Is Technical Analysis worth spending time?

I have been trading markets strictly using Technical Analysis for 3 years now. Well I am big fan of Technical Analysis, the charts specially candlestick charts. I like to keep it simple while using charts, tools, indicators, oscillators, moving averages. More about this later. What I want to discuss now is - Is Technical Analysis worth spending time? Many traders / People ask me a question- 'Does it work?'
Well, unfortunately, the answer is not straight forward. 

Many of us look at the chart patterns, candlestick patterns, moving average crossovers etc as a money making formula. This is where most traders make mistake.
Why cant one use charts as supportive tool in deciding the trade.

For me Technical Charts are like GPS system. It shows you the path when you are lost or your are not finding the right direction towards your destination.

Charts helps understand overall location of Current Price in Price journey of  a stock. It also help us judge probable future direction of the stock price. Is this direction guaranteed?
No. Its just that the probability of price moving in probable direction is higher. 

Frankly no one becomes good or bad trader by using Technical Analysis. Its just a tool to help us 'Better' the trade or say 'Increase' the probability of winning trades.

Its not about how you do your analysis. Its about how is Risk Management, Money Management and Discipline. More on this later.

In fact Technical Analysis or for that matter 'Any Analysis' just 30%-40% role in your trade. It all about how much money you want to make and how much money you are willing to risk for making that much money. So Risk Management, Money Management and Discipline play 60-70% role in making or breaking your trade.

There is no point solely cursing Technical Analysis for a wrong trade or there no point even giving all the credit to charts for giving you a winning trade.

I differ with those who rely only on charts and are not willing to consider all other aspects of a trade.
Don't get me wrong here I too use the charts but equally focus on other aspects too. So if a Technical Chart gives me 30% edge over other traders, why shouldn't I be using the charts?

Hope I am able to express myself. 
Do you know a great trader who ignore aspects like risk management, money management and still make good bucks trading with his whims and fancies?

BOOKED PROFIT OF 34% ON 20-AUG-2015

AXISCADES BUY Recommendation is from our Prime Cash Portfolio. We had Recommended delivery buy on 2-july-2015. Booked profit of 34% on 20-AUG-2015.

BOOKED PROFIT OF 34% ON 20-AUG-2015

 AXISCADES BUY Recommendation is from our Prime Cash Portfolio. We had Recommended delivery   buy on 2-july-2015. Booked Profit of 34% on 20-aug-2015.

   

   For our advisory services www.bonvista.in

Nifty view for the day

Nifty hourly chart guves us support level at 8410 (spot).
Intraday dips are buying opportunities.

Why learn Options?

In Stock Markets Futures and Options are wonderful instruments created for trading. These are leveraged instruments. They allow us to buy more more quantity in very leass money. Say Shares worth Rs 500000 can be bought by paying aroud 15% i.e. 75000/-.

Among Futrues & Options- Options is a more intelligent instrument. It has power to double the money in single day. Some options grow by 200-300% in one day. It can be used by conservative as well aggressive traders. Conservative traders can use options with hedged strategies to generate consistent income with very low risk. Trading in Options when done on long side requires very small investment ranging from 2000-10000. However it is more intelligent to sell Options.

Trading in Options can be done in any market conditions like Fast rising markets, slow rising markets, fast falling markets, slow falling markets and most importantly stagnant or rangebound markets. Believe me, I have seen many traders in my life who list money trading shares or Futures but when they learnt Options and its strategies they have gradually started earning regular income from stock markets.

However Options are somewhat complicated till we understand them and their strategies.

Many traders feel why to spend money on learning/training when there is lot of information available on net. My question is how many of us have time to read that information? Moreover it is available in bits and pieces. It can not be replaced by practicals that students do in Classroom training. I offer training in Options. The training is designed in such a way that Options can be used practically for trading after some practise in the form of paper trades.

