Showing posts with label investor. Show all posts
Showing posts with label investor. Show all posts

Monday, July 22, 2013

High Profitability Trading

When it comes to ultimate trading system; everyone are interested to know about. Obviously it is one of the curious topic discussed form centuries. Everything started form plotting “X” and “O” on cigarette packs or placing candles on a sand table.  Technical Analysis grew as an industry without even realizing.

We have witnessed many things in these times Black–Scholes, quant, expert system, cutting edge software’s, back testing and  dozens & dozens of indicators. Let me come again, where are we today. A time we are bombarded too many techniques, models, strategies and methods. Few sold over courses and coaching’s few are shown on YouTube few kept hush-hush.  Ultimately, today we leave in a world where we have too many techniques to follow too many indicators been invented few paid, few unpaid, few reliable and few aren’t.

After spending centuries of time, and spending huge amount of money. What we have found? Is it an ultimate trading system? The answer is no and we won’t find it until we understand the simplest things of stock market. That’s volatility, price and volume; all these are the basic pillars of technical analysis. Any indicators, trends, patterns follow these basic principles of markets.
Stock market is not a Pandora box it’s a simple demand and supply. There is nothing called as high profitability trading technique, every system have its own risk. Risk and reward are the basic inherent variables of any trade using a system. Remember, every system have certain risk even a risk free model such as Black–Scholes model also had a risk with it. Ultimately we are left with models which can be applied the only thing that you have to know is when to apply.

I love Kung-fu Panda, the most loved part in that movie is “nothing”. The soup-noodles isn't made up of a special ingredient nor there is any special description about martial arts on dragon scroll. Similarly we have left out with nothing in stock market. I have literally seen peoples who make money only using candle sticks and moving averages. And they are doing well, I regularly hear about a marwadi in Bangalore who use manual tools for predicting market. And that man is well-known for accuracy. How did he do that? It is nothing but shear dedication towards market.

This Sunday I was able to interact with an interesting man he is very close to Indian army. He told “Any army in the world have an average IQ. It isn’t an IQ that make that difference, it the discipline”. Larry Berman told something similar “I am a technical analyst; I have people to punch my orders”. Guys, any bullshit can make money out of market and we have good examples for that: Turtles, Million Dollar Traders (documentary) and many more. In an official blog of Rakesh Junjunwala described “people laughed at me when I told I want to be in stock market”(When Rakesh took a decision to start trading in his college days).

Coming again, we have nothing called as high profitability trading. If there is so than its you. And only you.

Sunday, January 6, 2013

Tata Steel, Elliott Wave Analysis

It’s almost a year or more I have been observing that Tata Steel is more sentimental towards gaps theory. This phenomenon may be usual and may be seen in many stocks but we are seeing this "gap theory" again and again in tata steel.  Long ago I was speaking regarding "Magical support" of sensex. But Tata steel have too much of such SAR

The stock has started to correct and have a possible correction till around 417 and move in the bullish channel.

Elliot Wave Analysis
This is my 1st EWT analysis. Currently we are seeing Tata steel correcting. It has just started corrective wave A and may have a support as mentioned above (around 417). 

Monday, October 29, 2012

Common Misunderstanding of Stock Market

It’s over a year that I have been writing in this blog. I came across many people with many “FAQ”. I have been always writing articles on Technical Analysis. But this time I’m willing to share something regarding “common misunderstanding” that people are having regarding markets.

Stock market is an illusion, everyone enters will end-up in loss

It doesn’t mean that if you have made loss, then everyone will make loss. There are 100 reasons for going wrong out in market. Analysis sometime fail, but you need to have a backup plan. If your stops trigger you have look for things like what went wrong, which is the next support, dose it worth bottom fishing the stock? And so on. Let me take a small example assume that you are out to market to buy a soap/bread/biscuit or any other item such. What you will do? Hope you go out for a retail shop and buy. Isn’t it? What if you don’t get? Easy go to another shop. For this we always use a world “don’t marry your stocks”

The reason is every stock has a cycle, a phase and a trend. Everyone have to understand it then go for an investment you know you can’t sail against wind so you have to go according to the winds of market. It doesn’t mean we have to buy a stock at a high and wait for the stock to go high. This is something what most of the “Breakout traders” do. Breakout traders are professional traders they understand the breakout more than a common man.  See every breakout aren’t bullish, some are fake and the great way to understand it to check volumes during breakouts.

I see TV and made Profit/Loss

 I am a student I don’t want to fall into any controversy. Let me communicate what Larry Berman and other such traders and analyst say “SWITCH OFF THAT TV VOLUME AND TRADE” few even go to an extent saying switch off your TV. Recently I had a chance to sit a wonderful seminar held in Bangalore, speaker as Vishal Malkan . Do you know what he told? He told “I never see TV” this isn’t weird I have many people saying this even I do the same thing.  I never say PM/President rule this world I say Media rule this world with psychological gimmicks, mind control and NLP.
I am a psychology guy hold a special interest in cognitive psychology and neuro linguists, I am not matured to speak things but can only say “ It’s your money, don’t make someone to take your investment decisions”. If you take their advice don’t blame them. If you get poor marks in an exam you can’t blame your pen, isn’t it?

I want to invest so and so, what will be the return after so many years

 Believe me even god find difficult to answer it. There are few concept involved like range, current price, policy, economics etc. many media say Sensex will touch 20k/30k etc but there is some T&C*. The best way to do money is to buy at a low and sell at high. It is very hard to specify time.

How can I become a very good trader?

 Everyone wants to be a Rakesh Jhunjhunwala. I have seen people who are trading for show-offs. When people ask this question I normally question them asking. What you do for leaving? Many answer mobile shop, owner of petrol pump, jewellery shop, hardware shop etc . Time, emotions, analysis and capital are some key pillars of trading. And trading is a different game. Everyone can play but there are few who are good at it, like Sachin in cricket.

I am not a trader but would like to call myself an analyst. I don’t spend 24*7 out seeing market. Yet I made around 12% to 51% profit out of 10 stocks in September. You can be a investor can do handsome money.
Do you know in ancient time there used to be a percentage of farmers, a percentage of carpenters, a percentage of blacksmith etc etc. every city was balanced that time son of a carpenter will be  a carpenter.  If your family /your business is doing well. Then, why you need trading? Investment is smartly a good decision compared to trading.

“Hope this article bring some change, in you”


Saturday, December 24, 2011

Must see: If u want to b a Trader/Investor in Stock Market?

Hi friends this is documentary that I had seen around 6 months ago. and this is one such video which created a curiosity to know more and more. If you want to enter into such market you need Right Talent, Intelligence and  Knowledge. It is recommended that before entering any market you should need to know the insight view of it. And this video do say that.

This video is quit lengthy and some of my friends had felt boring to see this, so i recommend to see this with a curiosity. I hope this video will obviously through some light.