Monday, June 8, 2009

The Nifty gets a cool shower

A dramatic 170 point (4%) decline in the Nifty today cooled down the over-enthusiastic segment of the market. If you were a day trader, you should have received a number of short selling signals today. It was a good day for traders.

I have received a fair number of comments, and I really want to reply to all of them. Where do I start? In Alice in Wonderland, the suggestion was: start at the beginning. That's what I am doing. If I have missed replying, this means I will reply in the next post.

Krishna asks:
I wish to learn technical analysis,would like to know if you conduct courses/seminars or else i request you to please suggest an institution where i can learn the same..your suggestion will be very significant for me to decide...

My Notes:

I cannot recommend any private institution. This is how I would go about it, taking one step at a time.

1. Self Study. Follow the IFTA syllabus which we will publish this week in the taindia.org website. Buy books published by Vision Books. These books are low priced editions of expensive American editions. Search for material on the web. Become an expert in using google. have a broadband connection & 24 hour access to computers
2. Browse through free charts available on Yahoo.com and perhaps other web sites also.
3. Buy a technical analysis software.
4. Open an account with a broker and trade in very small quantities.
5. Experience: Join an established trader who uses TA for his trading. Be a trainee and learn the tactics of trading. This is possible if you wish to learn rather than to seek a job.
6. Get Certification.

Now for the next post!

7 comments:

vvvvv said...

sir,
Being a layman, I am scared. What should my target in NIFTY be - 9465 or 550?
Expecting a simple one word(number) answer.
Please, come to our rescue.

Anand Rathi said...

Just checked the TAINDIA site...there is no post...can you please confirm the date when we will have an update

Anand Rathi

Junaid said...

Sir, can u plz share about how you traded todays 150+ fall. What type of signals u traded with. That would really help in understanding about how do our mentor take short positions in Intraday falling market...? Do rply in any of your posts plz...
Junaid.

Ashish said...

Sir, u think this is the onset of global market correction. If one sees the strength returning to dollar, one can conclude that. According to fractals and elliot wave, markets may correct till mid june (or 16th/17th june) and from there, the next bull run starts.

Lastly, whenever u do take classes in Delhi, please let us know.
Ashish

Aurobindo said...

I been a good student of TA.This is my suggestion on learning TA.

1) Get metatrader.
2) Visit www.mql4.com. Under technical analysis section you will find all the technical indicators and common trading strategies.
3)Visit www.stockcharts.com, click on freeschool.Learn the various strategies and there is a section in this site which has writings of various TA analysts.(This site is not about what to buy or sell). Dont miss john murphy's section.

4) Create a demo account for trading in forex and start trading. Get a feel of all indicators in the metatrader and start the journey. Its a long journey lot of people give up shouting "TA is fake", slowly and steadily you will understand the terms "Trend","Flat","Money management", it takes lot of time to get a grip and to understand "market always gives oppurtunities" it takes time. Needs lot of determination. The chances of success depends on the attitude. As far I have seen, if you love analysis more than the money you make through analysis then you will definitely succeed.

I started with a simple candlestick patterns tried various strategies and now I have a formulated these strategies to artificial neural network. I tell you its fun, if you know programming and TA you can build 100s of trading models. But the problem is its so addictive even while watching a movie or sleeping subconsciously you will be thinking on your trading strategy.

Even this site has lot of info on TA. www.forex-tsd.com and www.forexfactory.com.

men said...

Mr. Sudarshan,
It was really nice of you to display how you traded, HATS OFF TO YOU SIR.
Regards,

men said...

Mr. Sudarshan,
Yuo have given that your system generated a sell signal, could you tell uS what these were if IT IS NOT A PROBLEM WITH YOU, AND SAME FOR BUYING, secondly if you never got a square off signal eod would you have carried home the trade?