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

Its been a while..........

Hello friends

This is not my pic. This is SHRI SHRI SHRI MANOJ JI PARASHAR, A Sai devotee, who is 24 hours in the service of SHRI SAINATH. He is from indore. Please go through the Tilak on his forehead. He used to visit Sai bhakts on their request to perform Hawans/poojan. During one of the visit @ Sai bhakt niwas @ dewas, he was greeted with a KANKU CHAWAL TILAK on his forehead. U can all easily view SAINATH arrived in the tilak of his forehead. SAI BABA is in Bhagwa vastra, his right hand is raised up to bless the devotees & his left hand is holding his kurta. His feets are also clearly visible in this pic.

To learn more about SAI CHAMATKAR, please use following links :

http://stock2gains.blogspot.com/2010/07/i-would-stop-blogging.html

http://stock2gains.blogspot.com/2010/07/chamatkar-ko-namaskar.html

SPECIAL MENTION - Readers are kindly requested to post their query/suggestions/comments only through the recent post i.e. the current or last post. Ur comments posted in the earlier post may be missed to be attended.



its been a while that my blog is updated through a post. Thanks to my own health related issues/virus in PC etc etc. The period left out has been quite eventful. Not only i started tweeting, got myself a yahoo messenger ID, but trade updation was also carrying through comments of the recent post.

Well, let me put up the trades, which we had, during this period, just to put them on records. Although, this might seem like repeatition to my friends, but please dont miss this. U might miss some important information.

FIRST THE TRADE, WE WERE CARRYING WHEN I UPDATED A POST LAST TIME :

Reliance industries - As expected, hit 970, we squared off @ 972. Gained 27 rs. Not only that. as expected reliance hit 962 also.

Nitin fire - It can easily be termed as most shocking trade, since we started blogging. It took support thrice @ 342 as mentioned by me, to take it out finally. We stopped out but lost only 2 %, even if it remained the most shocking trade.

J & K Bank - What say, bought @ 797, did nt even dip single re. then asked to book partially @ 823 to carry the rest for 848/864/894 as final tgts. it took only 3 days to gain 12 %, hit exactly 894 before giving off its gains.

Biocon - as expected never looked back once 323 was crossed, asked to book fully above 346, high made was 346.5, before it dipped to 329. A whopping 7 % gains.

Vishal retail - A re entry was advised below 53. Low made so far is 52.8. It remains an agressive trading buy, if anything below 51.

PFC - We booked twice, between the range it made, finally sl hit.

Orient papers - Maintain a SL of 55.8 on ur re-entry. To be booked 75 %, if not fully above 62.

WWIL - This trade conveys sweetest trading lesson to us. Why did we buy something 5 % above our SL. although i was sure 14 is not gonna hit ( it actually did the same, bounced off from 14 itself ), but it was really painful to see it dipping to 14. But can u really buy the bottom or sell the top. U can never buy @ bottom & sell @ top. & then if our SL was 5 % deeper, our tgts is 20 % higher. So, what i am trying to convey is, be consistent to trade, keeping risk reward ratio in ur favour. Never trade for a risk reward ratio like 1 : 1. So, if we awaited wwil to go 5 % below our buying level, we wud wait (offcourse with a TSL), to book it at least 12 % above our buying price. Once, 15.8 is crossed, TSL of 14.4 can be placed.

KEI industries - To be booked above 36, to re enter below 33. Keep trailing now with a sl below 31.2. Final tgt remains at least 37.7.

Sterling Biotech - Seems massively range bound between 105 to 111. Once 111 is taken out, all set for 117-118 kind of levels. If lvls like 121-123 are taken out convincingly, then 138-144 is on the cards, but that will take time. For now, keep maintaining a sl below 105. It is treating the lvl of 105, in the same manner it treated the lvl. 90 in last 8 months or so.

NOW ITS TIME FOR THE TRADES WE INITIATED AFTER THE LAST POST :

Asian paints - Shorted @ 2685, covered same day @ 2648. Then shorted @ 2675 to be covered @ 2615 kind off levels. Finally hit our SL placed @ 2704. Gained more than 60 Rs. before getting stopped out. Convincing trade, daring trade, since we shorted the GREAT ASIAN PAINTS.

Canara bank - Asked to short on a break of 500, which did not happen. Trade not initiated.

OFSS - Bought @ 2072, stopped out @ 2065. 1/3 % loss.


Ramco systems - Buy suggested @ 104, but asked to square off cost to cost, since, it is trading on very dissimal volumes. A buy is suggested only when u see NSE volumes over 8000, any day, uptill 1 pm, preferably above 107 only.

Ankur drugs - Initiated @ 115, asked to book @ 127. Then asked to re enter @ 118. Now, keep sailing with a TSL of 117.8 to be booked fully above 135.

Ramsaroop industries - Asked to buy @ 81-81.5. Then it made a high of 89 & finally hit our SL of 79.7.

