Indian equities are likely to swing wildly as the much awaited budget is presented by the Finance Minister at around 11 AM today. Middle eastern crisis continued to weigh global asset classes as UN imposed sanctions on Libya.
We wish the budget might spring in a surprise in otherwise a market hurt by weak sentiment and global jitters. We expect 2-4 pct move in Nifty today with extreme volatility.
Infra, Banking and Realty stocks might take off on the slightest positive news. We do believe trying to be bullish at times when global markets are nervous and macro economic situation is fragile might not be the best of the things but there is something called "baked in" or "discounted" by the market. While higher crude oil is still a worry, the macro economic situation is discounted.
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Monday, February 28, 2011
Thursday, February 24, 2011
&O Expiry might be volatile, Crude tops $100 mark
Markets - Expiry likely to be volatile
Markets are unlikely to have a smooth F&O expiry session today. While it is extremely tough to take sides, the open interest data still points to a 5500 close on Nifty which appears tough prima facie.
We believe majority of the stocks are forming bottoms and except for Libya crisis Dalal Street might have taken off next week. Budget might surprise analyst community and the market as there are minor or no expectations.
Few more days of downturn is possible but we are almost there.
Today's Below................5420.00 Mark....Once Again...Favours Bears Only...Below that Mark...NIFTY FUTURE , is Likely to Hit......5400.00 and 5366.00 too .............................So Watch Carefully......
Markets are unlikely to have a smooth F&O expiry session today. While it is extremely tough to take sides, the open interest data still points to a 5500 close on Nifty which appears tough prima facie.
We believe majority of the stocks are forming bottoms and except for Libya crisis Dalal Street might have taken off next week. Budget might surprise analyst community and the market as there are minor or no expectations.
Few more days of downturn is possible but we are almost there.
Today's Below................5420.00 Mark....Once Again...Favours Bears Only...Below that Mark...NIFTY FUTURE , is Likely to Hit......5400.00 and 5366.00 too .............................So Watch Carefully......
Wednesday, February 23, 2011
Markets : Subdued two days on cards
Global equities tumbled on Tuesday as the revolt in Libya drove crude oil prices to 30-month highs with Wall Street losing as much as two percent. Asian Markets are trading marginally lower on Wednesday
We believe stage is set for Nifty to trade ranged in the next two days with Players eyeing 5500 tomorrow. Worst case Nifty might close around 5400. Libya crisis is hitting the crude oil prices badly following which Indian government is likely to hike domestic prices soon. Inflation which is cooling-off now is likely to jump again as higher crude prices is likely to put pressure on other commodities.
If not for the Middle Eastern crisis, stage is set for rally in Indian equities in March
Today's Once Again..Below.............5468.00 Mark....Favours Bears Only...Below that Mark...NIFTY FUTURE is Likely to Hit........5451.00 and than....5423.00
We believe stage is set for Nifty to trade ranged in the next two days with Players eyeing 5500 tomorrow. Worst case Nifty might close around 5400. Libya crisis is hitting the crude oil prices badly following which Indian government is likely to hike domestic prices soon. Inflation which is cooling-off now is likely to jump again as higher crude prices is likely to put pressure on other commodities.
If not for the Middle Eastern crisis, stage is set for rally in Indian equities in March
Today's Once Again..Below.............5468.00 Mark....Favours Bears Only...Below that Mark...NIFTY FUTURE is Likely to Hit........5451.00 and than....5423.00
Tuesday, February 22, 2011
Today's......Below.......5527.00 Mark...Once Again..Favours Bears Only...and May Try to Hit........5501.00 and 5483.00 too in Today's Trading Session.
Bulls May Try to Rock the Street.But Only Above..........5530.00 Mark..Above that Mark...
Crude futures rallied Monday along with precious metals Gold and Silver as unrest in Libya raised worries about a potential disruption in oil supplies from the North African nation.
