iCharts Discussions

[sathya999]

I hope to compile a list and provide this to newbees. So everyone can add, but i will have to recompile the list to give one list of to do things.

New bee to do rules starts with Dont's
1.Do not try to predict market.
2.You have to pay tuition fees to learn trading.You cant be profiting from day one.
3.Do not waste time in searching holy grail. There is no holy grail. Its tempting to keep searching but then we have a life to lead.
4.Full time traders trading 20+ years cant catch tops/bottoms, so dont try to do that.(one of the market maxim is, only fools and liars catch tops and bottoms, so if u hear someone say they did do it everytime, then categorize them accordingly )
5.Dont do, think intraday trading is the way to heaven

Do's
1.Learn chart basics, indicators, fibo,ema's (will add details)
a.Price action (http://www.tradeology.com/priceaction.html)
2.Keep searching and trying for a system , not for predicting market.
3.You will make money by following a system and no prizes for guessing the market.
4.Systems you can look up, (my list)
a.Speculator's system
b.Jo-jo fractual system
c. icharts pull back system.
5.Start with nifty trading, most of the stocks will follow nifty anyway and there are other advantages, which you will understand with time.

[amitkbaid1008]

[prabit]

[sathya999]

Hello there,
If you are new to icharts and trading, then read on.
We will take it in Two parts. First part will be general ramblings, or evrything thrown in, next towards the end of this, will be an organised steps. (There will be many spelling mistakes pls excuse, also if you dont understand something I write google it or ask someone in shoutbox you will get your answer).
1.New to TA
TA- there could be many defintions, many ways to arrive at it,basically you are trying to make sense of present, and expect future price movement. Up or down, so that you make money/protect your money.
But it is not easy or short term course, there are umpteen number of theroies and approaches such as Gann,Elliott, some people observe astrology to predict movement, some others observe open interest, others take Delta thoery, then there is basic TA ofcourse. So with so many options comes the confusion and an everlasting search for holy grail. If you dont belive that people can spend thier life time hopping from one theory to another, then ask people who are in the market for long. So do you want to dedicate your life to learning everything, or you want to stick to money making and gaining knowledge with time.
2.New to trading
What is the purpose of you coming to icharts, is it to be the best TA in the world, is it to be the SB expert, or is it to make money. Decide the aim, this is basic and this is very important, being very good at TA doesnt necessarily make you richer. It is not necessary to be correct in anticipating every move of the market, it is not necessary to predict Nifty to the precise point to make money,many dumb basic tricks will work. So we dont have to try to be TA expert, to make money.So stop searching for holy grail.
Warnings:
a.90%+ of traders loose money
b.Even more % of traders loose money in day trading
c.Dont belive what others tell in SB, remember the % mentioned above.
d.So do you want to continue, if yes, then what is it that you will do differently than others.
What is the edge you have or hope to have
e.No dont ever think that confidence, praying,hoping will work, they wont
3.New to strategies
What is a stratergy - my defn, basically a set of rules or guidelines which tells you , when to enter, when to exit, where to put your sl, hopefully it also tells you risk reward, money management.
4.Looking for good strategies
Google for it, you will find many stratergies, there are too many good ones, you will find many forex websites, filled with stratergies. There are many blogs, by Indian and non Indians, where you can get stratergies. There are many in icharts forum itself, below I have added few stratergies from icharts.
a.Trading pullbacks
http://www.icharts.in/forum/trading-pullbacks-in-uptrends-t74.html
b.Swing trading Speculator
http://www.icharts.in/forum/swing-trading-the-speculator-way-t2230.html
c.Fractual trading system -Jojo
http://www.icharts.in/forum/fractal-trading-system-t2384.html
Another simpler one i Liked was Sanit's flow system.

