Most day traders or positional traders, who consistently make profit at the end of the week, have one thing in common. They all are well informed about the market dynamics. Its what dictates the direction they take.
I know a someone who trades for a living (and does a fine job at that...!) who doesn't believe in technicals. He spells technical as "TECH-NIKAAL" and analyst as "ANAL-ist" . His view is that if you are rely on the JUDGMENT given by the technical analyst on TV during trading you may find that you are fearful just when you should be bold and courageous when you should be cautious.
I believe in technicals and rely on that for my entry point, exit, target and SL. But the JUDGMENT on the direction is where I falter sometimes. Even if I a good buy signal, I dont take it simply because I FEEL the market is overbought and regret later for not taking it. (In a trending market where the market has gapped up and is already up by 100 points, I start looking for shorting opportunities and jump at the first sell signal. I have learnt by experience to put tight stop loss under such circumstances, but the point here is I made a bad JUDGMENT. Technically, I should be trading in the direction of the trend and should be looking for buy signals in my setup.)
Then there are a few long term positional traders who play the big trend. I know a guy who is still holding his shorts in axis bank at 800 levels. Thats 4 or 5 months back and rolls over his position every month. He is deeply into profit. He has made more profit in one counter than I have in my whole trading cycle. Again a question of JUDGMENT.
Making a good fundamental JUDGMENT is far more reliable and profitable in the long run than a short term technical JUDGMENT. I was advised by one trader to plot the net buy figure of FII, DII etc everyday with the total volume traded that day. I found that to be very reliable indicator. Another advise I liked was to look for supply zone instead of a resistance on a chart. Now I co-relate the net buy figure and the volume traded on that given day and have a rough idea where the next supply zone will be.
I sure many track Nifty futures discount, PCR, NF OI, Implied volatility, VIX etc. Some even track US markets and Asian markets.
I am hoping to get the views of all members on this forum on how they make their JUDGMENT. That will help me and many like me, to refine the way we trade the market.
Happy trading
Linkon7
I know a someone who trades for a living (and does a fine job at that...!) who doesn't believe in technicals. He spells technical as "TECH-NIKAAL" and analyst as "ANAL-ist" . His view is that if you are rely on the JUDGMENT given by the technical analyst on TV during trading you may find that you are fearful just when you should be bold and courageous when you should be cautious.
I believe in technicals and rely on that for my entry point, exit, target and SL. But the JUDGMENT on the direction is where I falter sometimes. Even if I a good buy signal, I dont take it simply because I FEEL the market is overbought and regret later for not taking it. (In a trending market where the market has gapped up and is already up by 100 points, I start looking for shorting opportunities and jump at the first sell signal. I have learnt by experience to put tight stop loss under such circumstances, but the point here is I made a bad JUDGMENT. Technically, I should be trading in the direction of the trend and should be looking for buy signals in my setup.)
Then there are a few long term positional traders who play the big trend. I know a guy who is still holding his shorts in axis bank at 800 levels. Thats 4 or 5 months back and rolls over his position every month. He is deeply into profit. He has made more profit in one counter than I have in my whole trading cycle. Again a question of JUDGMENT.
Making a good fundamental JUDGMENT is far more reliable and profitable in the long run than a short term technical JUDGMENT. I was advised by one trader to plot the net buy figure of FII, DII etc everyday with the total volume traded that day. I found that to be very reliable indicator. Another advise I liked was to look for supply zone instead of a resistance on a chart. Now I co-relate the net buy figure and the volume traded on that given day and have a rough idea where the next supply zone will be.
I sure many track Nifty futures discount, PCR, NF OI, Implied volatility, VIX etc. Some even track US markets and Asian markets.
I am hoping to get the views of all members on this forum on how they make their JUDGMENT. That will help me and many like me, to refine the way we trade the market.
Happy trading
Linkon7