do that,because I made a similar mistake and suffered.What happened after that we all know the market fell another 50 percent from that level some stocks 70- 80 percent.(check Suzlon and Unitech...large cap index stocks)
That makes me mention that you should never try to catch the falling knives.Always know where your stops are and how much volumes you should trade with.Don't ever lose your sleep over trading(on second thoughts its past 1:30 and I am still online....:))....)
Time to sleep.Good night ,Happy and safe trading for everyone
Markets goes down,did you made the most of it ???
Market today went down quite sharply.But the international market were not showing the same momentum on the down side as the Indian markets .
Were you able to use this trending day in you favor? If you check the market calls table for the past few days that i have posted you can see that if you followed it with a plan you would be in good profit by now and possibly more to come in coming days
The most important thing that really matters is how disciplined you are in you approach and how meticulously you plan your trades(plan your trades and trade your plan)
Discipline and money management are most essential things to take care while trading.
So stop that search for the best indicator/leading indicator/price projection etc and concentrate on Stops and their management.If we survive we will get plenty of opportunity to trade and be profitable don't lose that capital in your trading account
Were you able to use this trending day in you favor? If you check the market calls table for the past few days that i have posted you can see that if you followed it with a plan you would be in good profit by now and possibly more to come in coming days
The most important thing that really matters is how disciplined you are in you approach and how meticulously you plan your trades(plan your trades and trade your plan)
Discipline and money management are most essential things to take care while trading.
So stop that search for the best indicator/leading indicator/price projection etc and concentrate on Stops and their management.If we survive we will get plenty of opportunity to trade and be profitable don't lose that capital in your trading account
21 January – The day I always remember
Hi,
Well it is 21 January and I always remember this day – no not because it’s my birthday/my girl friend’s birthday/my parent's anniversary /neither I got my first job /car or house on this day. I remember it because on this day I got a call; it was a special call, which we all know as the “MAGRIN CALL”.
I am referring to 21 January 2008 the day market crashed and next day it went further down to hit lower circuit, the market was under bear grip and I had no clue of what was happening at that time. This was just a few months after I started using stock and index futures to trade with out knowing the risk and the damage it will cause to my trading account / career
I was in my stage one of trading career ( The Clueless Trader ) and I was gambling in futures (gambling not trading because I was not prepared for the worst case scenario) I was Long in SAIL Futures and made the biggest mistake which all the traders make in early part of there trading career . I was carrying a long position of SAIL Futures although the market was moving against me, I thought let me buy more of SAIL futures as it was good fundamentally, it was already down quite a bit and a bounce was due(all optimistic thoughts or may be to justify my current long position) That will ‘average’ my loss. Next day market went circuit down and I lost most of my capital and till today I can feel the pain of that one mistake.
So after the dust settled, situation was really bad, I knew futures were risky and now most of the capital was gone. So where was the problem? I blamed the market; I said it was random and manipulated.
Nevertheless I decided to continue I wanted to research more and be successful and not to leave like a loser and then I started to gain more market insights and technical analysis came later on. I realize that problem was not with markets or futures’ trading ….problem was with me and the way I traded without knowing the risks associated with trading
That’s all about what happened that day .I will cover more on futures’ trading its advantages and disadvantages (yes it has advantages) soon and other market risks which traders need to take care of. Tomorrow I will post a very interesting link / video that you will find frustrating, surprising and funny i.e. all kind of emotions expressed in one video. So watch out for this space
Cheers
Indicators Made Easy –Moving Averages Part 1
hi,
I will try to cover some of the most commonly used technical indicators, their usage and usefulness.I am starting with moving averages
Types of Moving Averages
There are different types of moving averages i.e.Simple, Exponential, Weighted and Triangular moving averages.Two of the most commonly used ones are simple (SMA) and exponential (EMA) which we will discuss here.MA (moving averages) are probably one of the simplest technical trading indicators which are used by most of the traders. The reason it is called a ‘moving average’ and not simply an average is because as we get new data/price the oldest data gets ignored from the calculation.
I will try to cover some of the most commonly used technical indicators, their usage and usefulness.I am starting with moving averages
Types of Moving Averages
There are different types of moving averages i.e.Simple, Exponential, Weighted and Triangular moving averages.Two of the most commonly used ones are simple (SMA) and exponential (EMA) which we will discuss here.MA (moving averages) are probably one of the simplest technical trading indicators which are used by most of the traders. The reason it is called a ‘moving average’ and not simply an average is because as we get new data/price the oldest data gets ignored from the calculation.