Reliance Industries stock has underperformed the Index from the past one year. The stock defied many analyst predictions of an upmove and here we go with a decent oppurtunity for the stock to prove its mettle. While middle east unrest is a cause for concern, this stock is likely to gain irrespective of the market movement.
Reliance is likely to lead the market rally in the coming days. We believe majority of macro economic negatives are priced at the current levels. Global picture especially Middle East might cause some trouble as Crude Oil is bound to go up. Yesterday's upmove indicates that the news is out in the market prior to the announcement itself
Bulls May Try to Rock the Street.But Only Above..........5530.00 Mark..Above that Mark...
Crude futures rallied Monday along with precious metals Gold and Silver as unrest in Libya raised worries about a potential disruption in oil supplies from the North African nation.
Reliance Industries stock has underperformed the Index from the past one year. The stock defied many analyst predictions of an upmove and here we go with a decent oppurtunity for the stock to prove its mettle. While middle east unrest is a cause for concern, this stock is likely to gain irrespective of the market movement.
Reliance is likely to lead the market rally in the coming days. We believe majority of macro economic negatives are priced at the current levels. Global picture especially Middle East might cause some trouble as Crude Oil is bound to go up. Yesterday's upmove indicates that the news is out in the market prior to the announcement itself
Monday, February 21, 2011
Dalal Street to turn volatile during the expiry week
Global markets are trading higher and moving up despite of increasing tensions and crisis in the middle east. Libya is the latest casualty and slowly but surely the impact of the crisis will be shown on crude oil and Gold prices.
News Bytes
* SBI announces Rs 2,000-cr retail bond issue
* IDFC sees slowdown in lending in FY12
* Hexaware eyes 25% growth, to up headcount to 8,000 in FY11
* RCF to enter rival turf with phosphatic fertiliser foray
* Subsidiaries lift KEC’s performance
* IOB to get Rs 1,054 cr capital infusion from govt
Markets - Volatility ahead of expiry & budget
While there are absolutely no expectations on the budget from investor perspectively, we expect a surprise during budget phase. The only big negative global markets are ignoring is the Middle East crisis which might push cride oil prices and Gold prices higher.
It would be ideal for investors to still wait and watch and start picking up stocks only in case of further slide from current levels
Today's......Below.......5449.00 Mark...Once Again..Favours Bears Only...and May Try to Hit........5421.00 and 5401.00 too in Today's Trading Session......Watch Carefully............!!!
More Pain...Only Below......5391.00 Mark...Below that Mark...NIFTY FUTURE Likely to hit..........5378.00 and 5353.00 too.............
Levels for Bulls......!!!
Bulls--Bulls Aaya.Re.....Bulls May Try to Rock the Street.But Only Above..........5475.00 Mark..Above that Mark...NIFTY FUTURE is Likely to hit........5499.00 and 5517.00 too in Today's Trading Session.......Watch Carefully
News Bytes
* SBI announces Rs 2,000-cr retail bond issue
* IDFC sees slowdown in lending in FY12
* Hexaware eyes 25% growth, to up headcount to 8,000 in FY11
* RCF to enter rival turf with phosphatic fertiliser foray
* Subsidiaries lift KEC’s performance
* IOB to get Rs 1,054 cr capital infusion from govt
Markets - Volatility ahead of expiry & budget
While there are absolutely no expectations on the budget from investor perspectively, we expect a surprise during budget phase. The only big negative global markets are ignoring is the Middle East crisis which might push cride oil prices and Gold prices higher.
It would be ideal for investors to still wait and watch and start picking up stocks only in case of further slide from current levels
Today's......Below.......5449.00 Mark...Once Again..Favours Bears Only...and May Try to Hit........5421.00 and 5401.00 too in Today's Trading Session......Watch Carefully............!!!
More Pain...Only Below......5391.00 Mark...Below that Mark...NIFTY FUTURE Likely to hit..........5378.00 and 5353.00 too.............
Levels for Bulls......!!!
