Tuesday, September 1, 2009

NF Hourly Chart...Bears Got An (w)EDGE???

I'm reading: NF Hourly Chart...Bears Got An (w)EDGE???Tweet this! Posted by Trade Less Trade Smart at 11:55:00 AM

4 comments:

  1. dpkSeptember 1, 2009 at 12:33 PM

    I was about to write skeptical about as why to sweat with Nifty technicals when Dow mood is the prerequisite and was to add one author views who said give a TA 5 charts, tear off the pages in the middle and ask him to join those five charts. But then I realized I have right to criticize TAs if I am hard working enough to learn those first. So no discussion on that. My whole view is TAs should not be learnt at the cost of not understanding fundamentals. It can be compared with the example of our house budget. You cannot ignore to understand that and keep watching what type of clothes family is wearing to understand if it is progressing. Let us not apply a difficult way to judge a simple thing. Same way understanding company balance sheet, cash and income flows are important which may be supplemented by the basic tech.indicator viz MACD, MA and William factors. It reminds me of Warren Buffet who once said, perversity of human nature is that it makes simple things difficult.Cheers we got to do first thing first--- buddy.And if we don't know what our first things are,we simply cannot do those first.

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  2. IlangoSeptember 1, 2009 at 1:45 PM

    Hi..dpk,

    Let me give you an example of some one selling soaps. He need not know how soap is manufactured, etc but required to know only the "Demand-Supply" to have a thriving business. Nirma chairman's earnings may have been matched by the the ones who traded in them.Similarly one need not know a company's business to trade in them but just know TA, if their investment is going to be based on TA.Most of the fund managers missed on the IT boom because they were following Warren buffett to understand the company first and then invest in it. And they badly missed it.Warren Buffett did not benefit from the IT Boom. Most traders did. I am not pitting one against the other. Any method will do to make mone6y in the market but do it with honesty & integrity.

    TA's are many. Some study the price patterns with volumes, the classical ones who have a better winning edge as it is purely based on demand & supply. Others try their TA based on inherent strength/ weakness indicators such as macd, roc , etc. The conflict comes because some say, I have found the magic wand/ holy grail, & what not.

    There is absolutely no need for all that. Simplicity is there in everything but it depends on the approach of the applicant. How many Warren Buffetts are there if all the "Fund Managers" follow fundamental approach. I am just trying to point out the fact that "Whichever method one might deploy, the results are dependent on the approach of that person".

    The problem with many in stock markets is that they feel it is "Science" and they want formulas...magic nos..Camarilla Nos, fibonacci nos, you name them...But they are just tools. You can't make profits out of them unless you have the right approach.

    Why sweat with Nifty Technicals..? Because that is the barometer of the Indian stock markets-true representative indicator. If an individual cannot research & choose probable winning stocks, Nifty is his simplest choice.

    That is simply put.

    BTW, Manoj has always got the pulse of the market and is quite objective in his analysis.

    Best regards.

    ilango

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  3. Tryin2TradeSeptember 2, 2009 at 9:25 AM

    Dpk Hi

    Ilango I guess has replied to your doubts beautifully and I feel there isnt much I can add to it!

    I AM A TRADER.... for me stocks are only meant for buying and selling.... and trading lasts for a few minutes, to a few hours, to max a few days....and in all these time spans I am either right in gauging the demand supply and work that to my advantage or some times I am wrong and loose my advantage! Basically it all boils down to buy well to sell well.

    For this I use technical analysis to help me to base my decisions.

    Now TA works wonderfully and TA fails miserably too! As long as I am willing to accept that TA is all about probabilities and not EXACT SCIENCE (many falter here!) I would continue to do well!

    TA only helps me in basing my decision but MONEY MANAGEMENT is what keeps me in the game! I have a firm belief that what you get and when you get is totally decided by the market (and the forces that be) but there is one thing which only you and you have and the market can never take that power from you!

    It's the power of the STOP LOSS.... coz that is the only thing which decides how much YOU are willing to give to the market!

    Cheers!

    ps:its not about being warren buffet its about being YOU! In the end its only about YOU!!!!

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  4. dpkSeptember 2, 2009 at 8:13 PM

    My post has brought best out of you. We can never ignore technicals,I correct myself in case the post projected that way. One interviewer in Mkt Wizards says he needs to know technicals because so many are following those and to know what they are going to do. My point was don't ignore fundamentals at the cost of going beyond basic technicals. Moreover when it is a game or war of the best, one cannot afford to ignore the basics. In the process I too learn to know beyond basics too.Hope I implement this time.But by the way what are comments on the guy who said give the chartist five charts and ask him to join those--.Do we have an unemotional reply to that.

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