Financial tech. - Asked to buy close to 1395, Low made is 1401, i hope its entered. ALthough, its structure is positive, pl. maintain a strict SL below 1400, since it has risen a lot from 1190 kind of levels. We wud look for some better opportunities later, if 1400 is hit.

Astra zen - This is a defensive bet. Low floating stock, That s why asked readers to sqaure off their positions. Since, VPT ( volume price trader doesnt hold a stock which ends the day near their SL, to neglect any possibility of hitting the SL through a gap up/down. Re buy it early morning on monday without asking maintaining the same SL. Please avoid if it opens below 1208.

Indian hotels - Has taken a b/o, but v wud patiently wait for a dip below 102 OR a volume eruption above 109 to take positions.

HEIGHT OF CONFIDENCE :


Ankur drugs - Very rare times, u wud find me recommending a trade without a sl, ( i placed a SL later on the request of saibaba ) & using a word, " BUY AGGRESSIVELY " in a recommendation. See the results, 10 % gains instantly. Not only that it respected all our levels. ( high made 128, low made 116.5, then did not go below 120 & could not score above 130 )

Asian paints - Boldly ask to short asian paints. very few analyst wud dare to do that. Then asked to book some near 2640 ( low made 2645 ), clearly advised, more weak only below 2604, which it did not break finally.

Astra zen - Sl suggested below 1210, so far is stopped at 1210.

Ramsaroop industries - i hope, u people remember, EOD @ 17 th aug.when it was trading @ 83.45, i clearly said, buy ramsaroop close to 81.5 next morning. Low made was 80.1, it rocketed to 89 same day, to give us 10 % gains intraday.

Financial tech. - Asked to buy close to 1395, low made is 1401. Howzatt.

( NOBODY IS PERFECT IN SHARE MARKET the fact i am putting up before u, is current status, they might change on monday )

Well, jindabooni & vvvvv have raise the issue of timely intimation of blog updation. Following suggestions are given :

1. Be in blog follower list - that not only intimates updation of the blog. But, i am seriously thinking upon providing some additional benefits also to the members registered in my blog's follower's list.

2. Twitter ID - Have started tweeting, my twitter id is stock2gains. U can also be a follower there, as soon as a comment is added or blog is updated, i dont forget updating there.

3. Yahoo messenger - My yahoo messenbger id is fox4stocks.

4. Subscribe to comments - Click comments on any post, u wud find a link. Subscribe to comment through e mail. Enter ur e mail address there, as soon as any new comment is added on my blog, google sends u an e mail.

I hope, this issue gets resolve now.

One important fact : i hope, my blog readers appreciate the fact, that nobody is perfect in share market & cant produce a 100 % accuracy. On my side, i commit my blog readers a sincere & honest effort to stock analysing through my own derivation ( VOLUME PRICE TRADING : VPT ).

Although, this all may seems quite repatitive & boring to few readers, but cant help it, since, i am writing for those readers also, who dont go through comments section.

Well, one issue of too many trades was raised by VVVVV & SAIBABA.
To answer such objection, i must say that my readers should understand that different trade initiations have different time periods ( although, 4 % rule applies to all of them ). + there is profit booking & re entry also. Then somebody likes holding for 3-4 days, some for 5-7 days. Then some have MTM issue also. Then there is an issue of personal choice also, sector choice etc etc. Then u must understand, that all are not old readers, new readers also keep coming to the blog. There must be something interesting to them also. Otherwise, this blog wud have been so boring for the new readers in the last 8-10 days, if somebody wud not have gone through comments section.

I hope this issue also gets resolved.

Well, an important important very important lesson is to be learnt from ramsaroop industries for my readers

We initiated a buy below 81 to see levels like 88.9 same day. Wasnt it too handsome a profit to be lost, gained intraday. Then u saw, it not only broken its intraday low, dipped upto our buying price, took out our stop loss but also dipped 10 % below our SL.

LESSONS LEARNT -

1.- 4 % rule really saves us from not only a disaster, but also finishing a trade in some sort of profit, instead of booking loss.

2. - Along with 4 %, we should also learn to place a sell order @ 10 % from buy recommended price/bought price, so that our holding price reduces in too shorter a time frame, if by chance our scrip act violently. So, 50 % @ 4 %, 25 % @ 10 %, what say, as soon as we buy it.

3. - We will make it a habit, not only to place an order @ 4 %/10 % & SL same day but everyday early morning, b coz, we wont want to loose such an opportunity due to which all our profit making opportunity is lost.

4. - only thing, which is certain in stock market is its uncertainty.

I know, it has been quite a lengthy post, but newly landing readers were also to be addressed, that s why.

I wud be adding the SAI CHAMATKAR, in the same post as an edited element. I hope, its being attended.

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.

Stop & reverse : Tulip !

