DAY TRADING STRATEGY (JULY 30)

TODAY'S TRADING STRATEGY
OF NIFTY FUTURES – JULY 30

Resistance @ 5421 and 5433

Nifty Futures should trade above 5415

& cut 5433 decisively to go higher levels (i.e. upto 5452-60-70)

Otherwise, if breaches 5390

Slide upto 5362-52 is possible

3 DEMA – 5411   

7 DEMA – 5412   

BANK NIFTY

Important resistance point @ 10210

If stays below 10174 for 15 minutes

Sure decline upto 10135-10110

Day support @ 10105

If breaches, slide upto 10065 is for sure

3 DEMA: 10115

7 DEMA: 10061

AN IMPORTANT NOTE

As APPLICABLE VOLATILITY falls day by day, pls be careful in fixing the targets in Nifty and Bank Nifty.

Exit with the attained profit as soon as possible. This advice is particularly for day traders and option traders

ALL THE BEST

SHARE TIPS TODAY (JULY 30)

INTRADAY

SELL VENKEYS @ 672 
T1 - 662 , T2 - 652

RANDOM WALK

 

 

This book almost convinced me that the markets are a random walk. I can’t really go into the details of why – you have to read it all before this impression begins to sink in. Compound this with the fact that all in all the economists of the world have said “we have no idea why the markets do what they do.” – Thats their conclusion.
So if they have no idea, what chance have I got? You may find within yourself some buried little impulse to “figure this thing out, once and for all.” – I know what thats like. You look at a chart, and you feel as though its on the tip of your tongue, just out of the minds reach if you will. You know that feeling? As if a thin veil could be lifted and you’d see the inner mechanics of it all. You won’t. Many have gone before you who tried, and still you don’t know where price will go next.
I think what happens is that if we make a certain call in one direction, and price happens to go in our direction, we say “I WAS RIGHT”… But we pay less emphasis when we were wrong. Its the old thing of when you want to buy a yellow VW you see them everywhere all of a sudden.
The impression left by the reading of this book doesn’t so much make me want to throw my hands in the air and give up, but rather it emphasizes the importance of things like risk/reward and high probability. Its not about being right or wrong. I also want to do some research into game theory, which is something that was touched on in the book. Its good how this subject constantly throws up new branches of learning.

The James Bond Method To Stock Trading

 

 

So you want to be high flier? Drive fast cars, attract the hot women, and travel the world? What sounds like the James Bond way of living, isn’t actually too far off that of a successfully wild stock trader?

While this approach might not be the most risk-adverse style of trading , we can all learn a thing or two from James Bond when it comes to making big bucks in the stock market.

Don’t worry about the consequences

While he may get himself into some crazy situations, James Bond never lets fear get in the way of getting the job done. Bond will walk straight into dark hallways and rooms filled of bad guys, confident that he has the upper hand.

Just like Bond, you too can block out potential consequences of stock trading. Don’t let the fear of losing money or a failed trade scare you away. Head into any situation, confident in your trading strategy.

Never get stressed out

For as great as Bond is, no other action hero gets caught into messy situations as much as Bond does. From the initial capture to just seconds before he finds his way out, Bond never loses his cool.

He stays calm under pressure and focuses on what to do next, rather than what might happen.

Just like Bond, you too can learn to keep cool under difficult situations. Understand that you don’t necessarily need to sell at the first sign of red or throw more money at the stock. Simply stay calm, asses the situation, and find your way out.

Don’t stick around too long

Just as fast as the actual characters who play Bond shift, Bond himself never stays in one place too long. One second he could be in Russia and the next minute he is in Las Vegas. Even the time he spends with a woman is never too long to get him into any trouble.

Like Bond, you too should never stay around a stock too long. For quick action, jump from stocks to stocks finding the ones with the most momentum and skipping out on the stale ones.

Indulge

While Bond maybe running to stop a nuclear bomb from going off, there is always enough time for a drink or a romantic night with a lady friend.

While stock trading is a serious matter, it doesn’t have to all be about facts and figures. Make sure to set time aside and enjoy the fruits of your labor. It keeps the game interesting.

Find the latest and greatest

Bond movies are loved in large part due to the amazing gadgets and gizmos Bond uses. Whether it is a car that can become invisible or a car that can be driven by a phone, Bond always has advanced tools to help him get the job done.

In stock trading, the big bucks are made in speculation. By betting on certain companies, products, or sectors, you give yourself an opportunity to be ahead of the curve and profit once the benefit is realized.

Have a constant

“A martini. Shaken, not stirred”

One of the most popular lines in all of cinema, throughout all the changes the drink of choice for Bond has not altered.

Just like Bond, you too should have a constant. Something you can fall back on. It could be a go-to stock, sector, or type of trading strategy. The key is to have something to fall back on when times get rough.

