Hello friends
This is an continuation to my last article - " is it so easy to make money by following somebody "
Following are my suggestions to be taken care of, before starting to follow an analyst :
1. - Track record of analyst
a. when since the person is in stock market.
b. when since he is in analyzing.
c. how many followers he has.
d. how is his track record.
e. go through his track records & find out whether they have been systematic or not.
f. how comfortably the person discusses his failures.
g. how comfortable the person is, to admit his mistakes.
2. - Intentions of the analyst( here is a glimpse of wide range of intentions )
a. selfless work,
like javed sir(http://advanced-charts.blogspot.com/p/live-comments.html),
i lango ji(http://tradeinniftyonly.blogspot.com/),
jagmohan ji(http://thebestbusinessintheworld.blogspot.com/),
nandi ji(http://marketsmusic.blogspot.com/),
san(http://niftychartsandpatterns.blogspot.com/)
,amol(http://astro-nifty.blogspot.com/) etc are doing.
b. subscription
c. self estimation.
d. trade diary
e. gathering followers, so as to be converted into clients, later on.
f. to gather appreciation etc etc.
3. - Style of analyzing - This is the most important aspect to be considered before starting to follow somebody.
a. some trade in indices only.
b. some trade only in options only
c. some trade stock specific only
d. some trade mix of all
e. some likes to track whole lot of financial applications.
Then, u must choose out urslf, what wud u want to trade on. U must start following an analyst which is of ur type. But, for this u must know/decide, what kind of trader u r. For reference please go through the following link :
http://stock2gains.blogspot.com/2010/06/what-is-your-trader-type.html
4. - Way of analyzing - Different analyst adopt different methods to analyze.
a. some derive their own systems.
b. some trade on basis of technical indicators.
c. some follow a paid software etc etc.
5. - Follow his site's home page properly. Most of the analyst, often do give, MUST READ, on their home page to be followed, before starting to follow their recommendations.
6. - DO not fall prey to the testimonies available on their sites. Most of them are fake.
7. - DO not fall prey to famous/popular name, they might be suitable to the most, but not u, compulsarily.
8. - NOBODY IS PERFECT.
9. - Just be coz u have paid subscription, dont start following the trades given, immediately & in leverage, just in order to get back ur subscription early . U may end up going nowhere.
10. For first few days, paper trade on the reco's. OR trade light initially.
11. Follow the trade religiously. But, try to initiate positions as possible as close to the stop loss OR create positions in parts.
12. Since, u have started following him already, dont miss out any possible way, to track him. Join him, on his comments/twitter/ym/google talk/e mail/mobile/sms etc etc. so that, one way or other, u may not miss his important updation.
13. U must make it clear that whether the person leaves everything upon u after recommending the trade OR provide follow-ups on the trade, so that u may take decision & act accordingly.
14. His frequency of trade/follow ups. Does it suit ur temperament.
15. Whether he likes to recommend trades for intraday/positional/investment.
16. Many analyst, mostly those are free ( i have found many paid analyst also to fall into this category ), create oppossite positions themselves personally, as to what they have recommended to their followers (LEHMANN BROTHERS, USA. Just make sure, by going thru his previous trades/following his trades for few days, that this is not happening with you.
17. Whether the person is guiding/analyzing himself, or has left it out to his staff members for the same. & then what do u know about the staff members, the reliability of the staff members etc etc.
18. Funny very funny - Many a times, when u wud tell the analyst, boss ur sl gets hit. He replies - my sl is on closing basis, it has only hit on intraday basis. & then when it hits on closing basis, they are nowhere around. STAY AWAY from such kind of analysts.
well, i hope the blog readers wud consider all above points before starting to follow any analyst/blog/site.
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Now, i am putting up something, for a reader, who is interested to follow my trades.
1,2,3..8,9,10....98,99,100. - If u r a day trader, stop day trading immediately. This is not only my friendly/brotherly advise but compulsion also.
1. Be serious, stock market is no fun, its a real serious business, with lots of hard earned money's risk involved.
2. IF u r looking for quick & easy money, stay away. Stock market is not for you. Quick & easy money comes, but after practising & mastering, trading for several years.
