InsiderB

Don't Be the Kid at Candy Shop [Educational Post]

NSE:NIFTY   Index of the 50 listed India companies
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 !
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...
Hi InsiderB, Thanks for this write-up.

I definitely feel the 'kid in the candy store' analogy, right now I'm trying to laser in on what I think works best for me.
I think this may be part of the natural progress, trading has no barrier to entry, people are always spoiled by the amount of choice in what instrument they can use to trade they may end up trading all or most of them early on.

I know TV is made for open constructive discussion, however, this is the internet and the trolls are there, trading can attract the humble AND the arrogant, I am finding the latter more common.

Thank you for reminding us to ask questions and be open. I have a feeling and maybe it is just my projection, that people do not want to ask the silly question and appear anything less than perfect.

Thanks for the reality check.
+1 Reply
InsiderB PRO alistairmln
Hi Alistair, I'm glad you liked the content shared.

During initial days people feel so, as mentioned in the analogy while they do demo trades they will slowly realize that they can't manage more than 3 -5 pairs on Intraday basis, because that puts lots of pressure on them to watch markets continuously , which kills the satisfaction/joy in trading. Completely agreed with your second point, it depends on the individual person, because some will always wish that whatever they should be trusted n accepted without much inspection, so when you ask a question they get irritated and go to that arrogant superiority tone of I know more than you which is bad for a platform which is mainly built for sharing knowledge.

Thanks for your Support.
+1 Reply
namaste,
what should i follow - BLUE LINE OR RED LINE ,if i follow red line than i should short nifty and if follow blue i need to be LONG . what action and when ?
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InsiderB PRO rathirathi2001
Hi Rathi,

(i) For Long entry , Wave 4 is completed and Wave 5 will start, we can initiate position after bullish confirmation on Monday
(ii) For Short Entry, Wave 5 is on but safe to enter after the break of trendlines below.

Follow the above plan only if you are an Elliot wave trader. Else ,

(i) enter short positions on break of red trendline or Violet trendline break will be more conservative entry.
(ii) enter long after getting bullish confirmation in support zone ( yellow zone)

These are ideas only but trading decisions are at your own risk, All the Best !
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thanks , i like your ides .
+1 Reply
InsiderB PRO rathirathi2001
Thanks for your support !
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Hi, It was very informative. Can you please enlight me how to draw those points, i mean how did you chose those starting points?/
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Hi mannemnp, I appreciate your interest to learn about drawing Elliot waves, Previously I had posted 2 ideas on How to Draw those. Feel free to visit My profile : https://www.tradingview.com/u/InsiderB/
In the above link please search for posts named as,

(i) Eurusd : Tryst with Elliott
(ii) Sunday Special : TechM analysis.

Both these posts will provide you enough idea about how to draw.
+1 Reply
mannemnp InsiderB
Thanks a lot dude !!! Can i post questions if i come across any? As i am new to this technical analysis.
Reply
Anytime, Happy to Help :)
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I obliged to you for your voluntary efforts to teach fellow people like me.though i cant able to understand but try.grateful to you
+1 Reply
Take the learning process slowly, there is nothing wrong in slow & steady learning. As long as you spend time on learning, you will gain more insight and the more profitable you will be. Thanks for your support :)
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Hi.. I think your Elliott wave structure is incorrect. Please check again. Thanks.
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InsiderB PRO tushargupta1991
Can you specific which part you are referring to ?
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* Can you be specific about
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I think in both the cases:
1. The down move can't be 1-2-3-4-5, as both wave 2 and wave 4 have retraced more than 50% of their previous move down. So the alternation rule is being violated with that count. (Also, don't you think the wave 4 up has taken too long time in comparison to the wave 2 up?)
2. The up move can't be 1-2-3-4-5, as both wave 2 and wave 4 have retraced more than 50% of their previous move up. So the alternation rule is being violated with that count.

Also, I was just wondering if you have a forecast for Nifty ahead (maybe in some other chart).
+1 Reply
InsiderB PRO tushargupta1991
I agree with your point. But I'm using slightly different set of rules for My Elliot wave counts , I have also posted the modified set of rules I use for wave counts a week before, so according to those rules, its fine bcos thats what I follow everytime. But at the same time, I respect the rules you use for counting waves.

Nifty is bit directionless now, so till Fed Meet no long term views :)
+1 Reply
sir can u suggest me , how to chose share for long term
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sushil6002 sushil6002
how can keep that share for holding......
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sushil6002 sushil6002
which factor ,ratios,...etc i have to analyse
+1 Reply
InsiderB PRO sushil6002
Hi Sushil, Fundamental analysis very large area, so I cant specifically tell these are points you need to check. But to begin with, Check the company's operating area, its board efficiency, Govt.regulations, P/E ratio, Operating cost, Y-o-Y Returns, Company's financials, any legal cases pending etc. Hope this helps you to start with.
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sushil6002 InsiderB
yeah
thnks i will try these content to start
& tnks for giving me a kick
+1 Reply
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