Purpose of Moving Averages
They are used to smooth out the noise (variation in data) ,and to give a general sense of trend in the underlying data which is being analyzed .Traders often use MA to find support and resistance levels at popular moving averages like 3,13,21,34,55,100,200.Moving averages also forms the basis for various cross over strategies
Simple moving Average (SMA)
A SMA is calculated by adding all the data over a specified number of periods and dividing it by number of periods
Observe how the old data gets removed from the average as we get new data.
Exponential moving average (EMA)
Moving averages were criticized for being lagging in nature (they follow the price). In order to reduce this lag EMA got popular over a period of time.EMA reduces the lag by applying more weight to the recent data relative to older data.
Following is the formula to calculate the EMA
EMA (current) = ((Price (current) – EMA (previous)) x Multiplier) + EMA (previous)
Multiplier is calculated as follows
Multiplier is calculated as follows
Multiplier =2 / (time period + 1)
That’s all about it for the time being. I will cover trading strategies and other aspects of of moving averages in the next part.
UPDATE - How to use the market calls table
hi
I have made certain changes in the post How to use the market calls table
In market calls table instead of "Trend" i have now updated it to call 'Swing" and i have added a few ways in which you can use the table for intraday trades.
Cheers
I have made certain changes in the post How to use the market calls table
In market calls table instead of "Trend" i have now updated it to call 'Swing" and i have added a few ways in which you can use the table for intraday trades.
Cheers
Blog Update
hi,
I will be posting calls on world markets as well,maybe from tomorrow
will cover E mini s&p futures e -mini Nasdaq Futures,FTSE futures,Nikkei index levels,and ssec index
just collecting data and will start then
and in coming days i will also cover Currency pairs as well
Looking forward for every ones suggestions
Cheers
I will be posting calls on world markets as well,maybe from tomorrow
will cover E mini s&p futures e -mini Nasdaq Futures,FTSE futures,Nikkei index levels,and ssec index
just collecting data and will start then
and in coming days i will also cover Currency pairs as well
Looking forward for every ones suggestions
Cheers
Free Download - Moving Averages Calculator Using Microsoft Excel
hi,
Following are the links to download the calculator for moving averages
Simple moving average - click here
Exponential moving average - click here
Article to follow by evening.
Cheers
***********************************
Related Files
Download Simple Moving Average Modifiable (Research Version)
Download Exponential Moving Average Modifiable (Research Version)
Related Post
Indicators Made Easy –Moving Averages Part 1
Following are the links to download the calculator for moving averages
Simple moving average - click here
Exponential moving average - click here
Article to follow by evening.
Cheers
***********************************
Related Files
Download Simple Moving Average Modifiable (Research Version)
Download Exponential Moving Average Modifiable (Research Version)
Related Post
Indicators Made Easy –Moving Averages Part 1
It pays to follow the index (Nifty)
hi,
In the morning the expectation of a gap down were high because of the Asian cues.But the gap in nifty was not too big more over it stayed above the SAR mentioned in the Market Calls table.Then there was a sudden movement and it took Nifty quite close to recent week highs.
In the market calls table some stocks were mentioned for a short trade while the market(nifty) was still showing bullishness with up swing intact.Its always better to trade in the direction of market so taking bullish trades would have been profitable.Although stock do there own thing because of news,technical factors and sector sentiment,but it pays to be trading in the direction of market trend
Same will be applicable for tomorrow's trades, reliance,dlf, tatasteel, are coming up as short trends but its best to avoid them as general market is bullish.In fact dlf is about to complete a reversal(it ended the day at the high point thus chances of a gap up tomorrow is very high) and reliance is completely sideways since ages.
More later
In the morning the expectation of a gap down were high because of the Asian cues.But the gap in nifty was not too big more over it stayed above the SAR mentioned in the Market Calls table.Then there was a sudden movement and it took Nifty quite close to recent week highs.
In the market calls table some stocks were mentioned for a short trade while the market(nifty) was still showing bullishness with up swing intact.Its always better to trade in the direction of market so taking bullish trades would have been profitable.Although stock do there own thing because of news,technical factors and sector sentiment,but it pays to be trading in the direction of market trend
Same will be applicable for tomorrow's trades, reliance,dlf, tatasteel, are coming up as short trends but its best to avoid them as general market is bullish.In fact dlf is about to complete a reversal(it ended the day at the high point thus chances of a gap up tomorrow is very high) and reliance is completely sideways since ages.
