We are seeing a down trend on majority of charts. Markets are expected to remain weak during the coming week.
17/18 May are important dates to watch as these are around anniversary date. Last year, Indian markets opened on 18 May with huge gap up due to election results. 5 years prior to that on 17 May 2004, the Indian markets witnessed a LOW.
I recommend not to BUY any stocks as of now and just wait for the trend to change. Those who trade futures / options, can take short trades.
I won’t be surprised if we see NIFTY trading around 4550 level on 17 / 18 May 2010.
Sunday, May 16, 2010
Thursday, May 13, 2010
The Mayonnaise Jar
When things in your life seem, almost too much to handle,
When 24 Hours in a day is not enough,
Remember the mayonnaise jar and 2 cups of coffee.
A professor stood before his philosophy class
and had some items in front of him.
When the class began, wordlessly,
He picked up a very large and empty mayonnaise jar
And proceeded to fill it with golf balls.
He then asked the students, if the jar was full.
They agreed that it was.
The professor then picked up a box of pebbles and poured
them into the jar. He shook the jar lightly.
The pebbles rolled into the open Areas between the golf balls.
He then asked the students again if the jar was full. They agreed it was.
The professor next picked up a box of sand and poured it into the jar.
Of course, the sand filled up everything else.
He asked once more if the jar was full. The students responded with a unanimous 'yes.'
The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively
filling the empty space between the sand. The students laughed.
'Now,' said the professor, as the laughter subsided,
'I want you to recognize that this jar represents your life.
The golf balls are the important things - family,
children, health, Friends, and Favorite passions –
Things that if everything else was lost and only they remained, Your life would still be full.
The pebbles are the other things that matter like your job, house, and car.
The sand is everything else --The small stuff.
'If you put the sand into the jar first,' He continued,
there is no room for the pebbles or the golf balls.
The same goes for life.
If you spend all your time and energy on the small stuff,
You will never have room for the things that are important to you.
So...
Pay attention to the things that are critical to your happiness.
Play With your children.
Take time to get medical checkups.
Take your partner out to dinner.
There will always be time to clean the house and fix the disposal.
'Take care of the golf balls first --
The things that really matter.
Set your priorities. The rest is just sand.'
One of the students raised her hand and inquired what the coffee represented.
The professor smiled.
'I'm glad you asked'.
It just goes to show you that no matter how full your life may seem,
there's always room for a couple of cups of coffee with a friend.'
Please share this with other "Golf Balls"
I just did......
When things in your life seem, almost too much to handle,
When 24 Hours in a day is not enough,
Remember the mayonnaise jar and 2 cups of coffee.
A professor stood before his philosophy class
and had some items in front of him.
When the class began, wordlessly,
He picked up a very large and empty mayonnaise jar
And proceeded to fill it with golf balls.
He then asked the students, if the jar was full.
They agreed that it was.
The professor then picked up a box of pebbles and poured
them into the jar. He shook the jar lightly.
The pebbles rolled into the open Areas between the golf balls.
He then asked the students again if the jar was full. They agreed it was.
The professor next picked up a box of sand and poured it into the jar.
Of course, the sand filled up everything else.
He asked once more if the jar was full. The students responded with a unanimous 'yes.'
The professor then produced two cups of coffee from under the table and poured the entire contents into the jar, effectively
filling the empty space between the sand. The students laughed.
'Now,' said the professor, as the laughter subsided,
'I want you to recognize that this jar represents your life.
The golf balls are the important things - family,
children, health, Friends, and Favorite passions –
Things that if everything else was lost and only they remained, Your life would still be full.
The pebbles are the other things that matter like your job, house, and car.
The sand is everything else --The small stuff.
'If you put the sand into the jar first,' He continued,
there is no room for the pebbles or the golf balls.
The same goes for life.
If you spend all your time and energy on the small stuff,
You will never have room for the things that are important to you.
So...
Pay attention to the things that are critical to your happiness.
Play With your children.
Take time to get medical checkups.
Take your partner out to dinner.
There will always be time to clean the house and fix the disposal.
'Take care of the golf balls first --
The things that really matter.
Set your priorities. The rest is just sand.'
One of the students raised her hand and inquired what the coffee represented.
The professor smiled.
'I'm glad you asked'.
It just goes to show you that no matter how full your life may seem,
there's always room for a couple of cups of coffee with a friend.'
Please share this with other "Golf Balls"
I just did......
It is better being profitable than being right, in the stock markets or your trading.
Ultimately, what demonstrates or determines your success in stock markets is how much money did your trading put in your bank account. Some of you might even be wondering, how can one be profitable if he/she is not right. You have to be right to make money, isn’t it? Yes, that’s correct as well.
