MONEY SHANKAR

2015-01-26T02:33:00.000-08:00

SAMOSA AND TRADING STRATEGY

2011-12-06T11:37:00.000-08:00

The competition in every sphere of life and the technological advancement has made us accustomed to make intricate things and process. Anything that comes in simple shape and size is not accepted and often termed as cheap or unworthy to own. We just hate simple things. And when it comes to trading simple process is beyond consideration. Round the clock business channels, enchanting analysis, new papers, magazines, websites and lot of stuff out there. Its not the simple world honey. No longer instead.

Trading has surpassed the principle of demand and supply, buy and sell. Therez lot more buried that we have to explore before actually putting our trades.

ABSOLUTELY WRONG.

Trading is really simple if you have drafted a trading strategy for yourself. Scalping, day trading, momentum trading, swing trading, pair trading. Which one is the best? The answer is all, but you cant adopt all at one time and switching from one to other may confuse you as well. So how we can select the trading strategy? The question remains intact.

I got the answer from an old chap a who started trading 3 years back. After losing all of his capital he reentered market with 10% of his initial capital. When I put forth this question he replied with other question " sir what would you like to have samosa with? Green chatni or ketchup, I go with the first" , as if he was trying to brush off my query. He might be reluctant to reveal his adventurous losses :) Acknowledging his age, I preferred to reply to his question to ask mine again. " Well, I usually take it with curd" was my reply, " reason being green chatni cause burning sensation and ketchup is too sweet, on the contrary curd is tasty and not harming to my gastric system."

Thats it ! Every body has different liking and not every strategy suits them. You have to find a trade off between what you like and what your risk appetite allows?

TAKE IT SIMPLE SILLY

Trading Mistakes

2011-12-04T16:04:00.000-08:00

The most common behavior of newbie in speculative trading can be easily found in casinos. The profit on the first trade ramp up their appetite and they hunt for more. Now the greed comes into play and that’s the turning point. Idly, your trading decisions are devoid of any emotions and totally insulated from the results of previous trades but they eye for more and in a bid to take bite more than their hunger the trading streaks ends with the loss. Following events reflects the aggravated intensity of emotions. Once plunged into marginal or significant loss they attempt to recuperate the accumulated losses in one shot. This leads them to use higher leverage on irrational trade. They are fallen into the trap. The early profit entices them to put bigger money on stake just to lose much bigger amount at the end. The gist of the matter is never use any emotion while make a trading decision. Be it greed, fear, pain or pleasure.

DEVANAD: A EVERGREEN YOUTH TRADER

2011-12-04T05:48:00.001-08:00

Millions of hearts plunged into grief with the sad demise of evergreen youth Devanand. I still remember how I tried to imitate his hairstyle in early adolescent years. Good Bye Dev sahib.

The philosophy of his iconic and cult song “ mai jindagi ka sath nibhata chala gya, hark fikr’ ko dhuyen me udata chala gya” has great significance if applies on trading. Trade with the trends. No matter where market moves, up or down or sideways. Make your trading strategies in accordance with the market movements. And don’t let your worries (losses/risk) take over your strategies. Just forget about the losses you incurred. Let the bygone be bygone. If your trade to make up your losses you will be forced by your intuition to trade more on higher leverage and eventually it will lead you to see further losses. So keep in mind : mai zindagi ka sath nibhata chala gya, har fikr’ ko dhuyen me udata chala gya.

GOOD BYE DEV SAHAB.

2011-09-08T20:44:00.000-07:00

NEW BEGINNING

Good start. My first official calls started yielding results. On 5th Sept. I bought few stocks for my clients
1. ASHOKLEY @ 25.10
2.ABB @846.50
3. ACC@1012.15
4.AMBUJACEM@135

All of them are still bullish and I haven's closed any of the positions. Hopefully these stocks will be further analysed at weekend. Moreover, yesterday I generated few intraday calls and most of them hit the target. You can see those calls on twitter.

Lets have a good start again. ALL THE BEST.

