[type text] page 1 2013.pdf · 2 | atmasphere may 2013 contents • letter from the president -...

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2 | ATMASPHERE MAY 2013

CONTENTS

• Letter from the President - Page 3

• Editor’s note - Page 4

• Generating Income with Butterflies by Shiv Galrani - Page 5

• Traders Action Zone – by Natarajan Visweswaran - Page 9

• Sloped Retracements – Action & Reaction by B.Krishnakumar - Page 13

• Book Review by Thirunavukkarasu N - Page 17

• Forthcoming Events - 0

• Past Events’ Update - Page 21

This newsletter is produced by the Association of Technical Market Analysts. All comments and editorial material do not necessarily reflect the organization's

opinion nor does it constitute an endorsement by the Association of Technical Market Analysts or any of its officers, of any products or services mentioned.

Sources are believed to be reliable at time of publication, but not guaranteed. The Association of Technical Market Analysts and its officers, assume no

responsibility for errors or omissions.

MAY 2013 ATMASPHERE | 3

LETTER FROM THE PRESIDENT

Dear Colleagues,

Time flies, literally! ATMAsphere is one year young with this issue! Heartiest congratulations to our Editor, Ms. Meghana V Malkan and

her able team of volunteers at the Editorial Committee to have produced tirelessly twelve issues, one each month! My favourite belief

about who a professional may be defined as is, “someone who can be relied upon for regular work”. So here is a very heart-felt kudos

on this thoroughly professional and devoted piece of work called the ATMAsphere!

ATMA continues to strengthen itself on every dimension. Several new recruitments in our Full-time Executive team in the last month have brought in a

definitive jump in the level of activity across the spectrum. We shall continue to solicit more talent and expand our deliverables.

Several strategic partnerships with key market organizations are underway. Expect to share a few key developments that shall empower ATMA in its works in

the very near future!

.

Sincerely,

Sushil Kedia


EDITOR’S NOTE

With this issue, ATMASphere completes a year of spreading knowledge and creating value for its readers. I am grateful to my team

members for all the support and to each reader of this publication for all the feedback and motivation to keep the Editorial Team going.

We look forward to receiving more contributions from you.

In this issue –

Shiva Galrani explains the “Butterfly” strategy in options and shows how one could employ it to generate regular income from the markets.

Natarajan Visweswaran illustrates the method of identifying reversals in a trend using swing points.

B. Krishnakumar had introduced the concept of Pitchfork in the November 2012 issue. He extends the discussion further with more examples.

Thirunavukkarasu N reviews ‘Come into my Trading Room’ by Alexander Elder.

Please send in your contributions and feedback to [email protected]. You can also subscribe to ATMASphere completely free by clicking here.

Please let us know what you are doing and allow us to share your application of the tools of technical analysis to the readers of ATMASphere by sending an

email to [email protected]. You can subscribe to ATMASphere completely free by clicking here.

Sincerely,

Meghana V Malkan


GENERATING INCOME WITH BUTTERFLIES

BY SHIVA GALRANI

Options have always been introduced as weapons of financial mass

destruction and retail traders have been advised against option trading due

to unlimited risk. Nothing is further than truth. Options are fantastic risk

management tools and can be used to generate regular income with minimal

risk that is not possible using stocks or futures.

This article aims to show how to generate regular income by using option

strategy “butterfly”. Note that there are no charts in this article because

frankly you don’t need them when you trade butterflies.

Butterfly strategy involves selling two lots of one strike (middle strike) and

buying one lot of a higher strike and one lot of lower strike. For example

when nifty is trading at 5900, we can sell two lots of nifty 5900 call and buy

one lot each of 5800 call and 6000 call. This strategy is called long call

butterfly and if we buy/sell puts it is called long put butterfly.

Three rules to adhere to always - all options must share the same expiry

date. All options must be same type (either calls or puts) and the difference

in adjacent strike prices must be the same.

For trading in this option strategy, we need to understand the following -

What is my view of the underlying?

How are we going to trade this view?

What is the risk and reward?

How to manage the trade?