Bulls--Bulls Aaya.Re.....Bulls May Try to Rock the Street.But Only Above..........5475.00 Mark..Above that Mark...NIFTY FUTURE is Likely to hit........5499.00 and 5517.00 too in Today's Trading Session.......Watch Carefully
Friday, February 18, 2011
F&O data suggests further upmove on cards
Indian equities are likely to extend the run for the sixth straight day today as FIIs continue to buy Nifty Futures.
The F&O game is nicely played by FIIs. The way Indian market sold-off and recovered, we believe lot of innocent investors have burned their fingers in both equities and F&O segment. With absolutely no buying in the cash segment FIIs bought Nifty futures two times this week.
The sole purpose of F&O remains in big jeopardy as few funds are misusing it for their benefits. There is nothing in store for small investors, given the kind of volatility the Street is witnessing from the last one month. There may be more in the offing. While long term investors always win if the company's fundamentals are in tact, traders bear the brunt of manipulated activities
There is one short term resistance which the indices need to cross for them to gallop further. This resistance comes in @ 18542 for the Sensex and 5556 for the Nifty. Above these levels the indices will see the bullish trend continuing. On the lower side supports come in @ 18345 for the Sensex and 5504 for the Nifty. Hold a scrip specific view
The F&O game is nicely played by FIIs. The way Indian market sold-off and recovered, we believe lot of innocent investors have burned their fingers in both equities and F&O segment. With absolutely no buying in the cash segment FIIs bought Nifty futures two times this week.
The sole purpose of F&O remains in big jeopardy as few funds are misusing it for their benefits. There is nothing in store for small investors, given the kind of volatility the Street is witnessing from the last one month. There may be more in the offing. While long term investors always win if the company's fundamentals are in tact, traders bear the brunt of manipulated activities
There is one short term resistance which the indices need to cross for them to gallop further. This resistance comes in @ 18542 for the Sensex and 5556 for the Nifty. Above these levels the indices will see the bullish trend continuing. On the lower side supports come in @ 18345 for the Sensex and 5504 for the Nifty. Hold a scrip specific view
Thursday, February 17, 2011
Profit booking due on D-Street after a extended pullback rally
Markets - Looking weak
While we expected correction in the markets yesterday, it did not happen. Singapore Nifty is pointing to a gap down of 27 points today. Profit booking is likely in the markets, especially in stocks with major pullbacks.
Nifty is likely to have support at 5350 and 5400 levels. We are not out of the woods despite of US markets showing enormous strength
Let's.....See......Who'll Buy First........As In Today's Trade.......Everyone Will Hurry to Buy this ACKRUTI CITY.........!!!
It'll Open.....Almost 5 to 10% Up.........!!!
While we expected correction in the markets yesterday, it did not happen. Singapore Nifty is pointing to a gap down of 27 points today. Profit booking is likely in the markets, especially in stocks with major pullbacks.
Nifty is likely to have support at 5350 and 5400 levels. We are not out of the woods despite of US markets showing enormous strength
Let's.....See......Who'll Buy First........As In Today's Trade.......Everyone Will Hurry to Buy this ACKRUTI CITY.........!!!
It'll Open.....Almost 5 to 10% Up.........!!!
Wednesday, February 16, 2011
Stocks likely to cool-off
Markets - Likely to take a blow today
We expect markets to cool-off today. Infra and realty stocks might restart the slide again. We advice investors to stay put and wait for more downsides before jumping in.
Expiry next week is likely to add more volatility in the markets. Expect wild swings
Bears May Try the, Three Day Winning Streak Below....5449.00 Mark...Below that Mark....NIFTY FUTURE May Try to hit......5418.00
We expect markets to cool-off today. Infra and realty stocks might restart the slide again. We advice investors to stay put and wait for more downsides before jumping in.