Leverage everything

Every action Bond takes requires him to leverage everything. Whether it is to jump out of building with no parachute or jump in tank full of sharks, Bond puts everything on the line for the big prize, the home-run, if you will.

To make money the Bond way, it requires putting up big money and even leveraging more. Bet that everything will come out okay and the final result will be in your favor.

The “Bond Trading Strategy” definitely is not meant for the weak of hearts, but, if executed nicely, could result in some hefty pay days and some more double 0′s in your bank account.

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-Mahindeesh (a) Sathish

 Cuddalore-2

 Tamil Nadu

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TODAY’S QUOTE

As a man believes, so he will act.
                                 -SAM HARRIS, The End of Faith

RELAX CORNER

JUST SMS TO YOUR PAL

*Sardarji is not sleeping with his wife! these days
Guess why?
because somebody had told him that
it is wrong to sleep with married women.


* A Teacher lecturing on population –
In India after Every 10 sec a
woman gives birth to a kid.
A Sardar stands up-
we must find & stop her!. 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

DISCLAIMER

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

TUESDAY LEVELS (JULY 27)

NIFTY FUTURES

Overall support is good between

5306-5280

Intraday Break Outs and Targets of NFUTURES

3 DEMA – 5425

7 DEMA – 5412

If sustains above 5426 for 15 minutes hike upto 5446 is possible

Or if cuts 5410 with volumes intraday slide upto 5390-80 is seen

BANK NIFTY

Good resistance between 10041-51

If breaks sure non-stop hike upto 10094-10104

Support levels at 9990-80-70 is clear for intraday

If breaches slide upto 9940-30 is possible in this session

3 DEMA: 10025

7 DEMA: 9990

THE TRADING MINDSET

Plutchik’s Wheel of Emotions

How does someone know that they reached the trader’s mindset? Here are a few characteristics:

1. No anger whatsoever.
2. Confidence and being in control of the self
3. A sense of not forcing the markets
4. An absence of feeling victimized by the markets
5. Trading with money you can afford to risk
6. Trading using a chosen approach or system
7. Not influenced by others
8. Trading is enjoyable
9. Accepting both winning and losing trades equally
10. An open mind approach at all times
11. Equity curve grows as skills improve
12. Constantly learning on a daily basis
13. Consistently aligning trades with the market’s direction
14. Ability to focus on the present reality
15. Taking full responsibility for your actions

Developing the trader’s mindset takes time. It usually takes traders 2-5 years before they can read through the above list and honestly say that it describes themselves.

Let’s take 100 traders using the same trading system or approach. It is highly likely that no two of them will trade it exactly the same way in all aspects. Why is this? Because our mindsets, beliefs, and understandings are unique. It is no surprise that most traders fail and the reason why is because they lack the trader’s mindset. This article covers those in Stage III and IV within the 4 Stages of Learning. More importantly, it applies to those that survived Stage II.

There are two parts to fixing any psychological problems:

1. Recognizing that it exists
2. Accepting it so you can move on

In trading, this is where it’s so crucial to take responsibility for your own actions because it induces change and you can start making improvements. If you don’t recognize and accept a problem, then you won’t get anywhere!

What are some of these issues that I speak of? Here are a few along with their causes and/or effects:

1. Anger over a losing trade – Traders usually feel as if they are victims of the market. This is usually because they either

1) care too much about the trade and/or

2) have unrealistic expectations.

They seek approval from the markets, something the markets cannot provide.

2. Trading too much – Traders that do this have some personal need to “conquer” the market. The sole motivation here is greed and about “getting even” with the market. It is impossible to get “even” with the market.

3. Trading the wrong size – Traders ignore or don’t recognize the risk of each trade or do not understand money management. There is no personal responsibility here.

4. PMSing after the day is over – Traders are on a wild emotional roller coaster that is fueled by a plethora of emotions ranging throughout the spectrum. Focus is taken off of the process and is placed too heavily on the money. These people are very irritable akin to the symptoms of premenstrual syndrome.

5. Using money you can’t afford to lose – Usually, a trader is pinning his/her last hopes to make money. Traders fear “losing” the “last best opportunity”. Self-discipline is quickly forgotten but the power of greed drives them, usually over a cliff.

6. Wishing, hoping, or praying – Do this in church, but leave this out of the market. Traders do not take control of their trades and cannot accept the present reality of what’s happening in the market.

7. Getting high after a huge win – These traders tie their self-worth to their success in the markets or by the value of their account. Usually, these folks have an unrealistic feeling of being “in control” of the markets. A huge loss usually sobers them up pretty quickly.

8. Adding to a losing position – Also known as doubling, tripling, quadrupling down, typically, this means that the trader does not want to admit the trade is wrong. The trader’s ego is at stake and #6 comes into effect as the trader is hoping the markets will “work in their favor”.

