INTRADAY

Just Nifty: Nifty Tech.Analysis File explained-1.

Just Nifty: Nifty Tech.Analysis File explained-1.

http://www.google.com/finance?q=NSE:.NSEI

Just Nifty: NIfty closes below weekly Channel.

Just Nifty: NIfty closes below weekly Channel.

10 ways to Master the Trade

How do you know you’re making progress on the road to successful trading? There’s one obvious answer: Check your financial results. There is little doubt you’re doing well if you’re booking consistent profits.
But raw capital production may not be the best way to judge your growth as a trader. The road to success has many detours where profitability isn’t the best measure of results. For example, we all go through phases in which introspection and skill development are more urgent than short-term profits. So let’s look at 10 ways to know you’re making solid progress on the road to market mastery:
1. Money management becomes your lifeline, and all your trading strategies start to revolve around its core. Risk control becomes a key aspect of every position you take. You accept that controlling losses has a far-greater impact on your bottom line than chasing gains.
2. You develop your own trading plans and strategies rather than relying on books, gurus or other people’s opinions. You notice how you’re finding more opportunities than you have time to trade while looking through your charts. You look forward to the trading day with a growing sense of confidence and empowerment.
3. You feel more like a student than a master. You learn new things every day and can’t wait to apply them to real-life trading scenarios. You listen closely to everything you hear, trying to pick up hints and concepts that will improve your performance. You expand your studies into everything market-related, including economics, fundamentals and balance sheets.
4. You stop visiting stock boards and chatrooms, because they don’t add anything to your trading goals. You realize that everyone in those places has ulterior motives. You develop a healthy skepticism about companies, market-makers and even other traders. You realize that no one is really interested in your success as a trader, except for you.
5. You become more private in your discussions about the market with family and friends. You learn to keep your opinions to yourself, because they’re just idle discussion. You never talk about open positions or ask others what to do with them. You recognize that opinions count only when they’re backed up by cold, hard cash.
6. Trading starts to feel like any other successful profession. Your average profits get bigger while your losses get smaller. You experience fewer drawdowns that drain your capital and undermine your confidence. Your trading day starts to get a little boring, but you prefer the lack of emotional highs and lows.
7. You grade your performance each day and recognize when your actions did not meet your rising standards. You notice how certain times of the day are particularly dangerous or rewarding for your trading style. You keep a written diary that describes your strengths and weaknesses in stark detail.
8. You never cut corners in your market analysis, no matter how tired or exhilarated you feel at the end of the day. You set aside time to review your daily results, download fresh data and uncover themes for the next session. You don’t trade at all when nonmarket matters keep you from finishing your nightly preparation.
9. You watch all types of markets, even those you’re not trading at the time. You realize the next opportunity could come from anywhere, and you want to be prepared. You also understand that your trading interests will change over time, so you want to be ready for the next big thing.
10. You keep detailed trading records and update them on a nightly basis. You look at both profits and losses with complete detachment and a keen eye for self-improvement. You don’t “conveniently” fail to include those trades you’d rather forget about

PosPerfect Practiset title here...

Practice does not make perfect in trading or anything else; perfect practice makes perfect. Training must gradually build competencies and correct deficiencies in a manner that sustains a positive mindset and optimal concentration and motivation

10 Trading Thoughts

29 January 2010
1. You only have three choices when you are in a bad position, and it is not hard to figure out what to do:
(1) Get out
(2) Double up, or
(3) Spread it off.
I have always found getting out to be the best of all three choices.
No opinion on the market or you are doubtful about market direction? Then stay out. Remember, when in doubt, stay out.
Don’t ever let anyone know how big your wallet is, and don’t ever let anyone know how small it is either.
If you snooze, you lose. Know your markets, when they trade, and what reports will affect the market price.
The markets will always let you in on the losers; the market’s job is to keep you out of winners. Dump the dogs and ride the winning tide.
Stops are not for sissies.
Plan your trade, then trade your plan. He who fails to plan, plans to fail.
Buy the rumor and sell the fact. Watch for volatility in these situations; it usually marks tops or bottoms in the markets.
Buy low, sell high. Or buy it when nobody wants it, and sell it when everybody has to have it!
It’s okay to lose your shirt, just don’t lose your pants; that is where your wallet is.
One last thought to leave with you. It applies not only to every-day life but to trading the markets as well:
Success is measured not so much by the wealth or position you have gained, but rather by the obstacles you have overcome to succeed!

