Take care while u follow !

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

CHAMATKAR KO NAMASKAR !!!!!!!!

Hello friends !

First of thanks 2my mentor Jagmohan ji who has honoured me being my blog friend. I have been always impressed by his methods of explaining complicated things in the most simpler ways.

Then would not refrain from mentioning that this is not a scheduled post but a thrusted post. Well the Sai Bhajans being posted till now were receiving < 5 downloads, but on the latest when i posted Hanuman Ji in Hawan Fire, it has received < 130 responses till now. I am being disappointed that readers are not interested in the bhajans posted by me. That might be due to the reason that they might have other links for the same purpose, but let me assure all of you that the bhajans posted by me over here would be carrying some uniqueness & distinction. So, dont miss to visit every SAI VAAR.

Please let me give proper credentials to the Hanuman ji Chamatkar. Shri Shri Shri 108 Manoj Ji parashar, who is a son of a policeman Shri jagdish parashar, indore was working with a responsible post in Indian Oil. After his 6 years daughter being saved in a balcony collapse some 7 years ago, left that indian oil job to dedicate himself completely into SAI DEVOTION. He has been amazingly blessed by the ALMIGHTY himself . Through his devotional life he has been spending on the name of Shri Sai baba he has inspired MANY A THOUSANDS common man, to the path of SAI BABA BHAKTI, including myself. The photographs i would be posting, are taken at several occasions of the Sai Baba Hawans he performs every thursday or sunday on the request of his followers at follower's place, assured of Sai baba's arrival on the auspicious occasions. Sai baba surely appears either in the Hawan fire or any other forms, which would be presented before my readers in the following days.

Let us talk about share market now.

Well, interactions with my few readers show that there are still some confusions amongst my readers about my trading style. So, i would request my fellow readers to please go through following links not only to clear the doubts about my trades but also to restrain me from deviating myself from rules set for a volume price trader ( VPT )

1.-http://stock2gains.blogspot.com/2010/06/what-is-your-trader-type.html

2.-http://stock2gains.blogspot.com/2010/06/why-to-put-stop-loss.html

3.-http://stock2gains.blogspot.com/2010/06/trade-summary-functioning-of-volume.html

& then let me clear specifically some freshly raised issues by some readers.

1. VPT doesnt intervence an ongoing trade until a SL or TGT is hit, irrespective of market sentiments, since we believe in a stock specific approach.

2.Please click on the LABELS link provided with each post to go through the views expressed earlier about a particular trade.

3.A sell order is immediately placed @ 4 % from bought price as soon as a buy is generated. ( It is left on readers whether they book full quantity or a partial quantity but i recommend at least booking a 80 % quantity for a conservative trader & a 30 % for a agressive trader, carrying the rest with a valid TSL )

4.Conservative success % has been over 65, wheareas agressive has been < 30, Choose ur trade & decide before initiation that what type of trade it would be. ( http://stock2gains.blogspot.com/2010/06/what-is-your-trader-type.html )

5. I wouldnt want my reader to be indulged into over trading, i.e. my fresh trades are not for the reader who is already holding 4 or more positions. So, either square off ur earlier trade with which u r not comfortable or avoid my latest trade. Reason being market doesnt have a tendency to alert a trader, before crashing & has got every right to crash big & quick anytime. A trader wont be able to monitor 7-8-10 trades at a given point of time.

6.I would soon be starting tweeting as soon as confidence lvl raises, as i am not that tech savvy person.

7.Till then i would request my readers, 2 be in my follower's list in order to track my latest post.

8. Nobody can deliver 100 % accuracy in terms of success rate for the calls, even my initial motto is just to have successes more than failures for the time being.So, i would request my readers to pray Maa Saraswati to communicate through my blog so that i may achieve my aim to create wealth for my readers.

Thanks
regards.

P.S. - On the request of Mr. Bala, i am reposting the bhajans i removed earlier. Please have a note

http://www.4shared.com/audio/g7t4w_MW/AAKE_TERE_DWAAR.html


http://www.4shared.com/audio/MIwc9Fz6/Ab_Samjhe_.html


http://www.4shared.com/audio/HElqk5Sn/ab_too_hi_dekhe_bhale.html

I hope people are enjoying.

MY prayer are in the Charans of Shri Sai Baba that all of their children attain a stage so that they all can claim

" Duniya ko kya apni hasti ko bhula baitha hu, jis din se lagan apne sai baba se laga baitha hu. "

Anantkoti Brahmand Nayak Raja Dhiraj Yogiraj Parabrahm Shri Sacchidanand Sathguru Sainath Maharaj Ki JAI.

Trade updates !

Hello friends !

Om Sai Ram !


Grasim - It was our caution only which lead us 2 square off grasim intraday.

