Update on 13th Mar'14 : Can we make daily profits as trader?. Yes. We can do it if we restrict to 2-3 value stocks and keep booking small gain of 1-2% and loosing stocks convert them into investor mode. If fundamental stocks are strong like Maruthi, even in the loosing market, the stock price is increased from 1730 to 1791 yesterday. Some culprits are spreading the negative news to force the company to go for share buy back at 2200rs/share. Good stocks like Infosys also very weak now due to guidance given by the company for Q4 is very weak. Don’t invest in Infosys right now. 7.8% down and it may still correct 1-2%.
@Bchandra...If we go by fundamentals or technical's, can we able to Buy Justdial @PE of ~101 or UBL PE of ~130??..
Reg. JUSTDIAL the chart posted was of 2013 and for learning purpose to illustrate how one can spot oppurtunities Justdial has now runup ahead of its earnings I will shortly post a chart of MARUTI to illustrate the importance of holding to your conviction and investment is all about holding ones cool and hence psychology driven
For aspiring traders: Lessons learnt: If the pursuit of money is bringing in anxiety,hyper tensions, sleepless nights, obviously, some thing is wrong with the decisions. Trading is fun, understanding will enable us to make tension free , where as half knowledge make more unnecessary ailments. Better to trade less volumes, as trading is loss making games, gives us little kick but big losses. It’s like McDowel for Boozers-Happy now but big hangover later!!. Not worth it. Remain prepared to lose money in some cases,if deal doesn’t go through , as happened in Elder Pharma. The MD of Elder pharma passed away just a week before merger deal. The stock price fall more than 40%, which is yet to recover. In case of investor, Short term can target for 5% and Long term Investor can expect 10% . Its myth that, Investing in large no of stocks , one can make more money. Instead, focus on limited stocks both in trading and Investing, with Conviction and Patience. Patience is the key factor to gain in Market. By trading more, we are earning more losses for ourselves and more brokerages for Broker. With 0.03% , if you do intraday trading for 7.5 laks, we will pay approx. brokerage,STT n taxes of (both the sides), Rs.1800. How much profits , you should make to take the risk?. How about if you don’t earn any profits. You need to Rs.1800 from your pocket or else you need to sell the existing shares to pay for the losses. Approxly, you need to get 1% up the stock price to get on the same day to get the moderate returns. Happy in investing and not trading.
Lot Of people say Investment is best to earn good money. In long term u can earn good money. --> If its true why all people not going for investing?? Why people not interested only investment?? Where we are missing? cos people dont want wait for long term to earn good returns. they want big profits in short term. Missing discipline. And averaging when in huge loss but not waiting for big profits. Whem markets falling just they close eyes and wait upto market recovery. market wil recover but not their scripts Positional trading and day trading: 50% people say positional.. 50% day trading..... what is best ???? Which we have to choose. if u google it there is advantages and disadvantages from bot tradings. In my view dont eye on one type of trading.. wait for good chance and utilize that. Dont stick to one type of trading. Use all trading methods. But be discipline. There is no good or bad method. but learn how to use and when to use. Think how to keep our capital safe. Positional or Intraday trding/sacalping.. which is good? this argument is endless. Better use effectively ..whatever method U can make good money in all methods and same time u have a chance loose all money also. And one more thing finally: Dont stick to one segment.. like mcx.. dont think me only mcx trder.. keep eying on segments.. enter when u got chance according to ur strategy. nowadays all AFLS available with scan and explorer. So if u write ur strategy clearly u can cover all segments... So our first work to choose good strategy and back test.. then after we have to follow. can any one continue remaining conclusion??????????????
Sister Vemala SAIRAM, will try to follow the thread and contribute as much as I can, Best wishes. May Baba guide us always,
Types of Traders: Position Trader – positions are held from months to years Swing Trader – positions are held from days to weeks Day Trader – positions are held throughout the day only with no overnight positions Scalp Trader – positions are held for seconds to minutes with no overnight positions Traders often choose their trading style based on Stock strength, time frame, risk tolerance, level of trading experience. Both traders and investors seek profits through market participation. Investors seek larger profits over an extended time period through buying and holding. Traders, by contrast, take the advantage of both raising and falling of the market over short time period with more frequent profits.
