Exponential Moving Average

parts of a trading plan

1. entry price

2. target price

3. SL price

which do you think is the most important, though all r important.


i guess it is the entry price because this sets us up nicely we dont panic.

PLAN YOUR TRADE AND THEN TRADE YOUR PLAN.

 

once markets open which you do think is the most important price to focus.

well its the OPEN PRICE.

your decision to initiate a buy position should be only when price is above the open price. and decision to sell only when and when the price is below the open price.

believe me it can be simple.

once we see the daily charts the previous day and decided that it has the possibility of rising, we buy when the price is above the open price the next day. and then we set our target and SL.

 

Hi Ajay..what if the market opens 40 points down, i dont think we should short at that point..pls let us know your views

 

it is said that trading is simple but not EASY

also this is where the ART part comes

 

what i am trying to get at is, figure out a system for yourself which will work for you. and the best way is to do yourself. you need not waste money.

just pick out stocks, trade them as per your plan. try to profitable every day it may just Rs 2/. trade only in just one number. you need to get comfortable with the strategy and you need to have belief in your plan. it will not happen quickly.
then try to be profitable over the week maybe Rs 100. dont worry about the brokerage that u need to give to learn.

once u know the system, apply it to futures market. i can assure it will work. dont rush. u got to believe in yourself its a lot mental than u could imagine.

happy trading

and by the way you dont require more knowledge than this.

 

So to summarise the methods you use candle sticks, 20 sma, and intraday opening price .

Is there more to it?

Regards
veren

 

yes i have found this ie all in the above posts, sufficient to make consistent profits in the futures market

 

excellent thanks for the reply

 

Ajay,

All the above post only specific towards trading in futures market???

 

its your call!!

if u want to work in the cash market u will have to wait for the bulls to come.

 

Hi Ajay,

This is a great thread. I was reading the earlier posts in this chain, and realised that Nifty never crossed 20 SMA. Probably the last two days blood bath wouldn't surprised many of us.

Ref your post of 31st March. Great work! This works dude. Thanks a lot for bringing this out.

 

Yes Indeed a nice post to read.
Ajay keep up the good stuff you have posted.

Do you make a tradong position in a stock as per Nifty movement or purely stock specific. I mean if you are bearish in a stock and NIFTY intraday movement is on green side still you go ahead with a shorting call in your bearish stock??


Regards
Veren

 

over the longer terms stocks behave as per there chart pattern.

but having isolated some stocks both on the buy and sell side i prefer to take the overall big picture into acct. if conditions are really bullish then i am heavier on the buy side and similarly if quite bearish i am heavy on the sell stocks.

incase the market is in a range, i take posn on both buy and sell stocks.

but ultimately it is the stock which tells if it has fallen into the trading plan.

 

lets watch aurobindo pharma

it has been in the downtrend, recently it has pulled up beyond the sma, and now we see a reversal candle formation.

targets and SL should be evident.

and by the way, there is nothing called CERTAINTY in the markets, we trade as per our plan, discipline will produce results

 

Hi Ajay,I am very new to stocks, now learning the techniques.I have found Fraction theory, with respect to any stock how much I can believe in this theory ? How many pattern/theory one should apply before going for actual trade ?

 

Ajay, what you think of this?

http://chartink.com/stocks/zensartech.html

It matches your pattern of entering stock ?

 

What are the small red & green arrows you depict in this Adani chart? Are they buy & sell signals? Also when you say "Sell when you feel you are far from 20SMA", isn't that subjective? How far should we go?

 

Buy signals for Nifty from 29th April 2013 according to EMA strategy

 

Book complete profits

 

Do you see any noticeable changes with nifty levels?.. Do you think that nifty might start going down from here onwards?... Please clarify..