2011-09-07T20:37:00.000-07:00

BONJOUR! JE SUIS DE RETOUR

Hi friends! Its been a long long time and I really missed you people. I apologize for keeping a prolonged mum. At the same time I appreciate your kind patience. I had flurry of emails from friends, clients and well wishers complaining for abrupt disappearance and requesting market update.
You people might be awed by the mysterious silence. So here am, ready to break the ice.

I was immersed in producing a miracle set-up that guarantees astounding, yea astounding, returns with over-the-top efficiency. It is basically developed for adorable Nifty but gradually transformed in versatile setup that works well with equity and future. It was not a usual experiment as it aimed to achieve precision covering diversified tools that work not in tandem with each other and respond entirely in different ways.

I wont go into the technicals of this setup, would rather discuss the nitty-gritty and that's what you people might be interested in. Basically, it gives only four signals long, sell, short and cover. More interestingly, no move is advised in the absence of any of the signals. Based on the psychology of fear and greed the set up takes into consideration two of the most important factors of stock market i.e. price and volume

Hope you people will be benefited with this work of mine. Your feedback,suggestions are welcome.

Important Links for Share Market

2011-04-24T14:06:00.000-07:00

TRADING MISTAKES - 2

2011-04-21T21:30:00.000-07:00

Mistakes are the usual bridge between inexperience and wisdom. ~Phyllis Theroux

Emotional Trading :Due to lack of experience, novice traders trade with emotions. Sometimes their ego is on stake. They enter into trade with hefty greed and close it with exaggerated fear. They trading instinct is easily stimulated by rumors, news and decision is made in haste without the backing of rationale. Sometimes greed comes into trade and profits dwindle to eventual loss with a hope of larger profit. One thing is very common among novice trader is a panic reaction with price fluctuations. If a trade is fail they are unable to accept that they committed a mistake thus carry a position to a level where the losses swells to uncontrollable level. They always rejoices even the smallest profit with great fanfare and gets dejected if they incur any loss. And this attitude severly affects their trading temperament for upcoming trades. Greed, fear, haste, impatience, dejection, exaggeration all these emotions hamper the trading activity.

CONFUSION

2011-04-21T11:21:00.000-07:00

Yea confusion prevails regarding the course of action. I havent tracked global market for straight 3 days. Not even the political scnerio that has significant bearing on market movement. Yesterday I recommended IT stocks though they gave good opening today but lower volume in index in second half pulled them back to lower than yesterday level. Still most of the indicator still suggesting to keep long positions in IT stock thats what Im doing. One important signal I witnessed at the end of the day is the baseline that infosys is forming at 2900 level. Its a value buy at this stage and after 4-5 months people will regret not buying at cheaper price. And surprisingly what I saw in IT yesterday found in Banks today. These two sectors are going to lead Nifty to 6000 level in next 2-3 trading days.

IT RESURRECTED

2011-04-20T12:50:00.000-07:00

After Infosys' lower than expected results and stepping down of Mohandas Pai , Wipro good results brought investors faith back to IT stocks. Negative sentiments among IT stocks led the index to the current fall. Wipro came to rescue and with buying spree in IT, we can expect a small rally in index.

See the striking similartiy in trend in these IT stocks. A clean reversal, from black to white. Lets see why this happened.

I strongly recommend IT stocks for tommrow. Specialy TCS and Wipro. For a longer term Infosys can be a value buying.

COMMON TRADING MISTAKES

2011-04-20T02:07:00.000-07:00

If you don't make mistakes, you're not working on hard enough problems. And that's a big mistake. F. Wikzek

Mistakes are inevitble in life. No matter which stream we are pursueing we ought to make some mistakes. So do traders. Mitakes in trading brings rahter bitter consequences because it cost our deary money. Hard earned or borrowed. Novice trader are prone to such mistakes. Im trying to sort out those mistakes and starting a series on such mistakes. Present one is the first in this series.

1. Trade Without Trading Plan : People often enters into this market with big dreams but before startging
they dont make any plan. They are not sure of their risk appetite and dont define even their objective thus their trades are marred by indiscipline. Trading withough discipline has only one destination- disaster. Trade witout objective makes them clueless about where they are going. Obviously they are not prepared, not prepared to assess their profit or bear the losses. Trade without target and stoploss will eventually go haywire. In other words we must know why we are entering into this trade? We must have solid reasoning behind making that trade? On a protective measure we must know on which condition we have to close this position? These are very simple and proven steps that can dramaticaly change your success ration. Do have a trade plan before you trade.

