Wednesday, November 12, 2008

A discussion on INDEX:12 Nov 8.56 am:mrtq13

Very interesting situation............Right???

So,at last,things seem a little green for us. Or,is it?

SEC has talked about some magical(hypocritical)words last night,the positive effect of which may be found on Index today and tomorrow.........But what is gonna happen after that........???? I wonder,what is gonna happen if institutional traders and market makers don't really bother to enter the market with full swings this time.............That is what is concerning me....!!

Is there any sign of big buyers' buying in any stock yet............?? I need to see them buying....

---------------------------------

Now what about Technical point of view. That is interesting....................

My trading setup is simple. I would trade if the index goes above the yellow line in the chart below. Simple.............And that Yellow line could act as a resistance line soon.That is a very stupid problem. I want to see how DSE acts over there...........Because DSE index may fall down from there.

I am not in hurry. Why? There is a reason. I have found. Not all stocks follow Index movement instantly,though we may see some rise in many stocks,as the Index is about to turn.

What I mean is,have a look at BIFC chart below. Isn't it in charming position? Yeah,it is..........Nice position..........I know it is gonna take at least a couple of days more to rise(If it wants to rise). Several stocks like it will be consolidating at a specific level before they go up. And we will be able to trade them. So,I don't worry. I don't need to worry. There will always be a lot of stocks to trade in the market,if the market is in bullish trend..............

Bullish trend-that is what I am looking for. And if the Index goes above current Yellow line of mine in the chart below,I would consider it bullish trend for short term..............Also,a very important thing for me is that the Average Bull Volume(my third indicator in the DSE chart below)must be higher than Average Bear Volume for me to be confirmed about trend change................

Now another thing we should note also. That is,this new trend may not last long. However,that is a matter of future.............

--------------------------------



Now,why I am waiting for more confirmation. Because around Jun 18th,I had bad experience. I tried to take risk and went anti-trend. I bought at support level of Index taking risk. Things were good at first. I didn't pay attention to trend moves. I didn't care. But Index fell breaking down the support level after a couple of days. And I had to exit with frustration. Later Index remained down for three months. Good for me that I exited early before the downtrend of three months started.

So,this time,I want to go slow.....................But,like I said,in another thread,I feel like entering and buying.........

Anyway,it is never too late. And I don't want to be impulsive. I always know there will be several trades ahead. So,I don't worry and hurry.............20% to 30% profit before election would be enough for me for the time being. And only a couple of quick trade can get me that much. So,why hurry!!!!

No comments: