journey of a trader

[oilman5]

"Take control! Make money quickly and safely
by doing what others don't.

Ever tried using the 'buy and hold' strategy? You have!

Are you a millionaire yet? Perhaps not!

Why Buy and Hold Doesn't Work.

At this point we need to make a clear distinction.

In this course we are talking about stock market trading
not stock market investing. The fundamental difference is
the time frame and the degree of active involvement.

The investor's approach is generally long term and they
are prepared to hold onto stock despite short-term
reversals.
A trader on the other hand is someone who buys and sells
stocks and derivatives on a regular basis with the aim of
profiting from short-term price movements.

Their perspective is short to medium term and they are
concerned about the opportunity cost involved in having
their funds tied up in stocks that aren't performing.

They also use different types of strategies so have greater
flexibility. Both approaches can be successful.

Our point of view is that trading provides greater
opportunity for profit and ironically greater risk control.

One aspect of a typical investor's approach is the strategy
known as buy and hold.

Essentially this involves holding onto stocks through
thick and thin on the basis that over the long haul they
are expected to increase in value.

This approach has two fundamental problems.

The first is that stocks move both up and down.

If you simply buy stocks you can only profit if they
increase in value.

Successful traders have strategies to trade both sides
of the market. So whether prices rise or fall, they can
make a profit.

More fundamentally, if you simply hold onto stocks,
there is no guarantee they will increase in value.

No matter how long you hold onto them. Even if you
choose so called good stocks this is no promise of
success. Indeed, this approach can be very dangerous,
even devastating.
Lots of investors lost an awful lot of money on these
stocks and others like them. You can see that simply
holding onto stocks can be very risky.

But we will show you how, if you know what you are
doing, trading can be a relatively low risk approach.

So how did buy and hold become such an unquestioned
piece of received wisdom? Like just about any strategy,
it worked when the market was going up.

Stocks rose for such a long time that the buy and hold
concept seemed flawless. But Stock prices can and do drop suddenly.

Buy and hold is really just buy and hope.

So stock market trading is our preferred strategy and
the one we will explain in this course.

But there are two key issues you need to appreciate
about this approach.

The first one is time.

Trading is more active than investing and so requires a
greater time commitment.

Depending on your style of trading this can vary from
a few hours a week to several hours a day. And some
strategies require you to be involved in the market
when it is open, whilst other methods can be managed
out of hours.

Our course covers a range of trading systems that can
suit your time frame.

The other issue is your mental attitude.

Trading requires a different mindset to investing.

It is not a set and forget approach.

You need to actively manage your trades and be
prepared to act quickly when the situation changes.
there
are only four analysis techniques for selecting stock
to trade.

Market Cycles
News
Fundamental Analysis
Technical Analysis

And you may also remember that of these four techniques
we prefer technical analysis.

As distinct from fundamental analysis, technical analysis
provides precise mechanisms for trade entry and exit.

And the critical decision we need to make on daily basis
is which stocks do we choose to trade and when is the
right time to get in.

So we want to suggest to you that the best strategy for
determining the timing of your trades is technical analysis.

What do we use in our technical analysis that works so
well for us?

Our trading system can be defined as simply:
Three Simple Strategies
Three Simple Setups
Three Simple Triggers.

These things help you to do the following activities which
will be the core of your system.

1. select the stock
2. time the entry
3. manage the trade
4. time the exit.
Selecting the stock involves the following criteria:

1. mid-cap or blue chip stocks only
2. optionable stocks only
3. price between $10 and $60 ($10 to $35 in Australia)
4. daily volume above one million
5. medium to high volatility (preferably high)

This last point regarding volatility is crucial.

We love volatility...for being on the right side of
moving markets is what makes us money.

A stagnant market means there's no opportunity for us
to make money.
[this is an australian guide]NOT RIGHT IN INDIAN CONTEXT..
we will outline in clear simple
terms exactly what strategies you need to use to
get started making profits for yourself.

We then show you exactly what Setups you need to look
for to decide what to trade.

We then give you the exact triggers you need to
use to time your entry and exit in order to protect your
capital and make profits.