Indian hotel - Look2book in 108-110 band, SL 104.5.

Ifci - I hope profit locked > 59, if not wait 4 a level >61 with a TSL 57.

Vishal retail - a good investment bet, block buster investing opportunity, investors try2buy in the range 53-51, traders buy close to 53, trader's target 1.-59, 2.-66. Medium term investor's target 8least 92-97. SL 48.

HDIL - Try a short >258 with a trading basis SL 260, tgt 253.5, agressive tgt 248, all spot.

Century textiles - agressive buy 460-461, conservative wait 2 buy 458-457, SL 454, tgt 8least 470, tgt 2-484. All spot.

Happy sailing.

Not only i am busy with the business i own but i wouldnt want my readers to be indulged into a trade untill i am sure. Just dont trade 4an itch2trade.

Trade updates !

Hello friends
here is a latest update on my ongoing trades.

UTV SOFT - Agressive stopped out. ( i hope friends remember conservative made money )

IFCI - Conservative tgt completed, booked out. agressive keeps carrying sl 55.5.

BEL - B/o above 1860 ( mentioned in earlier post ) but since conservative & agressive both have a convenience of buying at lower level, i recommend to carry, else conservative can pocket this handsome profit of 5-6 %.

WWIL - Stopped out.

OFSS - Stopped out ( just by 5 rs, but discipline is discipline ).

ABAN - Agressive also stopped out @ 822 ( just 1/2 % above the level where conservative pocketed a handsome 8 % profit )

Indian hotels - Agressive keep carry with a SL of 102, conservatives already had a handsome 4 % profit.

We are gifted with following valuable lessons from above trades. ( learning is an ongoing process. In trading not only failure but successful trades also carry vital lessons )

1. Lesson from UTVSOFT, ABAN, IFCI,Indian hotels - conservative approach has an edge over agressive approach, as conservative gets out with a 4-6 % profit in a shorter time frame, wheareas agressive kept carrying either to stopped out at cost to cost or a profit which is not handsome than conservatives in comparison to time frame they hold.

2. OFSS & WWIL - Even if a volume & price B/O occurs, its worth waiting for a dip to enter to maintain the disciplined approach of making risk reward ratio in our favour, so that even if we stop out, we exit with a minimal loss.

Would like to put up a fact, which is from my heart before my readers.
Data from my sitemeter suggests that my fellow readers keep visiting my blog for an updation. But they would have disappointed for the same. Let me put up valid reasons for the delay in updations.

1. My commitment to the stationery business i own.
2. As i wont let my readers to be indulged into over trading.( its worth having a lesser no. of 4-6 % profit trade rather than numerous other trades to balance our pocketed profit. )

3. My commitment to my readers doesnt allow me to come up with a trade until i see a favourable opportunity.

I hope my readers agree with me & keep co operating.
Dont forget to tune into my blog for a Saibaba Bhajan & most probably with a block buster trade on SAI VAAR.

Till then happy sailing.

Jai sai ram.

Trade summary + functioning of a volume-price trader(VPT)

Hello friends

Its been over a week now that i started blogging. Today being a month end decided to put up a quick summary for trades initiated so far. This will also make my reader familiar with volume-price trader ( VPT ) so that i may not have to put up a detailed following on for all my future trades.

U might find it bit stretched but focused reading is highly recommended.

*** bold & italics --- please pay special attention ***

V started trading with UTV SOFT & Dhanlaxmi Bank.

UTV SOFT ( success, 4 % gain ) - Recommended to buy in a range of 398-395. since it has been trading around that band for more than 2 trading days, then only i assumed that its bought ( i would restrain myself from a BLA BLA kind of attitude if scrips i recommended doesnt provide us an opportunity to buy @ desired levels ). Along with initiation of trade SL( All my trades wud always be given with a SL, most of the times trading SL rather than a sl on closing basis ) & targets ( Always take a pre assumtion that trade initiated on the basis of price to volume are meant to be booked partially if not fully @ appreciation of 4-6 %. )were also given. It tested our patience ( Dont ever let PATIENCE TESTING close the trade untill either a SL is hit or a TGT is met i.e. dont ever let a running trade be intervened by market mood ) staying rangebound for more than 3 trading days ( 396-404 ) but finally broke out & hit a high of 414.75 ( our recommended booking level was 414-416 ). I feel glad that it respected both my levels. Low was exact a 395.25 & high an exact 414.75. Conservative ( conservative VPT trader trades prefer capital preservation over illogical profits ) traders were asked to book, whereas agressive ( agressive VPT trader is a greedy trader, he is ready to give up the lil profit offered by markets to gain higher profits ) traders were suggested to carry with a SL of 398 , then 400 & 401 resp.( This is why trailing is meant for , trailing lets u expect more if scrips overshoot if not at least helps u cut the trade cost to cost. )