ONGC

2011-04-18T20:35:00.000-07:00

Its has resistence at 305 and support at 285. It can be rangeboud for sometime.
People who bought it at upper level can wait for some time.
Fresh long position can be made with a stoploss of 278 and immidiate target of 310

HAPPY TRADING

GO LONG BROTHER

2011-04-17T12:49:00.000-07:00

Some people might be scared of going long at this juncture, specially seeing a small dip after a single day rally of 13th April which lifted Nifty from 5748 to 5900. Well, Im still bullish because of the two signals I found on this chart.
1. Previous resistence of 5600 which was tested twice on 18th Feb and 4th March was breached on 25th March with a significant gap up.
2. Occurance of bullish engulfing pattern on 12-13th April. The relative size of the bodies in the first and second days is very crucial. 12th is characterized by a very small real body but 14th is characterized by a very long real body, this strongly indicates that the bearish power is diminishing and the disparity of white versus black body is indicative of the emerging bull power.

I would suggest to make fresh long at 5725 level or at current level with a stoploss at 5725.

HAPPY TRADING.

TOP 20 BOOKS OF THE SHARE MARKET

2011-04-15T11:13:00.001-07:00

http://www.youtube.com/watch?v=mnpW8iNx54U

LET THE SILVER SHINE

2011-04-13T05:05:00.001-07:00

Cosidering extremely bullish trend in silver one may easily carried over and stuck into the complex territory of commodity trading.

Silver is very volatile commodity and prices fluctuate on global cues. You may be introduced rather say lured to commodity by your broker by the prospect of making awesome profits. And chances are great you could be easily decived by the number and figures he presents before you. If you are a recluse and impusive trader then there 100% chances that you will lose your capital or worse may end up in debit. Steep and abrupt rise and fall are very common in silver prices. Lack of rational behind any trade can cost you some money. After incurring heavy losses in commodity esp silver trading I introspected and realised that there are some common characteristic traits of lost trades. I would like to share with you the lessons I learnt from my early setbacks.

1. Enter a trade only if you see any reason. You must have a rationale behind every trade. In simple words you must be able to answer few quesions like, why are you entering into this trade? To which extect you can bear loss? what will be the stoploss? Why and when I should quit this trade?

2. Quit as soon as you realise its a fail trade. Not every trade reap profit. Successful traders too have very poor success ratio. Quit the trade as soon as you realises that its going against your expecatation.What makes difference is their habbit of keeping the lossess at minimum. There are ample chances of making profit but once you lose your capital you wont be able to make another trade. So in a bid to minimise losses you must close the trade once you find it opposite of your anticipation.

3. No impulsive trading. Dont trade when you are angry,sad,frustated,disappointed. Dont make a trade to recover your previous losses. Forget any loss in you had any. Better stay calm and keep yourself out of trade if you incur any loss. Forget the previous trade. You are reborn with every new trade.

4. Maintain your trade log. You must be knowing what you are gaining and losing in each and every trade. It will also helpful to evaluate your trading pattern and finding faults with it. You can review it on daily,weekly or monthly basis and sort out the problem areas. It will not only improve your performance but boost up your confidence as well.

All The Best. HAPPY TRADING

Lets Rejoice Again

2011-03-11T19:47:00.001-08:00

Silver has been week for past 3 days ever since it touched the 54800 mark. Many naive traders kept carrying over their short position after seeing bearish crossover in stoch and MACD. What happened on friday has consolidated my faith in conservative Technical analysis. On friday price was still goin down whereas MACD, stoch,RSI were making higher low showing there was buying pressure being built up at this level. And the silver made high of 54100 after making a low of 51900.

ooops! I Did It Again

2010-12-01T11:11:00.000-08:00

Truth will sooner come out of error than from confusion.
Francis Bacon

As decided, I traded ekc in the first hour. I might be the first person who sold ekc shares and though hourly charts clearly showed that it was the right time to go short still its the perfect example how sentiments changes technicals and fundamentals. See what happened to EKC this morning.
So no hesitation to say that the trade failed.