Expiry next week is likely to add more volatility in the markets. Expect wild swings
Bears May Try the, Three Day Winning Streak Below....5449.00 Mark...Below that Mark....NIFTY FUTURE May Try to hit......5418.00
Tuesday, February 15, 2011
D-Street likely to consolidate after sharp upmoves
Indian equities are likely to open marginally lower on Tuesday after a back to back thumping sessions on flat global cues. Asian markets are currently trading mixed. S&P chart is indicating a big break out or break down in the coming weeks. We will post an update as and when it happens
Markets - Pullback rally unlikely to fizzle out this week
While every one on the street is extremely confident on the strength of this pullback rally, couple of index majors are displaying immense strength on charts. We expect a stock specific demand in today's trade. Markets might make a false move downwards.
We too are with the majority of the crowd on the ongoing pullback rally. But one should asses the situation when Nifty moves near to 5600-5700 band. Beaten down sugar stocks and Realty stocks might witness value buying.
Bears...May Try to Spoil the Show...May taking, But Seems, Only Below......5423.00
Markets - Pullback rally unlikely to fizzle out this week
While every one on the street is extremely confident on the strength of this pullback rally, couple of index majors are displaying immense strength on charts. We expect a stock specific demand in today's trade. Markets might make a false move downwards.
We too are with the majority of the crowd on the ongoing pullback rally. But one should asses the situation when Nifty moves near to 5600-5700 band. Beaten down sugar stocks and Realty stocks might witness value buying.
Bears...May Try to Spoil the Show...May taking, But Seems, Only Below......5423.00
Monday, February 14, 2011
Valentine's Day to bring cheers on Dalal Street
Indian equities are likely to marginally gap up when they open for trade on Monday morning on positive global cues which includes end to Egyptian crisis. Asian markets are trading positive today
Markets - To race higher
Its pay back time for bulls. We expect markets to race higher giving a lesser chances for traders or investors. One should remember this is just a relief rally and for the relief rally to convert into a major bull rally one should take assistance of technicals.
SEBI's probe against the Bear cartel is a welcome sign. While many on the street are arguing that it is definitely valid to short a stock based on its merit, we clearly are against spreading rumours during panicky situations and causing further damage to innocent investor's wealth. We have taken notice of such kind of rumours floated against specific stocks which were forced to bite the dust due to weak sentiment and relentless short selling. The worst part of the Bear cartel is few sections of the media are working hand in glove which includes a major business daily which failed to check basic information about the location of a company while reporting a news recently.
It's time the small investor is rescued and SEBI puts a check to these kind of acts.
Keeping Stop Loss of 5100.....Start Fresh Exposure in Indian Stock Market.......................!!!
As....On Friday's....We Already Wrote About this............!!!
Markets - To race higher
Its pay back time for bulls. We expect markets to race higher giving a lesser chances for traders or investors. One should remember this is just a relief rally and for the relief rally to convert into a major bull rally one should take assistance of technicals.
SEBI's probe against the Bear cartel is a welcome sign. While many on the street are arguing that it is definitely valid to short a stock based on its merit, we clearly are against spreading rumours during panicky situations and causing further damage to innocent investor's wealth. We have taken notice of such kind of rumours floated against specific stocks which were forced to bite the dust due to weak sentiment and relentless short selling. The worst part of the Bear cartel is few sections of the media are working hand in glove which includes a major business daily which failed to check basic information about the location of a company while reporting a news recently.
It's time the small investor is rescued and SEBI puts a check to these kind of acts.
Keeping Stop Loss of 5100.....Start Fresh Exposure in Indian Stock Market.......................!!!
As....On Friday's....We Already Wrote About this............!!!
Friday, February 11, 2011
Wanted : Bulls, Experience : No bar, Location : Dalal Street
Stocks on Dalal Street are losing over Rs 100 crore on an average in every single minute of trade so far this year, adding up to over Rs 11 lakh crore since the begining of January 2011.
While every investor is confident of longer term perspectives of Indian economy, the current sell-off has literally punched every one's portfolio. This kind of fall was inevitable. Correction has turned into a blood bath for the short term.
