Wednesday 28 December 2011
Saturday 12 November 2011
tips for trading
In a highly volatile market, the best possible strategy is to change your trading strategy in the following way.
• Trade light with strict trailing stop loss
• Buy or sell in staggered way to make most of volatility
• Do not carry overnight positions except high risk traders
• Fix stop loss as per your risk appetite and position
• Fix achievable target in view of market conditions
• Exit a trade at a slightest hint of weakness
• Your 1st target is to protect capital
• Avoid buying a stock after it has run up too fast
• Never catch a falling knife( stock)
• Even if all these precautions a trade goes wrong, do not try to average or hold as it, just close the call and hunt for new opportunity.
• Trade light with strict trailing stop loss
• Buy or sell in staggered way to make most of volatility
• Do not carry overnight positions except high risk traders
• Fix stop loss as per your risk appetite and position
• Fix achievable target in view of market conditions
• Exit a trade at a slightest hint of weakness
• Your 1st target is to protect capital
• Avoid buying a stock after it has run up too fast
• Never catch a falling knife( stock)
• Even if all these precautions a trade goes wrong, do not try to average or hold as it, just close the call and hunt for new opportunity.
Sunday 16 October 2011
Friday 30 September 2011
Wednesday 21 September 2011
Wednesday 14 September 2011
Punj Lloyd Limited
Buy on dips LTP 59.70. Punj Lloyd (PUNJLLOYD) is an engineering and construction company providing integrated design, engineering, procurement, construction and project management services for the energy industry and infrastructure sector projects. Punj Lloyd provides engineering construction services for onshore and offshore pipelines, gas gathering systems, oil and gas tanks and terminals including cryogenic LNG and LPG storage terminals, process facilities in the oil and gas and for power plant projects. It has also worked on various infrastructure projects. Punj Lloyd`s operations are spread across the regions of the Middle East, the Caspian, the Asia Pacific, Africa and South Asia and has 13 subsidiaries and 12 project and marketing offices, including overseas offices
Tuesday 30 August 2011
Thursday 25 August 2011
Saturday 13 August 2011
शायद बन गयी इस गिरावट की तलहटी
अक्सर भारतीय बाजार अमेरिकी और यूरोपीय बाजारों की तुलना में ज्यादा चंचल रहते हैं, मतलब यहाँ का उतार-चढ़ाव इन देशों के बाजारों से ज्यादा रहता है।
लेकिन पिछले दिनों की भारी उठापटक के बाद उल्टा दिख रहा है। बुधवार को अमेरिकी बाजार में 4-4.5% की गिरावट के बावजूद कल भारतीय बाजार आधा फीसदी से ज्यादा नहीं गिरा। कल अमेरिकी बाजार में 4.4.5% की उछाल रही, लेकिन आज सुबह भारतीय बाजार की बढ़त आधा फीसदी के अंदर ही सिमटी दिख रही है। जैसा मैंने कल भी लिखा था, भारतीय बाजार में एक थकान दिख रही है। शायद अगले 3 दिन छु्ट्टी मनाने के बाद जब दोनों खेमों के योद्धा वापस लौटेंगे, तब नये सिरे से बाजार में कुछ हलचल होगी।
इस बीच यह भी दिख रहा है कि विदेशी संस्थागत निवेशकों (एफआईआई) ने अपनी बड़ी बिकवाली रोक ली है। एफआईआई ने 2 अगस्त से ही बिकवाली शुरू कर दी थी। हालाँकि पहला बड़ा झटका 3 अगस्त का था, जब उन्होंने 870 रुपये की शुद्ध बिकवाली की। इसके बाद 4 अगस्त को हल्की बिकवाली के बाद उन्होंने 5 अगस्त को 1789 करोड़ रुपये, 8 अगस्त को 1386 करोड़ रुपये और 9 अगस्त को 2105 करोड़ रुपये की भारी बिकवाली की।
पिछले 2 दिनों से यह बिकवाली शांत है। उन्होंने 10 अगस्त को 153 करोड़ रुपये की हल्की खरीदारी की। कल 11 अगस्त को वे फिर शुद्ध रूप से बिकवाल बने, लेकिन केवल 60 करोड़ रुपये की मामूली बिकवाली रही।
भारतीय बाजार और उसमें एफआईआई जैसे बड़े समूह का पिछला कुछ दिनों का व्यवहार यही संकेत दे रहा है कि वैश्विक और घरेलू चिंताओं का जो असर दिखना था, वह दिख चुका है। अब अगर कोई नयी नकारात्मक खबर नहीं आती है, तो शायद निफ्टी 4946 की ताजा तलहटी को नहीं तोड़े। अगर किसी कारण से एफआईआई फिर से बड़े स्तर पर बिकवाली शुरू कर दें तो यह उम्मीद बेकार हो जायेगी। लेकिन जब तक ऐसा नहीं होता, आप 4946 के स्तर पर अच्छा सहारा मिलने की उम्मीद रख सकते हैं।
एक खास पहलू यह है कि बाजार में हाल के महीनों में जब भी कोई तलहटी बनी, उस समय कोई बड़ी घबराहट वाली हालत नहीं थी। अक्सर बाजार में एक महत्वपूर्ण तलहटी उसी समय बनती है, जब एकदम घबराहट वाली हालत हो। इस बार बाजार ने यह शर्त पूरी कर ली है। इसलिए यह गुंजाइश तो बनती है कि हमने 4946 पर एक तलहटी बनती देख ली।.................................................................Rajeev Ranjan Jha
Friday 12 August 2011
Orchid Chemicals & Pharmaceuticals Limited