9. Compulsive trading – Similar to #2, except these traders have an addiction to trading and quite possibly gambling issues. They need to constantly be trading, even if there is no rational reason to do so. They are always excited whether they win or lose.

10. Afraid of “pulling the trigger” – This usually means that the trader does not have a system or approach already in place. They have not calculated risk/reward and many times, these trades are unplanned. This also comes after a string of losses. They don’t want to be “wrong again”. There is no trust from within.

11. Over-thinking or second guessing – Similar to #10, but these people are usually looking for a “sure thing”, when they clearly don’t exist. Losing is not recognized a normal part of trading and the risks and unknowns of trading are not fully accepted.

12. Limiting profit or getting out too early – These traders have poor self-esteem. This is a direct effect of believing that the profits were undeserved. Usually a trader is stressed over a trade for some reason and closing the position quickly eliminates the anxiety. Usually, there is a fear of “giving back” those gains.

13. Fear of being stopped out – Traders fear failure and the pain from taking losses is great. Here is another instance where the ego is at risk. They must always be correct or suffer a feeling of “let down”.

14. Not following your system – This is a trust and follow-through issue. Perhaps the trader didn’t test it enough, or it recently produced a string of losses, casing some doubt. Your faith in the system is broken. Not only do you not trust the system, you can’t even trust yourself with picking one that works for you.

15. Following other traders (indiscriminately) – These traders do not have a system. They are also limited in trading knowledge. They feel that they will become winners if they simply “follow” someone. These trades are usually impulsive.

The key to all things is creating balance. This means that if you are winning or losing, you should not care. When you finally recognize and accept each of these common pitfalls, you’ll be well on your way to acquiring the trader’s mindset. Good luck.

TODAY’S QUOTE

True art, like nature, ever bears

Suggestions of some higher thing;

As more than form or tint of bird

We prize the song he stops to sing.

-EDITH WILLIS LINN FORBES, "A Landscape in Oils"

RELAX CORNER

JUST SMS TO YOUR PAL

*A girl called me the other day and said … “Come on over, there’s nobody home. You will have fun” I went over and “Nobody” was home ….

*Teacher : What a pair of strange socks you are wearing,
one is green and one is blue with red spots!

Sardarji: Yes it’s really strange. I’ve got another pair of the same at home.

DISCLAIMER

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.

TRADING UPDATES OF JULY 26

Richard Donchian’s 20 trading guides

READ THIS TWICE

General Guides:

1. Beware of acting immediately on a widespread public opinion. Even if correct, it will usually delay the move.
2. From a period of dullness and inactivity, watch for and prepare to follow a move in the direction in which volume increases.
3. Limit losses and ride profits, irrespective of all other rules.
4. Light commitments are advisable when market position is not certain. Clearly defined moves are signaled frequently enough to make life interesting and concentration on these moves will prevent unprofitable whip-sawing.
5. Seldom take a position in the direction of an immediately preceding three-day move. Wait for a one-day reversal.
6. Judicious use of stop orders is a valuable aid to profitable trading. Stops may be used to protect profits, to limit losses, and from certain formations such as triangular foci to take positions. Stop orders are apt to be more valuable and less treacherous if used in proper relation the the chart formation.
7. In a market in which upswings are likely to equal or exceed downswings, heavier position should be taken for the upswings for percentage reasons – a decline from 50 to 25 will net only 50% profit, whereas an advance from 25 to 50 will net 100%.
8. In taking a position, price orders are allowable. In closing a position, use market orders.
9. Buy strong-acting, strong-background commodities and sell weak ones, subject to all other rules.
10. Moves in which rails lead or participate strongly are usually more worth following than moves in which rails lag.
11. A study of the capitalization of a company, the degree of activity of an issue, and whether an issue is a lethargic truck horse or a spirited race horse is fully as important as a study of statistical reports.

Technical Guides:

1. A move followed by a sideways range often precedes another move of almost equal extent in the same direction as the original move. Generally, when the second move from the sideways range has run its course, a counter move approaching the sideways range may be expected.
2. Reversal or resistance to a move is likely to be encountered
   
   
   
   
   
   
   
   
   
   • 0n reaching levels at which in the past, the commodity has fluctuated for a considerable length of time within a narrow range
   • On approaching highs or lows
3. Watch for good buying or selling opportunities when trend lines are approached, especially on medium or dull volume. Be sure such a line has not been hugged or hit too frequently.
4. Watch for “crawling along” or repeated bumping of minor or major trend lines and prepare to see such trend lines broken.
5. Breaking of minor trend lines counter to the major trend gives most other important position taking signals. Positions can be taken or reversed on stop at such places.
6. Triangles of ether slope may mean either accumulation or distribution depending on other considerations although triangles are usually broken on the flat side.
7. Watch for volume climax, especially after a long move.
8. Don’t count on gaps being closed unless you can distinguish between breakaway gaps, normal gaps and exhaustion gaps.
9. During a move, take or increase positions in the direction of the move at the market the morning following any one-day reversal, however slight the reversal may be, especially if volume declines on the reversal.

