Ok, so I'm sentimental on this one! Went long at 18000 in Sept, learned about stop losses at around 9000! (I'm a slow learner). Tried to go long a few times on dummy runs and stop losses had to kick in, short it for the 1st time today at 13700 (thought I'm getting cute now) and stop loss at 14100 just kicked in and kill me again!!!! Goodbye IMP? Can an expert teach me how to trade this one pse?
Ok the first thing you need to ask yourself when buying anything is what is the current trend of the over all market...if you are in doubt print it off with a long dated moving average and present it to any 10 year old..he/she will tell you..then do not trade against what the 10 year old says.. that would have kept you out of the market or at least put you short...its really that simple.
BAP,at 13700 today the price was above all the moving averages (5,10,20,50,100) and all are still rising.This indicates an uptrend.The stochastics and rsi show it is overbought but there is no divergence ie.the price as well as these indicators are still rising.Shares can stay overbought (or oversold) for quite long so this alone is probably not a good reason to go short.If a share is in an uptrend it is better to go long on pullbacks to support, rather than to short it.In this way you have the edge (ignore all earlier discussion on tossing a coin to go long or short-that might work when the market is volatile but not when a share is trending).When you went long in September the opposite was true(all MAs were falling,the price was below these MAs etc).Thus it was in a downtrend.You went against the trend and the odds were against you.I am not an expert but this is my opinion.
yep aggree russ ma have crossed even though the rsi ans sto are showing overbought, another thing i would have checked is that the previous day a doji had formed well above the weeks trend so i would have waited for confirmation of a close below the previous days close.