Giving Means Reciving

WHy Nifty certainly Fell Down From the Day High!!

a) Graph Nifty Dec 11th(Intraday)
b)Graph Nifty 11th Dec,weekly

The Gap Up Opening gave confidence among bulls and many day traders and it was stagnated for a while in the range bound between 5160 to 5173 and certainly jumps to the high 5188 and fell deeply to 5096 and lately went down to 5081.55. (Strong Support at- 5080.00)

'

Why this certain Fall ?

Many says the weak IIP data.is it so!!!

In my view,it is not only because of that..it may be a coincidence ->The nifty touched the third top (Triple Top in "5186" level) and fell from there.(Almost 100 points dropped down) One another reason could be the operaters who operates as and when they wish and decides the direction of the market to their favour. ( Would have Gained great milage out of it today).

I need to know the facts behind..if anyone have some idea...Share..Let me learn.

Any how, it is all part and parcel of this Business.

****

Have a great week End

Trading Rules That Work (Golden Rules)

1.Always live with hope and ready to fight for a success consistently

2.All your Entries must have a statistical edge and Reasoning

(Expect momentum calls)

3.Patience and discipline in all your trade from entry to exit.

4.Be a jellyfish (swim along with the current flow)

5.Trade only scripts that is easily liquidable (e.g:- A Group shares)

6.Avoid trading in the opening and closing.Because the Market Behave erratic.

7.Know your exit points when you open a new position (and stick to them.)
8.When in doubt, reduce position size by 50%

9.Limit losses to 2% of total equity for any single trade

10.Start each day with a clean financial and emotional state of mind

(Be Neautral and adaptive to the present flow of the trend)

11.Do not take too many positions at one time/ Simultaneously.

12.Always be ready to accept and good/bad news which may favours/de-favours.

Nifty -Open intrest

The open intrest for Dec'2009 Nifty Future is shown here in this above graph.

What it indicats really is the 5200 and 5300 Call option added more and showing greater strength than the Put Option. So the market tend to move to the upper side.The nifty having strength to go another 200 (+/- 50 points)points from the current level

What Open Interest Tells Us

A contract has both a buyer and a seller, so the two market players combine to make one contract. The open-interest position that is reported each day represents the increase or decrease in the number of contracts for that day, and it is shown as a positive or negative number. An increase in open interest along with an increase in price is said to confirm an upward trend. Similarly, an increase in open interest along with a decrease in price confirms a downward trend. An increase or decrease in prices while open interest remains flat or declining may indicate a possible trend reversal.

NIFTY FUTURE -TIPS

Nifty intra day graph on 10th Dec shown here.The stockastics is clear like snakes roll with one another.The market was a kind of stuck within the range and was really tested all traders patiance. Script wise there many scripts gone up.Eg- Bharati Airtel,Rcom,Satyam,Idea and many.

Now many of the world markets index showing Green trend.There is no bad news that defavour the market sentiments of tomorrow.So there is a possibile uptrend may happen.

Tomorrow Nifty can have more swing and overall have uptrend that favours the bulls.

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NIFTY today ->pivot 5121.90
S 2-5060.05
S 1-5097.30
R 1-5159.15
R 2-5183.70

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a) The market opens above the pivot level be cautious about your shorts,the market may tend to break out R1 and R2 levels.

b) if , The market open down/Less than the pivot you may go short with strict stop loss at "5146.45"(previous day high)


The real support lies in '5080' level.

The 20DMA is '5072'
So keep this as your Stop Loss for your Long.

NIFTY TODAY

Today nifty seems to be one more Range Bound Movment.The graph indicating the above is clearly showing this fact.The market opens just a marginal discount(Many were expected Gap Up opening) So the day is going to witness either a choppy trade or Range Bound.

We have to look out the Dollar index for any erratic movement / volatality in the Market.

NFTY-Today levels

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S 2-5060.55
S 1-5086.25
Pivot-5116.30
R 1-5142.00
R 2-5172.05

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The market should sustain above today's pivot i.e -is 5116 level for bullish trend and it has to cross-over '5162' than only the upmove is possible.There is a hurdle in 5184 and 5208...cross over of these levels will bring a fresh buying and the market would possibly Uproar.

The market is as of now trading less than the pivot and i am expecting it will cut 5080.00 level and when it cut 5062.00 (20Dma) with volumes ,it will create panic among bulls and that may faours the Bears.

Asian markets are still in red and that shows strength for bears. Today bank nifty showing some weakness...is there any bad new's?? we have to look out this too. Agressive trader can go short around 5120 levels and keep 5127.00 as a strict stop loss.You may possibly gain 40 -60 points in intra day .

Jan Sramek- The Real motivator for us

Goldman Sachs is like the military:- It gets people while they’re young and malleable, breaks them, and remakes them in the firm’s own mold. Eric Mindich, for instance, started working at Goldman Sachs in high school, made partner at 27, packed it in for alleged retirement at the ripe old age of 36, and then went on to start a giant hedge fund. Unfortunately, the world of finance, and Goldman Sachs in particular, has been too busy apologizing and schmoozing to trot out their financial Doogie Howsers recently.

Enter Jan Sramek, a 22-year-old (!) Czech Republic–born, London-based trader for Goldman Sachs. At an age when most people in finance are futzing with Excel spreadsheets, and most other people his age are sitting around watching Days and taking bong hits, Sramek is entrusted to run millions of dollars in trades. This week, he was named in the Financial News list of 100 Rising Stars, a kind of 40-under-40 list for the continental financier set. He’s the youngest-ever person to make the the list (and that’s counting his nomination last year, when he was still at the London School of Economics), and his résumé is already exhausting.