NIFTY FUTURES STRATEGY - JULY 26

Overall support is good @ 5398-93

 

Resistance 1 @ 5465 &

R2 @ 5485

Support @ 5410

If trades below 5461

slide upto 5433 and after that 5412 is

possible

3 DEMA – 5433  

7 DEMA – 5409  

BANK NIFTY

Resistance1 @ 10099 & R2 @ 10151

Support @ 9986

If trades below 10095 

above an hour slide upto 10043 and after that 9992

3 DEMA: 10043

7 DEMA:   9986

 

11 Trading Rules

 

Rule #1
Be data centric in your approach. Take the time and make the effort to understand what works and what doesn’t. Trading decisions should be objective and based upon the data.

Rule #2
Be disciplined. The data should guide you in your decisions. This is the only way to navigate a potentially hostile and fearful environment.

Rule #3
Be flexible. At first glance this would seem to contradict Rule #2; however, I recognize that markets change and that trading strategies cannot account for every conceivable factor. Giving yourself some wiggle room or discretion is ok, but I would not stray too far from the data or your strategies.

Rule #4
Always question the prevailing dogma. The markets love dogma. “Prices are above the 50 day moving average”, “prices are breaking out”, and “don’t fight the Fed” are some of the most often heard sayings. But what do they really mean for prices? Make your own observations and define your own rules. See Rule #1.

Rule #5
Understand your market edge. My edge is my ability to use my computer to define the price action. I level the playing field by trading markets and not companies.

Rule #6
Money management. Money management. Money management. It is so important that it is worth saying three times. There are so few factors you can control in the markets, but this is one of them. Learn to exploit it.

Rule #7
Time frame. Know the time frame you are operating on. Don’t let a trade turn into an investment and don’t trade yourself out of an investment.

Rule #8
Confidence and conviction. Believe in your strategies and bet wisely but with conviction. There is nothing more frustrating than having a good strategy work as you expect, yet at the end of the day, you have very little winnings to show for your efforts.

Rule #9
Persistence. It takes persistence to operate in the markets. Success doesn’t come easy, and if it does, then I would be careful. Even the best strategies come with losses, and they always seem to come when you get the nerve to make the big bet. Stay with your plan. If you have done your home work, the winning trades will follow.

Rule #10
Passion. In the end, trading has to be about your bottom line, but you have to love what you do and no amount of money is worth it if you aren’t passionate about the process. No matter how much success you enjoy, in the markets you can never stop learning.

Rule #11
Take care of yourself. No amount of money is worth it if your health is failing or you have managed to alienate yourself from family and friends in the process.

RELAX CORNER

Have u seen a genius like Kamal Haasan like this..?
and all the credit goes to idiotic politicians...
DRAGGING A WIZARD TO THE  SATURATED POINT..
DEAR POLITICAL POISONERS,
Never ever disturb a good artist who is really in fond of improving a society..
News may be old but pain remains same.. 


Disclaimer: I assure this space doesn't defend this great actor but an anxiety of a real citizen 
WATCH IT TO UR SHOCK
                                                                                                                 - EDITOR

DISCLAIMER

THE RECOMMENDATIONS MADE HERE DO NOT CONSTITUTE AND OFFER TO SELL OF A SOLICITATION TO BUY ANY OF THE SECURITIES/COMMODITIES OF ANY OTHER INSTRUMENTS WHATSOEVER MENTIONED. NO REPRESENTATIONS CAN BE MADE THAT THE RECOMMENDATIONS CONTAINED WILL BE PROFITABLE OF THAT THEY WILL NOT RESULT IN LOSSES. READERS USING THE INFORMATION CONTAINED HEREIN ARE SOLELY RESPONSIBLE FOR THEIR ACTIONS. SURFING OR USING ‘tradersharmony.blogspot.com' DEEMS THAT THE SURFER ACCEPTS AND ACKNOWLEDGES THE DISCLAIMERS AND DISCLOSURES.THE INFORMATION PUBLISHED ARE FOR EDUCATIONAL AND INFORMATIVE PURPOSE ONLY AND THE USER/READERS SHOULD TAKE ADVICE OF HIS/HER ADVISOR BEFORE TAKING ANY DECISION FOR BUYING, SELLING OR OTHERWISE DEALING WITH SECURITIES/COMMODITIES OR ANY OTHER INSTRUMENT WHATSOEVER.