STOCK ADVICE INDIA
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STOCK ADVICE INDIA

INVESTMENT CONSULTANT
Since my last blog 5th April,2009 , we have seen a decent rally up in stockmarkets from 3150 on 5th April,2009 to abt 3515 on 16th April,2009 almost a rise of approx 12%...this is quite in line with my expecations i expressed at that time.Targets though are just a matter of informed judgemental Guess but market direction determination surely is a result of Technical assesments based on Data analysis and studies, we have yet some juice left in rally ?--can yes why not but my system of working in high risk times is to keep booking profits at a regular interval based on exit strategy designed for a particular risk reward ratio setup........I PREFER BOOKING 60-70% OF TRADING PROFITS ....LONG TERM INVESTMENTS CAN BE HELD ON FOR WATCH NEXT 6-8 WEEKS WITH A STOP LOSS AROUND 3000-3050 NIFTY LEVELS, I still continue to be in buy on dips zone for long term investment plans. I also remmeber to keep a cash level of 30-40% back in bank.

Most peculiar part of stockmarkets is that it doesnt work always on logical conclusion and true data alone.........sentiments and many other forces( not known to any one quite often) distract it from logical conclusions.......and we as market participants must respect what market is indicating( not look for what market should do logically). This is the reason of my believing in real profits than in hopes of bigger profits in extended time frames.

My fair calculation says 10% is a reasonable gain in two weeks. By saying so i m not saying market can not extend the rally.......Exit trading positions here will give a pause for re-thinking new trading plan with profit in pocket. I m very sure we all know how we feel good and confident having earned money by our honest efforts,controlled greed and treating stockmarket as a serious business.

Stock markets in general is a place to do business and not play pokar or gamble.

Nifty seems pausing for some time before it makes another move..... breakout will decide the direction though bias is positive and remains upwards for now in my opinion.

Time will confirm if this is real base building for a long term bull market which must resume according to Elliotwave theory.....this is not going to happen in straight line for sure,every rise will be accompanied by profit booking,even fear may drag it much lower than expectations.........point of test will be respecting nifty's previous march,2009 low of 2550. And structure of rise in coming times quilify the test of time proven chart patterns.

The real Heros are born in tough times......They keep working with conviction and believe on what they have learnt and understood well from learned experienced writers who spent life times to make sure that sincere people are helped benifited.

More Another time

Happy stock investing

SAM

Note: Disclaimers written in last bogs apply ,writer has vested interest in stockmarkets going up in long term.

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