BUY ON DIPS .........Orchid Chemicals & Pharmaceuticals (ORCHIDCHEM) is a Chennai-based pharmaceuticals (bulk drugs) company. With exports spanning more than 75 countries, it is the largest manufacturer-exporter of cephalosporin bulk actives in India and is ranked amongst the top five cephalosporin producers globally. The company was incorporated on July 1, 1992 and obtained the certificate for commencement of business on Oct. 15. Orchid`s antibiotics portfolio includes cephalosporins, high-end betalactams, monobactams and carbapenems. Its non-antibiotic product portfolio covers drugs in central nervous system, cardiovascular, gastro-intestinal, pain management and osteoporosis therapeutic categories, ..etc. Orchid has two manufacturing sites for APIs and three manufacturing sites for dosage forms besides two R&D centers. In 1994, it entered into an agreement with SBD Laboratories, Italy for technology to keep production in sterile condition. In 1998, it entered into the formulation market. The Drug Controller of India granted a licence to Cipla and Orchid Pharmaceuticals & Chemicals to export sildenafil citrate, the bulk drug that goes into Pfizer`s patented anti-impotence pill Viagra. In 2000, it entered into a joint venture with the UK-based Cambridge Chemicals to distribute its nutraceutical products in that country.
Thursday 11 August 2011
Sunday 7 August 2011
Hindustan Oil Exploration Company Limited
LTP 155.30 BUY ON DIPS AND ACCUMULATE MORE ON FURTHER DIPS
Saturday 23 July 2011
Why Traders Loose Money ?
Over the years, I have seen several people (including myself) lose fortunes while trading stocks, and I’ve found that invariably, it would be for the same reasons. Such reasons appear mostly psychological and occur often in the trading scene.
It is a known fact 80% of traders lose money and 20% makes profits on the expense of 80% traders going well verse with
Pareto principle
So what exactly is the reasons behind that the misery of traders losing money.
It is a known fact 80% of traders lose money and 20% makes profits on the expense of 80% traders going well verse with
Pareto principle
So what exactly is the reasons behind that the misery of traders losing money.
Trade without plan: Most of traders enter the market based on there intuition. They just want to trade as soon as market opens without having any knowledge of volumes, support and Resistances. They just trade coz they want to trade.
Over Leverage: Traders often try to carry too big a position with too little capital, and trade too frequently for the size of the account.
Over Trade: if suppose a trader make 10K in a day he will not stop and electrified with the winning streak bet more and end up losing all the money earned.
No Stop Loss: No trading plan means no specific risk is defined and hence Stop Loss is a BIG NO.I AM ALWAYS RIGHT ATTITUDE.
Directional Bias: Traders make up their mind that I want to be either long/short and fail to take position on what market is signaling and hence make losses.
No Discipline: Not following a disciplined trading program leads to accepting large losses and small profits. Many traders do not define offensive and defensive plans when an initial position is taken.
No Holding power: Traders take large positions at one shot and are unable to bear the shakedown which market gives in extreme cases and are forced to square off the positions.
GREED: It allows traders to lose profitable positions to move into loss while they hope for large and unrealistic targets.
No Patience: Losing Traders do not have patience for price level to come and take positions; they just want to enter as soon as they start trading.
No Money Management: Due to no trading plan, Traders have no money management plan and are wiped out of market.
No Shorting: It has been observed that most of losing traders fail to take shorts when market is falling, they thinking shorting as a taboo and always go along with long trades only.
Traders believe what please them to believe and are blindfolded by their own vision they fail to recognize warning what market is throwing at them
.
Bucking the trend: Market is falling let’s take a contra trader kind of attitude wipe out a trader from market.
.
Bucking the trend: Market is falling let’s take a contra trader kind of attitude wipe out a trader from market.
Traders plan to buy at lows and sell at highs and get stuck with a losing position 90% of the time.
Beginner’s Luck: A novice trader will always make money in first few trades and get overconfident and does mistake which make him surrender all profits and in many cases start making losses on all trades.
Averaging a Losing trade is biggest blunder a trader can do.
Most of traders are under capitalized and trade position to large as compared to there actual trading capital.
Unable to accept small losses and turn those losses in big one which wipe out there entire trading capital.
Trading on Tips and market rumor.
Trading with emotion and heart instead of mind.
Get out of a profitable position at an early stage and holding a losing position till it gets squared off.
