Friday, June 15, 2007

No major updates for next 3 months

Have to pack up stuff in germany etc.
Will be busy, so no regular updates. Just erratic posts if/when I get time.


Nifty 4100 support 4200-4240 res
can touch 4400-4600-4900 if tech rallies.

otherwise trouble
downside??
4040? 3990/3960/3900.... 3556? i don't know
haven't seen any major downside below 4100 yet.

Go back to old post on risk/reward @ 4100 etc.
elwave might be signalling buy setups now

I don't really care what nifty does, i am investing in my midcaps
Will short fno every day if anything looks weak
but I will keep accumulating in delivery.
prithvi 265.. p.e < 6
same with aftek
thats all i can see right now :).
When I see low p.e with high growth I usually think 100% in 1-2 years.

Maybe I should wait for results to buy more.. perhaps some bad news cooking hence the insane weakness.
Either that or market is just being stupid as usual.

Thursday, June 14, 2007

Favorite TF

Raja: dhiraj sood: sir not clear which time frame u feel easy for day trading
dhiraj sood: 10.20 .30 hourly
Raja:
dhiraj sood: ji
Raja: start with weekly divide by 5 into infinity
i get this question a lot....
this is basic elder/fractal market theory
Raja: once again, favorite tf?
start with weekly, divide by 5 into infinity
got it??
Raja: 1 week, 1/5 week=1 day , 1/5th day=65-70 mins, 1/25th day..............13-15 mins....
and u can go as low as u want as long as you RESPECT the higher tf trend
because the higher tf is the 'baap/father/parent' of the smaller tf.
it owns the smaller tf

The child can try to rebel but usually gets disciplined at certain areas :)
Read Alexander Elder...

Wednesday, June 13, 2007

Totally random blurb :)

When you use ewt too much
you start seeing 5-7-9 everywhere
:)
The ability of an ewt expert drops significantly when he/she is not able to see the simpler 5-7-9/3 structures
so I suggest studying elder for ema following
and neely for a more elaborate list of structures/rules .


http://scientificamerican.com/print_version.cfm?articleID=00010347-101C-14C1-8F9E83414B7F4945

Chunking Theory
In the 1960s Herbert A. Simon and William Chase, both at Carnegie Mellon University, tried to get a better understand-ing of expert memory by studying its limitations. Picking up where de Groot left off, they asked players of various strengths to reconstruct chess positions that had been artificially devised--that is, with the pieces placed randomly on the board--rather than reached as the result of master play. The correlation between game-playing strength and the accuracy of the players' recall was much weak-er with the random positions than with the authentic ones.

Chess memory was thus shown to be even more specific than it had seemed, being tuned not merely to the game itself but to typical chess positions. These experiments corroborated earlier studies that had demonstrated convincingly that ability in one area tends not to transfer to another. American psychologist Edward Thorndike first noted this lack of transference over a century ago, when he showed that the study of Latin, for instance, did not improve command of English and that geometric proofs do not teach the use of logic in daily life.

Simon explained the masters' relative weakness in reconstructing artificial chess positions with a model based on meaningful patterns called chunks. He invoked the concept to explain how chess masters can manipulate vast amounts of stored information, a task that would seem to strain the working memory. Psychologist George Miller of Princeton University famously estimated the limits of working memory--the scratch pad of the mind--in a 1956 paper entitled "The Magical Number Seven, Plus or Minus Two." Miller showed that people can contemplate only five to nine items at a time. By packing hierarchies of information into chunks, Simon argued, chess masters could get around this limitation, because by using this method, they could access five to nine chunks rather than the same number of smaller details.

Tisco wolfe wave









Another wise quote which i like by balaji.
The trend is your friend until it 'bends'
The wolfe wave is a flexible pattern that can be used in both trend continuation/reversal scenarios (wolfe just reverses the ultra short term trend could either be with or against various trends of various degrees in various timeframes :)).

Go talk to a good trader.
First and foremost a good trader is an independent thinker.
A trader should be able to act in uncertain times. 50:50 or even worse.. hence a trader focuses on techniques like reward/risk to enhance returns.

Today's wolfe wave trade given short under 608 futures sl 614
target 596/590
subsequently targets were readjusted to account for risk management rules
1x risk at 602 cover half 2x risk at 596 cover full.


Raja: market is expected to stay range bound for god knows how long
i suggest everyone study some counter trend systems/patterns
http://www.traderji.com/technical-analysis/13372-wolfe-wave-rajas-knowledgebase.html

sent early morning
Raja: tisco sort of wolfe wave
3 day high 614.7 sl in futures res 608 target 600-595 area. lets see

Raja: gaya tisco
shorted on way up

Raja: now cover on way down 600-595 zone

Informed investing

everyone on yahoo at some point of time
will give wisecracks like
intelligent investing
pitfalls of emotional investing
someone will go quote buffet or soros or seykota and what not.
i have a query:
how many people have invested anything in this current decline?
even as nifty is declining , surely the fundamental value of a stock doesn't change?
its easy to talk big
tough to act when the market is getting trashed daily :)
90% of people on yahoo? trend followers/crowd following members of the herd.
I've been buying tcs, aftek, prithvi, gokex, litl.
Planning to buy srf soon, maybe jstainless.

and shorting in fno
suzie yesterday
tisco today
Won't short nifty because i don't like the idea of shorting a discount.

I have a whole list of funda stocks that needs to be sorted thru.....
GVK Power Infra
United phosphorous
WWil
GDL
Amtek India
Opto circuits
Jaiprakash associates
Mindtree
Nagarjuna Construction
Kalptaru power transmission
Elecon engineering
Moser Baer
Birla Corp
Kesoram industries
Prithvi information solution-----5.61
Gujrat Apollo industries- 8.82
Esab India –13.93
Subex azure
Hotel leela venture
Cesc
Marico
Jain irrigation
Jindal saw
Hikal –17.26
Electrosteel casting
Great offshore
Sintex India