Basic rule of technical analysis
Minting money in capital market is not so hard either with technical analysis of stocks or fundamental analysis of stocks .The condition is that you follow system of technical analysis or fundamentals .You need to stick with the rules you have learned . On other side there is high chances of losing money if you don't trust yourself and get confused by listening others. The rules of trading and investing are quite different.If your are trading is based on technical analysis and you are listening guys of fundamentals then forget making money in market. Here I am sharing real example which will clear doubts about this basic theory .
My study of 7th July on #BankNifty
On 7th July Bank Nifty was struggling to go up and there were hardly any expert who were advocating to buy it . My guess is that they were fearing immediate crash of bank nifty as NPA was hot subject on discussion .On previous day a leading financial news paper had added more fear by pressing issue of NPA . It had categorically written that NPA worries hanging on and that's why there are only few takers of Bank nifty and I was one of the few thanks to my rely on technical analysis !
It was Friday on 7th July . Coincidently #JaggaJasoos was trending with #FridayFeeling ! I shared my feeling with following tweet based on technical analysis .
— Gujaratbull.com (@GujaratBull) July 7, 2017#Banknifty good support @ 23400 . There is no sense to short it until this support get taken out . #FridayFeeling #JaggaJasoos #GujaratBull
Now the result is loud and clear against us.On 10th July BankNifty made new life time high and at present it is trading near it! Once again so called experts proved wrong and technical analysis won . To make money in market you don't have to be Jagga Jasoos(Insider) but follower of technical indicators !
-F.M.Lakhani