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Sunday, 23 February 2014

NIfty And Bank Nifty free calls :

Nifty Target hiiiiiiiittttt...
Enjoiyyyyy....by free calls...

PROFIT OF 3000 IN 4 LOT....


NIfty And Bank Nifty free calls :

Today’s Trading potentialies (breakout system) for 24th February

Nifty Future above 6171...may reach 6185/6205/6220/6235/6250
Nifty Future below 6135...may reach 6120/6105/6090/6075/6060
Bank Nifty future above 10575...may reach 10620/10660/10690/10730/10760/10795
Bank Nifty future below 10515...may reach 10485/10440/10405/10370/10330/10295

WD Gann's 28 Trading Rules

WD Gann's 28 Trading Rules


  • Never risk more than 10% of your trading capital in a single trade.
  • Always use stop-loss orders.
  • Never overtrade.
  • Never let a profit run into a loss.
  • Don 't enter a trade if you are unsure of the trend. Never buck the trend.
  • When in doubt, get out, and don't get in when in doubt.
  • Only trade active markets.
  • Distribute your risk equally among different markets.
  • Never limit your orders. Trade at the market.
  • Don't close trades without a good reason.
  • Extra monies from successful trades should be placed in a separate account.
  • Never trade to scalp a profit.
  • Never average a loss.
  • Never get out of the market because you have lost patience or get in because you are anxious from waiting.
  • Avoid taking small profits and large losses.
  • Never cancel a stop loss after you have placed the trade.
  • Avoid getting in and out of the market too often.
  • Be willing to make money from both sides of the market.
  • Never buy or sell just because the price is low or high.
  • Pyramiding should be accomplished once it has crossed resistance levels and broken zones of distribution.
  • Pyramid issues that have a strong trend.
  • Never hedge a losing position.
  • Never change your position without a good reason.
  • Avoid trading after long periods of success or failure.
  • Don't try to guess tops or bottoms.
  • Don't follow a blind man's advice.
  • Reduce trading after the first loss; never increase.
  • Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

Fundamental Research



Fundamental Analysis



Fundamental analysis is the corner stone of investing. Its a unwritten law that a long term investor gives lot of weight-age for " researching the fundamentals " before taking a decision to invest. It can be broadly divided into

 

Quantitative: Capable of being measured or expressed in numerical terms.

Qualitative : Based on the quality or character .




What is Fundamental Analysis ?

The very basics when talking about stocks , fundamental analysis is a technique that attempts to determine a securities value by focusing on underlying factors that affects a companies actual business and its future prospects. In FA both Quantitative and Qualitative study is done. The term simply refers to the analysis of the economic well being of a financial entity as opposed to only its price movements. FA servers to answer questions, such as

Is the company's revenue growing ?

  • Whats companies cash flow to meet day to day   requirements ?

  • Is it actually making profit ?

  • Is it in a position strong enough to capture more market share ?

  • How much debts it has in its books ? How healthy it is compared to its equity capital ?

  • Is the share prices justifying , companies earnings ?

  • Is management trying to " cook the books" ?

 

Whats Critics feel about fundamental Analysis ?

  • Two proponents who are critical of FA are Technical Analyst & believers of "efficient market hypothesis".

  • Technical Analyst believe that all news of the company is already priced into a stock , therefore a stocks price momentgives more insight than the underlying fundamental factors.

  • Followers of efficient market hypothesisbelieve that since market efficiently prices all stocks on a ongoing basis, any opportunities for excess returns derived from fundamental or technical analysis would be almost immediately whittled away by the markets many participants, making it impossible for any one to meaningfully outperform market over the long term.



Technical Analysis



Technical Analysis

Technical Analysis can be defined as an art and science of forecasting future prices based on a examination of the past price moment. TA is based on analysing current demand-supply of commodities, stocks, indices, futures or any trad-able instrument.


What Is Technical Analysis ?


Technical Analysis involves putting stock information like price, volumes and open interest on a chart and applying various patterns and indicators to it in order to access the future price moments. Time frame in which technical analysis is applied may range from intraday ( 1-minute, 5-minutes, 10-minutes, 15-minutes, 30-minutes or hourly ), daily, weekly or monthly price data to many years.
The primary premise of Technical Analysis are followed by price moment. By focusing only on price action, technicians focus on the future. The price pattern is considered as a lead indicator and generally leads the economy by 6 to 9 months. To track the market, it make sense to look directly at price moments. More often than not, change is subtle beast. Even though the market is prone to sudden unexpected reactions, hints usually develop before significant moments. You should refer to periods of accumulation as evidence of an impending decline.

Weaknesses Of Technical Analysis.


Analyst Bias
Technical Analysis is not a science. It is subjective in nature and your personal bias can be reflected in the analysis.If the analyst is a bull then his bullish bias will reflect in the analysis and vice-verse.
Open To Interpretation
Technical Analysis is a combination of science and a art and is always open to interpretation. Even though there are standards, many times two technicians will look at the same chart and paint two different scenarios or see different patterns. 
Too Late
Lateness is a particular criticism of Technical Analysis. By the time trend is identified, a substantial move is already made. From that point the reward to risk is not great.
Always Another Level
Technical analysis always wait for a level to break . Even though a clear trend is identified technicians wait for breaking the trend before taking a call.
Trader's Remorse
An array of pattern and indicators arises while studying technical analysis. Not all signals work. For instance : A sell signal is given when the neckline of a head and shoulder pattern is broken. Even though this is a rule, it is not steadfast and can be subject to other factors such as volume and momentum. In same manner what works for one stock may not work for other.