FED Ends it’s Big Bond Buying Program – Watch out !

image1

$0 — that is how much the Federal Reserve will buy in mortgage and treasury bonds next month. As widely anticipated the Federal Open Market Committee announced the end of its multi-year asset purchases Wednesday.In case you haven’t been watching, every month in 2013 the Federal Reserve purchased $85 billion worth of bonds, the peak of what was ultimately 37 months in a row of buying.

IS Crude Ready to Fall More?

crude oil

Now crude is trading around $81.30 & we can see on charts crude unable to trade able broken support area of $84.20 while a formed a very bearish candlestick pattern just below the resistance. The minor ascending channel broken by crude suggest that consolidation done here & we may witness more downfall in coming trading sessions. Technically crude may find support at $79-77 area but before the hidden negative divergence (LH/HH) will do its job.

Price Behavior Analysis-Reliance Playing in the Range

chart-page-0

Reliance is down so far since May-June Phase (see the chart). And also if you notice closely there is no clear trend as price is moving from range to another range with small swings in between,This indicates that decline in price movement is weak and buyers are stepping in at every time stock makes a swing low

Nifty and Bank Nifty October Futures Positional Trend Update

Bank Nifty October v6

Nifty Futures turned to Positional Buy mode right from Muhurat trading session onward and currently the support zone comes around 7894 and Bank Nifty maintains the positional buy mode right from 9th October onward and currently the support zone comes around 16291 respectively. Reverse your position to positional sell mode if the support zone breaks on hourly charts.

TrakInvest : Virtual Trading Platform for Paper Traders

Trackinvest2

Trakinvest is a virtual social investing platform currently offering Virtual Exchange , Fundamental and Research analytics for Equity Markets in India,USA,China, Hong  Kong, Singapore, Australia. Founded by a former JP Morgan principal Mr Bobby Bhatia. TrakInvest partners with institutions like Thomson Reuters and Religare to offer sponsored internships to students in emerging Asian markets.

Myths about Warren Buffett and Value Investing

value-investing-is-the-answer

Warren Buffett is the most glorified and respected investor of all time. And rightfully so. After all, he became the world’s wealthiest man by essentially picking stocks?-Dead wrong.Not only that Warren Buffett is also remarkably misunderstood by the general public. I personally believe the myth of Warren Buffett is one of the greatest tricks ever played on the small investor and the approach of the value investing in general.

Bank Nifty Futures October Expiry Overview

Banknifty

After breakout from horizontal trading range in bank index the bank nifty future made its life time high’s in past week. The high made on future is 16632 and the weekly close was at 16483+. Now going forward for monday trading session the Hurdle for banknifty is at 16700 fresh buying will happen once this level sustains and since there is no resistance left for market its all a bulls play the trend will continue.

Nifty Future October Expiry Overview

Nifty

Nifty Future closed the week at 8023.5 on Diwali mahurat trading session. the market has seen a sharp reversal from lows of 7752 and with positive global cues the index has managed a strong up run in short term. Majority of moves have happened with gap up’s in the same.

Last Five Trades Result Dashboard – AFL code

Nifty Futures Dashboard

Here is simple visualization to look into the past five trades result and plot the values over the chart which gives a quick view on how the strategy performed in the last five trades. In this AFL example we had created the dashboard for simple MACD crossover. And the dashboard doesnt include current open positions and only include last five closed positions.

Emotional Trading Vs Rational Method Of Trading.

Emotional-Trading

Most of us invest based on our gut feeling or intuition also called instinctive impulses.Psychological factors such as greed ,fear ,hope and pride or Ego dominate our investing decisions.We sometimes go by tips or advice of some body or jump with news on TV or news papers.Our assumption of certainty of outcome is based on knowledge gained from various sources which we tend to believe or just give a try.This is irrational investing process as certainty of outcome is based on our belief of information where outcome is always binary and not predictable.

Things to Consider Before Creating your Own Trading Strategy

Backtesting

Backtesting and Optimization to be pretty much essential step in trading strategy development. If the strategy is not performing well in the backtest results we can skip the system and move on to the next one. But if the backtest results are good then one should be extra cautious as most of the times backtesting your own Trading Strategy might give interesting results. However when comes to practical trading the scenario might be completely different and most of the times it results in a poor performance or lower than the expected backtest results.