Every trader is not same. Every tradrer's trading requirements are different. Trading plan can be created usinng Options for every type of tradrer i.e. conservative, aggressive and moderate. Options can be used by traders having low investments and for those who trade with huge investments.

Our next Option batch details are: This is classroom training batch.

Note-Shortly we are comin up with an online training. If you do not stay in or around Nashik and still want to attend my training, please wait for sometime. In the meanwhile drop your details in the comment section below.

Date: 22nd and 23rd August
Time: 9.30 am to 5 pm
Fees: Rs 7000/-
Free Subscription to my advisory Products worth Rs 5000/- for one month Physical copy of Courseware included Lunch/Tea on both days.
Free active support for next 3 months for preparing trading plans, checking the paper trades etc.
Lifetime support comes obviously.

You can deposit amount in my Bank account:

Bank Details: HDFC Bank
Branch: Nirala Bazar, Auranagabad
Acct No: 08261050005345
Type: Saving
Name: Unmesh Deshmukh

For any queries you can call my collegue Siddharth on +919923515999
www.bonvista.in
support@bonvista.in

Recommendations for the Week 17-21 Aug

For last week target is met in all the 3 recommendations given here- ALBK (Sell), BHARATFORG (SELL), INFY (BUY) 

APOLLOHOSP (Buy): #Buy #APOLLOHOSP (Apollo Hospital) near 1353 for a target of 1395. Maintain stop loss at 1329

  

COLPAL (Sell): #SELL #COLPAL (Colgate Palmolive) near 1979 for a target of 1955. Maintain stop loss at 2000 

HEXAWARE (Buy): #Buy #HEXAWARE (Hexaware Technologies Ltd) near 282.25 for target of 292. Maintain stop loss at 276 

For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com

Nifty View for Week 17-21 Aug

NIFTY View For Week 17-21 Aug 

Read this report on our website Bonvista Financial Planners  

Last week I had indicated at buying opportunity on dip. Hope readers would have been holding the Nifty longs or the they might have bought low cost call options. Among world markets last week, Nifty was least to fall and then recover fast on Friday. Last trading sessions are always crucial- last hour of the day, last day of week, last week of the month and so on. These 'lasts' have power to change sentiments.  

Technical Overview: Last week Nifty made high of 8621 and low of 8337. A range of 284 points. Nifty yet to cross hurdle at 8654 as I had mentioned in my last newsletter. Nifty need to break this level to reach its higher targets which is at 8800. 

Last week I had marked level of 8397-8321 on charts indicating support. Nifty has bounced nicely from this level. Observe carefully, Nifty chart is developing a range between- 8650 and 8300. Nifty need to break this range on either side for it to give us clear direction. For the time being Nifty is in the range and traders need to be cautious and extreme ends of this range. 

Last  weeks Nifty has been closing near its open, however not crossing the upper hurdle. This makes us believe that Nifty may not break the lower level of 8300 for the time being. Chances are it may move beyond 8650.                                                                                                                                                                                              

Short Term (Few days to a Week) : Hourly chart of Nifty is suggesting that Nifty is bit too far overbought to buy at this level. Let it come down, say, by 50-60 points to buy again.                                                        

Medium Term (Few weeks to a month): If someone is holding Nifty long- 8570 is good level to book profits. There is supply zone there on Nifty chart. Nifty may react to this zone.  

Long Term (Few months to Year): Nifty remains to be in bull market and be on long side of the market.

  
Post your comments, queries or write us for any other support

For more precise ideas on Nifty trading follow me on Twitter @Bonvista1

 

View on important Sectorial Indices: 

Bank Nifty: A new resistance is formed on BANKNIFTY chart near 18875-19075. The bank index may react to this level to take small dip. Support is near 18251-18080. Overall view remains range-bound with Bullish bias till it breaks 18275. 

CNX IT:  Last week I had indicated at an upmove. Now CNXIT is trading at high points, but still looks bullish. Let it correct a bit to buy again. Risk Reward is not favorable at this level to be a buyer. Trade remains on long side.

                                     

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