Tag Archives: Holy Grail

Are your cornered by your Analysis???

Yes, my question is right, are you cornered by your analysis? Some or other time in life of analyst, it happens that you are cornered by your own analysis, and let me confess, it happened with me also. But, this applies to only for them, who have guts to come ahead and bugle their analysis in front of others. Who has put in efforts and come to some conclusion, and after which shown courage to give Bold Statements.

Above certainly not applies to a category, who always has signature catch phrase “dekha maine bola tha” who always comes ahead for everything and actually nobody heard them saying anything. And in my experience there is huge crowd fits into this category, so lets excuse them.

When such kind of situation arises, analyst has to stay bold enough to accept his limitations and come ahead with fresh view. I believe analyst is not God, if you are accepting some holygrail from him than it is your mistake not his. Yes, I always respect and like to be friend of those who have courage to come ahead and share their opinion with substantiating research, rather being friend with those who falls into category of “dekha maine bola thaa”

So keep sharing your view, no matter if you are cornered.

Can I build portfolio based on Technical Analysis?

If this question arises in your mind, and you are looking for right advice on it, than please read this article.

Let me try to answer above question.  To me obvious answer is Yes, you can certainly build portfolio based on Technical Analysis. Simple argument is for building portfolio you should ascertain some methods through which you can acquire good stock and which has a potential give you good returns. Broadly there are two approaches to derive a method, one is Fundamental analysis and another is Technical analysis. Within both the approach there is n-numbers of methods which anybody can use. Now which approach you choose and accordingly which method you choose, it all depends upon a individual selection.  No matter, which method you choose for short listing process, ultimately your short listed candidate should do well, that is the purpose or ideology behind building a portfolio, right?

If you are serious about making money than you have to be serious about learning concepts and methods, there is no choice to it. And let me tell you very frankly, if you learn one or two concepts from internet than there are high chances that you might trap in wrong hands, because on Internet you find 8 out of 10 who writes on subject doesn’t know nitty-gritty about it, they are writing for their pockets. I will not go in detail, if you want to know further than better read my article on it – Be aware of blog marketers.

Now, I focus on core subject, building portfolio based on technical analysis. Please, don’t expect that I will teach you some Holy Grail method here, as such there is none, and if you come across one than please do let me know. But what I am trying to emphasize is that, if you thoroughly apply even some basic rules of technical analysis than also your portfolio and your performance will improve significantly.

Further if you have any query or you want to learn technical analysis feel free to get in touch with me, I will try to answer your query.

Best Trading Strategy

Dear Friend if you are in search of best trading strategy which can earn you 100% returns in any market condition, than your search does not end here.  I am saying this because, you are in search of Holy Grail, and if I say straight forward than the word is myth.  Let me explain you what is Holy Grail – in simple words, for every trade you are certain about outcome, so you are expecting 100% accuracy in all trades you take.  That is why I am saying if you are search of Holy Grail of trading technique than you are fooling around with yourself.

In last couple of days, I received mails regarding;

  • What is the best trading setup, which can assure me best of returns?
  • How to improve my performance and take it toward 100%?
  • Is there any method, where I don’t have to put stop loss?

Above question are my understandings of their questions, which directly, indirectly ask me the same question.  Here, I try to answer above questions, and let me confess, I answer according to my little understanding of Technical Analysis, there can be much more intricacies involved in it, which I may not be able to answer.

Trading setup:-

It is nothing but the prefix methodology to Buy, Sell or Hold the stock.  As a basic principle, trader should know in advance where to enter and where to exit, if you don’t follow this simple rule than for sure you are out of the game very soon, if not today and than for guarantee tomorrow.  Defining this entry and exit is nothing but defining trading setup.  With any method you can pre-define your entry and exit; it all depends on your knowledge, experience & comfort.  There are number tools and methods are available, you can choose according to your understanding.  Let me take you through some most common methods,

  • Based on Moving Averages like Simple, Weighted & Exponential
  • Based on Trendline, Pitchfork line
  • Based on Momentum Oscillators like RSI, Stochastic, MACD, ROC, KST and many others
  • Based on Gann Square of Nine, Gann Angles & Gann price forecasting methodology.
  • Based on Elliot Wave Analysis or Glenn Nelly’s method
  • Based Statistical calculations, which are most commonly known as Algorithmic Trading.
  • Based on Price Behavior like Candlestick Study, Chaos Theory

Above is just broad outline on trading methods, each topic requires elaborate description, which I will try to cover in subsequent articles for sure.  From above, you can take any one method of combination from it, and just back study the outcome.  Whichever method gives you confidence can be Holy Grail for you.

Let me tell you very clearly, there is no method I came across which assure you 100% return in all market scenario and I am sure with this prominent technical analyst will agree with me.  Any method can give you best returns but you have to understand its limitation too.

And to answer last question, as such there is no method in which you don’t have to keep stop loss, but yes there are methods with which you can certainly increase your risk reward ratio.  For detailed explanation about Stop loss, you can read my article  Most Hated but Most Desired part of a Trade: – Stop Loss