3. Dont expect fundamental stuff from me. I am not an invesment analyst.
3. i dont either trade OR promote options.
4. I analyze through my own derived system, called volume price trading (VPT), which identifies eruption in the volume of a stock, since, i believe volume is a key driver in analyzing a price pattern of a stock.
5. I do not track/trade indices, as i believe there is a huge variety of stock specific trades available, irrespective of indices movement.
6. I wud not want my readers to be involved into over trading, i.e. creating more than 4-5 positions at a given point of time.
7. I wud not want my readers to be indulged into leveraging i.e. holding a 10 rs. portfolio with having just 1 re. in their kitty.
8. i wud want my readers to know the importance of stop loss, since its a friend to their trading capital.
9. dont run after a train, bus, girl OR a stock, i.e. if u somehow miss any recommendations from initiating it at appropriate level, leave it, forget it, wait for the next better opportunity, instead of intervening in between the levels.
10. Dont marry a stock i.e. start thinking that a particular stock will always remain bullish or can never deceive u.
11. Dont hate a stock i.e. a stock will always remain bearish OR it can never be fruitful to you.
12. Try to initiate the trade as close as possible to the stop loss mentioned.
13. Its a rule for volume price trader, that as soon as the trade is initiated, he places not only the stop loss immediately, but also a sell/buy order @ 4 % of his buying/selling price as well as @ 10 % also, so as to not to miss an opportunity of decreasing his holding price, IF mkt/scrip individual show unexpected movement in a particular hour/day/week.
14. Dont forget to visit blog regularly, so as to not to miss fresh/new trades or updates for the ongoing trades.
15. if possible please have urslf a twitter id/yahoo messenger id, in order to follow my trades on them.
16. If suited, register urslf into the follower list of my blog, as i am in process to introduce something advantageous to the people registered in my follower's list of blog. ( although, this is not a compulsion )
17. I reserve a right to intervene a trade to finish it before the earlier given levels hit, although such move wud be intimated through blog comments.
18. please make sure u have read the disclaimer @ bottom of the blog's home page.
19. U must understand nobody is perfect & 100 % accurate.
20. I do not guarantee any % lvl in accuracy, but my blogging is an attempt to attain more no. of successful trades than the failure trades.
21. I assure my readers my honest & sincere commitment to analyze stocks. Well, before generating a call, i always take care that risk reward ratio remains in our favour ( i am expecting my readers also to consider the same factor before initiating a trade ). That s why loss per failure trades have always been limited to not more than 2-3 %, but profits have been always higher than 6-8 %.
22. Always remember the golden rule - 80 % of profits come from 20 % of trades, so, hold on to a trade with a TSL until u trail out.
23. Always respect the profits u r making, well, always compare the % profits with the no. of days u held the stock, & then keep this fact in the mind " nobody can sell the top & buy the bottom ", so, take decision wisely.
24. Please execuse me from yahoo messenger chat during trade hours.
25. My availability & regular updations during market hours, is not a compulsion but depends on my convenience with respect to stationery business i own.
26. I wud not want my readers to trade just for an itch to trade. Always remember no position is also a trading position. Many a times, we got to wait with all the capital kept idle in our hand to wait for a better opportunity, rather than jumping into an unsure (well, no trade is sure ) trade, just for an itch to trade.
27. I dont commit any no. of trades per day/week/month. i wud generate a call, when a risk reward ratio seems favourable to me.
28. Apart from trading, my blogging wud be an attempt to develop disciplined trading sense in u, so, u might find me repeatitive, no. of times around.
29. Must tell u all, i do not have any wonder. MAGIC LIES WITHIN U. Try & derive ur own formula, this is the only way, that can lead u to the success. There are hundreds of ways out there, just find out one which suits ur temperament & then dont deviate from it. Stop experimenting, once u find it.
FOLLOW this article :
http://thebestbusinessintheworld.blogspot.com/2010/06/on-road-to-your-drug-discovery.html
30. Decide ur risk per trade, ideally it shud be 2 % of ur capital, i.e. if u r trading with a capital of 1 lac, u shud not wait for a loss of more than 2000 rs. per trade.
