A care free & relaxed approach by a drunken Monk..

Everyone in this market has a story to tell and every word is uttered out of an experience quite unique to that person. Some come into this market with maturity and character and that helps in dealing with this worthy adversary(Market) and some come into this market and gains that maturity and character.

Fortunately, Mr.RajaGopal belongs to the former and it is visible from his experience that he has brought with him the kind of maturity and character that has helped him to find a method to deal with the "unpredictable market".

I have posted below his mail that shares his thoughts and I am sure you will find them useful.

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Dear Govind,

God’s grace I could make some money in this market. I have been watching the market since 1990 and mustered the courage to enter in March 2009. I discussed with my wife and after her total approval invested money given to me (by wife since she manages the funds) to buy a car. First three advantages for me from the above are:

a. I know the environment – though may not be a technician.

b. I know the RISK and so does my wife.

c. God forbid – if my capital is hit – it will not hurt me financially.

Above three points give me great confidence and a care free approach to my trades. I am relaxed and feel as though I am playing chess against a much intelligent player (market).

Question to you: Where are you on the above three points? What can you do to get the freedom and confidence? Basically do you believe you can make money in this place?

Once in the market I learnt a few more facts:

1. What ever I buy will go down
2. What ever I sell will go up.
3. What ever goes up will come down.
4. What ever comes down will go up.

So, we may not even be making 60-70% correct trades on entry but if we can survive and hold, market will oblige us.

Bottom Line: Do you have the capacity to hold your trades?

I am not much big on technical and you would have read enough funda on market. Hence I limit with my above understandings alone.

My trading style:

1. I believe making money in day trading is a misnomer – you can make but it cannot be the sole trading methodology. Reasons 1 and 2 above – and we are forced to close trade at cut off time. (Post which time our trade will be in green). Hence the trade funds are divided between Day and Positional trading capital (20% day and 80% positional), Do you do this demarcation?

2. I have been a single side player – just converted into both sides – long and short and now finding my revenue growth. Do you play both sides?

3. I have created a basket which consists of:

a. Aban Lyod b. Bharti c. DLF e. HDFC f. HDFC Bank h. ICICI j. L&T m.M&M n.RIL o. SBI p. Tata Motor r. Tata Iron s. Axis t. BHEL u. Hero Honda v. Sunpharma w. DR Reddy x. NIFTY y. Bank Nifty z. Infosys and TCS.

You will notice that each of the above are vibrant counters with daily action. Every eod, I take a download of this page from my terminal and note down the TOP gainers and losers.

If there is Gain or Loss on two successive trading days, for me that counter is eligible for either Short or long on third day – provided there is no stark negative news. Example Infosys kept surging with great flow of +ve news and results. Ran for more than 5 sessions – did not short it, since the information was noted. Now, Bharti went down for two days – being basically a good scrip, I entered on the third day for Long.

So my Rule no:1 is:

Gain for two days eligible for a Short (must not be a recovery from bad patch)

Down for two days eligible for a Long (must not be a wrong tagged one)

Rule no: 2 is: Which ever stock goes near its 52week high and hesitates deserves a Short – provided the market is not surging blind.

Defence: My Longs are in current futures (if in future). My shorts are always in NEXT future and SHORTS ARE ALWAYS IN FUTURES ONLY.

I don’t spend much time in Technical studies. I am guided by Ilango. Imagine if one person has BP and cardiac problem, it is enough to know that he has these and what the medicines are prescribed by the doctor. Must he spend time analyzing his medical status every hour? He has to believe his Doctor – and Ilango is my Doctor.

Last but not the least – keep good personal rapport with your broker.

Don’t think you are a loser. As the saying goes you have not lost anything till you lose your self confidence.

Meet your broker with confidence of a trader who will win. Not as one who is afraid. Your broker will be a big help in holding your position. I am immensely benefited from all my brokers.

Don’t want to bore you. Don’t want you to lose money.

Our friend "Anandan" in spite of his exuberance is good with his calls. Kindly send him a mail and ask him to include your id. He goes by Ilango’s formula in identifying the trade. Validate them and use them.

Please be in touch. I am not a great trader. But God blessed me with a habit of making money. I fight away my losses like a third rated street thug.

All the best. Smile, relax and Joke, your trades will be winners.

95% of Profits are generated by our positive thinking. Tata Motors went down Rs 9 from my cost, I was so sure it will bounce back…..

Don’t be trigger happy with your Stop Loss.

Warm regards

LVA..Chennai.

(RajaGopal)

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Though I do not agree with "holding on to a losing position", the point that has been made here is that often the "holding capacity" of an individual determines the winning or losing.

Come ...Share your experiences with all your fellow traders..

Nifty falls from the supply zone & found a support..