My view of the underlying

As I write this nifty has closed near 5950 just after seemingly bad news from

RBI Annual Policy. My view is nifty may close May series near 5800 level. It

does not matter if my view is correct or not. Using butterfly, I can trade my

view with minimal capped risk (and maybe make some money even if my

view is wrong)

Trading my view

Butterfly is a sideways strategy where the maximum profit is made if the

underlying expires near the middle leg (the 2 lots sold). So if we feel that the

markets may remain sideways from now till expiry, the middle leg should be

an ATM call or put. But if we feel that markets may fall or rise before expiry

we can structure our legs accordingly. So we can make a sideways Strategy

work for us even if our view is bearish or bullish!

In my example above, my view is bearish and the possible trades are as

below (based on 3rd may closing prices)


Buy 1 lot 5900 put at 70 and 1 lot of 5700 put at 23 and sell 2 lots of 5800 put

at 42. Net debit in this case is 9 (70+23-42- 42). This is a long put butterfly.

Buy 1 lot 5900 call at 118 and 1 lot of 5700 call at 269 and sell 2 lots of 5800

call at 188. Net debit in this case is 11 (118+269-118-118). This is a long call

butterfly.

Out of the above I would prefer to go with the long put butterfly as the

margin required for 5800 puts sold is lower since they are out of the money.

Margin is the money retained by the broker as per the guidelines of NSE and

the brokers RMS Policy. Roughly the margin required would be around

30,000 per set of options.

Risk V/S Reward

The maximum risk is the net debit. In the above example it is 9 Rs per lot *50

(lot size) 450 Rs (plus brokerage of course).

The maximum reward is the difference between the adjacent strikes less the

net debit. In the above example it is 91 Rs per Lot (5900-5800-9). This

maximum reward is possible if nifty expires at the middle strike (5800 in our

example).

There are two breakeven points. Lower strike plus net debit & higher strike

less net debit. In our example they are 5709 (5700+9) & 5891 (5900-9). This

means that as long as nifty expiry is between 5709 and 5891, we are not

going to lose money. Thus by risking 9 Rs we are able to get advantage of this

huge range of 182 points.

So assuming if nifty expires near 5800, the profit per lot would be 91 * 50 =

4550 Rs. Risk reward ratio is 9:91 nearly 10 and ROI on margin of 30,000 is

nearly 15% (monthly). Max loss if nifty expires outside the breakeven points

is 450 Rs which is 1.5% of the total margin investment.

Managing the trade

Entry – try not to enter into the trade before important announcements (like

GDP numbers, RBI policy dates etc.). Enter all legs together to avoid risk of

sudden market movements widening your risk.

Between entry and exit – do not monitor the market (yes you read it correct).

Live your normal life - work, party, study, travel - do whatever you like except

sitting in front of the television or computer and watching the market.

Trading and making money in Markets do not have to be stressful. So why

make it so?

Exits – This is the most important part of the strategy where we can make

money even if our view is wrong. There are no defined rules for exit. We can

modify these according to our risk appetite. I look to exit the trades 3-4 days

before expiry so as to avoid any knee jerk reactions that we see near expiry.


When we decide to exit, depending on where nifty is, between the

breakeven or outside, some strikes will be ITM and others will be OTM. We

can either square off all strikes by taking opposite positions or selectively exit

only ITM strikes and leave the OTM strikes to expire worthless (remember

there is risk of a wild movement that can cause loss here).

Let us assume with 4 days to expiry, nifty is near 6000. Theoretical price of

our 5700/5800/5900 puts would be 1 / 4 / 12. If we square off all legs we will

get 5Rs (1+12-4-4). Our net loss is 4 {9 (original net debit) less 5 (net credit on

square off)}.

We can decide to only cover 5900 put by selling it at 12 and leave the 5700

put and 5800 as it is to expire worthless. This way we have got 12 and end up

in net profit of 3 Rs per lot! Thus we have managed not to lose money even if

our view on the market was wrong. (Remember there is still risk that markets

may crash below 5800 in the remaining 4 days of expiry)

Assume that nifty is near 5750 (within our breakeven points) the theoretical

prices would be 23/72/160. We can square off all legs for a credit of 39

(23+160-72-72). This gives us a net profit of 30 Rs per lot (39-9 net debit).