31. The most certain thing in stock market is its uncertainty.
32. One life, one wife, one crore, one treasure, one love is not enough. So, is ur capital. My friend, when u will understand, ur capital is never enough to follow too many sites/analyst/blogs @ same time. CHOOSE ONE PLACE WISELY & DONT DEVIATE ( i am not saying, choose me ). One day a person likes A's reco, Second day he finds B's calls are rocking, thrid day he discovers C's follower is making handsome money & other day he thinks ohhh, these tv analysts are so smart, i will follow them now. These leads u nowhere, but leaves u in a position that u stuck urslf in 5-6 insimilar positions & then none of them materialises. At last, u end up closing most of ur trades in loss.
33. Dont create too many positions at a given point of time. If u find some bet more attractive than the current bet, close the earlier one & then initiate the fresh one. But, then stop tracking the earlier one. What happens, DOOSRO KI THALI MEI JYADA GHEER NAJAR AATA HAI ( a person sees more butter in other person's dish ), & this leads u squaring one trade & other, to enter a trade finally in between the levels ( b coz easy/quick money is always seen in a trade, which u r not into ) & u make a mess.
34. Dont ever be pro active - act, as advised to you. Dont start assuming the things, : this has come so closer to SL, now its surely gonna hit SL, let me save some bucks & exit before it hits finally OR its not looking good, its a dead stock, let us exit & chase some other stock ( what happened with us in RAMCO SYSTEMS-it did not hit the sl & ran to hit the levels, which were our tgts - i am also human, i also make mistake my friends )
35. i did not have fair track records as par as short sell calls is concerned ( although, i am working to improve this )
36. One more saying comes into mind for those who are not comfortable placing sl's mentioning that they dont want loss. MY DEAR FRIEND, whether u book or not, loss is already on cards. Its not that if u dont book loss, loss is not there.
37. I simply wanna one bitter fact into lights, once a trade is being initiated to earn 20 % to achieve a tgt of 120, by the way if stop loss is not placed & it falls 20 % then it needs a move of 50 % from 80 kind of levels to meet ur tgt of 120.
38. Levels mentioned for recommendations are always nse spot & stop loss mentioned is always trading basis/intraday basis unless specified.
39. SL Trigger - Please maintain a difference of at least .5 % between ur SL & trigger, to avoid any disaster, if by chance, ur stock jumps out the small diff. trigger placed.
JUst in order to release this post early, i am posting this article, but, i may add some more vital points to it, as an edited element, as & when they click to me.
Till then
HAPPY SAILING
OM SAI RAM
31 comments:
Dear Rochak,
Very nicely written and honestly. Hat off to you.Yesterday I could not enter HCC as I was expecting that stock to come to 61 level and all of a sudden it picked up in the afternoon. I decided not to Run after the same as there will be numerous trade possibility which you have also mentioned in your article to-day.
Keep the good work.
Regards,
Veer
Spellbound,I am.
Lost words to appreciate!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Dear Rochak,
Well Done....dear....
No words left.....100% nice.
Honestly became speechless just reading your write ups......
Hats off to you dear....
keep it up...
-gauresh59
@ gauresh59/vvvvv
thanks for appreciation, but dont left urslf limited upto limitations also, bring discipline in ur trading approach also , u wont need me or anybody else either for helping u.
@ veer
thanks for appreciation
I dont recommend to initiate a position inbetween. If it did not come to the levels we desire, either it will come or we will leave it / forget it. CREATE A POSITION only, after identifying a sl & then deciding urslf, are u able to afford, if by the way, sl hit. THen try & create position as close as possible to sl, preferably in parts
@ all
vishal retail - hits 59. not advised to book profits, as its a re entry & investment bet also.,
CONCOR - 1345 respected, keep this Strict SL now for our shorts.
WWIL - i am expecting weird movement till thursday, hence, advising to hold on to ur positions till sl hit or 15.8 & beyond.
orient pap. - re entry is advised close to 56.5.
astra zen - 1209.9 becomes vital now.
finan tech - i hope profits were booked yest. waiting for a new move to initiate. till then, wait.
kei - seems like last opportunity, anything like 31.7/31.5, is an opportunity to buy, but sl has to be maintained, below 31.
sintex industries - if anaybody could not short yest. can try it now . risk is only 3 rs. since sl above 370.
happy sailing
seems like our shorts are working
sunil must a happy man by now
concor hits 1291, but keep carrying with the same sl mentioned i.e. 1345.
sintex hits 362, stays more weaker below 361. Keep trailing now with the same sl, mentioned.
