Tag Archives: #Technicals

Shareware – When Everyone has Access

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Hmmmm…

…what is…

…and what isn’t?

Is technical analysis 1.0.1 still valid?

Why has this question arisen?

What is it about shareware?

Basics never go away.

One always falls back to basics.

Having said that, basics can be made to appear a certain way.

Why?

So that a newbie recognizes a pattern and acts.

Does that render the shareware useless?

NO.

One learns how to use shareware.

Combining a basic candlestick pattern with volume and open interest, for example…

…renders the shareware back as useful.

However, we are now moving in the sphere of technical analysis 1.0.2+ .

Moral of the story?

Don’t believe what basic shareware is telling you as is.

Back up your observation with multiple factors.

Aligning combinations?

Sector behaviour?

Broader market?

Market rhythm?

Cycle?

Domestic sentiment?

International what have we-s?

Psychology at play?

Get a feel for the goings-on.

It’s ok to pay for market software and set it up with multiple edges, rather than use plain vanilla free- or shareware.

Why?

Edges…

…translate into money.

Even an alert is an edge.

20 alerts are 20 edges.

Freeware not allowing any alerts?

Well, rethink, Mr. Scrooge.

Spend on quality, to make multiples later.

Let’s get out of the freebie mentality…

…since we wish to strike it big with the markets.

Wishing all lucrative market play!

🙂

Nath on Trading – IV – We’ve got Stamina

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61). We’re able to take many, many small losses, without flinching.

62). Only that sets us up for the big wins.

63). We don’t second guess our stops.

64). In fact, we want the stop to hit. As in, hit me, if you’ve got the *****.

65). When the trade moves in our direction, we let it. We’re doing other stuff.

66). When the trade moves against us, we let it. We’re doing other stuff.

67). That’s because we fully understand the function of our stop. It will take us out of the market, whether in loss or in profit. It’s dynamic, you see. It moves with the market as per the definition provided by us while punching in the trade.

68). We’re not afraid that our stop could be jumped. Can happen, in a panic. Hopefully, our technicals will have placed us in the right trade direction before huge and fast moves. It comes to mind that this kind of move occured at least twice in the last six years, once with the swiss franc, and once during Brexit. If we start worrying about such one-offs, we won’t trade at all. 

69). We look at the technicals, and we listen to what they’re saying. The trend is our friend. We trade with the trend, either on fresh highs (fresh lows) or on pullbacks, depending upon the conditions.

70). This is trading, so I personally don’t look at fundamentals. However, cook your curry the way you like it.

71). We might zero into tradable underlyings with screens or searches, but…

72). …we eyeball into final trade selection.

73). Yes, the chart needs to look and feel just right. All but the one tradable entity are rejected by the look and feel of the chart. The one remaining is the one we trade. If none remains, we don’t trade. 

74). Price is king. We’re into price action.

75). Indicators only indicate. Price does the talking.

76). What the price is saying will reflect in the indicator, but with a time-lag.

77). Do we want this time-lag? I don’t.

78). Thus, price action it is, for me. However, everyone is looking at the same price.

79). Therefore, we need to think slightly out of the box, to make money.

80). Edge + out of the box thinking + stamina nails it.