2.Dhanlaxmi Bank ( trade not initiated )- Clearly mentioned to initiate a trade only @ 168-169, also mentioned not to buy even @ 168-169 if a high of 177-179 is already made. ( Clarity wud always b there in my recos,i know clarity doesnt augur good for report card of a analyst but i am ready to accept a failure rather than cheating my readers with a " read between the lines " kind of attitude. as my readers' trust is more worthier for me than a brighter report card )

3.Mcdowells ( cut cost to cost ) - It was a short call ( like my mentor Nooresh i find myself uncomfortable with short calls untill more than sure ). & i term it as a success as i was able to let my reader come out of the trade cost to cost.

4.Tech mahindra ( Cut cost to cost ) - That trade was initiated for a quick 15-20 points of a gain in dieing ( a big no no for such trades, i avoid initiating or monitor our positions in initial or dieing minutes of trade ) minutes of the trade . If i recommend such kind of trade, please pre assume that trade has either to be closed if tgt/sl hit or the time ends.

5.Indian hotels ( success, 4 % gains ) - This is a perfect example , what VPT trades for. Volume erupted, b/o happened, we awaited for a certain level( whichever analysis u use, always wait till risk reward ratio comes into your favour, make it a golden rule, ur successes would be more than the failures ) to enter. & booked out @ 4 % ( a conservative VPT places the sell order @ 4 % if a buy is initiated, wheareas a agressive VPT places a sell order of at least a 50 % or more quantity @ 4 % to maintain the comfort level to carry the rest for a bigger target, until da trailing sl hits ).

6. PFC, FED BANK ( Failure, SL hit ) - These both were neither a conservative or agressive trades but a IMPULSIVE trade. & taking lesson ( always keep a trade record of ur failures and successes, this habit lets u not to repeat the same mistakes in ur future trades & boosts ur confidence in testing times ) from the same i have decided to control my impulses ( readers are also suggested the same ) to create wealth for my readers.
Even then these 2 traders were not a complete failures, since we awaited till risk reward ratio comes into our favour ( make urslf a set of rule and always follow it ) before initiating our trades & we not always knew our sl's ( Sl is to trading what contraceptives are to love making ) but also placed them as soon as the buy was initiated.

7.-BEL ( Trade is still on ) - This trade awarded us a label of PATIENT TRADER as we awaited it to come down 8-9 % from a high of 1860 to 1695 ( or we would have avoided it ) to initiate a trade.

8.-Grasim ( Fail , SL hit ) - VPT identified that it has got a supply in the band of 1840-45 and patiently awaited for it to come down to level of 1795 to initiate a trade or rather he would wait for it to cross that resistance band to take position. But we bought it & as a matter of discipline our SL hit.

9. Aban ( most successful VP trade so far, over 10 % gain, that too within specified time period ) - VPT identified a supply @ 760 band, and awaits it to cross this resistance. It gave us ample of opportunity to enter the trade and since it was a B/o we always believed it should not come back into this range ( else we would have squared it off ). Conservative already booked @ 818 ( as disciplined trader the sell order was placed @ 818, our target, as soon as buy was initiated ) & agressive ( always books 50 % @ 4 % or a desired target ) is trailing it with a SL of 822. ( 794 & 807 earlier TSL, it keeps trailing following the share price )

So, what are the inferences drawn from trades so far to describe the characterstics of a volume/price trader :

1. VPT ( volume price trader ) identifies the volume b/o in a stock.

2. If range b/o also happening that is a merit to VPT.

3. VPT awaits to initiate a trade till risk reward ratio comes into his favour.

4. As soon as the buy initiates, VPT places a SL.

5. VPT tries to identify a supply band & places a sell order @ band.

6. If supply band is not identified, conservative VPT places a sell order @ 4 %.

7. Even a Agressive VPT books out 50 % quantity @ 4 %/identified resistance .

8. Agressive VPT trailing sl follows the share price movement.

9. Conservative VPT doesnt mind if scrip overshoots as he has pocketed the desired profits.

10. Agressive VPT doesnt mind to cut the trade cost to cost in expectation of a bigger profit.


11.VPT doesnt let market sentiment intervene to close its running trade before either a SL is hit or target is met.

12.VPT has got a bottom up approach as he believes there is always a bull market everywhere, so he doesnt short untill he is doubly sure.

13.VPT places SL & sell order as planned, moreover he doesnt gets excited during initial and dieing hours of the trade except the planned trades.