More later
Morning Update
Asian markets have opened lower taking cues from US market's trading on friday and that will also affect the opening moves in the Indian markets as well.US markets are closed for Martin Luther King Jr. Day
Follow the "SAR" and try to trade as per the Market call table,with a gap down low risk long positions can be created provided the index/stock trades above th "SAR" and profits on short positions can be booked closer to "target" levels and re-entry can be made on intra day up move for tomorrow.
Intraday moves offer low risk entry and exit to the swing trades
Hope everyone has a good trading day ahead
Follow the "SAR" and try to trade as per the Market call table,with a gap down low risk long positions can be created provided the index/stock trades above th "SAR" and profits on short positions can be booked closer to "target" levels and re-entry can be made on intra day up move for tomorrow.
Intraday moves offer low risk entry and exit to the swing trades
Hope everyone has a good trading day ahead
How to use the market calls table
Hi,
From today I will be posting the market calls for the next trading day .As I have mentioned before, being a swing trader these are short term calls and they may not be suitable for your trading style. Please read the disclaimer before taking any decision on the strategies mentioned.
The most important thing in the table is the “SWING” column, it indicates the current swing direction and it is advised that we should trade in the direction of the swing
Next is "SAR" or the Stop and Reverse point , if the price touches that level, the current swing direction changes to the other direction (that will be reflected in the next post)
Then comes the column “Low risk entry ” this is the approximate level where the stock / index will retrace to during intraday trade,failing to reach this point during intraday trade means momentum is HIGH (in the direction of swing)
Then we have a “Target ” level ,which is simply a point that I expect the stock/index should reach if the trend is strong during intraday, failing to touch this level indicates a possible chance of reversal or LOSS of momentum (in the direction of swing)
That’s all about the table; I believe it’s very simple to understand. I would like to repeat that the most important column for a swing trader is “Swing” and “SAR” as long as that remains intact we can enter at any point (intraday over sold level)or book profits at any level(intraday overbought level) for long positions and opposite in case of short positions.But we should carry the position for the next day as suggested by 'swing' column provide SAR is not breached
For intraday trades you should trade in direction of the 'swing' and enter at "low risk entry"point with a possible target at the levels mentioned in the "target" column.You can modify this approach and trade as per your risk appetite or daily profit expectation but only in direction of "Swing"
These levels and SAR work best in trending markets / stocks,ranging markets will give whipsaws.So try to avoid stock in consolidation phase or trade with less volume or use oscillators extremes to enter and exits out of trade.
Since SAR is a trailing stop,you will end up giving back some of your profits always.That is a basic disadvantage of trailing stop loss order.For best trading results you need to book profits near "target" and re-enter near "low risk entry" zone.Although I have given precise points as "SAR","low risk entry" and "target" you need to watch that zone and react as per prevailing market conditions.
For intraday trades you should trade in direction of the 'swing' and enter at "low risk entry"point with a possible target at the levels mentioned in the "target" column.You can modify this approach and trade as per your risk appetite or daily profit expectation but only in direction of "Swing"
These levels and SAR work best in trending markets / stocks,ranging markets will give whipsaws.So try to avoid stock in consolidation phase or trade with less volume or use oscillators extremes to enter and exits out of trade.
Since SAR is a trailing stop,you will end up giving back some of your profits always.That is a basic disadvantage of trailing stop loss order.For best trading results you need to book profits near "target" and re-enter near "low risk entry" zone.Although I have given precise points as "SAR","low risk entry" and "target" you need to watch that zone and react as per prevailing market conditions.
Always wait for prices to become stable as the markets opens and put in your stops 10-15 minutes after market opens.Enter intraday trades as you see prices stalling,that skill will come from practice.
If you have a counter view to the current swing it is best to wait on the sidelines or trade with less volume with strict stop-loss for a short duration.
If you have any questions or comments feel free to ask
Good luck.Related Post
Money Management Plan
Should you take all the SAR trades?
