The levels of indices like Nifty, Bank Nifty and Sensex are based on the price levels of equities…
The price levels of equities works by demand -
supply…
This demand - supply can be witnessed through asks and bids…
Is there any indicator which shows the asks bids ratio along with its volume, for stocks and index, in real time ???
Bank Nifty relies on 12 banks and so I think that predicting the price fluctuation, direction, its pressure and the its time for bank nifty in real time isn’t anything like a square without edges or a circle with edge…
By the way, I’m a newbie for the trading world… My thoughts may not be always correct too and if anyone finds flaw in my theories or applying it in practicality, pls do point me where and what have I missed… Thank you…
Its all about the update in data with just 10 numbers and the change it makes … The next move can definitely be predicted but the move further beyond it may be just the reverse which we would know only we make the first move but it all depends the volume and range of asks and bids, their execution and consistency of it, which decides the direction of the trend, with respect to the updates in the negative trend additionso too … The one who gets these all, who is smart enough to shrink these all into a widget on the screen without compromising the data integrity can become a zillionare too if he / she wishes so
Yeah but the psychology of the traders is seen from asks and bids, their ratios and volumes and these are just another continuity of data entry, when it comes to execution of it… For example, if Pnb scam got exposed and its cracking down, the psychology can be seen from bids and asks, the change in their range, along with their volume and its consistent continuity for some days or weeks… Traders’ Psychology is mostly based on news and events and I meant no offence to those here… Those news and events will speak in the language of the change in bid and ask size, their volume and their consistent continuity, as the tranlated data into numerical entry… If I walk as usual, my next step can be predicted about where my foot will land, but if I make a jump, I will surely land further more than a step and only that I was saying
wrong, i have worked out economics. you have to be more than 90% accurate to earn something significant else the one of the loss wipes out whole gain of the rest of the trades.
when we r right, we close out early but when we loose we go till stoploss in the hope of getting it right.
also generally we have to keep SL higher then profit expectation to increase our accuracy against the freaky movements.
only brokerage houses can make money otherwise nitin is not foolish to give a sixty day challenge. anyone with little knowledge can come up with a strategy to get such results in backtesting but live market is a different animal all-together.
i never learnt economics … but i can say your understanding about risk to reward and accuracy is wrong …
there are multitude of startegies with varying risk to reward …
if a strategy has risk to reward of 1:4 and the accuracy is 40% , the strategy will be very good returns …