Investors have limited choices as many stocks have fallen beyond 60 pct. Few of them might never return too
Start...Accumulating Your Favourite Counter...keeping SL of 5150...and Hold these Stocks...Till Budget.......!!!
While every investor is confident of longer term perspectives of Indian economy, the current sell-off has literally punched every one's portfolio. This kind of fall was inevitable. Correction has turned into a blood bath for the short term.
Investors have limited choices as many stocks have fallen beyond 60 pct. Few of them might never return too
Start...Accumulating Your Favourite Counter...keeping SL of 5150...and Hold these Stocks...Till Budget.......!!!
Wednesday, February 9, 2011
D-Street fall picks up speed as non-Index stocks bleed
Indian equity markets continued to fall despite of positive cues from global markets on account of severe battering by FIIs. Asian markets are trading flat to positive on Wednesday morning
While all the support levels evapourated, Nifty is looking pale at current levels. It is indeed unbelievable to see the selloff returning almost every day. As we mentioned earlier investors are in a tight spot whether to book losses in the existing holdings or to add more to their individual portfolios.
We believe the current downside will be only arrested if Nifty sees a panic fall and then a bounce.
While all the support levels evapourated, Nifty is looking pale at current levels. It is indeed unbelievable to see the selloff returning almost every day. As we mentioned earlier investors are in a tight spot whether to book losses in the existing holdings or to add more to their individual portfolios.
We believe the current downside will be only arrested if Nifty sees a panic fall and then a bounce.
Tuesday, February 8, 2011
More consolidate on cards for Indian Markets?
Markets - 5350 on Nifty might hold
While yesterday's session is more of a consolidation move on the Indices, we do expect if there is a bounce of more than 100-150 points on Nifty the current downtrend is more or less done with. Investors should wait for confirmation before jumping the gun.
Yesterday's trade witnessed bloodbath in some of the counters. The tendency of stocks especially midcap and smallcap stocks during downturn to panic even on a minor news that really impacts the business is pretty natural.
Second half of February might bring back cheers to investors.
Bulls......Will be there..........But Only Above.............5410
While yesterday's session is more of a consolidation move on the Indices, we do expect if there is a bounce of more than 100-150 points on Nifty the current downtrend is more or less done with. Investors should wait for confirmation before jumping the gun.
Yesterday's trade witnessed bloodbath in some of the counters. The tendency of stocks especially midcap and smallcap stocks during downturn to panic even on a minor news that really impacts the business is pretty natural.
Second half of February might bring back cheers to investors.
Bulls......Will be there..........But Only Above.............5410
Monday, February 7, 2011
Positive opening in Asian markets, D-Street under bear threat
Indian equities are likely to open flat only to see some more selling in the morning session on breaching key technical levels on Friday. Asian markets are trading marginally positive on Monday morning
Nifty breached 5400 level with a huge force on Friday. We believe this might lead to a new low and might happen quick. Expect a better second half, ahead of the budget. For now, investors has no other option to go through the pain.
While 4800 can be called as a dead bottom for Nifty in the given circumstances, we would not wait till 4800 for accumulating stocks. Bottoms are formed before one realises the same
Today's Below................5366.00 Mark.....Once Again...Favours Bear
But Only Above.............5403.00 Mark...Above that Mark...NIFTY FUTURE Likely to Hit......5435.
Nifty breached 5400 level with a huge force on Friday. We believe this might lead to a new low and might happen quick. Expect a better second half, ahead of the budget. For now, investors has no other option to go through the pain.
While 4800 can be called as a dead bottom for Nifty in the given circumstances, we would not wait till 4800 for accumulating stocks. Bottoms are formed before one realises the same
Today's Below................5366.00 Mark.....Once Again...Favours Bear
But Only Above.............5403.00 Mark...Above that Mark...NIFTY FUTURE Likely to Hit......5435.
