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Its Time to Change Your Time Based Investment Perspective

Discussion in 'Forum Posts Worth Reading' started by shabbir, Sep 25, 2012.

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  1. shabbir

    shabbir Administrator Staff Member

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    Most of the time I see people have a time frame in mind when trading and investing in stock and this is injected into us by the news channels.

    Many experts recommend certain stock with target levels and once that is not achieved and if the reporter's ask them about their earlier recommendations (which is what reporter is paid for) they put a defending argument adding time frame. XUZ stock is very good and so you may need to give that stock certain amount of time.

    The reality is that stock did not perform as per expectation and so only two things can happen.

    • Stop hit
    • Target Hit
    When you enter into stock you should have two prices before you enter. Stop is something when things go wrong and target is something when things go as you expect. Now these experts who never invest their money in market only speak about targets. At least majority of them.

    Once those type of prediction goes wrong, they add like you need to give this stock certain time to get its acts together.

    And this is how time factor is part of investor and traders life.

    I prefer more of a singular approach. I either purchase technically based on price or fundamentally based on time which is at least 3 years+

    So if you have few months time, invest based on price which is ready to loose your stop loss in process you may make your target as well.
     
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  2. tarak_desai

    tarak_desai New Member

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    Shabbir, I have seen (atleast in my trading) that price movement happens immediately within 2 to 5 days. (maybe because I usually enter during breakout)

    Can a script take 15 days or a month to make a 'move' before hitting stop loss or target ?

    Thanks
     
  3. shabbir

    shabbir Administrator Staff Member

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    Yes Tarak if you have entered with anticipated breakout and so then you never know when that actual break out will happen and so then you can have to wait.
     
  4. mahipalreddy28

    mahipalreddy28 New Member

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    very good article. thanks shabbir
     
  5. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
  6. naveen1241

    naveen1241 Responder

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    Shabbir,

    One question. At what circumstances, do we revise Stop Losses and Targets. Also what about trailing stop loss strategy, when the prices go up significantly ?

    Thanks
    Naveen
     
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  7. shabbir

    shabbir Administrator Staff Member

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    Stop loss should be going up if the stock is going up.
     
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  8. eldermanojjain

    eldermanojjain New Member

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    dear shabbir ji ,
    in india where to learn option trading or any institute those provide certificate program in option trading.
    thank you
    with regards
    manoj jain
     
  9. shabbir

    shabbir Administrator Staff Member

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    To be very honest Certificates don't make money in market and so I never focus on that but yes Kredent Academy is one of them which is good.
     
  10. eldermanojjain

    eldermanojjain New Member

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    yes shabbir ji certificate do not make money but i think they are serious to teach but any away, do u have any idea from where i learn option trading
     
  11. shabbir

    shabbir Administrator Staff Member

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    Try Kredent Academy
     
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