Important – Remember to square off any ITM options before expiry to avoid

any adverse impact due to higher STT levy.

Mr. Shiva Galrani is a finance professional working

in Dubai with one of the world’s biggest FMCG

MNC. He has been in gulf for nearly 19 years and

has gained 22 years’ experience in finance and

accounting field while working with leading

companies in Bangalore / Muscat and Dubai. He is

an ardent fan of tension free trading and trades

using trend following methods. The Emphasis is on

trading profitably in such a way that involves

minimal need for watching the Markets while

having a full time job using proper risk and money

management rules. Shiva can be contacted on

twitter (@galrani) or via email - [email protected].


The Dream... has come True! Almost!

World's FIRST E-Library of Technical Analysis

अ�न दानं महा दानं ;

व�या दानं मह तारम |

अ�नेना ��णक �ुि�थह�,

यावा�जीवं हू व�यया ||

Giving food to a hungry person is indeed a great donation, but the

greatest donation of all is to give a person education. Food gives but a

momentary satisfaction whereas education empowers the person for his

entire life.

Endless evaluations of legal structures,

payment formalities, technologies and this

sweat and toil of nearly 20 months is now

fructifying! The world's most reputed,

largest and oldest vendor of E-libraries has

considered positively all our pitching and

discussing and despite the fact that we may

be there smallest customer today agreed to

mail over a contract to us!

This vendor has digitized the top 10000 libraries around the world! And yes,

your very ATMA is going to be now served by this very vendor! Not only are

we going to buy and stock up E-books and audio books we will be in time

able to generate funds to have training videos in this online library.

The work ahead, for all of us..

Make out a list of the top 20 books you wish to see

on this library and if you wish to make the list of top

20 books you have read as a Technical Analyst, trader

or a markets person make that too! Make a list of top

authors if full names of books don’t come to mind

immediately. Make your wish lists! Mail them to

[email protected] & they will

automatically be forwarded to all volunteers working

with me and Gunjan Dua on this DREAM PROJECT.

Write out your lists

Email to TEAM

Let team compile

Team draws map

Evolutionary Goal

Charity begins at

home and do the

व�या दानं now! Let

your opinion, ideas,

desires be known.

The Challenges ahead..!

To build a highly useful collection of e-books that make our money work well for us in

this massive ongoing investment, we have to carefully select every good book

available and yet also avoid frivolous or very esoteric purchases. Building a great

library is an evolutionary goal. Come participate in this path-breaking initiative that

will change the orbit of our Association, forever. Well, there may not be enough

money, enough books, enough types of books, enough of this or enough of that, yet

what you will along with patience over time to live through when there will be

enough of everything, have one thing now which will never come again: be the

architects of the world's first e-library on Technical Analysis.

Each ATMA Member is at this point going to be able to give as much to each

other as each is going to be receiving in course.

The Dream, that is how I have always called it for myself, the establishment

of an E-Library that contains not just research papers and manuscripts but

commercially published good books on subject areas related to us, is now

within reach. Almost there..! Yes! Books on Technical Analysis, Trading

Strategies, Quantitative Finance, Back-testing, Algorithmic Trading,

Investment Psychology, Hedge Funds, Behavioral Finance & lots more!

Even before succeeding at launching ATMA, I have aspired with my blood,

flesh and soul to be able to bring up this concept. In fact, right at the day of

our launch we inaugurated an E-library that contains many decades of

research papers and journals! But the commercially published books could

not be integrated so far and a true professional self-service e-library has

had to wait. With painstaking work some of us scrounged and searched

endless websites, made endless calls liaisioning and networking with some

of the best publishers across the globe trying impressing upon them India is

a safe country and we are as ethical as any other professional enterprise in

any other corner of the world to be allowed to host a digital library of books

- both e-books as well as audio books.


TRADERS’ ACTION ZONE

BY NATARAJAN VISWESWARAN, CMT, MBA

The Traders Action Zone (TAZ) is a buy and sell zone on a stock chart that

swing traders can use to identify possible reversals in a stock.

Identifying reversals using swing points -

For a swing point low:

• The first candle makes a low.

• The second candle makes a lower low.

• The third candle makes a higher low.