VG - ( this is not a trade reco. , just my views on query raised by vg )--------
our last hope remains 310-301 band, which has given it support way back 6 months ago, & i am expecting it to bounce from 312-314 kind off level. Please hold ur positions if u can afford further loss of 10-12 rs. & try to reduce ur positions @ 342-345, since huge volumes had occured @ these levels. these dilluted positions can be re entered @ 332-335 kind of levels, if u insist to trade on nitin fire. Otherwise reduce ur positions @ levels mentioned & stay out. good luck
ankur drugs hit, exit with 10-12 % profit , we had.
dear rochak sir,
Y ou have done a great service to everyone with a simple narrative style but effectively communicated.
I wish and prey, you get sufficient time to devote for this service so that every one will gain knowledge and do their best
keep it up
best weished
vgs
astra zen, take care, again close to our Sl, this could be vital & lethal this time.
points no. 35 & 36 introduced. please refer to current post.
asian paints, bounced just in 3 minutes time from 2725 to 2804, that s why its never suggested to short this trade ( we arent in any trade in asian paints )
astra zen - .25 paise / .50 paisa are not into service now, but i hope u people get to know importance of 50 paise now. Our sl 1209.95 & it kept bouncing from 1210.25 four/five times by now. Keep strict sl.
KEI - as mentioned, anything below 32 is to be bought agressively ( low made 31.95 ).
THANKFULLY, we timely booked profits in orient papers & financial tech.
SINTEX - shud be a gap down tomorrow
concor - also seems safe
ACCUMULATION seen in sterling biotech.
NEW TRADE - JYOTI STRUCTURE
Agressive buying can be done between 133-129, keeping a sl below 127. If its okay with somebody to afford a 5 % SL ( not suggestive ), then anything below 135 is a buy for him, otherwise wait for close to 133-132.
Will you please use a tabular form for all your OPEN calls for tracking them easily?
market is clearly a gap down today, what magnitude, nobody knows, let us talk about our trades.
Sintex industries - Once 357 goes, our short becomes safe. We are already in a comfortable position. Square off once below 348 to short again above 358, & then maintain same SL as mentioned. Once 335 goes, 320-317 is expected.
Vishal retail - sl can be now comfortably moved to 51.8, instead of 48. Look to book above 62 only, or let SL hit.
Astra zen - Tomorrow is a gap down on nifty, if this gap down couldnt let astra zen take the SL 1210, our longs are super surely safe. Till now 6 ( yes, 6 times, 6 days in a row, even i could not believe my eyes ) times it has taken support @ 1210. ELSE EXIT.
CONCOR - our shorts remains safe, but same sl of 1352 has to be maintained.
WWIL - exit if 13.95 goes. Well, nobody , only myself has to be blamed for initiating an early long, else if somebody had managed to buy close to 14 ( like 14.15 or 14.1 ), place SL below 13.7. Looks positive.
sterling biotech - massively massively rangebound between 105 & 111. To be comfortable, initiate long on a crossover above 111, or keep holding with a sl below 105.
Kei industries - clearly mentioned, anything close to 32 is an agressive buy. conservative keep carrying with a SL below 31.7, but actual SL shud still be kept below 30.5, to avoid any whipsaw b coz structure seems positive.
These all being the trades, which are on.
NOw following are the trades which are on our radar for a re entry
Financial tech - we are out of the trade, after making some 35-38 bucks, we are still in hunt of initiating a long into it. I am expecting it to open a lil gap down, which could be a buy for 3-4 % kind of a move, Place SL @ 1352 & go long, please wait to create long below 1362 only, else forget it. Place a sell order @ 1408.
Orient papers - structure is positive till 56 is saved on it. Buy as closer as possible to 56.7 to place stop loss below 56. Breaking 56, we will wait for a new move.
