Canara bank example....
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We will note the Low and HIGH of each day and ‘anticipate’ the Low of that day to be Point 3.

21st July (first LOW day after 19 Jul 2010), the stock’s High and Low prices were 495 and 484.10. We anticipate 484.10 to be Point 3. This will get confirmed only once we see first HIGH day. However, we will not wait for the confirmation but prepare our trading plan on ‘anticipation’. Hence, our entry price would be 495.05 for 22nd July. However, on 22nd July, this stock did not cross 495 (High of previous day). So we did not enter the trade.

High and Low of 22nd July were Rs. 491.5 and 476.10. Now our new ‘anticipated’ Point 3 is 476.10. We draw our trading plan based on this. Entry price – 491.55, Stop Loss – 476.05 and Target is 575.10 (476.10 + 99).

On 23rd July, again the stock did not cross 491.50 and the High of the day was Rs. 490.55. In our trading plan, only Entry price would change to 490.60 and nothing else will change since this stock did not make any further Low. The Low of 23rd July was 481.70 which is higher than the Low of 22 July i.e. 476.10. So, our Point 3 will still be at 476.10 ‘unless’ we see a price lower than this on 26th July.

On 26th July, it hasn’t crossed 490.55 yet. On the lower side, it has made a new low at 473.50. So, we will not enter the trade today either. We will re-visit the trading plan after the close of the day today and draw up a new trading plan based on the High and Low of today i.e. 26th July 2010.

Let’s look at couple of more examples, one by one on identifying trading opportunities:

Canara Bank:



In the above chart, Canara Bank Future made a Low on 7th Jun at 401.50. It then made a High at 434.50 on 15 Jun, making a range of 33 points. Instead of trying to get in, we start looking for it to retrace (i.e. go down) and mark our points 1 and point 2 at Rs. 401.50 and 434.50 respectively. Now we wait for Point 3.



We get our Point 3 on 18th June 2010 at 415.50. This is the time we prepare our trading plan as under:

Point 1 : 401.50 – 7 Jun

Point 2 : 434.50 – 15 Jun

Point 3 : 415.50 – 18 Jun

Entry Price : High of Point 3 Day + .05 = 424 + .05 = 424.05

STOP LOSS : Point 3 – 0.05 = 415.50 – 0.05 = 415.45

Target : Point 3 + Range = 415.50 + 33 = 448.50

Let’s see what happened next day:



Canara Bank futures crossed 424.05 and we enter the trade. What happened in next few days:



Target of 448.60 achieved on 28th June 2010. WoW !!!!

Profit of Rs. 24 (approx.) in about 10 days. In % – 5.5% of Stock price and in Futures, a profit of about 25%…

Good or GREAT!! you decide

Now a practice / opportunity for you. There is a Long trading opportunity in Canara Bank Futures recently thrown. I will give you Point 1 and Point 2 dates only. Point 1 – 14 Jul @ 466 and Point 2 – 19 Jul @ 565.25

You figure out the rest of the trading plan. If you want me to check it, you can send the same to me :
sumit@sumprati.com

BACHPAN KA ZAMANA HOTA THA,
Khushiyo ka khzana hota tha,
Chahat chaand ko pane ki,
Dil titli ka diwana hota tha,
Khabar na thi kuch subah ki,
...Na shamo ka thikana hota tha,
Thak-haar ke school se aana,
Per khelne bhi jana hota tha,

Dadi ki kahani hoti thi
Pariyo ka fsana hota tha,
Barish me kagaz ki kashti thi,
Har mausam suhana hota tha,
Har khel me sathi hote the,
...Har rishta nibhana hota tha,

Papa ki wo dant galti par,
Mummy ka manana hota tha,
Gam ki juban na hoti thi,
Na jakhmo ka paimana hota tha,
Rone ki wajah na hoti thi,
Na hasne ka bahana hota tha,

Ab nahin rahi wo zindgi.
JAISA BACHPAN KA ZAMANA HOTA THA

kabhi kabhi dil chahta hai... kuch aisa ho jae;
paper ho par result na aye,
picnic jaye aur wapis na aye,
hafte mein 3 din ho aur fir sunday aa jae,
sote rahe dinbhar, sham ko ghumne jae,
...sab dost saath rahe aur chuttiyan manaye,
jise chahte hain dil se vo apna ho jae,
barish mein bheege aur zor se gaye,
duniya ko bhool fir bachhe ban jae,
bheed se durr ek duniya banaye,
sari zindagi bus yuhi kat jae,
kabi kabi dil.....

Sharing the research outcome for binoculars that I did and might be useful for others.