Here’s a portion of FN’s writeup:He achieved 10 A-grades at A-level, played handball for the Czech Republic and won £100,000 worth of scholarships to fund his

studies. While at university, he worked as an intern at Goldman Sachs, Marshall Wace, AKO Capital, BarCap, Deutsche and UBS, founded a social network and a careers website, co-wrote a motivational book entitled Racing Towards Excellence, and still managed a high first-class degree from the London School of Economics.Also, it should be mentioned, Sramek runs marathons, doesn’t smoke or drink much alcohol, and wants to get married and have six kids. He counts mega-hedgie Peter Thiel as a role model.

Sramek isn’t unaware of his Pinky and the Brain credentials; he’s one of those geniuses who has no trouble admitting it: His Twitter profile, for instance, describes him as a “visionary,” and much of his book Racing Towards Excellence, a section of which was obtained by Daily Intel, is a chronicle of his overachievement. In a chapter titled “A Leveraged Life,” Sramek describes growing up in a one-room house in Moravia in a village of 1,000 people. His father, a mechanic, and his mother, a schoolteacher, encouraged him to study at an early age, and Sramek started his first company, a jobs site for IT professionals, at 13. In 2003, he won a scholarship from George Soros’s Open Society foundation to Cambridge. Later, he transferred to the London School of Economics to focus on finance.

In truth, however, Sramek has little regard for the plodding benchmarks of financial achievement: “3 hrs [sic] of classes today were an utter and complete waste of my time,” he tweeted recently.

“Academic finance is largely nothing more than intellectual masturbation.”

Sramek would rather focus on his long-term goal:

getting rich. He’s already planning out his future in philanthropy; he told an interviewer he wants to focus on education, which would require him to amass a significant amount of wealth: “I would like to once be in a position where I can do something about it, and do it from a position of power,” he said, adding that wealth was necessary “to get the required leverage or to try and do things differently.”

At 22, Sramek has a world-weariness beyond his years, and a penchant for aphorisms. In his book, he says he would send this Ayn Rand quote to his “younger self”: “The question is not who is going to let me; it’s who is going to stop me.”.

When asked by The Gateway, a website that bills itself as “The Financial Times for students,” for advice to up-and-comers, Sramek said, “See everything in terms of risk-reward, almost like a trade. Determine your entry, exit and stop loss. Know when to get out.”

Such cocksure arrogance combined with youth has already caught the attention of the media: Back in March, CNN invited him to talk about the G20 conference on air.

Afterward, Sramek tweeted:

“Just spent 45mins defending capitalism against 4 leftish postgrads. CNN’s editing may make me look like a son of Ayn Rand and Gordon Gekko.”We can expect to see more of Sramek. As he puts it in his memoir, his “own sprint towards excellence [is] barely out of the starting blocks.” That is, unless Goldman Sachs, whose executives shun publicity, puts the kibosh on the formation of his personal brand. But then again, he may not let them stop him.

Article Source:-http://letwedo.blogspot.com/

Quality Habits for Traders

12 Habits of Highly Successful Traders

1.Preparedness

2. Detachment

3. Willingness to Accept Loss

4.Taking Controlled Risk

5. Thinking in Probabilities

6.Being Comfortable with Uncertainty

7.Consciousness of Abundance

8.Optimism

9.Open Mindedness and clarity of Thought

10. Perception

11.Courage

12.Discipline

Nifty - Pre-Market study for '9th december 2009'

The market was very choppy in the morning and every one were expecting it will fall further...
But it didn't happen.,instead the Nifty index shot up sharply.(Actually Gave a Chance in between to cover/close shorts around 5070 level.,if one would have sold 5100 and above levels.)The graph shown above is witnessing the same.

Today NIFTY closes at 5147.95 (1.60% up).

This is the highest closing of 52 weeks.

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open- 5057.10

high- 5162.80

low- 5057.10

close- 5147.95

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The global cue's seems to be Negative and let us wait for the world market trade today(tonight),especially Asian market.Since the market today closes in a higher level the DEMA is raised and that indicates Gap Up opening is very much possible.

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Pivot-5119.80

S1 -5087.05

S2-5026.15

R1-5180.70

R2-5213.45

20DMA-5058

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My personal view is --> Be a witness for tomorrow market and trade with extra caution. or Avoid short. Those who are in long can book partial profit to minimise your risk.

option -1

if the market opens in a Gap Up > exit all your longs,because any time the correction is expected (as per many experts of the world predicted the markets are matured enough for a big fall/correction.)so keep this in your mind and do not be a aggressive trader.

option-2

if there is a Gap Down > Cover all your shorts and be a witness.

Do not Jump /Rush for a fresh shorts...Let the trend decides unto itself and come to an end,from where we can plan a cool trade.

Tips for a Good trader

There are many traders, they simply have the habit of trading in all markets...,what ever the market situation the markets are in.(worst/best/choppy) This habit many times lead them to the wrong path and need to fight against the flow/current/trend.

Be a persistent Trader

What i am here trying to say / point out unto you is :-

Just keep awake yourself about the present market trend , be a observer for a while..Nothing wrong being patient and waiting for the right movement(eg:- How the crane waits to catch a fish in the floating water )when you are calm and confident about the trend make out your decision,that will do. One need not to trade all the times:which is not nessary.when there are few situations like this ,you only have to watch out and remain a witness.i wish don't be the victim of the loss, just be wise and Let this moment pass..hope for the better and better opportunity.This is what the quality's of the succesful trader.

Wish you a happy trading.

....Will update further in the Morning (9th,dec).

Market Jumps Up

Nifty gone up The reason for this shot up in a very short while could be >The US futures shot up after a gap down in Dollar index.As i stated earlier the bull take charge now...

All stoploss would have triggered by now.it is the right time for "SL&R"