Trading Psychology

29 January 2010
Are you trading because you want to trade? Consider trading a business not a game.
Are you not trading? This is the opposite of trading too often. You may be so scared
of taking a loss that you avoid trading altogether.
If you get stopped out of several stocks, walk away. Paper trade until the profits return.
Follow the system. Would you be making more money if you followed your trading
signals? Understand why you’re ignoring the signals you receive.
Don’t overtrade. Sometimes the best place for cash is in the bank. You don’t HAVE
to trade.
Learn from mistakes. Review your trades periodically. It’ll uncover bad habits.
Focus on the positive. The loss your suffered today pales to the killing you made last
week.
Ignore profits. If you find yourself getting nervous about a winning trade or making
too much money, then concentrate not on the bottom line but on improving your
trading skills. Get used to making too much money.
Obey your trading signals. Otherwise, what are you trading for? Plan your trade and
trade your plan.
Don’t trade when you’re upset. This also goes for being too excited.
Abandoning a winning system. Don’t become bored with your winning system and
search for new, more exciting ways to lose money

PosPeople that are more likely to find success in trading, or any endeavor, tend to be those who take the initiative. Without that belief in your own ability to take action to insure progress, i.e.: initiative, you will never transition from having a vision — hope –to implementation of a plan to achieve that vision – goal. Your belief and confidence need to get stronger with each step toward the goal. This is what will feed your thought process and attitude.t title here...

People that are more likely to find success in trading, or any endeavor, tend to be those who take the initiative. Without that belief in your own ability to take action to insure progress, i.e.: initiative, you will never transition from having a vision — hope –to implementation of a plan to achieve that vision – goal. Your belief and confidence need to get stronger with each step toward the goal. This is what will feed your thought process and attitude.
The most difficult part of the journey to successful trading is learning the basics thoroughly. You will know you are on your way when each step starts to get easier.
The real secret is understanding how simple trading is. The hard part is getting out of your own way to get to that point.

Four things traders can try to get Success

1.Trust your gut If something looks like crap and smells like crap, then chances are, it is crap. Listen more to your gut to tell you when to cut a loss and move on.

2. Keep it simple If something is working, keep doing it. There aren’t any bonus points for being clever. The money is the same color no matter how you make it. So do the simple things and chip away at the profits. I once had a client who felt he had to do complicated trades in order to make money. Bottom line was, he was wrong. Keeping it simple is the proven strategy for success.

3. Probabilities don’t lie If you’re not carefully tracking the metrics on your trades, you might as well be gambling at a casino. Make it a point to track the data on your trades and study them. That way, you can do more of what’s working and less of what’s not.

4. Avoid speculating and predicting I can’t begin to tell you how many times I see traders blow up their accounts because they try to speculate or predict what’s going to happen in the future. The simple fact is, no one knows. Even the best traders have a winning percentage of around 50 percent. That means successful trading is not about being right, it’s about what you do when you’re wrong. The bottom line is, trade what you see, not what you think

Fatal Flaw No. 1 – Lack of Methodology

Fatal Flaw No. 1 – Lack of Methodology
Fatal Flaw No. 2 – Lack of Discipline
Fatal Flaw No. 3 – Unrealistic Expectations
Fatal Flaw No. 4 – Lack of Patience
Fatal Flaw No. 5 – Lack of Money Management

How can you avoid the four poisons of the trading mind: fear, confusion, hesitation and surprise?

Replace fear with faith—faith in your trading model and trading plan
Replace confusion with the attitude of being comfortable with uncertainty
Replace hesitation with decisive action
Replace surprise with taking nothing for granted and preparing yourself for anything.