This third candle tells us that the sellers have gotten weak and the stock will

likely reverse.

For a swing point high:

• The first candle makes a high.

• The second candle makes a higher high.

• The third candle makes a lower high.

This third candle tells us that the buyers have gotten weak and the stock will

likely reverse

On the chart below you can also see the traders’ action zone which is the

area in between the 10 SMA and 30 EMA. This is where you, as a swing

trader look for reversals back to the upside when going long and reversals to

the downside when shorting stocks. I have drawn arrows on the chart to

show where you get buy signals and short signals to enter a stock.

UPTREND= 10 MA > 30 MA (30 ma flat or rising)

DOWNTREND= 10 MA < 30 MA (30 ma flat or sloping down)


It does not matter whether you use SMA's or EMA's. There is little difference

between the two so do not get caught up in the variations. We are just using

these moving averages to create a zone that we will find our entries for long

and short positions.

What is so special about this zone?

It has been found that for swing trading, a lot of reversals happen in this

area. So in order to create a focus in your trading strategy, it is helpful to

narrow down your potential stock setups to one area on a chart. This zone

provides a plenty of setups on a daily basis.

We are not really concerned with the moving averages themselves. When a

stock pulls back into this zone, look to the left to identify support and

resistance, trend lines, candlestick patterns, etc. You are looking for multiple

signals all pointing in the same direction.

SWING TRADING ENTRY STRATEGY

For our long entry strategy, we are trying to find stocks that have pulled back

inside the Traders’ Action Zone (TAZ) area and have made a swing point low.

For our long entry strategy, we are trying to find stocks that have pulled back

inside the TAZ area and have made a swing point high

AGGRESSIVE ENTRY:

An Aggressive entry is in which you buy or short a stock before it makes a

swing point low or swing point high.

You are buying in Anticipation of a Swing point low or a Swing point high

developing near the TAZ area.

An example could be a valid Candlestick pattern forming or a One-bar

reversal pattern in the TAZ area.

SWING TRADING EXIT STRATEGY

Your exit strategy consists of two parts:

1. Where will you get out of the trade if the stock does not go in your

favor?

2. Where will you take profits if the stock does go in your favor?

These are the two questions that make up your exit strategy. You have to be

able to answer these questions in order to consistently make money in the

stock market.

1. Setting your initial stop loss order

For long positions, your initial stop should go under a support area and a

swing point low.

For short positions, your initial stop should go above a resistance area and a

swing point high.


2. Profit taking strategies

Now you know how to get out of a stock if it does not go in your favor. We

will now talk about an exit strategy that you can use to take profits.

How to use trailing stops

a) Using trailing stops is an easy and unemotional way of exiting a

trade. If this trade is going to be a typical swing trade with a holding

time of 2-5 days, then you can trail your stops ¼ PERCENT under the

previous day’s low or the current days low - whichever is lower OR

under the previous day’s low or the current days low - whichever is

lower on closing basis.

b) If you are able to find a stock at the beginning of a trend then you

may want to hold this for a longer time frame. Having some big

winners every now and then will fatten up your trading account! In

this case you can trail your stops under the swing lows (or highs for

shorts) until stopped out.

Natarajan Visweswaran is a senior Technical

Analyst with 9 years of charting experience in

tracking Global commodities and Indian equity

markets. Currently working with Progressive share

Brokers Pvt Ltd, Mumbai, he has received a Life

time achievement award in 2007 as one of the

"Pillars of Parasram" for excellence in research

work. The author may be reached at

[email protected].


ATMA Social Awards

Winning is so important, for all us,

every day. Yet a winning attitude is

ever more important throughout our

lives. How about a win-win. You win,

your fraternity wins and everyone

can win? Well that’s exactly what is

happening with the ATMA Social

Rewards...

ATMA Social Rewards

This simple idea is in full swing now.

You will notice the Activities in

ATMA Social Rewards information

box on the www.atma-india.net on

almost every page and yes on the

home page itself too. Just click on

the button in there and start

winning. Simple as that. A Reward is

the award and the best thing is you

can choose which one....

Competition is good…

More so when one is competing in

a win win enterprise such as the

ATMA Social Rewards.

