Saturday, August 25, 2012

Weekly Review - 25.08.2012

20 GOLDEN RULES FOR TRADERS

1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.

2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.

3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.

4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.

5. Don't buy up into a major moving average or sell down into one. See #3.

6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.

7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.

8. Trends test the point of last support/resistance. Enter here even if it hurts.

9. Trade with the TICK not against it. Don't be a hero. Go with the money flow.

10. If you have to look, it isn't there. Forget your college degree and trust your instincts.

11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel.

13. Avoid the open. They see YOU coming sucker

14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.

15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.

16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.

17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.

18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

19. Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight.

20. Beat the crowd in and out the door. You have to take their money before they take yours, period.

Are You an Emotional Trade :-

A Picture Better than 1000 Words as given below



Greed and Fear = Emotions

The fear factor will increase after every losing trade and the greed factor pops up after winners.

Very few traders are content with the results of every trade, they always think they could have won more on winners and reduced the amount on losers.

Fear and greed, will play extraordinary tricks with your emotions but only through self control and discipline will you be able to control them.

More Greed will lead to Uncontrolled Limits means ...


>>> NIFTY - DAILY CHART <<<


> Click the chart to see in full screen < I think no need to describe the attached Daily Chart - Retraced Exactly 78.6% at 5446. An IHS pattern Break out followed by a break down on trend line doubts the IHS break out - Possible failure may advantage to bears soon if Price comes below the Break out Line. Important Support at 5350 & 5288. Resistance at 5446.
>>> NIFTY - INTRADAY CHART <<<



>Click the chart to see in full screen<


Intraday Chart clearly shows the Trend line break down and shows how important 5377 is and possibility of filling gap mentioned on chart.

>>> IFCI <<<



>click the chart to see in full screen <


One should remember that I have given IFCI on weekly Chart few weeks before and cautioned about H&S on Chart. So friday triggered the Selloff and fell nearly 16% in a Single day. Now as per H&S IFCI should reach for a Target of 23-24 very soon.

>> PERFORMANCE <<


>>click the above picture to see in full screen <<

Above performance is upto 24th Aug-2012. Those who wish to Join with me - can ask me the details on my email id krish_venkatesh@yahoo.com.

Above performance is based on only Futures - Levels are provided on Cash basis. Both Entry and Exit will be advised.