Complacency & Exhaustion in trading

Complacency When I think of complacency two major things come to mind: Often a traders biggest loss comes after a string of winners.  This is well documented and suggests to me that complacency is present.  The ‘every swing I take is a home run feeling’ or the ‘I can do no wrong feeling’.  Sure enough … Read more

Nifty outlook for May Series

FII’s bought 49962 contract of Index Futures worth 1710 cores with net OI decreasing by  2 lakh contracts. So on expiry day FII’s squared off most of shorts they were carrying as  rollover in the Nifty at around 59% is lower than the three-month average of 65%, indicating FII’s sees the risk of taking bullish … Read more

Charting and Technical analysis Rules

Rule 1 – If you cannot see trends and patterns almost instantly when you look at a chart then they are not there. The longer you stare, the more your brain will try to apply order where there is none. If you have to justify exceptions, stray data points and conflicting evidence then it is safe … Read more

Practical Ways of Doing Trading

You don’t choose the stock market; it chooses you.  A little bit of early trading success can have a profound effect on a person’s soul.  If it does choose you, you’ll have to accept that your life and investing will become forever connected. Your methodology must provide an unshakeable foundation that you believe in totally, and you … Read more

Nifty @ fresh life high, FII FnO data analysis

FII’s bought 11081  contract of Index Futures worth 378 cores (26.3 K longs were added  and 15.2 k shorts were added for  Index Future) with net OI increasing by41.5  K contracts. So today’s FII’s continue adding longs and also added fresh shorts  Index Futures. Nifty is entering the demand zone, with hourly charts entering oversold so … Read more