10 points formula for marketsPost title here...

anything that trades for a price has three stages, making higher highs and higher lows, fluctuating between an established high and low and sometimes touching, and sometimes violating a bit the previous highs and lows, like being in a rectangle price formation, and lastly higher highs and lower lows OR lower highs and higher lows, like triangles in the price formations. Any given trading strategy would only suit either of three conditions!!! So you need three strategies, one for each market situation. Basically to use as a starting point, Moving Average Lines are good for the first market state, which is also called trending market, Camarilla is good for the second state, which is also referred to as rangebound, and RSI indicator is good for markets that exhibit the triangular price formation. Triangular price formations are generally a nightmare to most of the traders.

one can make 10 points everyday. Because all three situations discussed above are present intraday!

My Checklist :During and After the Trade

1. What’s your game plan if it goes against you and threatens your survival?
2. Will you be able to get out? Did you take that into account in your workout?
3. More typically, what will you do if it goes way against you and then meanders back to give you a breakeven? Or if it immediately goes for you or aginst you?
4. Would you be willing to take a ½% profit if you get it in the first 10 minutes?
5. Did you test whether taking small opportunistic profits turns a winning system into a bad one?
6. How will unexpected cardinal events affect you like the “regrettably,” or the pre-annnouncement of something you expected for the next open? And what happens if you’re trading an individual stock and the market goes up or down a few percent during the day, or what’s the impact of a related move in oil or interest rates?
7. Are you sure that you have to monitor the trade during the day? If you’re using stops, then you probably don’t have to but then your position size would have to be reduced so much that your chances of a reasonable profit taking account of vig are close to zero. If you’re using 10% of your capital on a trade, they you’ll have to monitor it for survival. But, but, but. Are you sure you won’t be called away by phone calls, or the others?
8. Are you at equilibrium in your personal life? You’re not as talented as Tiger Woods, and you probably won’t be able to handle distressed calls for money or leaks on the home front. Are you sure that if you’re losing you won’t get hit on the head with a 7-iron, or berated until you have to give up at the worst possible time?
9. After the trade did you learn anything from the trade?
10. Are you organized sufficiently to have a record of all your trades for your accounting and learning?
11. Should you modify your existing systems based on it?
12. How does recency and frequency and value affect your future?
13. Did you fit your after activities to your mojo?
14. If you made a good profit, did you take some capital out of the fray for a rainy day?
15. Have you learned to say “fair” whenevever anyone asks you how you’re doing and are you sure that you don’t spend a fortune after a good trade, and dissipate your profits with non-economic activities?
16. Is there a better use for your time than monitoring the ticks or the market every minute of the day if you do, and if you don’t, do those who do so and have much faster and better equipment than you have an insurmountable advantage against you?

The Four Stages of Trading

The Four Stages of Trading
Like so many other things in life -- trading involves progressing through various necessary stages of learning. This happens regardless of whether we are conscious of the process or not. Additionally, the amount of time we spend in these stages will vary depending on a number of factors, including our age, education, emotional makeup, finances, and perhaps most importantly, our willingness to learn.

The information presented here is not new, but it bears repeating because fully grasping these concepts will not only help you identify where you are in the learning process but aid you in planning for future growth.

Stage One -- Unconscious Incompetent

The first stage a trader experiences is that of the unconscious incompetent. This is the stage where traders don't even know that they don’t know what they’re doing -- because it requires no particular skill to put on a winning trade (you have a 50 / 50 chance of being right). It is statistically quite normal for a new trader to put together a string of winning trades.

This generally results in the trader feeling elation and euphoria and is quite dangerous because the inexperienced trader lacks the necessary skills to put together consistent successful results. Inevitably, the new trader is shoved along to the next stage in much the same way an infant suddenly becomes a toddler.

Stage Two – Conscious Incompetent

The second stage is the most frightening stage of trading. New traders at this stage are now painfully aware that they do not know what they are doing. It is akin to the toddler who has taken first steps, only to fall and hit his or her head on the floor or coffee table. Fortunately, few, if any, of us consciously remember those experiences.

Such is not the case when it comes to trading. We remember the painful losses that damaged or perhaps devastated our trading accounts. These are lessons that we will not forget any time soon! We must learn how to put these painful experiences into perspective and learn from them or we quit trading -- either to stop the pain or because our trading account is wiped out.

For most traders who survive into stage two, education is front and center in their life. Many will conclude that the key lies in better trade analysis. This is only partially correct. A frenzied study of various trading methodologies usually ensues.

