Monday, 15 December 2014

Nifty Futures Buy Call for Short Term (3 to 5Days)

Go for buy on nifty(based on nifty spot levels) at :8230 with stop loss: 8195 Targets are 8272, 8322 and 8372. Because nifty(spot) one hour and daily chats showing oversold possession and one hour chart giving  single candle positive divergences. All the best my dear friends.

Thursday, 11 December 2014

Nifty (spot) Shot Call Reached All Our Targets .. cheers

Nifty (spot) Shot Call Reached All Our Targets .. cheers. Book your full profits. Don't go for buy or shot now. Wait for farther call my dear friends.

My Call On 7th December 2014:

Go Shot on Nifty Futures
Go shot on nifty futures based on nifty spot levels. Maintain strict stop loss.
Shot at : 8525   Stop loss :8635 Targets: 8457,8363 and 8305

Wednesday, 10 December 2014

Nifty Today View

As I accepted nifty recovered 8320 to 8376. But it was not settled 8370. Nifty when settled above 8370(spot) at latest one hour .. then intraday up trend will possible. Nifty on down trend now. Dear friends don't go for buy and continue your shot positions.    

Tuesday, 9 December 2014

Today Nifty Reached 2nd Target

My dear friends today our nifty(spot) shot call reached 2nd target(8363). I hope it will reach 3rd target 8305 soon. But nifty one hour charts showing overbought possession. I think nifty some full bake recovery or consolidation will possible coming  tow or three days. So .. booking some partial profits is better idea. who have shot on nifty above one lot possessions .. book some partial profits my dear friends. 

My Call on 7th December:
 
Go shot on nifty futures based on nifty spot levels. Maintain strict stop loss.
Shot at : 8525   Stop loss :8635 Targets: 8457,8363 and 8305

Monday, 8 December 2014

Today Nifty Analysis

Profit booking continued for another session on Monday the Nifty falling 100.05 points or 1.17% to 8438.25. Nifty spot closed below 8440. If Nifty closed above 8460 some uptrend possibility we can see. But Nifty spot closed below 8440. So.. some more profit booking expected in coming trading sessions.Close all buy possessions and don't go for buy or shot now. It is not safe. Who have shot possessions now ... continue your shot based on  my shot call yesterday. All the best my dear friends.  

Nifty Shot First Target Reached

Dear friends ... today our first target (8457) reached. Wait for 2nd target we will achieve. All the best.


Our call(07.12.14):
Go shot on nifty futures based on nifty spot levels. Maintain strict stop loss.
Shot at : 8525   Stop loss :8635 Targets: 8457,8363 and 8305

Sunday, 7 December 2014

Go Shot on Nifty Futures

Go shot on nifty futures based on nifty spot levels. Maintain strict stop loss.
Shot at : 8525   Stop loss :8635 Targets: 8457,8363 and 8305

Are You Investing in A Stock or A Company?

It's Important to Know the Difference:
Are you investing in a stock or a company? That may sound like confusing question, but it is an important distinction and can get you in trouble if you don't know the answer? First, let's be clear that either answer is okay. the problem arises when investors confuse one with the other or start out investing in a stock, then change their minds when something goes wrong.

If you buy a stock:

  • You are buying because you sense a price moment for some reason (through technical analysis, market/sector news, and so forth).
  •   You are interested in profiting from a price movement and most likely, selling and moving an to another stock
  • You have no real interest in the company behind the stock other than it is in the right place at the right time.
If  you invest in a company:

  • You have done a thorough analysis of the company and believe it has long-term growth potential 
  • You understand what the company does and its position in its market 
  • If the price drops, you know why and con determine whether this is a short-term situation or a change that will have a long-term impact on the stock's price.
  • A person who buys a stock is more precisely a trader, while a person who buys a company is an investor.
  • A trader may not hold a stock very long or may hold it a long time, depending on its performance. An investor buys a company with the intent of holding on to the stock for a long time.


When Things Go Bad:
As long as the stock's price is performing well, neither the trader, nor the investor has much of a problem. However, when the stock's price starts falling, that's another matter.

The smart trader has an escape plan in place to prevent small loses from becoming big loses. The trader no emotional attachment to the stock, so getting rid of the loser at a predetermined point is easy. Many traders find that dumping a stock when it has fallen 7% or 8%, a good way to keep loses small. If you set your sell level higher, you are in danger of letting a normal market blip trip your sell signal, only  to see the stock and market rebound. The problem arises when the trader decides they really like this stock and don't want to give it up so easily. In other words, they've quit being traders and become investors.