Friday, February 4, 2011
After a bull storm its time for calm
Stocks are likely to witness decent upmove from here on. We are betting on midcap stocks in the next few days. But we believe 5400 is likely to be tested one more time this month and any severe bounce off that levels is likely to end the bear party.
Inflation is likely to shed weight drastically in the next two weeks and expectations of budget sops might keep the bulls pumping. All in all at least part of the bearish cloud seems to have passed out
Today's Above.............5548.90 NIFTY FUTURE Manage to hit that Mark....than.................5582.00
But Only and Only Below..................5500.00 Mark......If In Any Case , Break that Mark...Only than Expect Real Downside on the Bourses....and NIFTY FUTURE...May Try to Hit..............5473.00
Inflation is likely to shed weight drastically in the next two weeks and expectations of budget sops might keep the bulls pumping. All in all at least part of the bearish cloud seems to have passed out
Today's Above.............5548.90 NIFTY FUTURE Manage to hit that Mark....than.................5582.00
But Only and Only Below..................5500.00 Mark......If In Any Case , Break that Mark...Only than Expect Real Downside on the Bourses....and NIFTY FUTURE...May Try to Hit..............5473.00
Thursday, February 3, 2011
Oversold D-Street looks for assistance
Expect, Bounced Back But Only and Only Above..5454.00 Mark
Today's Below ...........5417.00 Mark...and stayed that Level for Consecutive 20 Minutes............Immediately Expect a Level of ______(To know Subscribe)
While Markets continue to linger in the oversold territory, every rise is being sold-off by investors. Yesterday's late hour smack down was a big disappointment. Raja's arrest is just a lame excuse for markets to move down.
The silverlining in the last three days session is buying emerging on all dips. It is just a matter of time one witnesses relief rally but the chances of a relief rally converting into a full fledged rally look bleak, atleast in the extreme short term
Today's Below ...........5417.00 Mark...and stayed that Level for Consecutive 20 Minutes............Immediately Expect a Level of ______(To know Subscribe)
While Markets continue to linger in the oversold territory, every rise is being sold-off by investors. Yesterday's late hour smack down was a big disappointment. Raja's arrest is just a lame excuse for markets to move down.
The silverlining in the last three days session is buying emerging on all dips. It is just a matter of time one witnesses relief rally but the chances of a relief rally converting into a full fledged rally look bleak, atleast in the extreme short term
Wednesday, February 2, 2011
Subscribe to Expert Advice !!!
We, Unleash...Seven Secrets to Become the Successful Trader in Stocks Market !
1. TAKE COMPLETE RESPONSIBILITY
The successful trader knows that every action he takes is his/her action. You will never meet a successful trader who is looking to blame someone or something else for his or her losses.
This is a critical step in understand how to become a successful trader because until you take complete responsibility for all of your trades, you will never feel comfortable with your system and you will never reap the rewards.
Additionally, when something goes wrong with a trade or an investment endeavor, the traders who take complete responsibility for their actions will look at those "failures" as learning experiences.
The trader who takes responsibility will try and determine what went wrong and what needs to be done in order to avoid similar mistakes in the future. The trader who does not take complete responsibility will simply say "the market wasn't right" or "my broker is an idiot".
That trader will likely make the same mistakes again and will never understand why he/she cannot win in the stock market. This step is critical.
Before all else, you must accept everything that you do as your responsibility. The game can only be won out of luck if you don't follow this first step.
2. HAVE A SYSTEM THAT FITS YOU
So how do you find a system that works for you?
You have to work backwards by discovering what your objectives are!
What annual rate of return are you looking for?
Do you want to trade full time or just leisurely?
Would you get stressed with daily gains and daily losses?
Are you extremely patient with your investments?
Do you need to make lots of decisions?
Which trading systems do you know and feel comfortable with?
How much research have you done?
There are so many questions to ask yourself because it is absolutely vital that you choose a system that really works for you.
If you are not comfortable with your system then you will always be tempted to break your rules. Your health will likely suffer as much as your portfolio.