Those who possess a strong desire to learn will eventually find a trading style and “edge” suited to them. If they are fortunate enough not to have squandered all of their trading account during stage one and two, and if they have learned something about trade management, probability theory, risk control and trading psychology, they will move on to stage three.

Stage Three -- Conscious Competent

Stage three traders possess most of the necessary tools to be successful. They only lack experience. This too is a stressful stage for, although traders at this stage are capable of producing consistent results, they must think about every step along the way. This eats up a great deal of energy and makes it difficult, perhaps impossible, to relax and simply enjoy what they are doing.

Building on our previous analogy, this would be similar to a child crossing a busy street or navigating a narrow trail. While the child possesses the necessary skills -- he or she must be focused and constantly evaluating every step of the process. On the plus side, traders at this stage are now producing consistent results that can easily be seen in their equity curve. With each passing day, the trader becomes more capable, experienced and relaxed.

Stage Four – Unconscious Competent

Stage four traders have arrived in every sense of the word. For them, trading has become an automatic reflex and requires no more mental effort than the average person expends on walking. There is little or no struggle with trading decisions but, rather, a conditioned response to trading opportunities. There is no hesitation about entering a position or booking a loss. It’s not personal -- it’s just business.

Additionally, most traders in this zone continue to educate themselves. They have learned that small refinements in technique pay large dividends to their trading accounts over the long haul.

This does not mean that the “unconscious competent” trader will not have challenges. Health problems, family issues, financial difficulties will arise eventually for everyone. Advanced traders have learned to constantly monitor his or her susceptibility to trading errors related to these types of outside forces.
It bears mentioning that no one has managed to become a successful trader without going through all of these stages. All of them are necessary and fundamentally important for continued growth. Knowing where you are in this process helps you know what to expect and what you need to do to progress to the next stage in your trading

markets

n my market preparation, I think about seven day structure possibilities:

1) Range Day - The market will oscillate around an average price value with relatively low volatility through the day, likely ending the day not far from its opening price level and/or its volume-weighted average price (VWAP);

2) Upside Trend Day - The market will open near its low price for the day session and build its way higher through the day, closing near its high price. The market will tend to stay above its VWAP for most of the day;

3) Downside Trend Day - The market will open near its high price for the day session and work its way lower through the day, closing near its low price. The market will tend to stay below its VWAP for most of the day;

4) Upside Breakout Day - The market will open within a range, but will build volume and attract participation at the upper end of that range, leading to a price break above the range, and further acceptance of price above the range with solid volume. An upside breakout represents a transition from range to upside trending conditions.

5) Downside Breakout Day - The market will open within a range, but will build volume and attract participation at the lower end of that range, leading to a price break below the range, and further acceptance of price below the range with solid volume. A downside breakout represents a transition from range to downside trending conditions.

6) False Upside Breakout Day - The market opens within a range and moves above the range, usually with limited participation and volume that wanes with higher prices, only to fall back into the range and return toward VWAP. A false upside breakout represents an extension of range trading conditions.

7) False Downside Breakout Day - The market opens within a range and moves below the range, usually with limited participation and volume that wanes with lower prices, only to bounce back into the range and return toward VWAP. A false downside breakout represents an extension of range trading conditions.

Why are these important structures?

In range markets and on false breakouts, you'll be trading for moves *toward* VWAP and often the prior day's pivot level. In trending and breakout markets, you'll be trading for moves *away* from VWAP and toward the R1/R2/R3 or S1/S2/S3 price levels. In other words, you'll be fading price strength and weakness in range and false breakout markets and trading with strength and weakness during trending and breakout conditions.

Without a proper understanding of market context and key price levels, it is very difficult to get a handle on day structure early in the session. You'll find yourself looking at very short-term "setups", only to miss the more basic question of whether price will move toward or away from its most recent estimates of value (VWAP, value areas). That's not to say that trading very short-term setups cannot be successful. Rather, you want to situate those setups within a broader framework and consideration of day structure, so that larger time frame market direction works for you, rather than against you.

Key to a trader's trading is recognizing these various types of days. The links below should help get you started; further posts that build on these ideas will follow.

More:

Three Basic Trade Setups

Historical Observations on Day Structure

VWAP and Day Strucutre

Links to Posts That Illustrate Different Structures
.