You can notice the points earned

by you and others in the

Leaderboard. You can earn points

every day.

Growing Catalogue...

Redeeming of points as per the

catalogue to claim valuable gifts

and prizes is simple. Try it, today.

Wide variety of useful materials to win, any day, any time...

So many good things to win. Ramki Ramkrishnan, an ATMA trustee has kindly

added five copies of his best-seller E-book, the Five Waves to Financial

Freedom recently for all to win. Kora Reddy has promised to the catalogue

five copies of personalized in your name, autographed copies of his book on

Quantitative Trading too. More and more is coming. Polish your social media

skills and do visit the website of an organization you own, daily. Win-Win....

yes you can win.

The MyATMA private network on our website is in full swing too. Have you

been not posting things on the groups you have joined there, have you not

been sharing videos or other content on your Facebook type walls, have you

not been inviting friends and using the Personal Messaging feature there....

oh I see, you don’t see how the points on MyATMA can be encashed....

hmmm... that is going to be coming too soon. Keep polishing your social

networking skills on MyATMA and keep accumulating those points, they will

be usable as a very very private and special MyATMA Rewards also start,

which only our members can participate in. Oh yes, the karma points on the

Discussion Forum too will be encashable in some grand scheme. ATMA is a

winning idea and a win-win with each of its owner the larger design of things

in the pipeline.


SLOPED RETRACEMENT & ACTION -

REACTION

BY B. KRISHNAKUMAR

In an earlier article (November 2012 edition of ATMASphere) I talked about

sloped retracements and how the Andrews Pitchfork tool was handy in

identifying the dynamic sloped 50% retracement. Let us take the discussion

forward.

Price typically has this tendency to oscillate around a fair value or the mean.

If the trend is strong, the price would get stretched to the extreme,

depending on the direction of the trend. Upon reaching the extreme, the

price typically tends to revert to the mean or the fair value.

What most analysts fail to realize is that the fair value and the extremes are

dynamic in nature and is not a static number. Price is influenced by the greed

and fear quotient amongst the participants. Hence, the levels we talk about

should also be dynamic as they are influenced by abstract unquantifiable

factors – GREED & FEAR.

Let us look at the concept with an example. Have a look at the monthly chart

of Punjab National Bank featured below.

There are three sets of parallel lines in the chart. The middle line is the mean

or the fair value and the price has this tendency to oscillate around this mean

value. Typically, price retraces to the mean and if the trend is strong, it would

travel to the other extreme.

In the above chart, notice how price moved above the fair value or the

middle line in the year 2009 and got stretched to the upper extreme. The

price subsequently reversed and got back to the middle line and is now ruling

close to the lower extreme.

How do we use this in trading? It is as simple as solving a normal equation. If

we have two variables, we can easily solve for the third. To put it in simple

terms, once we can identify the center or fair value or the mean and one

extreme, we can easily find out where the other extreme would be.


If we have two extremes, it would not be too difficult to solve for the center

or mean or average. The Andrews Pitchfork tool was discussed in the

November 2012 article. The Pitchfork basically takes the extremes of a swing

and arrives at a center or the mean or the fair value.

Have a look at the chart featured below. The BC swing is bisected by the

Pitchfork and the angle is determined by the placement of the Pivot A.

With the pitchfork tool, we are solving for the center using the two extremes.

If we know the center and one extreme, we can draw an equidistant line to

arrive at the other extreme. Here is an example.

The concept is explained using the daily chart of Karnataka Bank. As price

started to turn around and made a higher high, it suggested that a short term

bounce is likely. I just connected the lows and copied that trendline and

pasted it at the top of the swing.

Do you think this has any relevance? Let us roll the chart forward and bring it

up to date. Featured below is the same chart with the updated data. Notice

how the price took support at the middle line or the fair value.

We now essentially have the lower extreme and the center. We can now

solve for the upper extreme which would be the upper extreme and the next

logical place where price would be headed to.

Just find the distance between the two lines and flip it above the center line.

Have a look at the updated chart of Karnataka Bank.


We now essentially have an equidistant set of lines also known as Action-

Reaction lines as described by Dr. Alan Andrews – The inventor of the

Pitchfork Tool. Note how price reaches the upper extreme after having

crossed the middle line.

