iCharts Discussions

[svkum]

Short term stock market behaviour is quite irrational. Fundamentals play only a limited role in the price behaviour.Suppose an operator or an FII buys a beaten down share in huge quantities. Day traders might sell the shares thinking of the weak fundamentals of that share.However by the time trading ends the day traders will be forced to cover their short positions at a much higher price because there will not be any suppliers.Thus short term behaviour of prices has no relation to fundamentals or technicals.Similarly resistances and supports are of no use if some powerful people are bent on distorting prices.Supports and resistances work only in infinite markets where a particular group or individual can not control a counter.In India dabba operators are a powerful body and they will be able to change the price behaviour according to the positions they desired. This is the main reason why day traders lose money in day trading.However, retail traders are so irrational that they think that they could out wit all these powerful bodies and make money.Of course it is easy money, if one can make it. However

TAKEN FROM A GRP DISCUSSION

SV KUMTHEKAR

[rameshraja]

Hello sir

Day trader never cares about fundamentals. All day traders trade last only only for a few hours. For him Reliance = IFCI or vice versa.

I differ with your view of support and resistance also. The very basic technical analysis of financial market is all about support and resistance only. We only try to use various tools in TA study to exploit to the optimal level for high probablity trades.

Regards

C T RAMESH RAJA

[mayurnsk]

Hello svkum

Trading is believing in self. Trading is nothing but psychological reaction to the price.




Regards
Mayuresh Jahagirdar
Nasik
Maharashtra