This is how a VPT trades & i hope my attempts were sufficient enough to clarify any doubts about volume price trading, even if some doubts are there , my readers are more than welcome to put them up before me. i would try my best to clarify the same. also looking forward for the modifications/criticism suggested from my readers to bring upon mandatory improvment in me not only as a vpt but a blogger and a human being also.

wishing u all the very success in all ur trades.

happy sailing
please find a SAI NATH bhajan in the following link, i hope u people are enjoying it.

http://www.4shared.com/audio/SUfWcM2B/Ab_Samjhe_.html

SAI NARAYAN NARAYAN HARI HARI

P.S. - Why i chose only HAPPY SAILING as my tagline, please answer through comments to speculate. i am sure most of you people wud easily make the right guess.

Trade update !

Grasim - SL hit.

Indian Hotel - Sl remains 102 closing basis ( for agressives, conservatives already pocketed the profits market offered to them )

ABAN - Looking good. No wonder it fulfills our wishful target today. Only IMPULSIVE keep carrying with a trading SL of 807.
Logic told us a tgt of 818 ( see post dated 25 th june, not only tgt price but tgt period also mentioned ). Intuition told us a tgt of 880. Here, market suggests us a lesson. Always prefer LOGIC over INTUITION. Here is why experienced trader has a upper hand over a newbie trader. Experienced trader accepts happily what market offers whereas Newbie simply wants market to fulfill his wishful thinking. Please always find market as a place for logics rather than wishes ( wud come up with a detailed post on the same this weekend, dont miss out )

BEL - Doesnt look like breaking the downside level mentioned yest. Safe to have a SL of 1693 ( cost to cost ).

UTV - Agressive keep trailing with a sl of 401 ( trading basis ).

Even this is my 2nd week of blogging, today being a last day of month, would come up with a brief summary of my trades just to make my readers familiar with my trading style ( doing this would let me not go into detailed following up of my future trades ). This is 1 st reason i am not giving new trades, 2 nd being let them avoid over trading.

So keep SAILING HAPPILY as ever.

OM SHRI SAI YASH KAAY SHIRDI VASINE NAMAH !

WHY to put a STOP LOSS

Many a traders feel themselves quite uncomfortable while putting stop losses, due to their several infavourable experiences in their past trades or due to their own reasons ( why to book loss, SL's are seen across all terminals and meant to hit, we would keep deliveries if trade goes against us, cumm on i know its gonna bounce back into my favour ETC ETC. )
But, stop loss is the most favourable tool of a trader. Believe me its meant for u.
Its there to save ur capital for next favourable trade, if ur current trade goes against u.
There are two ways to trade in share markets.
To trade long
or
To trade short ( in FNO stock)
just putting few examples before u, what would have happened in SL would have not been placed in following trades.
1. Go through RDB industries yest. it fell more than 50% on a single day, i.e. if u would not have put a SL while taking long trade, u would have lost half of ur capital.
2.Go through RNRL on 22jan. 2008, it fell more than 50 % from its intraday high.
3.RELCAPITAL on 22nd jan. 2008, made a high of 1912 & a low of 1311, with a close of 1824, down 4 % odd. just think of a buyer @ 1912 & a short seller @ 1311 without a SL.
4.Check out WWIL on 4 rth feb. 2009, with a low of 9.70, made a high of 19.58. Just think of a short seller @ 10rs. or a buyer @ 19 rs.
5. Hexaware on 12 th feb. 2009, with a low of 20rs. and a high of 42rs.
Similarly u would find many such examples of eroison of 50% or more on a given single day of a trader's capital.
And then these examples also show that even u were on a right direction in above trades, u would have exited early to loose all the extravagant profits which would have been pocketed by you, if u had a disciplined approach in ur trades.
That is called trailing stop loss, if u would have trailed ur profit in above trades if they were in right directions you would have doubled your capital on a single day.
One more thing, i would wanna add is that, all of above trades seems to be result of deleveraging of a leveraged trader's position. So, leveraging at the same time , has got a sharp advantage, it has got huge disadvantage also. So, at least avoid leveraging unless u r very very sure about ur direction and positions in a trade. But, even if u r fond of a leverage and very sure about ur positions, u should always keep a valid SL for your trades.
All i mean to say is that SL's and Trailing Sl's are meant to preserve a trader's capital and hence his confidence and existence in share market. So, even if u r not comfortable to put a stop loss or a trailing sl, u should keep monitoring ur trades on ur own screen so as to get rid of ur trades as early as it signals an exit. But if u can not remain on screen u should and always keep a valid stop loss on all your trades, be it a intraday, positional or a investment trade always.
Bcoz in this huge jungle of share market u really dont know which scrip turns out to be a WWIL or a RNRL or a REL CAPITAL or a HEXAWARE or a RDB INDUSTRIES on a given day .
So, better safe than sorry my friends after all its ur money who is being followed by smart people out there.
HAPPY SAILING.
JAI SAIRAM