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@Shazia
ReplyDeleteHi...whipsaw?...I would first ask ..how do you define it?..I think it's a subjective term..and I believed you are using it in reference to nifty
Check that post on whipsaw again
http://financeandtradingmadeeasy.blogspot.com/2010/03/whipsaw-stock-trading-system-charting.html
Now check the performance of bank nifty with respect to Nifty...there wont be a whipsaw in that trade...but surely there will be...some other day...
three point I mentioned
1)choice of stock or index
2)Entry price
3)Stop loss placement
any mistake on above can result in a whipsaw
As far as SS or me or anybody is concerned...I would say you should not depend on anybody...or follow anybody
It is very important to know about your own self and style of trading...build a trading system as per your own requirement...know when it fails (under which market conditions)...trade light or dont trade at all in those conditions
Now coming to SS...he always says that long term trend is up...so he will not short as that's against the trend...that's his way to see markets
What I feel its very difficult to see how high or how low the market goes (market always surprises us!!!)....should we short 200/300/400 points down from here?...as that will "confirm" down move..
Also ...if we use swing trades with intraday trades we can get best results
So if 5280 was my stop for swing trade yesterday...fine...but if I see the intraday trade post 1:30 it was all down...and good profits
TIP:...give more importance to trade after 1 pm..stock should end closer to "target level"...mentioned in table...not between "SAR" and "low risk entry level"
Lastly...I would say...It is easier to do this analysis at the end of the day...and quite difficult to hold your nerves during trading...proper plan and experience will make things easier...so let's hope for the best
Good luck
Cheers
@shazia
ReplyDeletetry to work on that money management plan...link under "important post" top right hand side of blog...that will help ...I am sure
try to trade certain "high probability set ups"...like range breakouts...or charts patterns...base on your trading system
I am also working on this...after your system is in place...try to find setup that will suit your system...and trade only those...
Also read "holy grail of trading" post...to find the next step that your should take...and work on that ..
We can only work hard...and leave the rest to markets....
Cheers
Hi,
ReplyDeletei am so sorry i never mentioned but it was nifty only i was tracking, and i took it granted.
The other stocks i see casually because in the learning process that i am now, i want to understand nifty first and then follow the other stocks..
Thanks
Shazia
31 march 2010, here given banknifty going up and given up target and nifty going down and given down target then wts happen u know better,
ReplyDeleteeither side sl hit. its not good for your system
Good Morning Anuj! Celebrating 1st April? :)
ReplyDelete@Shazia
ReplyDeleteI think first we should understand our system ...know how its characteristics...then choose a stock
So if you have to make a choice between nifty and bank nifty...and if you have a trend biased system...use your system with bank nifty not with nifty....whipsaws will automatically go away
How ever if you are using a sideway market type system...or entering/exiting trades as per oscillators...you will see whipsaws in bank nifty...while nifty will perform better
So choose system first then stock...not like making one stock your favorite and then optimizing the system every day as per stock's movement.
And then you will see whipsaws vanishing...:)
Hi Raaj
ReplyDeleteyes thats right...bank nifty up and nifty down...that happens so many times..that happen because their composition is different and they are calculated differently...
Bank nifty has got financial stocks which were up (icici ans sbi huge weightage)
while nifty has got oil,banking and technology as major components...
Just analyze the component and you will see why at times you get these divergent trend.
Nifty was mainly dragged down by technology sector,....this does not affect bank nifty at all..
Hope it helps
Good luck
Hi rm,
ReplyDeleteyes that seems to to be a reason why I could not post the trend direction for today...
Actually parents have come from doon here for a visit...I am not trading as well..and computer is also busy with people checking social networking sites!!!...internet has definitely made a lot of changes in my family...
It takes around 1 hour for me to update the table...couldn't find that yesterday...day before yesterday I managed it by getting up early @ 6 am..:)
this is not good...I feel that I am back in my office which I left years back...that "freedom quote" by Dr Elder
"... You can be free. You can live and work anywhere in the world. You can be independent from routine and not answer to anybody ..."
[Trading for a Living]
- Dr. Alexander Elder
... doesn't seems to be working in my case now :(
I am planning to make some changes in the blog..that will help me and the reader as well...some where I feel that I am moving away from the "objective" of this blog
"This blog's primary objective is to help traders discover their own style of trading and become consistent in their performance."