3. PLAN A TRADE AND TRADE A PLAN
The point of this rule is that you must develop a system that is right for you and then stick to it no matter what. As a result, your plan must be able to cater for every eventuality.
Once you put your money down then you no longer can control what happens. You won't know what the prices will do so you can't worry about anything except following your plan.
What will your entry be?
What will your exit be?
What happens if there is a merger?
What happens if the price gets close to your stop order?
So make sure that your system plans for everything. Then you just need to follow your rules and you won't have to think (or stress) at all.
4. WORK HARD AT LEARNING HOW TO TRADE PROPERLY AND KEEP WORKING
In other words, once you have put the time and energy into determining your system, your work is not done. You have to constantly evaluate and assess your system via education.
Now, I'm not saying that you have to worry about your plan every time you make a trade. That would contradict Secret number 3!
What I'm saying is that if you were a brain surgeon would you stop learning new techniques and new technology after you finished your internship? I certainly hope not!
Hopefully, you'll keep educating yourself so that, at minimum, you can keep up with the changing times. At maximum, you keep improving until you become one of the best
.
Keep learning ... even when you think you know everything there is to know about investing.
5. POSITIVE SELF-BELIEF
The top traders know that it is the discipline displayed in following their rules that make all the difference. If you do not believe in yourself and your system then you are going to have difficulty following your rules.
Following your rules is the most important aspect of successful trading. But even if you do follow all your rules, if you are constantly doubting yourself then you aren't going to have any fun at all, plain and simple ...
You will be miserable!
6. VIEW TRADING AS A SCORE IN POINTS AND NOT MONEY
Simply put, forget about the money. Follow your rules and pretend you are playing with chips. Be happy that you stuck to your rules and are winning the game.
But if you think too much about the money then the losses will eat you up. You have to look at the big picture and the best way to do that is to forget about the money.
In action terms, it means to stop looking at the newspaper every morning to see if your stock has gone up or down.
If it hasn't triggered one of your actions (like exit or another entry) then don't worry about it because it doesn't concern you until action is required.
If you stick to your rules then you really shouldn't even need to know anything about your stocks or your money until action is required (and even then you can automate most of those processes).
The top traders never saw their trading as a cash box. They were either running a business or playing a game.
It just is not possible to become a top trader if you view every single tick in the market as money lost or money gained.
7. KEEP TRADING AS PART OF A BALANCED LIFE
This is an extension of Secret #6. Trading is stressful no matter who you talk to. Money is stress. So do everything you can think of to eliminate this stress. You will be happier and you'll be more successful.
1. TAKE COMPLETE RESPONSIBILITY
The successful trader knows that every action he takes is his/her action. You will never meet a successful trader who is looking to blame someone or something else for his or her losses.
This is a critical step in understand how to become a successful trader because until you take complete responsibility for all of your trades, you will never feel comfortable with your system and you will never reap the rewards.
Additionally, when something goes wrong with a trade or an investment endeavor, the traders who take complete responsibility for their actions will look at those "failures" as learning experiences.
The trader who takes responsibility will try and determine what went wrong and what needs to be done in order to avoid similar mistakes in the future. The trader who does not take complete responsibility will simply say "the market wasn't right" or "my broker is an idiot".
That trader will likely make the same mistakes again and will never understand why he/she cannot win in the stock market. This step is critical.
Before all else, you must accept everything that you do as your responsibility. The game can only be won out of luck if you don't follow this first step.
2. HAVE A SYSTEM THAT FITS YOU
So how do you find a system that works for you?
You have to work backwards by discovering what your objectives are!
What annual rate of return are you looking for?
Do you want to trade full time or just leisurely?
Would you get stressed with daily gains and daily losses?
Are you extremely patient with your investments?
Do you need to make lots of decisions?
Which trading systems do you know and feel comfortable with?
How much research have you done?
There are so many questions to ask yourself because it is absolutely vital that you choose a system that really works for you.