"Viren" wants to share his experiences and his knowledge of "Market Profile" with all the readers and he is welcome to do so. "Only the beaten" understands this markets well.
I see two kinds here:
One comes with "Character" and that maturity sails him through.
The other comes in & gathers "Character" after being beaten by the markets.
The common link being persistence and patience.
Welcome "Viren"..it will just get richer this way.
Some have asked for "rsi"..the tech file that I have been sending lately has it.

Nifty Intraday Update-I

At 11.15Am: A low risk intraday Long with a Sl of day's low.
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SELL at the resistances as marked in the table.

Nifty PreMarket View

Nifty showing some weakness..

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty intraday selling pressure from "Hour High ema"
and now @ Pivot 4910.
The 5 & 20sma crossover zone is 4865-4870.

Nifty is closer to the last major pivot @ 4950.

You must excuse the "gibberish" last post as the little baby overpowered me.
I also got overpowered by the "Coimbatore gang" and the entire city's culture.
Thank you Nagarajan, U.K.Raj, Satyamurthi, Satheesh, Blood donation and so many other well wishers...
ALL IZZ WELL that ends well.
Have a nice "Trading Day"..Yes..Trade as Nifty is closer to the major supply zone but there are no negative divergence to suggest of big weakness but a normal correction as in an uptrend.

/.l/.;//tPkkkk4ggffjjjreMekar

Nifty's price rally after time correction..

Macd is poised to move into positive territory. Such a move would have positive implications unless gets sold off from 4915..in a big way. Corrections upto 4830-4845 is alright.
5309 to 4675 in 5 waves.
38% retracement comes @ 4916, also 21 sma/ema.
50% retracement comes @ 4992, closer to week high ema.
Any sell off from 38% mark should be limited to 4824 or 4795.

Heading towards the previously attempted but failed highs in the region of 4920-4945.

After conquering the "Hour High ema" during "Intra day", it has closed above the "Day High ema" after 27 trading days..Will it keep its head above it..??


Conservative traders(Positional) who hold longs from 4670 may look to book out @ 4895 - 4920 area or trail it with a SL of 4820.

Nifty Intraday Update - II

Looks like a break out for higher targets,
provided it does not fall below 4810-4815(Trendline supports).

Nifty Intraday Update-I

"4778" - 2 day low is a critical level to be held for upsides.
"4805-4810" need to be crossed decisively for further upsides.
This sideways move has gone on for many days
without much price appreciation.

Nifty PreMarket View

Nifty mimics the short Feb. month with shorter ranges..

With shrinking volumes and holidaying world markets, Nifty plays around a small support/ resistance range. Play it if you can or save up your money once the direction gets clearer.

I have put two possible plays for tomorrow with "4810" playing the pivotal role. The range might remain more or less today's. Below 4745, much weakness and around 4885-4920, supply might come in.

What we see clearly is Selling levels (High ema) at various time cycles are intact with Nifty staying below them and a "temporary truce" by holding above the supports (Low ema)of various time cycles. Till it isn't resolved, trade watchfully, carefully. Choppy times.

Nifty Intraday Update-II

Nifty stuck in 4785 to 4815 zone.
A decisive move beyond these two levels.

Nifty Intra day Update-I

Nifty Premarket View.

HongKong & Chinese markets are closed for "Chinese New Year" and US mkts too closed today. The other markets are in a "mild negative" zone.
If Nifty holds 4790(+/- 5,10),upside possibility. If not, it may drift lower and below 4748, the downside may accelerate.
Day's Pivot @ 4816 but I feel it should be 4825. Trade accordingly.

Tell me whom you love...

A Valentine Story

For Lovers Everywhere

John Blanchard stood up from the bench, straightened his Army uniform, and studied the crowd of people making their way through Grand Central Station. He looked for the girl whose heart he knew, but whose face he didn't, the girl with the rose.

His interest in her had begun thirteen months before in a Florida library. Taking a book off the shelf he found himself intrigued, not with the words of the book, but with the notes penciled in the margin. The soft handwriting reflected a thoughtful soul and insightful mind. In the front of the book, he discovered the previous owner's name, Miss Hollis Maynell.

With time and effort he located her address. She lived in New York City. He wrote her a letter introducing himself and inviting her to correspond. The next day he was shipped overseas for service in World War II. During the next year and one month the two grew to know each other through the mail. Each letter was a seed falling on a fertile heart. A romance was budding. Blanchard requested a photograph, but she refused. She felt that if he really cared, it wouldn't matter what she looked like. When the day finally came for him to return from Europe, they scheduled their first meeting - 7:00 PM at the Grand Central Station in New York. "You'll recognize me," she wrote, "by the red rose I'll be wearing on my lapel."