Mis-Conception by the Stock Market Guru Quote "Warren Buffet"

Recently i have read a article written in Economics Times which quotes the lines of Warren Buffet " Rule No 1 is never lose money, Rule No 2 is never forget Rule No 1". With Due regard to his success as an investor in stock market, i disagree to these quotes a little as an Technical Analystic and Discreationary Trader. As every body knows that the stock market is a bussiness of Probability and it can never happen that you always choose the high probability trades and even if you choose always high probability trades then also sometimes they turn against your choosen direction and you are forced to exit. In my view, Loses are bound to happen in stock market and you are going to loose money in these loses. Only thing is that you can recover these loses by limiting your loses and by increasing your profits more than your losses.

Link to the article:
http://economictimes.indiatimes.com/markets/stocks/news/do-not-forget-warren-buffetts-2-stock-investment-rules-top-10-picks-to-bet-on/articleshow/48742320.cms

Happy Trading Ahead!

Preparation Time

Just Preparing myself for the real battle in the battlefield. Getting Prepared in all aspects which i need to fight during my trading session live.

Hoping for a Good Start. I will be starting my trading with one Lot. My Stratgy will be as below:

(a) I will be trtading with one lot only.
(b) Will be Trading on the Fixed DP Points and Dynamic DP Points as well.
(c) My Target will be to gain 20 points initially.
(d) I will always be entering in the Trade with pre-decided Stop Loss.
(e) My Days Exit Point will be 20 Points Loss. Once 20 Point Loss is booked, i will be exiting the day for Trading and will only be watching the market silently.
(f) Continous 2 day loss will be my week stay time. It means if i will book 20 points loss continously 2 days, i will exit the trading for the week and will re-assess my strategy.
(g) I Have a pre-defined checklist made and customized as per my local requirement which i will be following and will also make the required changed in the checklist if required.
(h) i will be trading on dual screen setup

on screen 1 - 3 minute chart will be there which will be my trading time frame.
on screen 2 - 1 minute chart will be there which will be my entry and exit chart. Also the trading terminal will be there on my secon screen.

Best Of Luck and Happy Trading!

21 Aug 2015

MARKET OPENS WITH GAP DOWN ABOUT 100 POINTS. IT INDICATES THE EARISHNESS IN THE MARKET. MARKET TRADED IN THE RANGE FOR QUITE A LONG TIME.

WENT SHORT @ 8273 ON BOF OF DAY HIGH AND FAILED TO CONTINUE THE BO.

KEPT SL @ 8285 ABOVE THE SIGNAL CANDLE (INVERTED HAMMER)  HIGH - 8278.

COVERED POSITION @ 8248.WAS EXPECTING SUPPORT AT SWING LOW OF LAST PIVOT POINT (A) AND THE CANDLE. 

MISSED THE LONG ON BREAKOUT OF DAY HIGH. AS I WAS EXPECTING THE BOF TO HAPPEN AS PRICES SHOWS BEARISH STRENGTH. WHEREAS BO HAPENS TO BE SUCCESSFUL

18 Aug 2015

NIFTY OPENED GAP UP WITHIN THE PREVIOUS DAY RANGE. THERE WERE THREE LEVELS WHICH ARE OF INTREST JUST AFTER OPENING.

1. PDC

2. PREVIOUS DAY SWING HIGH NEAR TO OPENING

3. PDH

NIFTY MOVEDUP AND MADE A RANGE HIGH @ 8528. THE LEVEL WAS IMMEDIATLY REJECTED BY A BEARISH CANDLE. GENERATED A IRH- DYNAMIC DECISION POINT

NIFTY AGAIN CAME TO TEST THE LEVEL OF IRH AND THE LEVEL WAS REJECTED BY MAKING THE INVERTED HAMMER. ALSO IF WE DO THE VOLUME ANALYSIS THEN AT FIRST REJECTION THE VOLUMES WERE QUITE HIGH AND IF WE SEE VOLUME AT BULLISH LEG JUST BEFORE THE SECOND TEST, THE VOLUMES WERE DIMISHING AND LOW VOLUME WERE SEEN. WHICH INDICATES THE WEAKNESS OF THE BULLISH SIDE. MADE A BOF IN 1st TST OF IRH. SHORT OPPORUNITY AS SHOWN IN FIGURE.

AFTER 1st BOF OF RN-8450, PRICES BOUNCED BACK AND AGAIN CAME BACK TO TEST THE RN-8450. BOF OCCURS AT 1st TEST OF RN-8450. ALTHOUGH IT WAS A LOW PROBABILITY TRADE AS CURRENT BIAS WAS BEARISH. ENTRY SIGNAL OCCURS AT BOF OF RN AT 1st TST.

Starting Day Statement

Hello Everyone

I am a newbee and a silent follower of "http://niftynirvana.blogspot.in" who is following the Decision Point Trading Method since last one year and now i am going to start dummy trading for next few days to check my progress of knowledge in this aspect. I will also be using the amibroker bar replay option to have a dummy trading session and also will be doing dummy trading in real market. I am the follower of SMART  TRADER who has guided me on this path and always being there to share his knowledge and experiance. I and am sure many others also will be thankful to him for his precious guidance and knowledge.

I am also writing this blog for the below mentioned reasons:

(a) So that in future i can analyse my progress and if i want to look back in past, the data should be available.
(b) I will be sharing my experiances so that in the progress path, anyone else may able to guide me when i will be wrong.

HAPPY TRADING DAYS AHEAD!