The Holy Grail of Trading: a roadmap to trading and investing
Hi all,
Well this is my first post regarding trading and this is my first blog as well.I have been trading / investing in Indian Stock Market for about three years. So speaking purely in terms of years I am quite new, but I have been trading, following the market daily and have put in tremendous amount of time on daily basis close to 10 hrs and sometimes even more.
Over the years my way of trading has changed immensely, I started with fundamental analysis then moved to pure technical analysis, but now I am using both fundamental and technical analysis in conjunction. However my short term analysis and trading decisions are based on technical approach.
Enough of information about me (that’s not important anyways) now let’s come to the main topic “the holy grail”. No I am not going to tell about any magic indicator or any specific parameter to use or a time frame for consistent trade (Sorry to disappoint a few people who were expecting that but trust me what I am highlight here is better than indicators).Instead of that I am going to present a checklist of various experiences that you will have in your quest for becoming a consistent and a successful trader
The credit for highlighting these points goes to a person by the name “jaydaraniya” in icharts forum. I have just made the points in the form of a checklist so that readers can find it easy to assess where they currently stand in their development as a professional trader. I have added a few pointers here and there but tried to retain the content as it is.
How to use the checklist?
Well this is my first post regarding trading and this is my first blog as well.I have been trading / investing in Indian Stock Market for about three years. So speaking purely in terms of years I am quite new, but I have been trading, following the market daily and have put in tremendous amount of time on daily basis close to 10 hrs and sometimes even more.
Over the years my way of trading has changed immensely, I started with fundamental analysis then moved to pure technical analysis, but now I am using both fundamental and technical analysis in conjunction. However my short term analysis and trading decisions are based on technical approach.
Enough of information about me (that’s not important anyways) now let’s come to the main topic “the holy grail”. No I am not going to tell about any magic indicator or any specific parameter to use or a time frame for consistent trade (Sorry to disappoint a few people who were expecting that but trust me what I am highlight here is better than indicators).Instead of that I am going to present a checklist of various experiences that you will have in your quest for becoming a consistent and a successful trader
The credit for highlighting these points goes to a person by the name “jaydaraniya” in icharts forum. I have just made the points in the form of a checklist so that readers can find it easy to assess where they currently stand in their development as a professional trader. I have added a few pointers here and there but tried to retain the content as it is.
How to use the checklist?
Six types of traders or we can say six board stages of development as a trader are mentioned. You need to find first where you actually are, once that is known you will know what challenges you will face in coming time, knowing that you are better prepared to face the obstacles. It will be like what a map is to a sailor. Once things become clear, you will enjoy your voyage around the trading world
I would like to say thanks to “jaydaraniya”, his article completely changed the way I approached trading and I am quite certain that it will have an immense impact on others who will follow the checklist and work towards the final goal of being a consistent trader / investor.
Disclaimer
All the opinions expressed on this blog are for educational purpose only.
The strategies mentioned on this blog may not be suitable for you. Material presented here does not take into account your particular financial situation, investment objectives and is not intended as recommendations appropriate for you.
You must make an independent decision regarding strategies mentioned on this blog. Before acting on the information on this blog, you should strongly consider seeking advice from your own certified financial or investment adviser.
The strategies mentioned on this blog may not be suitable for you. Material presented here does not take into account your particular financial situation, investment objectives and is not intended as recommendations appropriate for you.
You must make an independent decision regarding strategies mentioned on this blog. Before acting on the information on this blog, you should strongly consider seeking advice from your own certified financial or investment adviser.
Welcome to Finance and Trading made easy
This blog's primary objective is to help traders discover their own style of trading and become consistent in their performance.The blog will also provide information on finance, trading, commodity, loan, currency, insurance, mutual funds and tax related problems.
Most of the posts and updates will be regarding trading (online stock, index, commodity, currency). My trading methods are based on short term technical analysis. I prefer to participate in the market as a swing trader. The blog would highlight the current swing direction with specific entry and stop loss levels.
Please read the disclaimer before you make a financial decision based on any information presented here.
Most of the posts and updates will be regarding trading (online stock, index, commodity, currency). My trading methods are based on short term technical analysis. I prefer to participate in the market as a swing trader. The blog would highlight the current swing direction with specific entry and stop loss levels.
Please read the disclaimer before you make a financial decision based on any information presented here.
Feel free to write your comments and suggestions, I would love to address them as quickly as possible.Looking forward to a pleasant interaction with traders, from around the world!
Cheers :)
Cheers :)
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