Check out the movement in first hour and both indicator clearly showes the bullish start of the stock.

Quick Bucks

2010-11-30T10:46:00.000-08:00

Chains of habit are too light to be felt until they are too heavy to be broken.
Warren Buffett

Though the index afftects the stocks in broader term but as far as shorter swings are concerned, no matter where market moves, every stock has its own movement. Like where Nifty is expected to have a gap-up opening tomorrow, EKC seems not to get free from beers' clutches. Have a look

well, I recommend to short EKC at opening at current level that could be covered at 95. So Rs. 5 in an hour an hour is not a bad deal. Its 5% man. Whewwwwwwwwwwww!

Is It The Bottomline

2010-11-27T00:16:00.000-08:00

"A man who is at the top is a man who has the habit of getting to the bottom."

Joseph E. Rogers

Long live Beers, chants are on as procession of bad news causing the bourses' descent.Banking had been a stong sector since recession which led many short term rallies and a downward correction wasnt possible without a week banking. Thanks to housing scam, rather media which hyped the whole story. Panic is apparant and rampant selling is seen across all sectors.

Nify made intraday low of 5728 which is an important 61.8 fibo level. So will it take a halt or reversal.No, not yet. why? Hey, have a look at stoch and MACD, the difference between the two lines are still widening. So no respite for Nifty. Lets expect it to touch 76.4 level. Beears, its party time.

Bank Tumbles

2010-11-24T12:39:00.000-08:00

I may be out tomorrow. Nifty is having a strong support at 5800 and its likely that it gonna hover between 5800 and 6000 for couple of days. We saw panic due to korean aggression followed by news of LIC housing finance. Banks which has been strong in last couple of months now surrendered to the panic wave.

On Thursday morning we can expect a futher fall. I would suggest to go short in Allahabad bank as soon as the market opens.

You may go short in Allahabad bank @ 250-246 level and can expect 240-235. Have a great time bear.

CEE YA

Destiny of Nifty

2010-11-22T13:17:00.000-08:00

Whole day spent answering people where Nifty is heading. Though the good news at European front has given some respite to the falling bourse still it isnt strong enough to sustain the selling pressure that is apparent from this chart.

See the Nifty is about to revers at the brink of larger EMA where as both lines on MACD are too lower than the zero line make it bullish. Moreover stoch is about to make a bearish crossover that too on the upper end.

Nor convinced. Lets have another look.

MACD lines seems reluctant to cross above zero line and stoch has already started it journey back from the upper end. So shouldnt we expect Nifty below 5950. We should.

Bank Stumbles

2010-11-20T22:57:00.000-08:00

Banking stocks have come under some selling pressure on concerns of exposure to micro-finance institutions (MFIs). You can measure the fear on the charts. See the Bank nifty .

Well, if you ask where is the bottom, I will say that we still havnt seen the begining of downfall of this mighty index. See, it has merely touched the middle moving average line. Though bearish crossover occured in MACD but it is held on way up above zero line and the difference between the two lines of stoch seems shying to widen. So, I will confirm the reversal when the first moving crossover occur. Wait for few more days. You wont be disappointed.

SUGAR SOURS

2010-11-19T23:38:00.000-08:00

See the similarity between these two sugar players.

BAJAJ HIND

BALRAMPUR CHINI

NIFTY RETREATS

2010-11-19T23:06:00.000-08:00

After a long lasting rally ,where Nifty made a high of 6349, a reversal was expected. The gradual descent commenced on 5/11 and Nifty is sill finding its support. It on the verge of hitting 50% retracement at 5845 but since the difference between both lines on sotch are going wider I can assume Nifty is gonna touch 61% level that happens at 5725.

HAPPY DIWALI

2010-11-05T06:01:00.000-07:00

MAY THE LIGHT OF HAPPINESS LIGHT UP YOUR LIFE. MAY THIS DIWALI BE THE MOST SPARKLING AND LIGHTENING. THE SIGHTS AND SOUNDS FILLING UP YOUR HEART WITH JOY AND HAPPINESS.

WISHING YOU ALL A VERY HAPPY DIWALI.