In the next article, I will illustrate the concept with more examples and ways

to integrate this tool in trading.

B. Krishnakumar is working as Head-Equity Research

at FundsIndia.com which is an online financial services

platform for investors. Specializing in Mutual funds,

FundsIndia also offers other services including equities

and NPS. The author may be reached at

[email protected] .


Most important priority: Career Development

of ATMA Members

Why are we after all part of this grand

exercise called the ATMA, the Association

of Technical Market Analysts?

To be excellent, to be renowned for our pedigree embellished with great

knowledge and ethical conduct, to be sound in our approach at what we do

in our profession, to be trusted, to be reliable, to be empowered with an all

encompassing feeling of being organized together as a big team?

Yes, perhaps all of this is true! Yet, all of this is aimed at one key goal and all

of these goals will be fulfilled ONLY if each and every ATMA’ite is

empowered with the abilities, skills and attitudes to succeed at the career

each has chosen!

Right at the inception this vision was incorporated into the design of our

website. A powerful JOBS-BOARD exists where not only our members can

build their fully visible CVs they can also build additional CVs with

anonymous values in key fields such as name of current employer etc. etc.

All of us must TORTURE TEST this tool, now and as many problems or

errors or deficiencies are found must be noted and written to

[email protected]. Have patience while you critique the

deficiencies! Don’t stop at just pointing out what is lacking, but have the

tenacity to stretch your thinking into proposing a solution. Difference

between criticism and leadership is that leaders identify what is missing

and figure out how to fix it! Own ATMA now! Some few of us at the fight

are getting bored of being its solitary owners.

Now, the more important point:

Those amongst the ATMA membership who have a vision, a strategic string

of thoughts in place, who have had their brush with changing several jobs

and who would know how the inner world of HRM might be working, please

polish your shoes and step forward your best foot!

I have to build on an EMERGENCY basis a POWERFUL, INDEPENDENT &

FUNCTIONAL Career Development Committee

Why can’t we host some webinars inviting Social Media Gurus who can teach

ATMA members how to promote themselves in a dignified way on Twitter,

Facebook, LinkedIn, Klout, Google Plus? Why can’t we bring in some Partner of

a global recruitment firm to teach our younger ATMA members how to write

good CVs and cover letters and how to network to be on the frontline for

discovering the best jobs?

Go take a look at the Career Development Centre on the website of our parent

organization the http://www.mta.org

I need a team of strong-willed, independent minded mad men and women

who have a solitary goal: beat Sushil Kedia & his early team & create an

admirable Career Development Centre which is at least at par with the MTA

and perhaps way more!!

Get going ATMA! Long way to go and yes the world must yield the place to us

the Technical Analysts that we deserve!

Does ATMA belong to you? If not, who does it belong to?!

Then within the Job-board is a feature for incorporating the profiles of your

companies with a nice write up and logo you can make yourself a featured

employer on this powerful tool that this mad 43 year old man could envision

even at inception when he had no ideas of how a website is built. If I can

stretch my brain and body so far, what stops you mightier younger, energetic

smarter folks to beat me blue and black?


BOOK REVIEW – COME INTO MY

TRADING ROOM

REVIEWED BY THIRUNAVUKKARASU N

A technical book if any one wants to read first it is to

be lucid. What the author had in his mind should

directly go in to the mind of the reader without any

struggle. The reader should able to pick the ideas

what the author tries to say. These characters are

fully fulfilled by Dr Alexander Elder in this book

‘Come into My Trading Room’.

He was born in Estonia, annexed by the Soviet Union, where he studied

medical. At the age of 23, while working as a doctor in a ship, he jumped a

Soviet ship and got political asylum in the United States. He was practicing as

Psychiatrist at USA. He is a professional trader based in New York City. He

got the insight of psychology of trading by his medical experience. He has

written another popular book called ‘Trading for living’. His books were

translated in to various languages.

Right from the introduction to till the last chapter this CIMTR flows like river

water. The author has not given any panic to the aspiring trader at the same

time giving required warning then and there. He says to become a successful

trader, one needs to have several innate traits like discipline, risk tolerance,

facility with numbers. Further, to succeed one needs to have 3M’s viz., Mind,

Method and Money.