My point is try out a system like I have mentioned above, that will make money for you. Dont need to know where the hell is market going, so stop searching holy grail and follow a system .
d.Trade management:Speculator
http://www.icharts.in/forum/viewtopic.php?t=3221&sid=42207dde5eb85cd688318b3eb323d9be
5. What is the timeframe you want to trade
Intraday chart, 15 min,30 min, daily etc.. You can choose what you want, but fact is more money is not made in day trading.It is either swings or postional or long term trading.When many full time professional traders cant make money out of every move, it will be folloish to think someone can make money out of every move,
So day trading for most people gives good adrenalin rush not money, dont mistake me its fun, its real good fun, if you want to have fun stick to day trading, if you want boring way to make some money then stick to swing/postional trading. When we are on the topic of timeframes,
you can look at Alexander Elder's multiple time frame trading.
6.Do you have good stratergy,
If yes then
Paper trade it
Try with mininifty or 1 single quanity of any stock, or something similar with less risk
If no
Then get stratergy
If no to both
Then all the best
7.Books
a.Perry J. Kaufman - Trading Systems and Methods is also good. It will give you an idea about
trading system development.
b."Trading in the zone" by Mark Douglas.
c.Alexander Elder's books
d.www.babypips.com
e.www.investopedia.com
g.Google fibonacci trading
h.Read on candlesticks

8Ways to make money in market
Just too many ways, mix and match to your convenience
a.Option traders/writers , who are more interested with steady stream of money, also have bigger pcokets
b.Day traders.
c.Postional traders
d.Swing traders.
e.Trading a setup, for example, trading only wolf wave setup or trading only when market is satisfying a certain creteria.
f.arbirtrage traders
Again there are many stratergies for each of the mentioned items above. What you choose is limited by knowledge,money,personal preference (some people may not be comfortable trading futures and options)

Now we have come to the end of ramblings. So now lets get organized. A trader who is strating out can follow these steps.
1.Understand TA, not complete but you should know the basic components, for this look at item
7 above.
2.Decide on the amount of money you want to make per month (number of points), amount of money you have, what is the kind of trading you like (want to trade every day or few days of month)
For example: you have 10 lakhs, and you can devote full time to market
You can look for a stratergy which can give you 10 points everyday, so
that in Nifty terms is (1000*10) = 10000/day.After that you are free for
the day. Now if your aim is 20000/day then either you change stratergy
/reduce aim.
OR if you have 10 lakhs and can devote time periodically in the day, you
can go for swing trading stratergy which gives you 200 points per
month, so you get 200000/month.
OR you get a perfect setup trading stratergy, that gives you 50 points
only once a month woth 95% accuracy, then wait for that day, trade
4000 nifty options make 50 points, you still get your 2 lakhs.
So instead of us acting like headless chicken running around, picking few
points here, there, sit back, think, evaluate the options, and then only
trade, because Trading is part of life, not life. By running like headless
chicken, around the market, spending all our free time on this, we might
ruin life not only trading life. So do what OSHO said "Do it knowingly"

3.Once you the kind of trading you want to do, select few stratergies, try them, paper trade or trade with minimum risk, like one stock only.
4.By now you would have gained knowledge, and with this if you come to ask help in Shoutbox you will get your help, to complete your learnings (when trading is such a long drawn process of learning, how do you expect someone in SB to dedicate time to you to teach you everything, so the deal is you do the hardwork then ask questions to finish your learnings)

All the best.
(Best part is not many will follow any advice, but take thier own sweet time, mistakes to realise how do they want to do)
Disclaimer
Incase someone does read this.
This write up is not asking you to trade, its just my thoughts, its your money, decide what you want to do with it.Because trading is risky business, you might loose your money here.

[singh.ravee]

Hello Everybody,
I think newbies also suffer from BRASS effect.
BRASS = Buying at Resistance And Selling at Support.
Regards
ravee

[nsinojia]

[Expert]

[amitkbaid1008]

One thing I must say (many may not agree with me)

While testing any system/trading/trading plan, paper trading won't work well as it lacks the adrenalin effect i.e. say when you are losing 10% and still you are not stopped out and every one is crying about more fall. When paper trading you may not panic and hold on to your position and later exit in profit but in actual position you may press the panic button. In other case like when you are in profit or some loss and your SL/TSL got hit you may exit in paper trade but may not exit in actual trade. These paper trading or back testing are good to find strategies etc. but not for developing discipline which quite essential while trading.

So my advice is GO WITH ACTUAL TRADING (if you can afford)