That is what people have found so useful with our system.

They can protect that crucial capital that we all work
so hard to accumulate and yet still be in a winning
position
to capitalise on winning trades.

Here just a few of our rules you must follow to be
successful.
Only trade with money you can afford to lose.
Never trade with borrowed money.
Only trade when you are in the right physical and mental
state.
Only place a trade if you are at least 80% confident.
Do not trade without a stop loss.
Place your stop loss at the same time you place your trade.
Don't enter the market until you get a clear signal.
You need at least three setups and three triggers before
entering a trade

 

[oilman5]

some more material
.............................all the knowledge in the
world will not amount to anything without action.
And unless and until you take action you will also
never know whether you can do something
The first step is critical.

You may know everything there is to know about parachuting
but unless you take that first step, you will never
experience what it means to be a parachutist.

In the same way you could read every book and attend
every course on trading and paper trade for years, but
until you step into the market you will never become a
trader.
And until you take that step you will never make a dime.
Knowledge alone is not enough. Massive action is necessary
for success.
One of the most significant dangers for novice traders
is procrastination.

The stock market is an endless source of information.
And there are huge numbers of people offering conflicting
advice.

It is easy to fall into the trap of too much thinking and
too much analysis that just leads to confusion. Or of
wanting everything to be absolutely perfect before placing
a trade
The only way to learn how to trade is to do it.
The reality in the market, as in most areas of life,
is that you can never know all there is to know. You
just have to take educated action. And then see what
results you get. Fine tune and try again.
If you wait until all conditions are perfect before
you trade, you'll never trade
Do not wait; the time will never be "just right".

If you have read all the material we have sent you,
you have analysed the trade according to our easy to
follow rules and it fits the criteria, then you have
already done all the hard stuff.

It's time to place the order.But What if I Lose on My First Trade? "

If this happens to you, and let's
face it, it is quite possible, what do you do?

Well, we would never tell you what to do with your money.
But we can however share with you what we do when we lose.

When we have a losing trade, we go back to the Genie Rules
and almost always there is something there we missed or
did wrong.

Other times, it is just the market and there really is
nothing we can do.

Losing is part of trading. And you must learn to accept it
as just an aspect of the game. Because trading is just
probabilities.

Like us, you will lose. No question about it.

But what matters is that when you win you win more than
when you lose.

The proportion of wins is not what is important. It is the
size of your wins compared to your losses.

However, if we lose three trades in a row we stop and take
a break from trading for a few days.

Some common mistakes that you might be making if you have a
losing trade are listed below.

Avoid the 12 Most Common Mistakes!

You can avoid the most common option trading mistakes if
you follow these
guidelines:
1. don't limit your strategy to calls - buy puts also and
overcome the bullish
bias
2. correctly determine the trend - up for calls, down for
puts; sideways for
covered calls
3. buy enough time - at least 4 to 6 weeks
4. exit with 2 weeks to expiration
6. don't underestimate the effect of volatility
7. don't over commit your funds - you can lose 100%, so limit
your exposure
8. don't put all your eggs in one basket - diversify over
several stocks and
use both calls and puts
9. don't trade without first determining a target profit
and exit point
10. never try and strike it rich from one trade
11. don't use market orders and don't trade at opening or
closing time
12. consider the next expiration month if you can't find a
suitable trade in the
current month.

It is wise to remember the following issues when trading
options.

1. they have their own risk/reward
2. time depleting asset
3. higher leverage
4. less liquidity
5. can have wide bid/ask spread
6. slippage in fast markets
Options Benefits
1. they are cheap to buy
2. flexibility - can trade both up and down trends
3. versatile strategies
4. limited risk - can't lose more than you have put in
5. leverage
6. can use them to hedge
7. limits number of stocks to review
8. can generate good cashflow
9. puts have less risk than short selling.

With covered calls there are a couple of particular
problems to avoid:
o don't buy small cap stocks - they can suddenly drop in
value
o don't become overextended on margin
o if the stock price drops beyond your stop loss, exit your position
and sell the stock.