Here is a stop & reverse trade for you

Tulip IT - Well, overall its a buy reco, buy in the range of 170-171, SL 168.5 trading basis, target 8least a 169-170, OR reverse ur position to a sell, i.e. if it starts trading below 168, wait for a lil bounce upto 169-170 & then short with a SL of 176.5 TGT 165, more weaker below 165 for a tgt of 160. Risk reward ratio is not in favour of a short @ 170, so please consider it as a risky call.

Century tex. - Conservative who booked >470 can re enter, agressives SL now 455.80. Resistance @484-487 if cleared with volumes, then 518-525 is on cards 4sure.

GVKPIL - w8 for a lvl of 44-44.5, SL 42.5 tgt 47.8, tgt 2 -50.7. Agressive can take a risk to buy now.

REl CAPITAL - Looking good, conservative W8 4a lvl of 795-792 to enter, Agressive buy 804-802, tgt 8least a 818, tgt 2-830

PFC - Looking good 4 a 330 ++ if 310 is not broken now , take 310 as a closing sl & buy in a range of 316-314.

Indian hotels - Weak only below 105.4, make it a sl now.

Vishal retail - Hope people bought !

IFCI - seems, would do 61-62 today.

Our trades till now suggest that success ratio of COnservatives is over 65 % , whereas agressive is less than 30 %. To know difference betweeen functioning of a conservative & an agressive trader, please follow d following link

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


Happy sailing !

OM SAI RAM





P.S. - well guys, i am neither in favour of modification nor anybody would have found any posts modified to increase % success, but i hope people will forgive the typo erro. in the above post tgt 169-170 is typing error. if we are generating a buy in the range of 171-170, how could be a tgt be 169-170. In fact it was 179-180.

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.

Shri Satguru Sainath Maharaj ki jai
Hello friends
let us all switch to work
today is our first trade
and we are gonna have a look at UTV SOFTWARE
reason for trades
1. Its involved in latest blockbuster movie RAJNEETI
2. Three days ago reliance capital announced to buy a 18 % stake in its arm.
3.Neither of above 2 factors seems to have factored in its price since last 10-15 days.
4.Since it is near to its support 391, so risk reward ratio looks favourable to take a trade.
5.Media shares have not been in limelight unless a week ago, when all of them had a ride.
So, friends our trade would be on long side

we would be looking forward to buy it in early trades tomorrow morning i.e. 9-9.15AM @ 395-398( all NSE)
our trading stop loss would be 389.95
our first target would be 412-414 intraday & second target would be in the band of 424-428 positional, if it closes above 407.
The key trigger being volumes, so if on NSE, volumes till 11 am is over 30000-40000 , we would assume that our trade is in right direction.

TRADE NO. 2
HIGH RISK TRADE
DHANBANK
It attracted heavy volumes on tuesday also given a B/O above 166, and if u go through the intraday graph , as soon as it crossed 165 today, it never looked back and exploded like anything to make an intraday high of 183.
DONT DONT expect such kind of explosion tomorrow also, since scrips after such an explosion tend to give a lil spark only on long side to create and impression that its gonna explode today again. SO, be alert.
Try to buy it on lower side, only and only @168-169, otherwise not. Mind u, only and only in the band of 168-169 otherwise not, that too only if it has not made a high kind off 176-178 i.e. if it hits a high like 176-178 before u get to buy in the band i gave, LEAVE IT. It would be a trap.
Now, if u get to buy it in the range of 168-169, before it hits a high above 175, u got every chance that it gives an intraday high of 176-178. So, simply buy in the range of 168-169, PLACE a strict strict trading sl of 164.90, and get set for the target of 176 at least @ eod. Dont keep delivery, untill u buy it >167.
So, if ur buy is between 166-167, and u r not comrotable to keep a SL, keep it as a delivery for a target of 176-178, if not intraday then next week tuesday to wednesday.
and if u buy it too early in the band of 168-169, then need not to keep delivery.
BOTH THE ABOVE BUYS only and only if it doesnt hit an intraday high of 176-178 before u buy, otherwise leave it, we would gonna have a look at it either on friday or monday when it would make another move.
So guys happy trading, looking forward towards ur comments( be it a appraisal or a cricism, WELCOME)

DISCLAIMER - Reader and only the reader would be responsible for any losses if occur due to the trades given here on this blog, as this blog is for educational purpose only.
Shri Sathguru SAINATH maharaj ki jai.

WELCOME !

This is my first post for this blog. starting posting my blog on the name of Shri SAINATH Maharaj.
My experience in the stock markets is neither as huge as some of my seniors are having, nor i am gonna copy their style of looking at the share markets.
More over i would be looking at the indian markets only and that too with a stock specific approach.
The basis of my trades would only and only be volume to price. As i have been a huge admirer of volumes to price action of a stock and have found that volumes, along with HL & HH or a LL and LH on a daily, weekly or monthly scale can do magic for u, if u r sincere and discipline in your approach.
So, guys looking forward towards all of u to co-operate and monitor me on regular basis to help me improving my blogging and trading skills.
Thanking all of u.
Shri Satguru Sainath Maharaj Ji ki jai