Wednesday, August 8, 2012

Nifty Pre-Market View.

Why do traders lose??: 
Traders tend to place undeserving importance to others' opinions and conclusions and regret not following their our own counsel. Established studies have gone through the "test of times" and their authors didn't go around trumpeting their discoveries but "little-knowledged ones" get carried away with small victories and perennially want to draw attention to themselves.
If you call for a "short" everyday, surely one day market will fall and you claim your victory to the "Hall of Fame" but along the way so many gullible traders fall for whom your opinions matter a lot. And stock market is full of "Opinionated people" who vainly think that they know the future.
If you are confident and convinced of certain studies..be it TA, EW, MP, FA, Astro, Gann, Music notes, follow them to their logical conclusion. The biggest enemy in this journey is "getting distracted" and only you can take the required steps to deal with such distractions.
"Keep revisiting" your fundamental learning: Applied technical Analysis. Only by applying what you have learnt, can you progress well and it goes for both life and trading.
You have to pay your capital for excitement.
Making money here is a "boring affair".
If you can manage "your trades, whatever it may be" with a 20point stop loss, you'll surely get back to winning ways.
Remember this very important fact about the "opinionated traders": In an uptrending market, they'll call for "shorts"...sure, market corrects but not a tradeable one but a trappable one and you'll miss the big trending move and they do the same in a downtrending market, calling for longs. They like to be seen as someone with superior intelligence, drawing attention to themselves. Gullibles prop them up for their own doom.
Leave your "bloated ego" and come into the trading room a "Dumb and deaf", if you want to make money.
Learn to discriminate between "Objective study presenters" and "Nostradamus".
Choice has always been yours.

42 comments:

Bala said...

Good Morning, Ilango Ji...

Good write-up early in the morning, I always used to think..why people call for short when the trend is clearly up and vice versa...

One, who want to make easy money will go for such calls..and eventually they lose their hard-earned capital...

Thanks for the write-up.

Arun kumar sharma said...

Good Morning and charan sparsh, llango guru ji

today should i take long or short entry above or below 34 hrsma to get tune myself with you.
thanku

San said...

Good Morning Ilango Sir and Friends

NIFTY CUP and HANDLE Pattern : CLICK HERE

buggie advani said...

Good Morning Sir
I Have moved to Chicago
But I have never stop Visiting this site
to picks up knowledge how to use your trading
discipline in my daily life
thanks again
cheers

sandeep said...

gm master ,thanks i understand what u have conveyed , aks pl follow charts as sir is saying it will tell u it self and if it is not convying sir is there

IamthtIam said...

Good Morning Ilango and All!

Rocks said...

Good morning sir and blogmates..

Have a great day ahead with profit in your bags!!

sandeep said...

aks request read re-read master article . i have burnt quite a bit avoid people opinion on blog as out of 100people 10 to 15 will be right becuse there ratio will be less we wont agree with that,and will follow the mass BUT CHARTS WILL ALWAYS BE RIGHT AND WILL GUIDE U IN DIRECTION

mynac said...

GM Everybody,
Dera Ilango,
If possible,you are requested to update TA file for the day...Thanks..

2.32Cr.NF O.I. and 51,52 and most surprisingly 5300 PE(16 lac plus) writing looks very much abnormal @ this juncture.Particularly in the initial days of this expiry...
Nevertheless whenever this type of situation occurs,when Nifty is overbought BUT trading above Day,week and today, probably above Month HEMA,it has "always" hidden inbuilt potential to go further up next day..inspite of overbought condition,cause it is trading above 80 mark, which "Day trader" do not want or expect...

In such a overbought condition one should wait for "concrete confirmation " for reversal or should wait/avoid trading for the day or Hrs. if he is not comfortable/familiar with such type of conditions.All the best and bye for the day.. Thanks...
P.S. One may observe 5339,closer to last Hrly.Pivot where Nifty has registered second biggest high volume cash trade @ 3.16 PM.

sudharsan said...

Good morning Master and friends...Master request for Tatasteel comments...thank you in advance

saravanan k said...

Good Morning Ilango Sir & all Blogmates.

Rgds
Saravanan

mynac said...

Though 5350,60,70 look big hurdles for me in this upward journey for nifty "for the day" shall not surprise if Nifty shall went up to 5365-70..Let us see.. Leaving now & Bye for the day...

amber said...