We follow these rules and it helps cut our losing trades


Placing the order is the easy bit, you've already done
the hard work in selecting the options and analysing
the trade, now place yourself in a position to reap the
reward. Place the order.

If you only paper trade, you won't experience the emotional
ups and downs that you will go through once you have
REAL money at stake.

It is only then, that YOU begin to see how you trade.
It is only then, that YOU begin to make money.

We are all different and you need to see how you react
when you're winning and losing to see what sort of trader
you are and where you can improve on how much money you
take from the market

 

[oilman5]

next here again i am opening another study material
.........................................................................These are insights gained as a trader and we are happy to share them with you. Some of the topics that will be covered are:

Picking your indicators

Trading psychology

Achieving maximum leverage

How we learn new trading skills

Recognizing a trading "Bubble"

Using probabilities to maximize your return

How to use multiple time frames

Pre and Post Trading Checklists

Pulling the trigger on your trades

Using Support and Resistance

How to evaluate a trading system
Psychological Keys to Success
Mass Psychology moves the market: Life is 90% mental and 10% physical.

The round of golf I just completed was a great reminder. Financial markets are the same, driven totally by human emotion. To be a successful trader, it is necessary to have a fundamental understanding that mass psychology of fear and greed is the biggest single factor you must understand if you expect to trade profitably on a consistent basis.

This emotional and psychological ingredient has absolutely nothing to do with the state of the economy, but it does have an overwhelming effect on the movement of the market.

The first rule is that rumors are the prime movers of the market. It's important to realize how quickly speculation of upcoming events can change the character of the current trend. Just the mention of inflation causes investors to rush for the exits in order to dump their holdings.

This fear causes a general market decline long before the economy changes. The market anticipates the movement of the economy and shows us in advance what we can expect with regard to corporate health, unemployment, interest rates and other financial trends. A crash in the market is usually caused by psychological, not economic factors.

One of the biggest problems most traders have is expecting too much from themselves initially. Setting outrageous goals is more harmfull than anything you can do. Trying to make $1 million on a $10,000 account in a year does nothing more that show you are in the clutches of greed and denial.

We recommend you start out trading 1 contract until you have confidence in your rules based system. You should develop the self discipline to trade until you reach a net two points for the day then stop. This approach will develop confidence in your system, give you some profit every day and teach you how to recognize your signals. Later you can trade larger, but initially you must learn the discipline and patience to only take the high probability signals outlined in our course.

The problems you face when not being realistic include:

Not believing you can lose

Over trading

Taking too much risk for your account size

Expecting every trade to be a winner

Things that can help you become realistic include:

Look for small consistent returns. Our goal is to hit singles and doubles not home runs.

Know you market and the average point per each move.

Practice with a Simbroker against the real market for three weeks and keep a detailed log and chart of each trade
Treat your trading like a business and include all the income and expenses so you can evaluate the true potential of your approach
Want to be a Millionaire Quickly? Use Maximum Leverage
Do you want to be a millionaire but don"t know how to get there? One thing all successful and profitable entrepreneurs, real estate investors and traders use is Leverage! Maximum Leverage is the key to all great fortunes. With leverage, you can move toward your goals many times faster than without leverage.

Futures trading allows you take advantage of positive leverage, but it's important to protect yourself against negative leverage at the same time.

How many of these leverage principles are you using?

Other people's money

Other people's experience

Other people's ideas

Other people's time

Other people's work

There are five methods to gain leverage


Find a Mentor who can provide Perspective, Patience and Proficiency

Maximize the use of tools and new skills provided by experts

Systematize your approach to everything by using checklists

Develop a Mastermind Team of like minded people who can contribute new ideas and optimize your approach.

Build a Support Network that will help maintain your positive attitude and support your goals.

If you are not using the five leverage principals listed above, the first thing to do is take a full personal inventory. After you have set your goals in the area that you intend to pursue, begin by eliminating everything that does not materially or psychologically contribute to the achievement of that goal. This will give you additional time and "clean out your closet" so you have eliminated most major distractions.