EGO EGO EGO EGO
Failing to digest the fact that market is supreme and we are just a drop in a large swarm of people.
Getting whipsawed by volatility.
I hope reader will try to overcome the common losing mistake by going through this article and make there way with 20% of profit making traders.
I would request readers to add few points which i might have missed or happened with them in there trading career.
Basics of Mutual Funds
What is a mutual fund?
A mutual fund is a professionally managed investment fund that pools the money of several investors and makes investments on their behalf. Individual investors in the mutual fund own ’shares’ in the fund and receive a return in proportion to their investment.
Why should I invest in a mutual fund?
Investing in a mutual fund has the following advantages:
i) Professionally managed – Mutual funds are managed by professionals. Individual investors benefit from the high quality research and analysis that goes into their investment process.
ii) Well diversified – The large pool of funds provides the opportunity to make a wide array of investments. Mutual funds are very well diversify such that a loss in a particular investment will be offset by profits from other investments. The net return is thereby beneficial to the individual investor.
iii) SEBI regulated – Mutual funds are regulated by the SEBI. This protects the individual investor from ponzi schemes and other potential fraud.
iv) Liquid – Mutual funds are highly liquid and so the individual investor can convert their investment to cash with relative ease.
Is my money safe with a mutual fund?
Mutual funds are regulated by the SEBI and are under strict regulatory supervision. They are required to fully disclose the details of all investments and are overseen by a board of trustees that should comprise of more than two thirds of independent directors.
What are the disadvantages of investing in a mutual fund?
i) Additional Costs – Fund management adds an overhead to the investment process and this additional cost is borne by the individual investors in the form of management fees.
ii) Taxes – Investment decisions do not take into account the tax liabilities of individual investors. Hence it is often not possible to minimize tax liabilities on mutual fund investments.
A mutual fund is a professionally managed investment fund that pools the money of several investors and makes investments on their behalf. Individual investors in the mutual fund own ’shares’ in the fund and receive a return in proportion to their investment.
Why should I invest in a mutual fund?
Investing in a mutual fund has the following advantages:
i) Professionally managed – Mutual funds are managed by professionals. Individual investors benefit from the high quality research and analysis that goes into their investment process.
ii) Well diversified – The large pool of funds provides the opportunity to make a wide array of investments. Mutual funds are very well diversify such that a loss in a particular investment will be offset by profits from other investments. The net return is thereby beneficial to the individual investor.
iii) SEBI regulated – Mutual funds are regulated by the SEBI. This protects the individual investor from ponzi schemes and other potential fraud.
iv) Liquid – Mutual funds are highly liquid and so the individual investor can convert their investment to cash with relative ease.
Is my money safe with a mutual fund?
Mutual funds are regulated by the SEBI and are under strict regulatory supervision. They are required to fully disclose the details of all investments and are overseen by a board of trustees that should comprise of more than two thirds of independent directors.
What are the disadvantages of investing in a mutual fund?
i) Additional Costs – Fund management adds an overhead to the investment process and this additional cost is borne by the individual investors in the form of management fees.
ii) Taxes – Investment decisions do not take into account the tax liabilities of individual investors. Hence it is often not possible to minimize tax liabilities on mutual fund investments.
Tuesday 19 July 2011
Sunday 17 July 2011
Saturday 16 July 2011
Basics of Financial Instruments
As an investor you have several options when it comes to investments. The following is a list of investment options available in the capital markets.
1. COMMON STOCK: Common stock is a financial instrument that represents ownership in a corporation. Holders of common stock own a portion of the corporation. They have voting rights in board member elections and other corporate policy decisions. They receive dividends from the corporation. However, in the event of a liquidation of the corporation, the holders of common stock are lower in the order or priority compared to preferred stock and other bond holders.
2. PREFERRED STOCK: Preferred stock is a financial instrument that represents ownership in a corporation. Holders of preferred stock own a portion of the corporation. They have no voting rights. In the event of a liquidation of the corporation, the holders of preferred stock have a superior claim over the firms’ assets compared to the holders of common stock.
3. BONDS: A bond is a debt instrument that is issued by a corporation or the government in order to raise money from the public. Holders of a bond are merely lenders who have lent money to the institution that issued the bond under the terms specified in the bond issue documents.
Some examples of bonds are government securities, corporate bonds, commercial paper, treasury bills, strips etc.
4. FUTURES: A future is a financial contract in which the buyer agrees to buy an underlying financial instrument on a certain future date for a certain fixed price.
5. OPTIONS: An option is a financial contract that gives its buyer the right, but not the obligation, to buy an underlying financial security at a certain price, on or before a certain date.
6. MUTUAL FUNDS. A mutual fund is a professionally managed investment fund that pools the money of several investors and makes investments on their behalf. Individual investors in the mutual fund own ‘shares’ in the fund and receive a return in proportion to their investment.
Thursday 14 July 2011
Wednesday 13 July 2011
Tuesday 12 July 2011
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