Sunday, December 16, 2007

GOOD NEWS FRIENDS:

I HAVE STARTED A SMS TIPS SERVICE. WEELY 3-4 CALLS WILL BE GIVEN. MAXIMUM INVESTMENT PERIOD 7 TRADINGS DAYS. RETURN 5-10 %. CALLS WILL BE BASED ON FIIS, MUTUAL FUND BUYING. FOR FURTHER DETAILS

MAIL ME AT bikash_dumdum@yahoo.co.in

Saturday, August 25, 2007

Stock Market Measuring Tools

Patience is the name of the Game to earn money from Stock Market. Besides, patience, proper knowledge, guidance & experience are the tools that one should possess to be a successful investor/trader. One has to protect one’s Capital by his own wisdom. There are so many Analysists, Market-Gurus available in the market who asks huge money for providing calls, tips with almost 100% accuracy. But I really feel sorry for those who after paying such a big money end up making losses. So, here are some real information that may be followed to maximize profits & minimize losses.


DAY-TRADING TRICKS


BUY SIGNALS:

  • Buy above previous day’s high (strong signal)
  • Buy at break-out price which is a Technical level determined through charts. (Very strong signal)
  • Buy above 1st hour high made in the morning (Good signal)
  • Buy above high broken for the 3rd time (strong signal)
  • For a gap-down market, but above when price goes above previous closing price (Good signal)
  • Buy when price goes above All Time High. (Good signal)
  • Buy near support level determined by charts (Difficult to determine so it’s not a good signal)
  • Buy when Big Hands enter (If u r not sure, don’t apply).


SHORT-SELLING SIGNALS:

  • Short sell below previous day’s low
  • Short sell below break-down price
  • Short sell below 1st hour low
  • For a Gap up market, Short sell below previous closing price
  • Short sell below All Time Low
  • Short sell near Resistance level


Book profit at 1% gain & exit at 1% loss from the entry price. This is called Money Management which protects capital.


Caution: Day-trading is injurious to Health & Wealth. 90% of day-traders end up making losses. So don’t follow my tricks blindly. Take your own decision & be sure to trade.


INVESTMENT GUIDANCE

Select the sector(s) i.e. Banking, Real State, Power, Capital Goods etc which are going to perform well in future. To know this one needs to follow Govt. policies, Budgets, important Announcement from time to time.

Next is to find out the leading companies which are going to be benefited most of such performing sectors.

Make investment in companies where there is a “Turn Around” story i.e. company is turned its losses into profit after few quarters of after some years.

Make investment when there is a Merger & Acquisition (M&A) between companies. For this you have to know which company is going to get more advantage out of the Merger.

Make investment when a company gets Large Orders (Export, Local). This enhances the Order Book of the company. Better Results are expected so price will move up. Also, in cases, where a company adopts new Technological Advancement or Business Process, same result expected.


Look for higher Earning Per Share (EPS) stocks.

Don’t’ buy stock because it’s cheap. Go by the fundaments i.e. future projects, quarterly result, EPS, PE Ratio.

Invest for a longer horizon so that you give your investment to grow.

Always keep a comfortable stop loss to your investment.

Try to maintain a basket of investment rather investing in one company