Next, add all five methods for gaining leverage. Finding a mentor will be the most challenging, and the most rewarding. You may find one by attending seminars or taking courses from experts in your field. Remember that this has to be a two way street so that the mentor receives equal value in return for helping you. Your Mastermind group may provide the support that your require
Build a Support Network that will help maintain your positive attitude and support your goals.

If you are not using the five leverage principals listed above, the first thing to do is take a full personal inventory. After you have set your goals in the area that you intend to pursue, begin by eliminating everything that does not materially or psychologically contribute to the achievement of that goal. This will give you additional time and "clean out your closet" so you have eliminated most major distractions.

Next, add all five methods for gaining leverage. Finding a mentor will be the most challenging, and the most rewarding. You may find one by attending seminars or taking courses from experts in your field. Remember that this has to be a two way street so that the mentor receives equal value in return for helping you. Your Mastermind group may provide the support that your require.

Finally, setting up a systematic approach to increasing your knowledge base, daily schedule and practice sessions will reap benefits far beyond the time you invest.

Most importantly, you must start immediately.

DO IT NOW! DO IT REGULARLY! AND DO IT WITH INTENSITY!

How to Use Maximum
How We Learn New Skills
The problem for most people who have traded for any period of time is that the losses they took learning to trade are a huge mental handicap to their future success. If you could erase memories of these losses from your subconscious and act on what you have learned since beginning a study program, trading would be much easier.

One of the most important concepts we have ever come across is the concept of "How We Learn New Skills".

Learning can be described as a four step process that will be covered here in a systematic approach. You can think of the process as a ladder and may want to invert the following explanations so you can visualize the process (Stage 1 is the first step of the ladder).

Unconscious Incompetence: You Don't Know What You Don't Know! Your first attempts at trading fail. It looked so easy!

Conscious Incompetence: You Know That You Don't Know! The search for the Holy Grail of Trading begins. That mechanical system that looked too good to be true failed. So did the newsletter and the chat room. Then you begin to learn for yourself.

Conscious Competence: You Know That You Know! You finally learn an approach well enough to make some money.

Unconscious Competence: You Don't Know That You Know! You are "trading in the zone" and do it automatically and effortlessly.

Clearly your goal is to create the shortcuts you need to get to stages three and four as quickly as possible. Here are several tips that helped us solidify our "vision" in how to execute our trading approach.

Your mind can be programmed to "hard wire" action patterns through repetition, if that repetition is consistent. For example, if you keep your charting program set constantly to the same colors, same indicators and same setup, you will have much more consistent success than if you change things constantly (the programming has to start over)

It may take up to 50,000 repetitions to totally automate a response. Think this is a lot? Don't be discouraged. Think of professional athletes and their practice routine. You can also look at other routines in your own life to see how you made the transition to step four in any of your competencies.

Using a SimBroker and monitoring your progress on win-loss ratios, profitability and consistency is one way to solidify recognition and action using your signals.

Practicing good money management in this practice session will help you automate your own system. When you do finally trade with your own funds, you will have mastered and automated two thirds of the equation. Your final goal will be to master your emotions
How to Recognize a Bubble
"Bubbles are invisible to those inside the bubbles" and we have been through one of the biggest economic bubble in history, but none of us saw it because we were inside that bubble. After the "Tech Wreck" of 2000 and other chaotic events, it's important to be aware of "Bubbles" and the "Stage of the Bubble" in order to get on the right side of the equation and to profit.

Previous Bubbles have included:

The Japanese "Take Over the World" Bubble of the late 1980's

The Asian Currency Bubble of the mid 1990's

The Internet/High Tech Bubble of the late 1990's

The Residential Real Estate Bubble of 2000-2004

The coming Inflationary Bubble caused by the U.S. Government's attempt to mitigate the effects of the crash of these Bubbles and 9/11.
How Bubbles Grow: 12 Easy Steps

A believable concept offers a revolutionary and unlimited path to growth.

Surplus of funds and lack of opportunities lead to buying or investing in anything available.

An idea is complex and cannot be totally explained or related to an investor.