SIR ILANGO JI GOOD MORNING

Nilesh Patil said...

Good Morning Master & Friends,
Thanks for the eye opener writeup.

Parimal said...

Namaste Sir and all friends
may the Lord give PATIENCE
have a nice day

suresh said...

sir ji,
good morning.
please consider my request of conducting
charged webinar/s on varios topics
thanks

Ilango said...

JustNifty TA(08th Aug) uploaded.

durga said...

master,good morning.
one can reinvent the wheel to satisfy the EGO or ride on one.one can seek MOKSHA by searching or follow the path shown by ENLIGHTEBED GURU,
who will create an atmosphere for enlightenment(you are the one )
.the problem of many is they have a choice where there is none.nice write up to set us right.good day.

parminder said...

Master ilango and friends,
good morning to all
☺☺

Yash and Dhan said...

Resp Ilangoji and dear blog-mates.
A very good morning to you and wish you a great trading day ahead.

SANPOT said...

Good Morning Ilango Sir and Blog mates.
Ilango Sir, I have sent you a mail. Kindly read it as your time permits.
Thanks in advance.

parminder said...

Master ilango,
i also second suresh for u to conduct the same.
Thanks & Regards
☺☺

Natti said...

Master thanks for the morning write up and good morning all

meignanavel said...

Good morning to all

venkatapathy l said...

Namaste Ilango Sir and fellow bloggers.

Thanks for the day's lesson. I will read this every morning before the market opens or perhaps before I switch on the computer.

Grateful thanks and regars,

LV

Jagan said...

Namaste Ilango Sir And All.
No Words To Praise You Sir.

Two Rules i have learned from you.
1.Select a method and follow it.
2.Get Rich Slowly And Quietly.

Hari_Hyderabad said...

Good morning master & JN family

Have a nice day !

ALBELA HOUSE said...

R/Ilango Sir Namaste n Namaskaar 2 all reader's.

Atharva said...

Gm to Beloved Master & All

Prabakar said...

Namaste Ilango Sir and JN Family

anmpatel said...

@Sanjayji
M&M rocks.......thanks.

Dhirendra said...

I have got something very interesting for your guys, which clicked me suddenly while doing analysis. Please go through the link and advise, how relevant is this, of this is only an assumption and there is nothing significant
http://niftymama.blogspot.in/2012/08/nifty-mirror-image.html

Hitendra said...

Sir - Target for "C"?

Ilango said...

I used to follow 2-period low/ high for identifying strength/ weakness.

Notice the rising lows of yesterday:

5,281.85
5,306.45
5,313.50
5,314.00
5,326.60
5,337.05
5,330.65

It did not break 2 Hour lows at all.

Now for the next hour(10.00AM to 11.00AM), you consider, 07th last hour and today's opening hour: 5330.65 & 5339.70. Accordingly, break of 5330.65 would be a sign of weakness.

However, this trade would be against the main trend and likely to whipsaw and hence should be dealt with very close SL, if one wants to make "intraday trade".

If the day trend is weak with either a close below DHEma or DEma, such a trade will produce reasonable gain.

Also note how new highs were made every hour except the last hour but compensated with a new high this morning.


5,309.45
5,316.90
5,324.15
5,328.40
5,341.85
5,350.05
5,342.85

This strategy could also be adopted for 2-day high or low

OR

2 week high or low.

NEVER GIVE UP said...

Good morning sir and all friends.

Ilango said...

Nifty @ channel resistance again.

Expect some profit-taking.(almost at our pre-market's resistance)

Fire said...

How many times I have to remind myself all the words Master wrote above! I have been able to discard all other 'opinionated traders' except the biggest - myself.

Yesterday was the latest example when I made myself forget -"Trend is everything" and covered some of my shorts in USD-INR as the price action was not showing much momentum. And, inevitably it came later.

Success lies in the basics, I have come to realize. Thanks to Master.

Whenever (and not as few times as I would like) I experience these, I come back here, to read Master's words once again. And I make some money again. :D

NEVER GIVE UP said...

Thanks you sir for sharing this new discovery.

Prabakar said...

NIFTY OPTIDX Open Interest at 10 -> CLICK HERE

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