Enter market only when the opportunity arises : Manish Hathiramani, Owner of Deen Dayal Investments
Updated on: 10 Jun 2016
For some retail investors, day trading is like an addiction. To them, the simple advice from Manish Hathiramani, proprietary trader, technical analyst and expert in statistical stock trading in India, is: "Don't force the trade; sit stress-free." Manish, owner of Deen Dayal Investments, shares his views on technical tools and trading strategies.Excerpts:
Will technical analysis work in the current environment where algo and high-frequency trading disrupt the market?
I am sure it will. I have been practicing technicals for the last nine years and had started with old school theories such as stochastic, Elliott Wave Theory, CCI, trend line, basic regression, moving averages, etc. In algo and high frequency trading, some of the components of technicals are definitely being used. For example, a closing of a stock above the 200-day moving average with high volume may be instrumental in a buy in the algo system. Hence, the importance of technicals would never fade. However, I feel that manual intervention would always have its own advantages and many traders would prefer the route of using technical analysis and assessing or qualifying their indicators.
With so many technical tools available, will they not give contradicting signals to traders, particularly retail investors, and confuse them…