Thursday, December 22, 2011
Thursday, April 7, 2011
Sunday, April 3, 2011
Psychology and its Importance in our lives
Hello & Welcome Back,
I have been away for the last few days owing to the Laser surgery in my right eye. No worries its ok and things are a lot clearer now :) . Last week also saw history being created with Team India winning the cricket world cup. The world cup has come back to India after 28 years and its a real moment of Joy and Pride for the entire nation. In the world cups since 1983, the Indian team did get its share of fair chances to win the cup but somehow things fell apart at the last moment and the whole effort collapsed. This brings me to the question, why did the team win it this time and not in the last 2 times it made it to the finals. Did we have better players?, Did we have the home team advantage?, Did the T20 series bring in some help?.. and so on.
I think the most important factor that is responsible for this win is the Sound Psychological balance that this team displayed. No matter how grim the situation, each member believed that they could win and that ensured that they did everything to make that win possible. In fact Sachin Tendulkar on being asked to comment on the win, thanked the support staff and specifically named Mike Horn who joined the team just before the world cup. Mike Horn is a very well known Motivational speaker and adventurer.
Psychology differentiates the Winners from the Losers. Be it Sportsmen, Entrepreneurs, Professionals, or even Stock Traders, ultimately the ones with the strongest psychology win. Psychology of trading is as important as the Trading technique/strategy itself. No matter how good your technique or capability is, the fluctuations of the markets reduce them to pieces in days sometimes even minutes. Traders who cannot control their emotions while trading/Investing will ultimately end up in losing money.
I will cover the different emotions that control a Stock Trader and can be responsible for failure in the next article.
Good Bye for now and take care.
I have been away for the last few days owing to the Laser surgery in my right eye. No worries its ok and things are a lot clearer now :) . Last week also saw history being created with Team India winning the cricket world cup. The world cup has come back to India after 28 years and its a real moment of Joy and Pride for the entire nation. In the world cups since 1983, the Indian team did get its share of fair chances to win the cup but somehow things fell apart at the last moment and the whole effort collapsed. This brings me to the question, why did the team win it this time and not in the last 2 times it made it to the finals. Did we have better players?, Did we have the home team advantage?, Did the T20 series bring in some help?.. and so on.
I think the most important factor that is responsible for this win is the Sound Psychological balance that this team displayed. No matter how grim the situation, each member believed that they could win and that ensured that they did everything to make that win possible. In fact Sachin Tendulkar on being asked to comment on the win, thanked the support staff and specifically named Mike Horn who joined the team just before the world cup. Mike Horn is a very well known Motivational speaker and adventurer.
Psychology differentiates the Winners from the Losers. Be it Sportsmen, Entrepreneurs, Professionals, or even Stock Traders, ultimately the ones with the strongest psychology win. Psychology of trading is as important as the Trading technique/strategy itself. No matter how good your technique or capability is, the fluctuations of the markets reduce them to pieces in days sometimes even minutes. Traders who cannot control their emotions while trading/Investing will ultimately end up in losing money.
I will cover the different emotions that control a Stock Trader and can be responsible for failure in the next article.
Good Bye for now and take care.
Friday, March 25, 2011
Entry and Exit Secrets - Part 2
Hello and Welcome back..
In the last post I promised that I shall share with you some secrets followed by Stock Market winners. Well today I am going to do exactly the same.
1. What is the correct price to buy a stock??
Lets take a example. Say there is this particular stock ( click on the picture to enlarge) and you are looking at the chart,then at what price would you buy?. 99% would buy at the cheapest price possible. The Rest 1% might not trade at all. If you are part of either group you are on your way out of the stock market.
Here is the solution :
Firstly before I narrow down on a particular stock I will take at least 3-4 parameters into consideration. Now for simplicity sake, I will not discuss them now. At this moment lets focus on what price to buy. The above charts shows you a series of bars that oscillate their way up and down. There is no specific entry or exit price. However it is this oscillation of prices that gives us our buy and sell levels. Each stock has its own entry and exit prices and these are unique to that particular stock. Look at the picture below
It is the same chart with horizontal red and blue lines. Yes my friends, these two lines will tell you at what price to enter and exit a stock. Any given point of time any stock, any market in the world, these lines ensure that you buy a stock at the right time and the right price. They also ensure that you exit the stock much before the stock starts to go down. As a Investor/trader you too can have access to these levels.
Now if you do want to keep learning more and continue to get these insights in the stock market, sign up for regular updates and this blog by entering your email id in the 'Follow by email" link on the top right corner of this page.