Suggested features that should be there in the binoculars:

- 8 X 40 (8 X 25 is a little lighter)
- Exit pupil – 5mm
- BAK – 4 lenses
- Prefer Roof prism, though it will make it little expensive. (Porro prism, less expensive, but a little heavier)
- Fully multi coated lenses preferred (fully coated are a NO, multi-coated acceptable)
- Diopter adjustment is sort of essential
- Eye relief – 14 / 15mm, more the better, upto around 17 mm
- Weight – upto 30 ounces is good to carry on neck, else shoulder straps should be used
- waterproof - just desirable, helps in rain, if accidentally falls in water etc.
- Armoring helps as it provides more protection to the body (it is rubber cover)

Link is:
http://ping.fm/E8jPf

Buying a Binocular - Mid level

just sharing the research outcome for binoculars, may be useful if you want to buy one in future.

8 X 40 (8 X 25 is a little lighter)
Exit pupil – 5mm
BAK – 4 lenses
Prefer Roof prism, though it will make it little expensive. Porro prism, less expensive, but a little heavier
Fully multi coated lenses preferred (fully coated are a NO, multi-coated acceptable)
Diopter adjustment is sort of essential
Eye relief – 14 / 15mm, more the better, upto around 17 mm
Weight – upto 30 ounces is good to carry on nect, else shoulder straps should be used
waterproof - just desirable, helps in rain, if accidentally falls in water etc.
Armoring helps as it provides more protection to the body (it is rubber cover)

Link is:
http://www.opticsplanet.net/how-to-buy-binoculars.html

Cheers!

I Believe...
That just because two people argue,
It doesn't mean they don't love each other.
And just because they don't argue,
It doesn't mean they do love each other.
I Believe...
That we don't have to change friends if
We understand that friends change.
I Believe....
That no matter how good a friend is,
they're going to hurt you every once in a while
and you must forgive them for that.
I Believe...
That true friendship continues to grow,
even over the longest distance.
Same goes for true love.
I Believe...
That you can do something in an instant
That will give you heartache for life.
I Believe....
That we are responsible for what
We do, no matter how we feel.
I Believe...
That either you control your attitude or it controls you.
I Believe...
That heroes are the people who do what has to be done when it needs
to be done, regardless of the consequences.
I Believe....
That my best friend and I can do anything or nothing and have the best time.
I Believe....
That sometimes the people you expect to kick you when you're down
will be the ones to help you get back up.
I Believe...
That sometimes when I'm angry
I have the right to be angry,
But that doesn't give me the right to be cruel.
I Believe....
That maturity has more to do with what types of experiences you've had
And what you've learned from them and less to do with how many
birthdays you've celebrated.
I Believe....
That it isn't always enough,
to be forgiven by others.
Sometimes, you have to learn to forgive yourself.
I Believe...
That no matter how bad your heart is broken
the world doesn't stop for your grief.
I Believe....
That our background and circumstances
may have influenced who we are,
But, we are responsible for who we become.

Identifying Trading Opportunity...contd..2

new post at www.sumitkgupta.com

It's been few days that we have taken a next step to advance our education and learning.... ....

My strong advice would be to stay away from creating any Long positions in Indian markets. Unless of course, you have done your home work well and spot any GREAT opportunity in any specific stock as of now.

On the fundamental side, it's results season and the results would impact the stock markets. I am not saying that results will be bad, but generally, market builds in the good news in few sessions and when the good news actually comes or becomess available to everyone, usually a Top is made. We might see it happening today, as I write this.

Technically, NIFTY is in very weak position and we may see start of a down trend here. I would just reproduce .......

visit www.sumitkgupta.com

The following paragraph appeared in the December 1909 issue of “Ticker” Magzine, written by its owner:

“One of the most astonishing calculations made by Mr. Gann was during last summer (1909) when he predicted that September wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o’ clock, Chicago time, on September 30th (the last day), the option was selling below $1.08 and it looked as though his prediction would not be fulfilled. Mr. Gann said, ‘if it does not touch $ 1.20 by the close of the market, it will prove that there is something wrong with my whole method of calculations. I do not care what the price is now, it must go there’. It is common history that September wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of trading, closing at that figure”.

The following paragraph appeared in the December 1909 issue of "Ticker" Magzine, written by its owner:

"One of the most astonishing calculations made by Mr. Gann was during last summer (1909) when he predicted that September wheat would sell at $1.20. This meant that it must touch that figure before the end of the month of September. At twelve o' clock, Chicago time, on September 30th (the last day), the option was selling below $1.08 and it looked as though his prediction would not be fulfilled. Mr. Gann said, 'if it does not touch $ 1.20 by the close of the market, it will prove that there is something wrong with my whole method of calculations. I do not care what the price is now, it must go there'. It is common history that September wheat surprised the whole country by selling at $1.20 and no higher in the very last hour of trading, closing at that figure".

visit www.sumitkgupta.com

new post on stock market trading.....