If you are not comfortable with your system then you will always be tempted to break your rules. Your health will likely suffer as much as your portfolio.
3. PLAN A TRADE AND TRADE A PLAN
The point of this rule is that you must develop a system that is right for you and then stick to it no matter what. As a result, your plan must be able to cater for every eventuality.
Once you put your money down then you no longer can control what happens. You won't know what the prices will do so you can't worry about anything except following your plan.
What will your entry be?
What will your exit be?
What happens if there is a merger?
What happens if the price gets close to your stop order?
So make sure that your system plans for everything. Then you just need to follow your rules and you won't have to think (or stress) at all.
4. WORK HARD AT LEARNING HOW TO TRADE PROPERLY AND KEEP WORKING
In other words, once you have put the time and energy into determining your system, your work is not done. You have to constantly evaluate and assess your system via education.
Now, I'm not saying that you have to worry about your plan every time you make a trade. That would contradict Secret number 3!
What I'm saying is that if you were a brain surgeon would you stop learning new techniques and new technology after you finished your internship? I certainly hope not!
Hopefully, you'll keep educating yourself so that, at minimum, you can keep up with the changing times. At maximum, you keep improving until you become one of the best
.
Keep learning ... even when you think you know everything there is to know about investing.
5. POSITIVE SELF-BELIEF
The top traders know that it is the discipline displayed in following their rules that make all the difference. If you do not believe in yourself and your system then you are going to have difficulty following your rules.
Following your rules is the most important aspect of successful trading. But even if you do follow all your rules, if you are constantly doubting yourself then you aren't going to have any fun at all, plain and simple ...
You will be miserable!
6. VIEW TRADING AS A SCORE IN POINTS AND NOT MONEY
Simply put, forget about the money. Follow your rules and pretend you are playing with chips. Be happy that you stuck to your rules and are winning the game.
But if you think too much about the money then the losses will eat you up. You have to look at the big picture and the best way to do that is to forget about the money.
In action terms, it means to stop looking at the newspaper every morning to see if your stock has gone up or down.
If it hasn't triggered one of your actions (like exit or another entry) then don't worry about it because it doesn't concern you until action is required.
If you stick to your rules then you really shouldn't even need to know anything about your stocks or your money until action is required (and even then you can automate most of those processes).
The top traders never saw their trading as a cash box. They were either running a business or playing a game.
It just is not possible to become a top trader if you view every single tick in the market as money lost or money gained.
7. KEEP TRADING AS PART OF A BALANCED LIFE
This is an extension of Secret #6. Trading is stressful no matter who you talk to. Money is stress. So do everything you can think of to eliminate this stress. You will be happier and you'll be more successful.
Tuesday, February 1, 2011
Domestic Institutions bought equities worth Rs 1000 crore yesterday
Dalal Street might witness the much awaited pull back rally on Tuesday as Asian markets traded in green on positive US markets. FII selling continued on Monday but DIIs came to the rescue with a Rs 1000 crore buying which shadowed the Rs 900 crore sell-off in the cash segment by FIIs.
Markets - The cat fight begin
Yesterday's tape did speak of some buying emerging at lower levels. We believe from here on it is not going to be easy for bears to drive down the indices. Domestic Institutions and Insurance companies who are sitting pretty with cash might step up buying. Q3 numbers demonstrated that India Inc is on its way for superlative growth in the coming years. Q4 might be hit due to rising borrowing costs for companies but it is the demand from the consumer that will drive the economy in the next couple of years.
Think long and think India.
Markets - The cat fight begin
Yesterday's tape did speak of some buying emerging at lower levels. We believe from here on it is not going to be easy for bears to drive down the indices. Domestic Institutions and Insurance companies who are sitting pretty with cash might step up buying. Q3 numbers demonstrated that India Inc is on its way for superlative growth in the coming years. Q4 might be hit due to rising borrowing costs for companies but it is the demand from the consumer that will drive the economy in the next couple of years.
Think long and think India.
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