Showing posts with label stock markets. Show all posts
Showing posts with label stock markets. Show all posts

Wednesday, June 13, 2012

Stock Market Game

                                                                    Stocks always constantly move up and down in a trend . The motive behind this is to catch the traders on wrong side.  Stock markets are designed to cause losses to 90% of the players.  The stock market by its very nature is designed for you to lose money.  The rallies and reactions within any trend ensure this process is at work constantly. It is created automatically. The market behaves this way because it has to! The weak have to perish so that the strong can survive. Professional traders are fully aware of the weaknesses in traders under stress and will capitalise on this at every opportunity. 

                                                                     Just imagine if a stock is following a constant trend , then there wouldn't be any losers ideally. everyone would bet on the trend side right ? so in a market if some one has to win some one has to lose(*not always true). Hence the big fat people also called as professional traders aka syndicates design and move the stocks in a direction majority of people will get caught on wrong side. 

                                                                     A small trader(small by the size of $'s ) will always have majority odds against him.The professional traders are sooo big that they can move the market in whichever way they want irrespective of news , events, economy, other factors. If god has the ability to turn events I consider these guys analogous to gods in stock markets. Hence I would suggest to "follow the professional traders trend". We 're limited by the resources, knowledge, internal news and the best way to survive among these sharks is follow them :)

Nifty View for this week.

                                               This is my first blog post on Nifty trading. I intend to use this blog as a log of my trading activity. I am a 23 year old , dribbling with stock markets from past 2 years. I am not an experienced trader or investor. I would consider myself as a guy who trades on opportunities rather than technical or fundamental analysis.
                                                My journey so far made decent amount of money in stocks and commodities to keep my self recharged for the next bull run (I'm expecting after a crash ). I still believe I have one more year to accumulate my funds to invest in the bull run. I haven't seen any bull run's in my stock career but read about them a lot. Let's see how I will ride the wave.  I would be updating my daily thoughts and my views on stocks here.
                                                I will also share my investments and my portfolio suggestions and articles here . so that everyone can see the live performance of my stocks. I will also share my views on investing and my thoughts on the stock markets.                                                                         

Nifty Future is trading @ 5130 now. Nifty future was in discount for the whole month and it reversed yesterday. Nifty is quoting at a premium of 5 points which is very good for bullish traders who are on the long side.  upcoming days Nifty would be higly volatile since two major events RBI policy on 18th june and greece election results.
                                              RBI is expected to cut the rates since IIP came at a very meagre growth of 0.12% . If the RBI don't cut the rates on mid quarter review date 18th june Nifty is expected to go and retest the levels of 4800 again.


My take for now : short nifty around 5180 with Stop loss of 5250. Buy out of money options if you don't want to take too much risk . my target is nifty would test atleast 4900 by the end of this month. if things don't pan out as expected. But that said if the greece elections and RBI policy turnout to be positive we can see nifty moving ahead breaking targets of 5400. So keep a tab on the news and trade safely.


Technical stuff :
                            The recent run up in nifty is not supported by volume if you look at the chart.


Image courtesy : hbjcapital.com I am a regular reader of this blog and I would suggest everyone
to read/follow this blog since it is a gold mine of financial information.

 Key take aways from the chart : volume seems to be drying up. Hence wait for an exact signal as per the VSA trading strategy to pounce upon the opportunity.

Upcoming events which will impact nifty trend
Greece election result
Inflation data
RBI : 18th JUNE .