I have written this post specifically for all kinds of traders and Investors because traders are behaving like Investors and Investors are behaving like traders. This market is in uptrend Investors should buy every dip and Traders should trade with whatever profit they get as due to Volatility Traders may hit SL regularly in intraday or 2-3 days trade also. Because still there are too many bears in market who will short the market at every new 52 weeks highs it will make. They generally exit 50-100-150 points on nifty but traders fell market will crash and they hold short….and get trapped. On upside also they buy above the breakout and then hold long as then they seem market would not correct and it comes down to retest levels. If you like this post you can forward and hit like button. Your suggestions/comments/feedback always welcome click here
CORRECTION IS PART OF MARKET BEHAVIOUR AND IT IS HEALTHY FOR MARKETS. AS IT GIVES INVESTORS TO BUY AGAIN ON DIPS AND RIDE LONGS.
IT WILL COME REGULARLY, IF YOU CANT TAKE THAT THEN PLEASE DON’T TRADE OR INVEST IN THIS MARKET.
Keep you mind focused as for what purpose you have bought ….If its intra-day then its should not be carried , if its Investment wait and hold……..
This is for your information see where and when i ave recommended TCS in last one month you can see here (CLICK ME)
People don’t have patience in market they want all in one day if they buy it should not go down and if they sell it should not go up.
People follow a strict mentality or watch TV and hear all bla bla bla…as they change their strategy day-in and day-out. When TCS was at 1400 people wanted to enter at any cost and they did and sold off @ 1250 but when it corrected to 1200 people shorted for 1050 and did not go long as feared to loose money in longs and see what TCS is now at 1350.
I will request stay calm make your notes of buys and sell and whatever happens you just follow your own instincts. But keep Stop losses on what ever you Trade on shorts or longs and don’t make a mindset on Stock. means if it has fallen so much it will not fall (Recent case of Arshiya International – even i gave this stock to buy @ 130 with stop loss @ 115 and informed investor to hit Stop loss on the day of new it was at 112 and also had opportunity to exit at 105-06 as it traded in this range on that day for quite a long time…Those who exited with SL are happy and those holding are now trapped as it is hitting lower freeze everyday and now they want to exit but doors are closed as closed at 54 it halved from our stop loss level in just 7 trading days….) and it has risen so much it will not rise ( Wockhardt – Last year in Jan it was at 300 and this jan it is at 1680 , people sold off this stock as there were rumors in this stock of cracking and all….Investors who held it for 2 years were also afraid and see what it did……)
Technical Analysis is forecasting the trend momentum only ……If indicators ride along smoothly you get good returns ……It shows exact and True Picture and you have to accept it. Since it is based on charts you have to accept what it gives you BUY , HOLD and/or SELL. you cannot then put your instinct that it will reverse from here then you will loose your capital. Stock markets trading 1st step Protect your capital always. As there are more than 5000 scrips to trade on and
The main feeling …..“you buy/sell because you feel left out”...…For Technical Analysis you need to have knowledge or you should consult someone specialist in this job like you go to doctor for your ill health do you go to carpenter……likewise for stock market you have to go to Analyst whether Fundamental or Technical who will guide you….
Also one more point DONT MIX CALL OF VARIOUS ANALYST. if you are following an analyst follow his idea only for a particular stock because his idea may be of Investing for 6 months and you listen to other analyst whose view is for just 2-3 days….In such case you will loose money buying/selling and ultimately loosing stock + money.
There are following types of trades and investment
- Jobbers – This people buy huge chunk just for 50ps – 1re or 5 rs max and don’t carry positions
- Traders – This are people who do intraday for 2-5% in a day
- Arbitragers – This are people who Buy in Cash and sell in FO to make difference between the price. play for 10%
- Safe Traders – This people just do Options market Call & Put. 5-10%
- Investors – Short term , Medium Term , Long term. (15 to 100% minimum return)
Decide what you are and what returns you want.
Now lets see what TCS chart is saying . I and my clients are long from 1210-1220 levels. we booked near 1380-1390 levels on result day and again entered @ 1325-1315 levels…………..
I will just brief have patience keep faith and trend as per market ……The real fact is till liquidity is on market will not correct significantly and every dip would be bought . Bull markets are always rode on fears ( from 4600 to 6050 every single day people said this is too much abb to market girega……The Irony is that when it goes up people buy and then market corrects people have left their stocks at low point hitting Stop losses and then market tends to make new highs you can check nifty Charts and Sensex Charts.