1. DIYTechnicalAnalysis is a private community of traders and investors interested in building wealth from Indian equity market. You can become a member with a one time registration fee of ₹199. Click here to become a member

Guidance please

Discussion in 'Technical Analysis' started by vishalymp, Dec 11, 2014.

  1. vishalymp

    vishalymp New Member

    Joined:
    Apr 3, 2014
    Messages:
    8
    Likes Received:
    0
    Occupation:
    Salaried
    Dear Shabbir,

    I red your ebook and its very informative. I gained some confidence in
    reading the charts. But I would like to know details on intra day
    trading in equity segment. Recently I am observing the bajaj
    electricals from few days, but I am unable to find the reason why this
    stock is getting down??? I would like to know how to analyze this type
    of situation??

    I am totally unaware of other segments like derivative, commodity, etc. I have basic idea regarding equity section only... I need to know other sections also. Please guide me about same.

    How would you pick a stock to trade?? Do you use any special indicator
    or more than two indicators. Please share if possible. I am currently
    having demat accounts in ICICI direct, Sharekhan and ventura.
    Preferably I am using sharekhan's terminal to do analysis and ventura
    for trading purpose.

    Do you believe in penny stocks?? and if yes, how to select the same??

    Please share your views and any suggestions. Eagerly waiting for reply.
     
    vishalymp, Dec 11, 2014
    Share #1
  2. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,674
    Likes Received:
    1,938
    Hi Vishal,

    Glad you are liking the content of my eBook and there can be many reasons for stock to fall and so lets analyze Bajaj electrical technically.

    If you look at the daily charts of the stock, you will see it has a habit of making large down candles each every 3 months aka on 29th May, 31st July and 13th Nov and it is very easy to guess some bad news in earnings being reported around that timeframe. If earnings are not bad then it could be that forecast of the earnings may be bad.

    I also don't care about other segments and I don't think you can know all. In fact I don't believe in knowing all and only knowing the things that matter the most. I don't trade in commodity, forex, futures and options and being a blogger I get so many queries that why all your examples are from equity market and things like those and my answer is simple which is

    I don't trade in commodity, forex, futures and options and so I try to give examples from my experience and I don't see a reason to be trading in those market unless your portfolio is at least 1 Crore. My pattern work on those segments but then I cannot share real life example from those markets.

    Yes I loose on lots of sale of my eBook but then the sale of the eBook is not the point anyway.

    So if I can manage to be trading only in equity market and generate roughly 30% return on my trading + investment portfolio, I don't see a reason for any Indian retail investor needing to go through the complexity of commodity, forex, futures and options ...

    I just watch for 3 patterns and they are W, higher top higher bottom, Breakout and find them in my list of stocks that I prefer tracking. If i get a pattern, I just trade else I am fine keeping things in cash.

    I would say go with the broker that has least brokerage and Zerodha is quite good but ShareKhan is not bad either.

    No I don't believe in penny stocks in Indian market because they are better to be traded on short side than long side and we are not allowed to short in cash market for positional trading.

    I hope it helps.
     
    shabbir, Dec 12, 2014
    Share #2
  3. siva934127

    siva934127 Member

    Joined:
    Nov 7, 2012
    Messages:
    195
    Likes Received:
    10
    Hi,

    Welcome to the knowledgeable forum.
    Please find the attachment of Bajaj electrical, I hope you may get some idea on this.

    Thanks,
    Siva.
     

    Attached Files:

    siva934127, Dec 12, 2014
    Share #3
    masihpatel, ravirajpr and shabbir like this.
  4. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,674
    Likes Received:
    1,938
    Awesome share Siva.
     
    shabbir, Dec 12, 2014
    Share #4
  5. Suresh_Sinha

    Suresh_Sinha Active Member

    Joined:
    May 1, 2012
    Messages:
    209
    Likes Received:
    30
    Don't have words for such an explanation and yes @siva934127 truly knowledgeable forum.
     
    Last edited by a moderator: Jul 16, 2017
    Suresh_Sinha, Dec 12, 2014
    Share #5
  6. vishalymp

    vishalymp New Member

    Joined:
    Apr 3, 2014
    Messages:
    8
    Likes Received:
    0
    Occupation:
    Salaried
    Thanks a lot

    Dear Shabbir,

    Thanks a ton for such a wonderful guidance....... It will surely provide me a helpful platform.....

    With best wishes.....

    Vishal


    Dear Siva,

    Thanks for the thumbnail shared, it contains self explanatory information.....

    With best wishes.....

    Vishal
     
    vishalymp, Dec 12, 2014
    Share #6
  7. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,674
    Likes Received:
    1,938
    The pleasure is all mine.
     
    shabbir, Dec 13, 2014
    Share #7
  8. ravirajpr

    ravirajpr Responder

    Joined:
    Apr 6, 2014
    Messages:
    114
    Likes Received:
    64
    Good note Siva
     
    ravirajpr, Dec 30, 2014
    Share #8
  9. ugowris

    ugowris New Member

    Joined:
    Oct 6, 2014
    Messages:
    6
    Likes Received:
    1
    Occupation:
    Senior Consultant
    Hi Shabbir,

    On this tuesday the market fell very badly is there away to anticipate this kind of fall in 1st hour of the market.
     
    ugowris, Jan 8, 2015
    Share #9
  10. shabbir

    shabbir Administrator Staff Member

    Joined:
    Apr 30, 2012
    Messages:
    6,674
    Likes Received:
    1,938
    No but stop loss is when you will be saved from being wiped out from market in such falls.
     
    shabbir, Jan 8, 2015
    Share #10