Let me explain this. Most of the traders that I have met, do not use STOP LOSS for one reason or the other. I have seen, when they take a trade, and it goes against them (i.e. trade turns out in a loss), most people generally keep holding the position in the ‘hope’ that it would come back. They suddenly turn ‘investors’ from ‘traders’. You would have come across many of them since January or October 2008. The reason they keep holding is that they do not accept the fact that they were WRONG. It is against their ego to accept it. Instead of accepting that they were wrong in that particular trade and close the position, they keep praying and hoping for that trade to become profitable. How? No one knows.
I have been in such situations many times before and still do. And then, I remind myself “It is better being profitable than being right”. I have to be alive first, and then make a move forward. So what, if I am wrong in this trade? If I get rid of it quickly, I can cut my losses quickly and make money in another trade on next opportunity. If I keep holding on to the wrong position and do not correct, I will keep incurring further losses. Stock markets don’t show any mercy on any one. They will take all your money and leave you gasping, IF YOU DO NOT USE A SAFETY NET which is STOP LOSS for such situations.
One can not be correct all the time. Even GANN was wrong 7% times (they say he had over 92% success rate) but then he used STOP LOSSes to keep himself alive in the market.
Anytime that you are wrong in predicting the move of the stock or index, just remind yourself “It is better being profitable than being right” and ALWAYS, use STOP LOSS, ALWAYS.
Ultimately, what demonstrates or determines your success in stock markets is how much money did your trading put in your bank account. Some of you might even be wondering, how can one be profitable if he/she is not right. You have to be right to make money, isn’t it? Yes, that’s correct as well.
Let me explain this. Most of the traders that I have met, do not use STOP LOSS for one reason or the other. I have seen, when they take a trade, and it goes against them (i.e. trade turns out in a loss), most people generally keep holding the position in the ‘hope’ that it would come back. They suddenly turn ‘investors’ from ‘traders’. You would have come across many of them since January or October 2008. The reason they keep holding is that they do not accept the fact that they were WRONG. It is against their ego to accept it. Instead of accepting that they were wrong in that particular trade and close the position, they keep praying and hoping for that trade to become profitable. How? No one knows.
I have been in such situations many times before and still do. And then, I remind myself “It is better being profitable than being right”. I have to be alive first, and then make a move forward. So what, if I am wrong in this trade? If I get rid of it quickly, I can cut my losses quickly and make money in another trade on next opportunity. If I keep holding on to the wrong position and do not correct, I will keep incurring further losses. Stock markets don’t show any mercy on any one. They will take all your money and leave you gasping, IF YOU DO NOT USE A SAFETY NET which is STOP LOSS for such situations.
One can not be correct all the time. Even GANN was wrong 7% times (they say he had over 92% success rate) but then he used STOP LOSSes to keep himself alive in the market.
Anytime that you are wrong in predicting the move of the stock or index, just remind yourself “It is better being profitable than being right” and ALWAYS, use STOP LOSS, ALWAYS.
Tuesday, May 11, 2010
Spot / Cash: This is the normal market, also known as delivery based. In this case, the buy and sell of the Share/stock happens in cash or at spot. Hence, the terms.
Trade : A transaction in which one buys and other sells.
Position : Number of shares or contracts that you hold at a given point of time. For example, if you bought 10 shares of Infosys, you would have a Long position in Infosys stock.
Entry: Price at which you enter the trade, whether Long or Short Trade.
Exit: Price at which you Exit the trade, whether Long or Short Trade.
Stop Loss: a PRE-DETERMINED price below which we would close our position at a loss. The difference between Entry price and Stop Loss price is the maximum RISK that you are willing to take. One MUST ALWAYS USE STOP LOSS. It is your SAFETY NET or LIFE JACKET in Stock markets.
Ask Price: Price which a seller is asking to sell a stock or share or contract.
Bid Price: Price which a buyer is offering to buy a stock or share or contract.
Trade : A transaction in which one buys and other sells.
Position : Number of shares or contracts that you hold at a given point of time. For example, if you bought 10 shares of Infosys, you would have a Long position in Infosys stock.
Entry: Price at which you enter the trade, whether Long or Short Trade.
Exit: Price at which you Exit the trade, whether Long or Short Trade.
Stop Loss: a PRE-DETERMINED price below which we would close our position at a loss. The difference between Entry price and Stop Loss price is the maximum RISK that you are willing to take. One MUST ALWAYS USE STOP LOSS. It is your SAFETY NET or LIFE JACKET in Stock markets.
Ask Price: Price which a seller is asking to sell a stock or share or contract.
Bid Price: Price which a buyer is offering to buy a stock or share or contract.
Sunday, May 9, 2010
Saturday, May 8, 2010
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