NOW HERE COMES NEW TRADES
XL TELE - Advised as a trading as well as an investment bet ( in series of vishal retail & sterling biotech ). 15 % risk, 150 % rewards. Any dip is a buy.
RESURGERE MINES - Tomorrow is surely a gap down on nifty. IF u get to buy this stock close to 73, buy without hesitation. Any gap down in this stock due to weaker opening of indices is a god sent opportunity if available to buy closer to 72. Else 73 is also not a bad level. Trading bet, place sell order above 80 & keep holding tightly. SL remains below 68. 5 % to be lost to earn 20-25 %. 83-86 expected in 1-2 weeks.
Jyoti structure - SL lies deep down @ 126. Try to initiate a long close to 132-133. Agressive players, those can afford a SL of 7 % can initiate near 135 ( not advised ). initially tgts r 141-143( this is the reason, long suggested close to 133 only ) & then 2 nd tgt close to 150.
All reco's have been detailed levels, just follow them & wait patiently till the appropriate levels to initiate a trade comes. I may not around for the whole day. as soon as i get some time,i might update.
happy sailing
The calls may neatly be presented in a tabular column with the following columns i.e., entry (BOTH THE PRICE AND DATE) ,SL,, tgt, % return on capital, holding period etc and the comments column discussing everything else.
Hello Rochak ji,
I have one more sugestion,plz give msg for any new post in coment section of ur oldpost so that to update for new post.
It will be easy to look out whenever U have a newpost.
Thx
Musti
@ ALL
thanks for the suggestions & interactions.
@vvvvv/helpthedoc
i could not understand, how to present fresh trades/trade updates in a tabular form. OR may be i am not aware, how to create tab. Somebody please send me a mail/example/links on stockngains@gmail.com after market hours in details, as per ur convenience. no hurry.
@helpthedoc
Calls are presented in comments section due to a reason. I dont have a plain agenda of just recommending a trade, but to discuss it in details & also if i am available during market hours, i feel, if i can guide the trade in details, that s why its provided through comments section. If its inconvenient through comments, please suggest any other way out. Since, i can not generate 2-3 post daily.
however, need of monthly performance report to be presented through excel worksheet is understood & agreed upon. is this what HELPTHEDOC is referring to.
Please mention again if u think, i could not have follow/understand any suggestion in proper sense.
NOw the trades-
Orient pap - wait patiently for a level below 57, OR else leave.
Resurgere mines - Same with resurgere. Wait patiently or leave.
astra zen - no looking back it seems, once 1235 is crossed. maintain the sl mentioned.
kei - subdued but a wonderful opportunity, keep looking for a leverage buy, if available below 31.5. SL already given.
wwil/sintex/concor/ster bio/finan tech/jyoti structure/----->
follow earlier comment.
HCC - clearly mentioned, look to buy only close to 61. else avoid. agressive buy if comes to 59.4-59.2 kind of levels. SL below 58.
@ musti
its widely understood/learned that new trades/trade updates are only to be discussed in the comments section of latest/current post.
1 low risk trade, since sl is identified & avaiable to us near to sl.
pir health - initiate a long close to 516.5, maintain a SL below 510. 7 rs. risk. structure positive. IF 510 goes, we will wait for a trade close to 480 to go long again.
Finan tech - low made 1352. i hope, people went long below 1360 only , keep this low as strict sl.
exit piramal health, looking weak
financial tech = sl gone, a small 1/2 a % negligible lost in comparison to our 2 % profit we made last week.
resurgere minerals hit 82. Volumes were high yest. hence i determined a accumulation yest. itself but i thought it will give us an opportunity to enter. Risk reward ratio was also not in our favour. risk 7/reward 8. we dont trade for 1:1 risk reward ratio.
buy hcc only @ 61.2, not above that. if enough patience wait for a level close to 60. Even when it hit 66, i advised one of a reader ( when asked, can i buy ), to not to enter, just to keep risk reward ratio into our favour. 1 st determine a SL & Keep always risk reward ratio in mind. Dont run after stocks. Accidents like resurgere minerals happen, but always remember, opportunites are always there in plenty, till u & ur capital are there. 6 out of 10 stocks give opportunities to enter at a favourable level, its just like that we make hurry to enter early.consider those 6 stocks, forget & avoid those 4.
kei - 31.3, dont panice, its a buying opportunity. since its close to our SL 30.45.
