Don't Be the Kid at Candy Shop [Educational Post]
Updated
Hi Friends,
I have left the above Nifty chart without proper description on purpose. Just take a look at the chart, if you can understand why those lines are drawn, its fine. If you don't then also its perfectly fine. But whats not fine was,taking trade decisions without knowing what those lines where.Do you think complex systems are better than simple trading systems ? That is a myth that only complex trading systems make Money, No Not at all. Simpler the system, the easier it becomes to follow the plan with discipline.
Regarding above chart its just couple of Bull's (B) & Bears (B) Elliot Waves combined with Trendlines, there is nothing much and we use it for taking a trade decision, the area within curve mentions the Island reversal pattern. So its totally upto us to decide which B will win and determines the direction of Nifty. But I believe, both B will be taking rest till the Fed meet gets over (Sep 20&21), for us it will be by Thursday (Sep22), till then Nifty may range within support / resistance without proper direction and having some wild swings signalling false breakouts. Enough of explaining the above scenario I believe, bcos I planned this post to be more than normal analysis...
There are many authors in tradingview, using many strategies, so if you get confused or don't get the reason why the trade was taken in particular direction feel free to ask the authors of the post, Why & How ? Unless, you ask questions n learn, you can't learn completely, thats why comment sections are for, to discuss your views/opinions even if you are completely newbie trader. No one will make fun of you, if you feel that your question is simple or silly, Never mind just ask Me, I will clarify your doubts, I assure. See, I don't gain anything from this, its all for your benefit n to protect your hard earned Money.
Kid at the Candy Shop & Trader without Plan :
Consider, you are telling a kid that you will buy whatever candy he/she wants , they may tell some candy name. Now, take the same kid to biggest candy shop which is filled with tempting and mouth watering cakes, candies and ice-creams and ask what the kid wants ? We assured we will buy whatever the kid wants, Now the Kid will get confused and will be spoilt for choice about what to choose and ends up buying most of the candies, cakes n icecream's which affects the kid's health directly {cold or fever}.
In the same way, when we begin to trade, we either have one aim I need to live little better or make some small amount of Money. But after entering the market we will be spoilt for choices available at our discretion to trade from Stocks, Futures, Options,commodity,currency, Intra, Scalp,Positional and like the kid mentioned above, we trade everything comes our way from pennystocks to Forex, Suzlon to LT, SBI to Banknifty,without any second thoughts imagining that you can make money, but end up losing your capital. If you do like that Kid @ candy shop, You will go Broke. That kid spoiled his health and you will spoil your Wealth. Yes, its harsh, but truth to be told friend, Never Be that Kid at Candy Shop !
I have left the above Nifty chart without proper description on purpose. Just take a look at the chart, if you can understand why those lines are drawn, its fine. If you don't then also its perfectly fine. But whats not fine was,taking trade decisions without knowing what those lines where.Do you think complex systems are better than simple trading systems ? That is a myth that only complex trading systems make Money, No Not at all. Simpler the system, the easier it becomes to follow the plan with discipline.
Regarding above chart its just couple of Bull's (B) & Bears (B) Elliot Waves combined with Trendlines, there is nothing much and we use it for taking a trade decision, the area within curve mentions the Island reversal pattern. So its totally upto us to decide which B will win and determines the direction of Nifty. But I believe, both B will be taking rest till the Fed meet gets over (Sep 20&21), for us it will be by Thursday (Sep22), till then Nifty may range within support / resistance without proper direction and having some wild swings signalling false breakouts. Enough of explaining the above scenario I believe, bcos I planned this post to be more than normal analysis...
There are many authors in tradingview, using many strategies, so if you get confused or don't get the reason why the trade was taken in particular direction feel free to ask the authors of the post, Why & How ? Unless, you ask questions n learn, you can't learn completely, thats why comment sections are for, to discuss your views/opinions even if you are completely newbie trader. No one will make fun of you, if you feel that your question is simple or silly, Never mind just ask Me, I will clarify your doubts, I assure. See, I don't gain anything from this, its all for your benefit n to protect your hard earned Money.
Kid at the Candy Shop & Trader without Plan :
Consider, you are telling a kid that you will buy whatever candy he/she wants , they may tell some candy name. Now, take the same kid to biggest candy shop which is filled with tempting and mouth watering cakes, candies and ice-creams and ask what the kid wants ? We assured we will buy whatever the kid wants, Now the Kid will get confused and will be spoilt for choice about what to choose and ends up buying most of the candies, cakes n icecream's which affects the kid's health directly {cold or fever}.
In the same way, when we begin to trade, we either have one aim I need to live little better or make some small amount of Money. But after entering the market we will be spoilt for choices available at our discretion to trade from Stocks, Futures, Options,commodity,currency, Intra, Scalp,Positional and like the kid mentioned above, we trade everything comes our way from pennystocks to Forex, Suzlon to LT, SBI to Banknifty,without any second thoughts imagining that you can make money, but end up losing your capital. If you do like that Kid @ candy shop, You will go Broke. That kid spoiled his health and you will spoil your Wealth. Yes, its harsh, but truth to be told friend, Never Be that Kid at Candy Shop !
Trade active
Always have answers for below questions before trading,(i) Why I choose this scrip ?
(ii) Which direction I should trade ?
(iii) Whats the reason behind the trade ?
(iv) Where to Enter & where to Exit ? {You must know your Entry n Exit before taking any trade n Should never alter that plan }
(v) What is My Risk ? { How much I can lose is better question, than how much I stand to gain }
Unless you know answers for above questions,never trade. Authors will post ideas, so you will be spoilt for choices like that Kid, but you can't be sure what their plan or reason behind or how they manage the trade or even whether they really trade whatever is posted. So do your own analysis and if its synchronised with the post take it as additional point to validate your trade decision.
To Finish off, Don't Be the Kid at Candy Shop !
Feel free to leave your comments / opinions...
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