The crowd imitates the leader. All Aboard! Even the gardener has a tip!?

Prices fluctuate from traditional level to overvalued level, THEN to all new ground and all time highs.

New levels are sanctioned by experts. "We are in a new Paradigm!"

Fear of missing the boat takes over. Cloning of the idea occurs as many new overvalued competitors enter the market.

Lending practices are eased. Money flows like water to anything or anyone with a new idea.

Cult figures emerge for the new paradigm. The media promotes lifestyles, not substance.

The Bubble lasts longer than expected. Critics are dismissed. The last suckers are sucked in.

Fraud emerges as partly responsible for the bubble as the first cracks show in the bubble
Finally, everyone has a reason why it cannot continue. But nobody dumps, and all hold onto their profits. No new buyers. Market stalls.

How a Bubble Bursts

A continued new supply of lower priced offerings occurs from rising prices. New IPO"s get bigger and bigger

There is a rise in interest costs. The Government declares "Excessive Exuberance" and tightens credit too quickly.

Prices collapse and everyone heads for the exits at the same time. With no more buyers, prices hit free fall.

Fraud is uncovered in many diverse industries, and in monitoring and auditing agencies. This leads to more selling.

Governments intervene and give investors time to get out before the real decline.

Rules to Live By

Do not extrapolate the future from the present.

Trends continue for a long time (2-5 years) and then suddenly reverse chaotically. Witness the Tech Bubble.

Intermittent secondary corrections occur at Fibonacci Levels of 38%, 50% and 62% that result in classic Bull or Bear Traps.

Bottom picking begins several different times, trying to restart the Bubble, but to no avail. Massive losses occur to professionals trying to manipulate the markets.

Finally, everyone recognizes that "Trends go further than you expect, and last longer than expected." Everyone gives up and sells.

As the volume of the decline decreases, a slow recovery begins.

How to Use this Information

Whenever you are involved in owning, investing or trading anything, review these macro-economic lessons. They may save you TONS of money and make you a TON of money in the long run.

All stocks, commodities, technologies, currencies and real estate are subject to local, national and international Bubble Behavior. Whenever you hear the phrase "you can"t lose on this...." Remember to start running the other direction.

.Probability of Success
The probability of your success in any particular trade or series of trades is dependent on how you use your charting program and technical indicators.

Understanding what your indicators are telling you is another key point. Study the formulas and compare the differences between MACD, CCI and a Stochastic indicators of the same length. Look at them visually as well as mathematically. Visually look at the differences between a normal, exponential, smoothed and weighted indicator.

Study until you know what each indicator is telling you.

One interesting concept is to actually calculate a few bars of these indicators from actual data in order to really understand what the indicator is doing and how it reacts to gaps, low volatility and regular price swings. Be sure to run the calculation until you lose a big bar as well. This skewing factor will let you know why many people distrust indicators. They do not understand the limitations of indicators in certain volatile market conditions.

Indicators are derivatives or second tiered smoothing of price action. Inherently, all indicators are lagging in one way or another. It is important to understand how they relate to price, potential future movement of price and how they are affected by past price spikes.

We tend to trade
by watching only our indicators. Watching price only, you can become hypnotized by the noise and miss the real moves. We consider the following four points whenever we are about to make a trade.

The number of indicators moving or about to move in your direction.

The angle and rate of change of these indicators.

The position of the indicators above or below 50% or the 20/80% level for oscillators.

The likelihood of continuation based on approaching Support and Resistance, length of previous move and the time of day.

If we see three indicators moving in our direction, we just say to ourselves "1, 2, 3, Go". It is as simple as that

Pre and Post Trading Checklists
One of the most important things you can do to improve your trading is to develop specific patterns of behavior. If you have ever watched a professional golfer get ready to hit a shot or pro basketball player take a free throw, you will see they have a very defined ritual or pattern they follow each and every time.

Since your goal is to be successful on every trade, profitable every day, month and year, you will need to develop routines used by professionals to ensure maximum consistency and success.

