Technical Analysis for Beginners

[veluri1967]

How to manage market sentiment?

My openion is that we should take a biased view of the market. That is to say bullish, bearish or sideways. Then wait for the market to show what it all wants to show. The movement the market is moving according to your biased view, never look back just leap in. Never worry about whipsaws as long as the market in the trend what you expected. Donot be rigid in your openion, if the market changes its direction against your earlier biased decision just withdraw from the market for the timebeing.

 

[vikas2659]

vikas2659
Member Join Date: Oct 2008
Posts: 6
Thanks: 1
Thanked 3 Times in 2 Posts


Re: SMA/EMA - Simple Trading Strategy

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Quote:
Originally Posted by veluri1967
Hi..vikas,
You have not mentioned about your trade whether intraday or swing or long term investing. MA crossovers works well in long term perspective that too when the clear trend is established. I suggest you to watch out weekly charts and draw a trend line. You enter the scrip only when the price retraces to trend line which should act a support to reverse the price travel.
Exit when the trendline is breached. Club both MA crossover and this strategy and let us know the results.
veluri1967.

I m day trader & work on 15 mint chart..both in equities & commodities..Although I have found an improvised way to my problem put to the forum bt still I m in search of sum gud suggestions..especially from MR.VELURI1967(i have found your posts & threads to b d most usefel ones)

 

[veluri1967]

vikas,
I have no knowledge about commodities trading.
Even about stocks I know only little.
You have been day trading stocks and commodities for quite sometime now.
You are talking about some problem which is not clear to me.
Let us know your problem in clear words, so that this forum may be in a position to give you some suggestions. First discuss how is your trade is going on. Whether making profits or not. Your capital base. Your present strategy.
Using any technical indicators or not. etc...etc.:thumb:

For a day trader, there are some commandments drawn out there at
http://www.traderji.com/technical-analysis/33358-commandments-day-trading.html

How can I tell if I'm suited to a career in trading?

You have to be very talented and motivated to be successful in trading. You also need to realize the goal is tough. No one is printing money, and all the technical analysis in the world is just an introduction to real-life trading. You'll lose a lot of money before you learn to trade profitably. That's just the way it is. Most of the people underestimate their reaction to losses until they're faced with big positions moving against them. This emotional hurdle is often the most difficult obstacle to a successful career in trading.

 

[msri]

Very useful information for novice like me

 

[veluri1967]

Very useful information for novice like me

Thank you.

 

[veluri1967]

Friends,
Let us have some practice intraday.

We are going to use RSI set at 14 and Bollinger Bands set at 20,2.
Timeframe 1 min.

Bollinger Bands....when price touches lower Bollinger Bands...think of going long until it touches higher band. Reverse for shorting.

RSI - Here we are just going to use it as divergence signal with price. When RSI gives signal, check the position of Bollinger Bands and take positions.

I have numbered signals as 1,2,3,4,5. Out of these 2nd one is to explain the difference between divergence signal and normal one. Remaining four are good divergence signals.

In intraday trades, we should be able to identify these divergences with precision.


I tried to make the chart selfexplanatory. However, if any doubt exists please feel free to querry.

 

[rajivgandhi67]

Thanks sir,

 

[veluri1967]

Three questions are to be answered before initiating any trade:

* What direction is the stock headed in? (This helps us either to short or long)

* How far is it likely to run? (This gives us our profit target.)

* And how long will it take to get there? (This keeps us in trade for a predefined period).

After initiating a trade, if any answers to the above turns negative, immediately close your position.

Again, start with the above three questions.

Best of luck.

 

[veluri1967]

Is it what people who provide tips do?

Shafali,
Can you please elaborate this question? I doubt I am not getting you in correct perspective. If the question is clear to me I can answer you in a better possible way.

Thanks
veluri1967.

 

[bunny]

Shafali,
Can you please elaborate this question? I doubt I am not getting you in correct perspective. If the question is clear to me I can answer you in a better possible way.

Thanks
veluri1967.

Perhaps, the question is 'Do people who provide tips do such analysis'?

If this is the question, then, may be they do it, may be not, and may even 'outsource'(meaning: take tips from another provider and pass them to their clients) it.