HCC - wait patiently , i will come down to 61.25, may be below also, for patient players, if not today, then tomorrow. OR buy in 2 parts, 61.25 & 59.4.
concor - keep watching , sl still above 1352-1355.
Any absence of updates, if my earlier mentioned levels hit, might considered as my inavailability, to be updated further.
jyoti structure - volume dissimal, can easily put into waiting list for a level close to 132.5-133.
FI
Dear Rochak,
Thank you for the Short calls. Presently I am travelling - will do so till the I week of Sep. Since will be with collegues and customers during the day, unable to be active at JNU(to the relief of many!!!).
Any how thanks. Holding shorts.
Great call.
well friends, at last sl goes in astra zen & then as expected could not cross 1235.
as mentioned i am busy today, but 1 more update possible around 2-2.15 pm
volumes looking promisingly high today, also it seems like stock has started a reversal. But, we are not into trade, i wud like my readers to initiate a trade in this counter, but at the same time, wud like them to know the risk involved. hence, producing a road map here, that cud be possible, so please follow accordingly.
Volumes today if remains an accumulation, then it shud not break now its yest. low, so make 135.90 ur sl & go long for 60 % of your desired quantity. Although this whole quantity has to be resolved if 136 goes.
Volumes today if is a distribution, then it shud come down to a level of 132-132.7 in week ahead, i.e. it shud see a time correction now rather than a price correction. So, if u follow this theory, then please go 35 % of ur quantity long here @ b prepared to see stock dipping upto 133 to buy rest 45 %, although we have a tendency to buy rest of the 20 % quantity on the way up. This is left upon the reader, whether they wud want to resolove their 35 % quantity @ 136 in order to take a risk for it to whether or not to dip till 133, for whole 80 % to be bought.
in both cases our sl remains below 127.
i hope this clarification helps to create ur positions.
rest update for remaining stocks after an hour or so
short & sweet update
wwil - volumes have been low for the last 8 days during fall, this is my reason to be hopeful that 14 wont gone, else follow earlier comment
orient papers - trade advised near 56.7, is for re entry only, not for fresh trades, keep maintaining earlier mentioned sl
sintex - as advised book major near 348 , ( its also the low ) to re short further if comes @/above 358.
kei - same logic applies that of wwil
hcc - advised entry 61.25, low made 61.05. advising to resolve bought quantity @ 62.65, although this step remains optional.
XL tele - investment bets are never an immediate buy, but awaited patiently to dip(luk4volume eruption) to an appropriate level or we buy on the way up. wud surely be updated for the same
NEW TRADE
tata power - is seen massively masively range bound between 1193-95 to 1345-1354 kind of levels through last 4 months. this kind of range when gets broken, resistance becomes support, support becomes stiff resistance. so i think, risk is understood now. go long of 30 % of ur quantity @ 1232 & 50 % close to 1212-18 ( most probably on monday ). SL remains below 1190.
AL CHEM - This stock has a tendency to move 13-15 % any given single day ( which day nobody knows, but i wud try to track ), & then cools off also within an hour immediately giving up all its gains.
So, for today buy @ 184, sl @ 182.8. Place a sell order for some quantity @ 198.6 & major quantity @ 206.6.
if sl goes today, buy it near 179 to hold with a sl below 176.
jyoti structures - my preference - possibility no. 2
XL TELE - buy agressively if lvls like 28.15/28.3 is available.( positional & investment bet only )
al chem - sl for small risk long goes, now, buy @ 179.25 for positinal hold, sl below 176
sorry for the mess, i forgot to mention name of the scrip in my 9.30 am comment, its jyoti sturcture. thanks musti for reminding
nitin fire - buy , keep a sl below 313.
VG - u can average also
nitin fire is in the series of low risk stocks which we are taking since last 3-4 days.
financial tech. al chem, being the others
Please switch to new post for comments -
http://stock2gains.blogspot.com/2010/08/my-recent-failures.html
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