Dr Alexander gives priority to the Mind than the other two Ms. That is the

psychological rules will keep the trader cool and calm amidst the noise.

Noise distracts one’s attention. One who is able to control of the Mind can

succeed at trading activity. He says Trading is a journey of self-discovery.

Dr Alexander divides this book into three parts starting with explaining the

basic requirements for a new aspiring trader by treating him as a baby. The

second part covers on the 3Ms and the last one Dr Alexander takes us in to

his personal trading room directly.

Dr. Alexander hand holds the new trader like a child and walks through all

the important aspects of the trading. His style of explaining the tactics gives

confidence to the trader. They are simple and straight. In one place he says

that the aspiring trader may be likely killed by brokers, professional traders

and service providers. After that he guides in detail as to how to overcome

them all. Dr Alexander says it is ok to make mistakes but not ok to repeat

them. He mentions them as ‘sleep walking”.

More than identifying the trading opportunities one needs to be careful of

keeping records of his transactions in order to review later and rectify the

errors, if any. One needs to rate each trade and then review it so that the

efficiency of quality trading will improve. At the same time the trader’s

equity curve turns up. He gives supreme relevance to record keeping as it is

the score card of a trader.

Dr Alexander provides some important points for a disciplined trader:-

1. Maintain accurate trading records


2. An ideal Equity Curve should show a steady uptrend with shallow

draw downs.

3. Make your own trading plans.

4. Do not talk about your trading.

5. Learn all you can about the market you are trading.

6. Grade yourself on the adherence to your written plan.

7. Allot a certain amount of time to the markets each day.

8. Monitor selected markets daily, regardless of their activity.

9. Follow your money management.

In a nut shell, following his footsteps is a path to becoming a successful

trader. It is a must-read for all the aspiring traders, as well as a big tool to

finesse one’s efficiency in trading.

Thirunavukkarasu N works with ICICI Bank since 34

years. He is a student of Technical Analysis.


"I am surprised & IMPRESSED that you have

critical mass to hold a women-only meeting! It’s

a wonderful thing if you can pull it off. I’d love

to speak to the group someday"

- Katie Stockton , Vice President, MTA

Soliciting Women

Volunteers:

While a formal new fully

empowered Committee

is being built as “Women

in Technical Analysis”

you are welcome to join

all other Committees

too!

ATMA will fund an extra monthly meeting on any good educational topic

EACH Month for AT LEAST the next 12 months under the Women in Technical

Analysis series where the speaker, the delegates and the volunteers will all be

women. A well appointed 80 seater conference hall with all modern business

amenities in perhaps one of the most secure & safe buildings of Mumbai –

right at a well known Commodity Exchange is being worked out as a

permanent venue!

This would make Mumbai the only city in the world of Technical Analysis

where there would now regularly be TWO monthly meetings, it would also be

a first of its kind anywhere in the world, Educational Monthly Meetings only

for women!

Women in Technical Analysis

A Necessary Initiative:

Are markets a man’s world? Is Technical

Analysis a man’s domain? Answer is clearly no,

since markets as the final masters are the

ultimate level playing field. Yet, for various

legacy reasons markets have continued to be

dominated by men, so far.

Increasingly a larger and larger percentage of women are excelling at markets

and we do know many good Technicians such as Connie Brown, Louise

Yamada, Katie Stockton to just name a few have made their mark on the

globe! It’s time for India to discover its own Ms. Browne, Ms. Yamada & Ms.

Stockton!

The goal clearly is also to include any number of women Technical Analysts

you know and who are not yet ATMA members, to bring to the main-stream.

Speak to them, let them know the exceptional work ATMA has been

producing and get them to become members so that there are at least a 100

women members of ATMA in the very near future to take your representation

to at least 20% and hopefully as numbers grow the spiral effect will someday

take you closer to 35% or even more than 50%!

Of the 500+ members of ATMA active at this point, only 24 are women. That's

an abysmal number. The truth is a far bigger percentage of women are

technical analysts than the percentage women members in ATMA! Why? I

don’t have any good answer, but would guess that networking, professional

link building and such other extracurricular activities haven’t been easier for

women.