In fact people are becoming more dependable!!
Can you suggest any changes?..I was thinking about quitting these regular posts and try to find "high probability trades"...based on same trading strategy...I think that will be quite good..apart from that ever since I have started blogging I have not read a single book...I have plans to read about options and fundamental analysis but cant squeeze in time because of trading and blog updates...
your thoughts on this will be appreciated...when every you find time...
Good luck cheers
Hi Anuj,
ReplyDeleteEnjoying the home made food?!
Let me first of all admit that i am least qualified to comment on the blog (me still being somewhere between stage II and stage III described in your holy grail!). Disclosures done let me get busy with offering advice (Hey man, I am Indian, you can't deny my birth right just because I am not eligible!)
The figures you are publishing every day are the distilled product of various trading techniques you have practiced and perfected over last few years but the most important part of your trading is the experience you have gathered over years.
One way of sharing this experience with your readers could be by writing in detail about a trading technique once in a week or so than spend time on discussing it threadbare with the readers, if possible apply the strategy to a stock or an index and discuss it post-market with charts indicating what trading action could have been taken at different price points. This may result in lively teacher-student discussions which I am sure you will enjoy. Once in a while you may come across a dense-head student like me but that is an occupational hazard. :)
One more thing, consider taking a week's break from blogging after every week - like oil-well crew they are on a 15 day's ON 15 day's OFF cycle! Could spend that time in reading books, developing new ideas and try them on us next week!
Should stop writing before you stop reading!
Cheers!
Hi r m
ReplyDeletethanks you for your suggestions
Yes enjoying the home made food...but just for couple of days more
any body can advice..."stages" is just about your own personal assessment
I wanted an advice for blogging..as you are a pro blogger..since 2005!!..thanks for suggesting "oil well crew's cycle"..
Will think about it...
Even I have plans about a photography blog..once I settle well in trading..
Check this...http://www.shutterpoint.com/
So what if your are stage 3 in trading...you might be stage 6 in photography!!..how about a career change....:))
Enjoy
Hi Anuj,
ReplyDeleteHow are you? are you on vacation? i thought you were on vacationa dn saw your comments in yesterday Ilango blog and expected your presence today here but not..
Hope you are enjoying yoru vacation
Thanks,
Ramesh.
Hi Ramesh
ReplyDeleteI am good,How are you? No I am not on vacation,just taking rest from active blogging and trading... suffering from a stiff back..
I am also thinking about further course that this blog should take...how I should go about blogging..keeping the objective of this blog in mind..publishing daily levels will make people more dependent as well as it's very difficult for me,as I manage this blog alone...so I am checking out various blogs for fresh ideas
can you suggest anything?
Cheers
hi,
ReplyDeleteI would suggest a weekly analysis would be better for you and us and sometimes you can be more active when there is something drastic happening in the market.. :)
Thanks
Shazia
Hi Shazia
ReplyDelete"you can be more active when there is something drastic happening in the market"...every day something thing drastic happens...like SAIL on thursday!!...he he..that will make me active every day!!
Thanks for your suggestion...I am planning trader's development based on 'holy grail post'..but it will be a very lengthy process..I feel I should just start and I will get the ideas how to go about it later...pretty much like the 'money management plan post'where I started answering a comment and became a post with some new insights..and a structured plan (at least to me)
And analysis will be in between
Thanks again...cheers
Hi,
ReplyDeleteWhen I said more active on drastic movement days I did not mean it to be stock specific!! It was more for the general markets.. It could also be sector specific too sometimes.. Nevertheless, i said this because I think these drastic days are like break out days which are interesting to watch and learn, as new patterns and ideas take shape when these happen...
I will look forward to your posts so please hurry ;), its kinda boring without anything to watch out for!! (maybe its asking for too much)
Dont be time bound, as that will not suit the creativity in you, whenever you have new ideas to share .. just punch it down.. once a day/week/month..
All the best!
Thanks
Shazia
@shazia
ReplyDeleteThanks for various suggestions..I am working on few ideas...I think will start to post by Monday..will start from basics,that will not be too interesting for an experienced trader though
My idea will be to develop this blog in a proper "structured way"...and put and end to common questions and doubts which people have
Idea remains the same..."the made easy stuff"
Cheers