Develop Pre Trading Checklists, a Daily Schedule and System Setup (including disaster plans) and Post Trading Day review checklists.

Also snap pictures of your charts at the time of your trades for both entries and exits. You can then review and annotate them with how and why you took the trade and the exit. This is an excellent learning tool that will significantly improve our trading.

Once we decided to get serious about trading we established these rituals and keep them religiously. We measure our success on how well we follow our system and our trading signals. You will need a programmed Excel spreadsheet for a trading logs to help you monitor your progress as well as some way to compare various trading approaches for profitability, win-loss ratios, draw-downs and stop loss comparisons.

Note: You can use our measuring tools or develop your own. We provide bonus spread sheets to assist you in developing your own expectancy ratio

Are You Having Trouble Pulling the Trigger?
If so, ask yourself: How Do You Handle Fear and Greed?

When you've conquered fear and greed, you can "pull the trigger" with confidence.

Four things about fear.
First, a definition. Fear is the unreasonable assumption that an outcome of any action will be negative. And greed is just the flip side of the same coin. It is fear of success, not failure!

You can overcome fear and greed by becoming familiar and confident with just the understanding of what is causing you this fear. Analyze all the issues and see how you feel before, during and after an event.

Fear can be overcome by understanding the basis of the fear, but better yet the lack of understanding is caused by your lack of confidence in your system. You get confused. That is easy to do because all trading programs, gurus, time frames, etc. will give you conflicting signals. Until your conscious mind and your subconscious mind agree on your approach, you will not trust the signals you see, and either hesitate, jump to soon, or freeze totally. This is caused by the uncertainty you feel.

No one can predict the future. You can only intelligently guess with some level of probability that a certain outcome will occur. Since trading the eMini is really trading the psychology of thousands of traders from around the world, it's important to understand that that psychology goes through fairly predictable patterns.

Patterns
Patterns such as Fibonacci retracements occur very often because of fear and greed. Smart people know that and fade those retracements, which is why the Pesavento Patterns we talk about work. After trading and reevaluating certain patterns, we have discovered two very high probability trades and we have developed the patience and discipline to trade them.

We compare trading signals from four different trading system approaches to show you how similar they are to one another. We prove that the key to any trading success is based more on mental control and money management than trading signals
you can literally walk by the computer, see whether to be long, short or out. Take a trade, if appropriate, and exit on the next signal with a 2.3 point average profit Finally, when you begin to get results with 70% win loss ratios on the real charts but are still not using your own money, it is time to go for it with real money on a small account. As you get more confidence, you can grow both your trade size and your accounts
dual time frame trading system

we cannot control how you use the information provided. Can we guarantee that you will have the tools necessary to succeed? YES

OILMAN5

 

[Linus]

Hi Oilman,

Excellent. I am still not finished reading your earlier posts in this thread.

Have you typed all this? My God!

Best regards,

ss

 

[beginner_av]

Good work oilman..now my 2 bits

Other times, it is just the market and there really is
nothing we can do.

If that is the case pat your back....

3. buy enough time - at least 4 to 6 weeks
4. exit with 2 weeks to expiration

doesn't work in Indian markets

11. don't use market orders and don't trade at opening or
closing time

Closing time is one of the best times to trade as u see whos taking positions home...saw today after mkt opened > 200 pts? where did it close?

consider the next expiration month if you can't find a
suitable trade in the
current month.

Never. If u cant find a suitable trade now, either ur strategy is not right or u r in the wrong instrument..or something is happening in the mkt that u cannot comprehend.

 

[beginner_av]

If we see three indicators moving in our direction, we just say to ourselves "1, 2, 3, Go". It is as simple as that

Which indicators? This is the greatest bull in all this material...