Here is a special initiative for You - the women Technical Analysts of India,

way more organized, crisper and resourceful than what has been done so far

for the general membership, at large.

We've have instituted a separate committee

altogether titled, "Women in Technical

Analysis". If you can think of a better name that

may be turned easily into a good &

RESPECTABLE acronym using the first letters of

each word, please do suggest.

So here is a special committee to be comprised

ONLY of women, FOR the women and BY the

Women at the ATMA. Your mandate as a

Committee is way larger: To represent, ascertain,

decipher and then achieve the goals for Women in

Technical Analysis.

Oh the Women Technical Analysts of India, write

to us for membership enquiries on:

[email protected] and for

volunteering on [email protected]!


ATMA WEBINAR SERIES II

After the success of the Webinar Series I, we now present to you Webinar Series II based on the theory of Elliot Wave by Mr. Rizwan Khan.

Mr. Rizwan Khan is a business graduate with more than seven years of experience and expertise in analyzing market trends and identifying trading/investment

opportunities in cash/derivatives segment based on advance charting techniques. A qualified CMT, he works with CIMB Securities India Private Limited as

Assistant Vice President – Technical Research. He is a well-known authority on the subject of Elliott Wave Analysis and specializes in analyzing and interpreting

market trends through clinical application of NEoWave (Elliot Wave) in conjunction with Classical Pattern Formation, Fibonacci Price etc.

Session III - 28th May 2013 (6:30 p.m. - 8:30 p.m) Corrective Waves - Simple Correction and Complex Correction. Wave Equality and Channeling Technique

Session IV - 4th June 2013 (6:30 p.m. - 8:30 p.m.) Fibonacci sequence - Retracement, Projection and extension.

Registration fee: Non-Members: Rs. 2400 /- inclusive of taxes. Member Discount: 100%, Members kindly log-in & Register for the meeting to receive the discount.

Designated Directors of BSE Brokers Forum: Rs 1600/- (Including Taxes) Kindly Note: Registrations will close on 14th May 2013 at 12:00 noon sharp.

FORTHCOMING EVENTS


Date: 18th

May, 2013

Venue: ITC Room, The Bengal Chamber of

Commerce & Industry, Kolkata

Attended by: 19 participants

Presenter: Mr. Gopiballabh Biswas, a Technical Analyst with 7 years’

experience in Indian equity market. He is a post-graduate in Pure

Mathematics and did his CAIIB. He is an associate member of MTA

and has completed Level 3 of the CMT Program.

Topic of study: Price Dynamics and Market Analysis by RSI

Points of Study in Brief:

• Pure Price Structure on different Time Frames.

• Recognizing trends/price swings of various lengths, trend

reversal on various time frames.

• Need for Trading along Larger Trend.

• Finding Low risk Trades with Examples.

• Using RSI & MACD in Today's Developed Markets.

• Discussion on above with Chart Examples.

14th

ATMA BANGALORE MEETING

Date: 19th

May, 2013

Venue: Shri Bhagawan Mahavir Jain College,

Bangalore


Presenter: Mr. Srikanth, M. Com. & NCFM certified, Research and

Technical Analyst of Saisadhan Group. http://riskfreecalls.blogspot.in/

Topic of study: Using Parabolic SAR

PAST EVENTS’ UPDATES

11th

ATMA KOLKATA MEETING


31ST

ATMA MUMBAI MEETING

Date: 25th

May, 2013

Venue: Assembly Hall, St. Xavier’s College,

Mumbai


Presenter: Mr. Vijay L Bhambwani, author of the book - A Trader’s

Guide to Indian Commodity Markets. He is the first dedicated

columnist for commodities in the English print media

Topic of study: Trading farm commodities

Points of Study in Brief:

• Farm Commodities and their unique trading patterns

• The role of cyclicality in demand / supply

• Import / export / currency peg considerations

• Role of Government regulations / intervention

• Unique nature of Indian Agri-futures market

PAST EVENTS’ UPDATES (Contd….)


Benefits of Membership with the ATMA

Apply for your ATMA Membership Today!

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