Thursday, November 26, 2009

Confused Markets

The Nifty remains in a  trading range between 5120 and 4920. The Index cannot remain inside such a narrow range for much longer. We have already seen two months of range bound movement.

Which way will the price go? The asnwer is easy: We do not know. So we should let the market tell us if it wants to go for another correction , or it will eventually move above 5120 to scale new highs (in this up move).

Does mechanical trading make money? Think of mechanical trading as disciplined / systematic trading. It makes money, there is no doubt about it. Our day trading system is an example. The system was making money in the beginning of the month, then fell toa litttle above breakeven, and today, recovered to end up the month with a decent gain, also the month high.But such trading requires so much discipline that it is difficult to trade for most people. n the other hand, October was a spectacular month for our swing systems but they ended November at breakeven. What this means is that just one day - today contributed all the profits of the two systems for the month. Yes, that's the way it is, sometimes.

I will be in Jodhpur on Saturday, Nov 28, for he CNBC Investor Camp. Any reader living in that area is welcome to meet me in Jodhpur.

Have Fun!

6 comments:

Manish.T said...

Yeah....Today was a "delight"

Ashish said...

not confused anymore, eh? ;-)

Nirav said...

Dear Sir,

I am in the 1st year of my PGDM course and I want to do my specialization in Finance in second year. I am very much interested in Stock market and Technical analysis. So I just want to know that what are the opportunities in the market and which are the areas in which I can use my MBA+Technical analysis knowledge after my Post graduation?

kk said...

RESPECTED SIR
I AM DOING CTA , HAVE NOT REGISTERED YET BECAUSE I HAVE NOT RECEIVED DRIVING LICENCE BECAUSE I HAVE JUST COMPLETED 18 YRS.

I WAS READING JOHN MURPHY'S BOOK , HE SAID, IN ELLIOTT WAVE THEORY ,A FIVE WAVE DOWNSIDE DOESN'T INDICATE A CORRECTIVE WAVE, IT JUST INDICATES THAT IT IS PROBABLY THE FIRST WAVE OF A THREE WAVE DECLINE AND THERE IS SOME MORE DOWNSIDE IN THE ANVIL.

BUT I THINK SIR IN IT'S RECENT BEAR MARKET, NIFTY AFTER A FIVE WAVE DECLINE STARTED MOVING UP AND NOW MOVING IN A FIVE WAVE UPSIDE PATTERN . IT'S FORTH WAVE JUST COMPLETED AT 4550 . AND INDICATING A BULL RUN

BUT WHAT HAPPENED TO FIVE WAVE DOWNSIDE AND MORE DECLINES.

PLEASE PLEASE REPLY OR GIVE ME YOUR ADDRESS, I WILL TAKE TUITIONS FROM YOU . IT'S VERY TOUGH SUBJECT.

Jagdish said...

Dear Sir,
I read with interest your comment on mechanical trading. Can you suggest me some software that sends orders automatically at pre-determined time. I also understand that this sort of program / algorithmic trading is now allowed on NOW software of NSE. This is purely to ensure that orders are executed vis-a-vis entering it manually. Thanks

Madhusudan Maal said...

Sir, aapse milkar bahut khushi hui. Jodhpur mein aapse milna ek sapne ke sach hone jaisa tha. Madhusudan from Jodhpur. Maal291@in.com