Just Nifty

Wednesday, May 4, 2011

Learn before you start out to earn...

A Mail from a reader that would be answered:

Iam an ardent follower and believer of your Idea & theory.

Since last few months I have criss crossed your pages on various occasions, viewing your writeups as lexical input.

Every time I am stuck in two stops.

1. It would have been very convenient had there been a combined essay covering all the aspect, step by step, (like stiching a MALA)or should I say the considerations which goes in your mind while considering taking any position, which will enable us to enrich with your theory and experience.

2. While going through the CONSERVATIVE & AGGRESSIVE trade column which is given along with PREMARKET VIEW
I am totally confused as however it is given on premarket review unable to match when you are shifting your stance.
Going thru the write ups after you have reversed the position I have found no hint of the step in your previous or same day write ups.A mention of direction or a few consideration in which the new position is to be taken along with the same column would have helped interpret the position.

I presume you dislike spoon feeding, so do I, however, dissecting the thought of a knowledgeable trader gives an enriching polish.

Being shy of the rush in your blog I decided to email you, hope have not invaded your privacy.
I shall be really grateful for your reply.
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What goes through my mind is years of experience of being exposed to the market which translates into certain dos and donts while reading the markets/ using various studies. I have given them in the following write ups. The sequencing of my thoughts based on various studies is complex and haven't been attempted to be put in words. Would try as time permits.
Applied Technical Analysis- A summary (Wrap up)
Weekend Analysis - Applied Technical Analysis.
OPTIONS: A powerful tool to be used with high discrimination
Nifty Tech.Analysis File explained-1.
JNSAR with TA /EW / Tech.table inputs.
Regarding Conservative Trade: The trades are taken mostly as per the Pre-Market view. However, on certain occasions based on sudden turn of prices, the changed view is communicated through "Comments section". There is another criteria too that Conservative trade is generally initiated before the JNSAR trade(Except during sideways market) and hence for some reason, if it is not done, the same should be applied here and trade taken.
Aggressive trade: These numbers are picked as per my perception of the market...whether trending or sideways. You need to ascertain first whether market is trading above pivots or below pivots..closing above pivots or below pivots..overbought or oversold..near the supports or resistances based on price study. And then sell or buy as per the resistance numbers(in red) or below Pivot(Pink) & buy @ supports(in green) and if that breaks, the next support(in green too).
Understand the colouring in Tech.Table(TT) to know the severity of a trend & direction and take those trades which are comfortably positioned. Your returns will be based on risks involved. Balance it.
JNSAR Trade: Enough has been written on it. You take a trade when this number is triggered. Also know that when Nifty is trading below JNSAR, the trend may be considered to be down and your trades need to be on the sell side till a confirmed +ve divergence develops.