 

[oilman5]

to beginnner av.
1] price..dual ma x
2] momentum
3] money flow +

yes all yr observation r right...
however, i trade on ongc/ ..call whenever available for foward month...
reason..+impact on price rise...strong fundamental reason..
hence..its not discounted in price...works well in swing style..with
personal bias on direction...

most imp...timing of day...those who knows...best time for buy..or sell
first half and last half...style...opposite.. to gen market sentiment...as published in news paper...u can always..since u can view..how fool/ greedy can REACT....
but not applicable to ameteur...

yes now i am watching...[a reserve player]...
since idea is general...sp. context...ALWAYS SUPERIOR...
TECHNICALLY..CALLED..TACTICAL WIN OVER..STRATEGIST....
THANKS....
by the way..u r nomore beginner...a master..in journey path...to GRANDMASTER

 

[beginner_av]

thx oilman...but these are no grandmaster stuff...just newbie ramblings....now that u've mentioned the indicators, it makes some sense....well the problem is that dual MA + will show a trend direction...and if the market is in a steady trend, momentum will be approaching 0 as momentum is the first derivative of price...so what is the market doing if MAs and momentum are both rising? a breakout is the only possibility? but what if the breakout is faded? u are stuck just after entry.
So why not take advantage of trend by using ONLY dual ma OR momentum by looking at acceleration (volatility/range breakout) and not velocity i.e by taking the second derivative of price over time instea of these momentums which are first derivatives?
since u r a great chess master, try pure strategy...must read options as a strategic investment by mcmillan...

regards

 

[NAVEEVIa]

Here are the links for the above mentioned book (only 242 of 900 pages though)
http://rapidshare.com/files/11909413/options.part1.rar
http://rapidshare.com/files/11909536/options.part2.rar
http://rapidshare.com/files/11909731/options.part3.rar
http://rapidshare.com/files/11909802/options.part4.rar
http://rapidshare.com/files/11909885/options.part5.rar

if anybody have the full book in soft copy plz upload

Oilman just a query, i once worked in an oil PSU & wud trade in that only i dont know why ......
Is that the case with u also
Are there any options except Nifty which are liquid enough
Comments invited
naveen

 

[oilman5]

yes....again i am writing...does ta work?
yes...yes...yes..
i lost by not following ta...
trading has a random element..also.. trend factor...
known event..+ expected result ..is always discounted in price...
so u have to know..how to react in unknown...
ta ..visualisation..gives..fair idea...how MAJORITY MAY SHALL BEHAVE...
nothingmore, nothingless...
alterative scenario..must be in yr plan.....
if u apply ta in this context...u shall be always successful...
but...all other approach..to use...is NOT VALIDATED..
Q1]...TA AS PREDICTIVE TOOL....
no hardly 40% times correct...
ta as probabilistic model...definitely workable....
Q2] MOST IMP INDICATOR....
PRICE...
Q3] OTHER..HELPING HAND...IF ANY...
VOLUME...MOMENTUM STRENGTH
Q4] WHAT ABOUT PATTERN....
its subjective....experience helps...
q5]what about support/resistance..trendline....
THIS ARE TOOLS TO 'SEE' HOW OTHER TRADER SHALL BEHAVE...
so its purpose is to prepare trade strategy...
Q6]WHAT ABOUT MA...
better use it as a confirmation tool..., better is ma..X..
q7]divergence study....is it useful ?
without it u shall be aprilfool soon...
8]HOW TO STUDY STRENGTH?
correlate..expected...vs. ACTUAL...ANSWER lies there...
9]how can i learn better ta...
USE SOFTWARE.. TO SCAN...
SEE CHART....NEVER BE A PARROT..BY WATCHING TV...

DANGER OF TA
......................
WITH AV INTELLIGENCE..LIKE ME IT TAKES..3YR STUDY+2YR PRACTICING
expect another 2yr to mastery...
socalled callgivers...day time frame...suggest..for breakout...
elliot wave...predictive model ...most rubbish...
i use it to book profit..never for entry...
oversold zone..bullish candlepattern...NORMALLY SUCCESSFUL
but those who use sector rotation...
higher comparative strength with ..NIFTY...ALWAYS
MAKE PROFIT....

however concept of buyer strength VS. seller stength...
based on that WHO is winning...and JOIN WINNERS SIDE
NORMALLY GIVES PROFITABLE TRADE....
OILMAN5
now i shall copy / paste others view