The Problem:

  • The problem is they usually don't know enough about the company to make intelligent decisions about whether to hold the stock or let it go. They are no longer smart traders and they aren't smart investors.
  • Any decision they make as an investor at this point will be a guess.
  • The investor is probably better off when things go bad, but only if you have the courage of your convictions. If the stock rice drops, reassess the company and the market.
  • Did you miss something?  Has something changed? Or is now the time to add to your holdings?
  • Don't jump on the "sell at 7% loss" rule if you truly believe in the company's long-term potential. If you become a trader at this point, you are robbing your future.

Conclusion:
It is okay to be either a trader or an investor, just don't try to be both with the same stock.


Investor View and Tips

If you are new t the stock market you must know that today's hot stock market is both inviting and intimidating to new investors. here's how to start an investment portfolio of your won.

When you purchase stock, the word "stress" takes on a whole new meaning as when you reads the morning paper or listens to the radio and finds that his best stock dropped 20 points a share yesterday.

The investor become habitual of reading the business section of  the paper first, turning to the stock tables to see how his life is doing, this sets his mood for the day. If his stocks are up, everything is beautiful and off to work he goes with a big smile. He says proudly "I picked that stock".

But if his stocks are down, we have got Mr. Grumpy for the rest of the day.
it's all about stock market investing most investors become addicted to the market. It becomes an obsession.

Smart Investment:

  • Read about the fundamentals of the stocks and the market, attend a seminar or take a class on investing and review online financial sites.
  • Set your goals based on your financial position and a stock-picking strategy.
  • Don't ever buy a stock without first learning about its business and who its competition is. You want to focus on the leaders in an industry.
  • Invest in what you know. Consider the stocks of local companies with which you are familiar and in which you have confidence.
  • Check out the past of the stock that you are going to buy.
  • Invest in more than one or two stock so that lose in one stock can recover from the profit in the another one.
  • Buy stocks that you will feel comfortable holding. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance.

  

Short Term Trading Tricks

Day Traders: They enter long or short traders to square up the same day. Day traders usually base decisions on technical, information or at times, gut feel.

Investors: Those who expect minimum 30-40% appreciation and are willing to hold between two months to a few years. They enter only long positions and usually select a scrip based on fundamental analysis. Medium-long term investors can utilize technical analysis to time their entry and profit booking better.

Short-term traders: Short-term traders expect 5-20% returns within 2 days to 3 weeks. They enter long as well as short positions. These include position trading, where one either buys a stock and holds for the required appreciation, or sells from and existing long position to cover at a lower level.

The popularity of Short-term trading is on the rise due to following reasons:

It provides and opportunity to make substantial profits in a short period and ensures continuous rotation of capital.
As against long-term investment, short-term trading has limited downside because of strict stop losses.

Short-term trading has less demand on the traders time, while day trading requires full-time attention at the terminal. Hence, even those who pursue other professions can do short-term trading.

One can leverage on margin in case of short-term trading in futures.

Short-term trading in options requires smaller investment and has limited risk.

Like every discipline, short-term trading also has its Do and Don't. These are not well understood by all. This article outline these rules, which would make short-term trading a relatively safe and satisfying experience.

Basic principles of Short-term Trading:
The first principle is to do few trades. At any point, one should not have more than 6 trades outstanding. A good number is 3 to 5.

Equal capital allocation:
Divide your short-term trading capital equally into each trade. Ideally if one has Rs 1 lac of capital, one should put around Rs 20,000 in each trade.

Clear Targets and Profit booking:
While entering a trade, one should be clear about the target price he expects to achieve. Once the target is reached, profits should be booked promptly. Here, some traders often fall to the greed-syndrome and hold on for more profits. This, more often than not, leads to losses in the long run.

Strict Stop Losses:
No strategy, however good, can ensure 100% success. A strategy that yields above 65% success rate is reasonably good.

But there is a catch here! 65% success means you achieve your targets in 2 out of every 3 trades. But how much do you lose in the third? This is what determines your overall profitability.

The following example illustrates this:
Suppose one invests Rs 10,000 in each of the 3 trades. The 2 successful trades fetch a profit of Rs 1000(Rs 500 each) at 5%. Now, if the stop loss on the third unprofitable trade were also around 5% (including brokerage), he would lose Rs 500 on it. Thus, his net profit across the 3 trades is Rs 1000. This is around 1.67% net return on the total capital of Rs 30000 and considering that this is short term trading, the average holing period may be a fortnight. therefore, the annualized return would still  amount to 1.67% x 26(26 fortnights in a year) = 43% per Annam. Not a mean achievement by any standards.

But in the same example, if the trader does not have a stop loss, he continues to hold the loss-making trade. Finally, when he realizes that he is in an irretrievable situation, he squares up the trade at say 15% loss. In this case, he makes Rs 1500 loss on this trade, which eats the Rs 1000 profit he has made in the other two. Thus, he ends up with a net loss of Rs 500(-1.67%) on his 3 trades. At this rate, he would wipe out his entire capital in 2.5 years.

