SOME GUIDELINES: mrtq13 (31-10-2008)


I don't have to think,as I am a system trader.............Look around you. In this very forum,there are confusion and chaos regarding what is going on. Just looking at this forum,you can easily understand market's situation-
chaos.............This is the greatest thing about stock market. Not all come to the same conclusion regarding rise and fall at the same time,even if all are of same genre.........Good,because if we all agreed regarding a move,then either stock market would go down to zero level by falling or rise upto extreme level.............

In this very forum,if you check the posts of last JUN-JUL-AUG,you will see many were very hopeful about market move at the beginning of JUN/JUL,that market will turn upwards. But as the market went down and down,all hope were gone. The most positive ppl either became the most negative or became silent later. However,in the mean time,many lost their money.............This shows,not the decisions of all reflects market's actual direction.
That is why,TAs say,"consult the market regarding the market............." This means if market is falling,you should agree with the fact that it is falling. And if market is rising,you should agree that market is rising.........You must not impose your own beliefs,hopes,ideas,whims,logic and thoughts on market's move. It is difficult to do that. But that is the skill that TAs have to acquire with the course of time.


Now is the time for the "preparation to re-enter the market". Ok,I think I am misunderstood by this line : "preparation to re-enter the market". But this is not a line that has any confusion. All TAs have a word in their dictionary,called,"watch". I think,"watch" word is used in the context that "watch" the market so you can 
enter into it at the suitable setup. Watch is synonymous to "buy",but not "buy" in the actual sense. Now this "buy" can be tomorrow,or after one month. But you still have to "watch",which for me is "preparation to re-enter the market" or "buy back time" or "re-entry time". "Watch" or "prepare to buy back" the market everyday. That is what we should do now......................Right?


Now I am a system trader. I have some criteria to meet regarding entry/exit in the market. And I follow them. Following them has been more blessing for me in trading,then following the advice of the coolest traders/analysts of all forums,groups,media,newspaper. So,I follow my indicators. But this is just my own way to trade............

My system will automatically tell me when to enter the market. And I will enter the market then. Nothing to worry for me. Yeap,my system could go wrong from time to time. But I know and have seen that it gives right signal more often than it gives wrong signals. So,I don't mind or get upset of its some wrong signals..............If things go wrong,I would quickly exit so I can save my capital from the disaster of wrong entry. Because I know next time I may be right. So,if I lose 8% this time,I will be able to make at least 9% next time when the market is bullish. And this is how DSE is. You must agree with this. DSE is a great swinger at the moment. It is good for short term swing trade. Gone are the days when DSE used to turn around after going for a small pullback..............So,those old technique of holding tight to your stocks won't work anymore now.You take profit whenever you can-that is how you have to go now..............


I have been bearish about the market since the first week of this October. Sometimes,I got bullish and got bluffed,but most of the time I was bearish. I am still bearish. But that doesn't mean,I won't trade if the market shows bullishness. 


Regarding past move-Unusuallly Big volume has been killing DSE's trend this year. And 590 crore was an unusually big volume for DSEindex. Something strange happened there. No,it was not strange. It was a straightforward exit signal. The uptrend was killed over there.

Now,as a TA,I should look for a new uptrend in the market. The question is : when are we gonna see another uptrend. That my friend,only God can say. I'm no God.

So,how are we gonna enter? Market will tell us. Let the market tell us! Let the market go for some "strong" buy mode. Let all stocks go down to a buyable level. Let the ones that exited on 590 cr day come back.


Regarding volume move of current situations,you will get a lot of "experts" talking about that. So,let me not put my thoughts here................


I would like to take the opportunity to remind the TAs here :

1. Always go with the trend. If trend is down,stand aside. Only trade in uptrend.
2. Big volume always kills a trend-be it up or down.(example : 
12/Oct/08 and 8/Jun/08..........happy trading!!)
3. "Watch" for a new opportunity to "Buy". Because stock market must turn up from down moves...
4. When you are imposing your own logic,reasoning,thoughts,arguments,hopes on the market,that means you are fighting against the market. And you can't win by fighting against stock market. Let the market decide what to do next,not you.
5. Buy on strength,not weakness. This works best. Anti-trend trading works. But many times,this kills the peace of mind.

Take care!! 

** By the way,above writings are aimed at TAs only(ones that really understand TAs). If you aren't a TA,don't bother to understand them...............You will get confused!!

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