Trade/ Invest Idea # 1: Break Out/ Break Down.

I reproduce a mail sent two years ago to a friend:
First and foremost....I have nothing new to teach or guide you as you have it in you..You are your own guide , mentor..But sharing ideas with likeminded people do help..
My critic, after losing quite a lot of money in the market, sat down & went thru, the technicals of the market for a period of 2 to 3 years and came to this conclusion:

a. Establish the trend(Directional) by seeing the macd(12,26 period),closing above or below 5 DMA and then take a position preferably after a positive/Negative divergences.
b. Set your targets with your support, resistance bands or averages or fibonacci retracements/ targets.
c.You trade the market for roughly 52 weeks or 250 trading days and if you can discriminate & choose the best risk/reward days and patiently wait & initiate your trades and manage them with a simple trading plan, I am sure you can make so many winning trades in each year, you can choose to retire early and spend some wonderful time with your family, grooming your children....
Think about that...Let all your trades be boring and not worth talking in social circles but let them give you profits..Manage your trades like how you take care of children..with tremendous responsibility..I'm sure you know the value of each rupee..

One of the greatest enemy to making consistent money in the market is "excitement"..Control it..If your "Consciousness level" is high and your breathing is steady when you trade, you can only win..

Lastly, try and do only positional trades after the setup is right..In my experience, I have seen the best falling by the daytrades..
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Trade/ Invest Idea # 1: Break Outs/ Break Downs:
This is the most simplest of all to follow and it does not require great knowledge of TA, EW, fundamental analysis or any other studies. Prices show you the demand and supply changing and settling, only to break out or break down in a particular direction.
I have given four time frames and the approach should be for that "particular time frame" only. Knowing the four time frames helps. If you are a disciplined, patient & persevering kind, you can do wonders with this simple method.
If you have the time, throw your net wide over a basket of good quality stocks and monitor for "consolidating patterns" and invest patiently.



I will prepare other trading/ investment ideas which are easy to adopt but effective in their results.
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Weekly Analysis:
T.A: In most parameters, Nifty is in uptrend.(Refer tech. table). Hour charts are nearing "OB" zone. Daily charts may be checked after 2-3 days for "Negative Divergences", if any.
EW: The 5th wave is on from 5233 low. Watch it cross over 5367 towards 5400. It can get higher too. We'll come to that once observing the kind of reaction/ correction it gives for the OB hour. The maximum it could go is to around 5500.
Once "5s" is done, few options are open to the market.
1. It can reverse and start a major decline with the initial decline deceptively small and time consuming.
2. It can do a simple "abc" correction towards the 4th wave low or lower - 5210 or lower and start on another major move up.