Am I doing right...

My experiences... At the beginning I started believing all the analysts and recommendations. It did not work, the stocks which were daily going up , behaved completely opposite as if it was waiting for my entry to happen....

Then started doing fundamental analysis and found out my own magic no. Interest and Reserve adjusted rate of Return. I felt as if I am the master now. That did not work always. Started wondering Sometimes my best fundamental picks not performing due to bad technical entry points. When I am fed up with that and sold few days after the same stock used to zoooom.

Then Started reading about Tech Analysis and felt this is the best thing to do no need to do fundamental analysis. The dojis and harami candles MACD, RSI seemed to tell everything I wanted. That too did not work. A combination of all these things done along with the market sentiments only works...

I have a combination of short, medium and looonnnggg term bets. If the price is less by 25% of the average PE ( say 2 years ) x Trailing EPS; that qualifies for attention, provided the PAT and Topline Growth is consistent. Then I wait for entry till the MACD in the weekly chart turns favorable. After it achieves the mid target, I take the capital out and let the profit to run long. Till i enter again. This process populates my PF. When my PF as a whole reaches new high I will sit and close all my laggards... Am I doing right ??????

 

Advise from seniors pl

 

@yembee sir,

In my view Technical Analysis is give Price action with Volume support and it is simply " market psychology
of traders and investors trade actions " in a chart ... when they want to sell and when they want to buy in price and volume based ...it is a Science and also an Art ....
always it's base is past facts .....so i put some questions sir : these are all only for your clarity purpose sir

1. First are you a trader ?( Day Trader / short term / Medium Term )
2.you said " due to bad technical entry points " , are you learn any thing from your faults ?
3.your second statement "The dojis and harami candles MACD, RSI seemed to tell everything I wanted ,
That too did not work " what is the cause? are you work on those indicators and candle sticks
4.important point is are you back tested those parameters with past data at least 1 year data ?
5. are you having emotionless trading system ?
6. first what do you want to know from that indicator ?
7. your entry is based on indicator or price movement or candle stick ?
8. you place stop loss order or not ?
9.you know your risk apatite well or not ?
10. Do you back test what is the biggest draw downs with your trade system ?
11. with your time scale weekly is a big time frame ....with that are you able to do short term
trading or medium trading with comfortable or not ?
12. are you test technical trade system consistence profitability ?

these are important questions sir .... these are all for your introspection purpose sir

ALL THE BEST SIR

 

Dear Rama Murthy Sir. First of all my regards and well wishes to you. I have been observing your views and opinions which clearly demonstrate that you are a Knowledgeable value investor. Let me introspect your questions and answer homestly....

1. First are you a trader ?( Day Trader / short term / Medium Term )

We are part of JhunJhunwala Fan Club... Is he an Investor or Trader. I think both. I have three trading accounts, one for Long term Investment one for swing Trading and one for Short term trading / Hedging

2.you said " due to bad technical entry points " , are you learn any thing from your faults ?

Yes I learn from every one of my mistake. I did extensive fundamental analysis and at the end with out referring any chart, if i find a stock is quoting below its fair price I used to buy all by market orders. Thats what I call bad technical entry point


3.your second statement "The dojis and harami candles MACD, RSI seemed to tell everything I wanted ,That too did not work " what is the cause? are you work on those indicators and candle sticks

Then I studied books on TA and they profess All the fundamental changes expected stellar results / news first known to the Insiders and it reflects on the Chart so no need for any FA. I acted on that and failed frequently


4.important point is are you back tested those parameters with past data at least 1 year data ?

I have F Charts Pro and data for the past 10 years. I used to back test too.

5. are you having emotionless trading system ?

No. I am human with all the mortal desires both Greed and Fear


6. first what do you want to know from that indicator ?

I shortlist Fundamentally good companies ( Say Atul Auto – Now it is the best entry Point ) and the indicators to arrive at a favourable entry point


7. your entry is based on indicator or price movement or candle stick ?

A combination of all

8. you place stop loss order or not ?

Stop loss for only short term trades

9.you know your risk apatite well or not ?

I know very well I do not need the money I hve kept aside for Trading. If it goes zero also I will feel bad but It will not affect my living

10. Do you back test what is the biggest draw downs with your trade system ?

I do not understand please.


11. with your time scale weekly is a big time frame ....with that are you able to do short term
trading or medium trading with comfortable or not ?

Short term Trade I use 30 min Chart, Swing Trade Daily EOD chart and Medium Term use Weekly Chart


12. are you test technical trade system consistence profitability ?

My Zerodha Quant says I am profitable most of my Trades...

Thank you very much again

 

@yembee ji

biggest draw down means in back testing biggest single lose per day .....
and in my personal view technical reflects all news or any other FA in the chart only ....
trader or investor have to achieve "Emotion Less "method that is good aim ... trading should not be like a "WAR " ...

ALL THE BEST SIR

 

Rama Murthy Sir. Thank you very much for your explanation.
Is it possible to remove emotions from our Trades ?
I think I have to mature further to achieve that...

Your comments on my other replies please...

 

yes it is possible

 

back testing will always give you favorable results on historical data, if the strategy works wonders in real market in any given situation - you are doing it right

PS - I'm for learning the emotionless trading.