Time to make money

All right, lets get down to business.

The reason why I trade is so that I can make sufficient money to lead my life the way I want to, comfortably. Keeping that in mind, I intend on minimizing stress and anxiety when I get down to trading. The only way I've figured out to do that is by investing in Futures/Options on a daily, weekly and sometimes monthly basis. 

I don't intend on making "quick" money via a sharp increase/decrease in an hour or so based on some random news. I buy when I know the share is over-sold and I sell when I know it is over-bought. It's quite simple really. That way I can just wait for my trade to hit the target and I make sure it doesn't take more than a couple of weeks to do so.

So starting Monday, I will start trading in a few shares which I think will hit my target, in a day/week/month.
Since it will be a Futures trade, I will HAVE TO make sure that it's an achievable target within the expiry.

These will be my following trades, based on the expectations that Nifty will close around 5950 on Monday:

1. Buy ONGC, Entry: 320-322. Target: 342. Stop Loss: 317.

I would definitely recommend buying June futures since May derivatives contract will expire on the 30th. ONGC requires a few days to gain momentum, especially since it just had a big rally and it's again settling at the support levels.

2. Buy OptoCircuits, Entry: 43.5-44. Target: 48. Stop Loss: 42.5.

Expecting a bounce back from the lower Bollinger Band.

3. Buy Adani Enterprises, Entry: above 215. Target 235. Stop Loss: 212.

Adani has been jumping back up from 212 for quite some time now. Expecting the same to happen but results may vary depending on trading on 30th of May.

Again, the whole purpose of my trade is to make money on a daily or weekly basis. I do not want to sit in front of the terminal throughout the day waiting anxiously for my target to be hit. I give myself enough room to place my trade and carry on doing more important things while my money does the work for me.

I will be giving a few intra-day calls on Twitter if time permits, so stick around. 

The power of social media

Even though I have long thought that social media is a great tool to interact with new people with similar interests, what I discovered recently made me lift my eyebrows and think "Hmm.. Well isn't that something?"

During the creation of this blog, I have come across some very interesting people doing the same thing, in fact way better than, what I've been doing. I just thought I'll shout out to a few of those men and women whose blogs and Twitter pages motivated me to give way more than what I thought I initially could.

Follow them on Twitter or better yet, check out their websites.

Stock 20 20

TraderScoop

FXmarksthespot

SpreadBetChick

I'll definitely be on the lookout for more sources of great information but I wont be posting some of the obvious big names. Beginners, such as myself, definitely need all the help we can get to build a good viewership.

Also follow me on Twitter and Blogger and stay tuned for much much more on this blog starting Monday.

Trading tips for short to medium term

Here I will be posting a few trading calls that I've made for the current day/week/month. I will use these posts as a diary to keep track of all the analysis I've made in the past and my success ratio along with it. It will help me analyse my logic better and also if someone happens to make some money out of it, even better.


Also I'd like to put a little disclaimer here. If somebody happens to stumble upon my little blog here and he/she starts following my calls, be warned, you will be doing so at your own risk. I am not enforcing this upon anyone, it is for my reference only. But if you think it should be good enough for you to follow, you will be doing it without me pointing a gun to your head.

All in all, I really hope to make something out of this blog. At the least I would like it to be my little document showing the analysis of the equities/futures/options that I've made and the success rate to go along with it.

So come Monday, 27 May 2014, I will be posting new trading tips and advice on the Indian markets everyday. Feel free to follow/scrutinize/critique by posts as you wish. And do let me know if my posts have helped you in any way. 

Stick around.

The Tricks of the Trade

I honestly don't look at trading and investing to be two disparate processes. Some people think that traders are hasty, good for nothing, short-term trading, long-term trouble seeking and worldwide destruction causing psychos who lack the ability to differentiate good news from the bad. And then there are some who think that investors are jobless rich hags who've got nothing better to do but to start a revolution among some bourgeoisie individuals who've got some spare money, to all invest into an "undervalued" company, soon to show good results based on a tip by a friend of a friend of a cousin of a HR manager working in the aforementioned company.

My view is that a trader is nothing but a short term investor and an investor is a long term trader. It's as simple as that. You follow certain signals and indicators, not necessarily on the charts, and you trade/invest in the company based on those signals for a specific period of time and make money. It's a simple concept which broken down to this simple form can be understood by the most common of the common man. The logic is just to make a "quick" buck to carry on doing things you actually love doing.

But the problem lies in the comprehensibility of the average Joe and the willingness to act upon the comprehension. Oftentimes I happen to meet some of these people who seem fascinated at first and then think of me as a shrewd little savant who tries to make fun of their cognitive abilities, when I explain to them how simple a process it really is.

Recently, there was one such incident where I happened to be in the same room as a long lost friend of mine, who I found out had been doing the mundane 9-5 shift for the past few years. He asked me what I did for a living and I told him I analyse the equity market and invest in certain companies to earn a profit. His next question was “Oh so you’re a share-holder is it? I would love to start with the whole shares thing. Can you teach me how it’s done?!” To which I said “Umm OK… I usually use some tools to draw conclusions as to which product to invest in and I hold till I make a profit or exit with a small loss.”

“So what do you have now?”

“What do you mean?”

“Well what shares have you bought?”

“Well I haven’t bought any of them, not in this market.”

“So you haven’t invested in anything now?”

“Of course I have, I have to make a living don’t I?”

“But you said you haven’t bought anything!”

“Sigh….”

And then prolongs a half hour lecture about short selling, futures and options trading, commodities, Forex  chart pattern recognition, signals and indicators, effects of the quarter/annual results on the company, etc. I wind up by saying that it’s really a simple process and if you understand the fundamentality of it all you can be really successful at it but people just make it complicated and difficult to understand.

The reply I get is “Sure, to Einstein’s like you it’s a piece of cake but I’m sure there’s a whole lot more to it for a beginner to understand. Or maybe you’re just not telling me the actual process and keeping it to yourself. You’re just giving me all this crap about signals and indicators to throw me off track. If it really was that simple everyone would be doing it!”

At times I wonder, maybe it’s too much for people to comprehend in such a small amount of time, but honestly there’s not much to understand. I guess people just don’t want to think that life is simple. They intentionally want to complicate it so that it becomes an excuse to not try out some things in life and enjoy the simplicities of it. Simplicity is the secret of life. The more you complicate a task, the more you suck the joy out of doing it.