In the next post I will be sharing some more details about these two lines. Keep reading
Wednesday, March 23, 2011
Entry & Exit secrets
Hello & Good evening...
The major obstacle faced by Traders and Investors the world over is not knowing what is the right price to enter or exit a stock. More often than not, common investors as well as Technical analyst do not know what is the right price to enter or exit a stock, Investors/Traders end up chasing a stock after it has moved up significantly and then participate in folly when the stock starts to fall.. Now, any technical analyst would argue that there are 100's of indicators available which give you buy and sell levels for a particular stock. But thats what is my point is.... How can a Trader/Investor irrespective of his experience in the stock market know which indicator to apply in what market condition??. 10 indicators would give ten different buy/sell levels and most of them would be delayed indicators - meaning the the stock would have moved significantly already before a entry signal.
The major obstacle faced by Traders and Investors the world over is not knowing what is the right price to enter or exit a stock. More often than not, common investors as well as Technical analyst do not know what is the right price to enter or exit a stock, Investors/Traders end up chasing a stock after it has moved up significantly and then participate in folly when the stock starts to fall.. Now, any technical analyst would argue that there are 100's of indicators available which give you buy and sell levels for a particular stock. But thats what is my point is.... How can a Trader/Investor irrespective of his experience in the stock market know which indicator to apply in what market condition??. 10 indicators would give ten different buy/sell levels and most of them would be delayed indicators - meaning the the stock would have moved significantly already before a entry signal.
On the other hand Fundamental Investors have just one general criteria - "By the best Fundamental Stock at the Cheapest price possible". Here again what price is cheap and how low can a stock go. One of the favorites of Fundamental analyst - "Suzlon" has been going down for the last 3 years, right from a price of 395 to 50 !!!. Now whether you are a Fundamental or Technical Investor, Short term or Long term Investor, nobody wants to see their money being washed down the drain.
So now the question running on your mind is " How do I decide when to correctly enter a stock?", Right??
Well thats exactly what I am going to answer in my next post tomorrow morning. So gear up and get ready as I will be sharing a some really big closely held secrets followed by the winners tomorrow.
Good Night for Now...
Tuesday, March 22, 2011
Indian Markets - March 2011
Hi,
Thanks to each one of you for regularly reading and going through my blog. I have deleted a lot of old posts and now will regularly contribute to the blog atleast once a day. I will try and make it before the markets open so that it might be useful from some of you.
Coming back to the Indian markets and the direction that they are taking. Overall it looks like the recent global scenario has taken its toll on the market. but as some "Wise Men" from the stock market say - "The market has already decided where it wants to go, it only needs to find a reason to do it". Hence it would be futile for us as Investors/Traders to try and predict where the market is going. The secret is to simply follow the direction it takes from time to time and swiftly change when required.
Most Investors and Traders who trade as per Technicals get caught in trying to decide whether to go long or short upon seeing such volatile trends. In the end they get caught in the volatility and often incur a loss.
Currently the markets look weak, very weak. At this point it is best to short sell stocks which are hitting new lows and breaking support after support. Be very very careful if you wish to go long in such conditions as most often you will take a loss.
Will be back shortly.. Keep reading
.
Thanks to each one of you for regularly reading and going through my blog. I have deleted a lot of old posts and now will regularly contribute to the blog atleast once a day. I will try and make it before the markets open so that it might be useful from some of you.
Coming back to the Indian markets and the direction that they are taking. Overall it looks like the recent global scenario has taken its toll on the market. but as some "Wise Men" from the stock market say - "The market has already decided where it wants to go, it only needs to find a reason to do it". Hence it would be futile for us as Investors/Traders to try and predict where the market is going. The secret is to simply follow the direction it takes from time to time and swiftly change when required.
Most Investors and Traders who trade as per Technicals get caught in trying to decide whether to go long or short upon seeing such volatile trends. In the end they get caught in the volatility and often incur a loss.
Currently the markets look weak, very weak. At this point it is best to short sell stocks which are hitting new lows and breaking support after support. Be very very careful if you wish to go long in such conditions as most often you will take a loss.
Will be back shortly.. Keep reading
.
Monday, November 23, 2009
Stocks of my interest this week 23Nov
Indian Market Outlook for this week
Last week the market had a near flat run but took us by surprise on its closing day. The market is expected to continue its uptrend in this week. We might also see some good movement in Futures segment because Thursday will be the last day for squaring off/rolling over positions. Hence i expect a good run this week
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