Just Nifty: 2011-02-27

Saturday, March 5, 2011

You too can carry a lot more on your shoulders!

All of us tend to look up to big people for lessons on how to get better. We are keen to learn the secrets of their success. But we forget that sometimes the biggest lessons in life come from the smallest folks around us.

Take ants for instance. Would you believe those small creatures can teach us how to live a better life? Jim Rohn - the great motivational guru – developed what he called the ‘Ants Philosophy’.
He identified four key lessons from the behaviour of ants that can help us lead better lives. Jim Rohn is no more – but his messages continue to inspire. Here then, are the four lessons from Rohn’s ‘Ants Philosophy’.
1. Ants never quit. Have you noticed how ants always look for a way around an obstacle? Put your finger in an ant’s path and it will try and go around it, or over it. It will keep looking for a way out. It won’t just stand there and stare. It won’t give up and go back.
There will always be obstacles in our lives. The challenge is to keep trying, keep looking for alternative routes to get to our goals. Winston Churchill probably paraphrased the ant’s mindset when he offered this priceless advice: “Never give up. Never, never give up!”

Nifty resisted @ WHEma and closed below DHEma, losing upward momentum..

There are all kinds of traders in the market - Our comments section is occupied with some intradayers wanting to take points from small swings during the day..
And some short term positional traders using Hour Tech.table, RT Charts..
And some positional traders who would play for bigger points using daily numbers...
And some JNSAR followers who trade on that one number but book profits & reenter...
And some conservative traders who follow technical parameters such as divergences, trend indicators, above or below crucial emas and EW possibilities...

Hence...decide in advance what kind of time is available to you..what kind of volatility you can manage.. what kind of study is suitable for you...then make your trading plan which should have a reasonable "Entry point", a stop loss, a target or a trailing stops to maximise gains if following a trend.

Having a "part booking strategy" lets you in a trade for longer time while allowing you to re-enter the trade at a lower level to maximise gain and most importantly gives you the confidence to face the "stop losses" bravely.

Nobody can save you from the markets except your own meticulous planning and disciplined execution and patience that come from the knowledge that market is oscillating within your set levels and continues to move in the direction of your trade.

I have been showing you the benefits of having an "objectively created trading plan" day in and day out. Tech. table could be updated by downloading the file from the links given at the top right side of this blog. And for those who follow the markets through their softwares, the high ema, Low ema, etc could be programmed.

A reader asked me, "What happens when you stop updating the blog?"... I'm sure, you'll be self-sufficient to follow the market and be independent enough to show the way to new entrants.

It takes 16 to 21 times of repeating a task to make it a habit. Some people say it will take over a month to solidify it and make it something you will do without having to think about it. I tend to agree with the last statement. Two to three weeks will help you to remember, but thirty days or more will make it a part of your every day routine, something you won't necessarily have to think about before you do it.
So make a habit out of it...

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty retracing from the Premarket's res/ WHEma-5606 and the likely support levels to continue the upmoves are 5558/5543.

Nifty PreMarket View.

If you do not understand "abcde" or "12345", you should atleast be able to understand the simple way of following the trend - "higher high and higher low in uptrend" or "Lower high and lower low in downtrend"...you capture these moves starting from the "oversold for uptrend from either 30 min or 60 min time frame" and carry it forward to higher time frame and you also capture them starting from the "overbought for downtrend from either 30 min or 60 min time frame" and carry it forward to higher time frame.

The chart below illustrates such a scenario when Nifty cleared the previous high of 5338 on the Prebudget day in the 60min T/F, followed by a higher low on budget day @ 5309 and confirmed the same in Day T/F by clearing 5495 and moved higher making higher high and established a higher low @ 5468 and is on its way to make a higher high in week's T/F with a move past 5599.

Reading oscillator -(more can be found from the Labels section) is another area of "error of judgement" by technical analysis followers. Oscillators, as the name suggests, oscillates between Oversold and overbought areas quite perfectly in a "Sideways market" when the market is consolidating in a range BUT they remain in oversold or overbought regions for longer periods when a trending move is on. This most vital aspect is often overlooked which leads to traders wanting to short a trending-up market or wanting to go long in a trending-down market.. Follow the market by following its prices..and whenever market is indecisive with a listless move, tone down your operations...wait.

The only way you master this discipline is to have your own check list and do it in a detached way, emotionless..

Thursday, March 3, 2011

Nifty's trend found a friend in the pivot today..

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty PreMarket View.

Use global cues to your advantage as long as Nifty trades above 5410-5425. Buy closer to the pivot with a small SL and make your trades.. The part booked trades could also be rebought. Observe Overbought/ negative divergence indications when nifty makes new highs and make your plans accordingly..