That should forever, put to rest the doubt whether stop losses are needed in short-term (or for that matter in any type of ) trading! Trading is like a war, you need to lose small battles to see another day and eventually win the war!

Don't "buy time":
Often traders mix up various types of trading. For example, a trader entering a day trade carries his position overnight if the trade turns against him. Or a short-term trader does not exit at a stop loss and converts it to a long-term investment. He hopes some day it will fetch him profit. These traders are just "buying time". Unfortunately, this works as rarely as you would find refrigerator in and igloo. Stick to your trading style and importantly, don't convert trades from one type to another.

Track your performance:
A trader should monitor performance on every trade, as well as across all trades. Remember, if trading is your business, run it like a business. Rigorously perform the forecasting, planning and monitoring that goes into it.

In a nutshell:
Short-term trading has its advantages when compared with day-trading and log-term investment. It is suited for both full-time and part-time traders. When performed in accordance with the basic principles, it can be an engrossing and potentially lucrative activity/profession.







Saturday, 6 December 2014

How to Make Money by Intraday Trading ?

Intraday Trading is A Challenge to get Success: 

Intraday trading can be a great way to make money all on your own mind strategy. It's also a great way to lose a ton of money; all is on your own hands. When you take up Intraday trading, the accurate tips and tips and tricks that may have helped you to get success in good stocks or find great money makers over the years, trading normally, will no longer apply. this is a challenging game with different rules and regulations. All of the methods that are used on technical analysis, fundamentals or insider information.

Many times because of greed, once we have entered in any position and it went into profit then also we looses because of sudden volatility in market, then we think we should have used trailing stop loss and will implement it from tomorrow. Day trading carries more risk than investing in stocks. Invest only the amount that you can afford to lose. An unexpected movement can wipe out your entire investment in a few minutes.

Keep Patience and Get Profits in Day Trading:

Greed and fear are the two biggest hurdles for the Intraday trader. Just as trader should not flinch from booking losses when the trade goes wrong, he should book his profits when the shares \reach his target. If he feels that there is more upside to the stock, he should reset the stop loss. With the availability of high-frequency trading data, market participants are increasingly interested in understanding the effects of economic announcements. The day trader's choice of stocks or index and positions has to work out in a day. There's no waiting until tomorrow to see how the charts play out before committing capital. If the day trader sees and opportunity, he has to go for it now or it has gone. Things can change drastically in minutes. When it's time to buy or sell and that's all there is to it. Not everyone can be a day trader, nor should everyone try it. If the idea of being in charge of your own business and your own trading account is exciting, then day trading might be a good career option for you.

Advantages and Disadvantages of Day Trading:

There are numerous advantages to day trading as well as disadvantages. Because day traders make more trades than say position traders, there are more opportunities for error. Another disadvantage is that day traders often miss the really big moves that some stocks.However, always close their positions before the market closes. An advantage to day trading is not holding stocks overnight. In this market, anything can happen which might cause stocks to gap against you at the open. I am wired as a day trader and just hate worrying about a position when the market is closed. Finally, if you wish to day trade, you should be willing and able to sit in front of a computer all day and monitor a trade. If you can not, then you can trade in the intermediate or long-term time frames.

Traders who are most successful are specialists who use just one or two trading techniques and get accurate Intraday tips for achieving success in Day trading and become experts in their execution. Focusing on one or tow strategies will bring repeated success. Every time someone brings out a new strategy, we run to it, hoping for the magic bullet. Well, I have not found any magic bullets, but I have identified a number of tactics that bring repeated success. Knowing how to execute a particular strategy and being able to find the stocks that are ready to move when you want to trade is the most difficult situation facing most day traders.


  

Ten Tips For Indian Markets Trading


  1. Do not over trade - If your trading capacity is Rs. 1,00,000 then avoid using margin. In fact trade with Rs. 75,000 thousand only. 
  2. Diversify- One should diversify his portfolio, invest in different sectors and select number of stocks. 
  3. Buy low Price and sale high price- Buy when vibes are not good that is when stocks are on decline in other words buy at bad news. Sell when prices are high that is when there is good news.
  4. Have realistic targets- Don't thinks of making crores in one single day. Market will open daily have realistic targets in your mind and trade with patience.
  5. Follow stop loss- Always follow strict stop loss. Don't be afraid of loosing sometime that is also learning experience. 
  6. Strategy- Don't cut positions in loss before stop loss and don't exit in minor profit before target. Always wait for targets.
  7. Don't always think of buying at low price and sell at higher price. Do not be afraid to buy at high price and sell at lower price.
  8. Sell when everyone is buying and buy when every one is selling.
  9. Don't be a buyer or seller always, Work as per market trend. Always follow market trend.
  10. Take long positions only in companies have strong fundamentals. For short term position find some good stocks from speculation point of view.