"But your technical analysis/ SYSTEM of SWING TRADING is MIND BLOWING."

I receieved this comment from "amruta" in the previous post.
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Hi Anuj,
I exited early in NIFTY,
But your technical analysis/ SYSTEM of SWING TRADING is MIND BLOWING.
Banknifty from SAR 11640 --- cmp ..10901 /++ 700 points down!!!!!
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My reply and opinion

Thanks...but
I feel it's not the system but the trends in the markets that gives these kind of "mind blowing" returns.Check out these two post from the past.

http://financeandtradingmadeeasy.blogspot.com/2010/09/total-profits-till-date-nifty-340bank.html

http://financeandtradingmadeeasy.blogspot.com/2010/03/online-stock-trading-made-easy-lazy.html

Similar or better returns were made previously.Check the period mentioned in these previous posts with Nifty EOD chart and see how the markets moved during thosetimes.

In September when market went up like crazy.There was a very stong bias among the traders that Nifty will go down or sideways(there was a multi month channel resistance which every one was watching)
Two very important events happened one at Citibank and other at Aditya Birla Money (Check out this link)
These were related to options selling and a complete disragrd to trend following and risk management

We get these kind of trends a few times in an year.If we trade them successfully our returns will be better than any buy and hold also known as buy and hope...:) strategy (thanks to leverage and trading ie taking both long and short trades)
If we miss out the trades due to strong directional bias which is opposite to the trend(like in the September example) or early booking out of profits, it will make a significant impact(under performance) on our yearly returns

The early bird catcheth the worm ie success comes to those who prepare well and put in effort.

In short it's the trends in the markets that make money for us not the system.Any short term trend trading system would have given great returns during these three specific trends from the past 12 months.

Cheers

4 comments:

  1. Good eve.Anuj.
    I am new to this blog ,but yes if market is in trend then system gives better result.

    ReplyDelete
  2. ***The early bird catcheth the worm ie success comes to those who prepare well and put in effort.***

    Anuj,

    Well said.

    Thank you.

    ReplyDelete
  3. Hi,ANUJ
    I am new to this blog, but yes if market is in trend then system gives better result.

    ReplyDelete