General Trading Chat

[vivek_gupta]

Just words so lazy you are....have a cup of tea guptaji....yeah reliance is expected to report excellent set of numbers driven by high grms....

so nice of you sir.

 

[XRAY27]

I request members 2 refrain frm posting der personal trades in d thread .

Just post arrows...instead

 

[amitrandive]

Watched a nice discussion on TV. Thought of sharing some points as under :

The participants were FII and fund managers like Ridham Desai, N Jaikumar,Ramesh Damani, Vibhav Kapur and Sushil Kedia. The topic was whether the ongoing bull market has still more steam left or we are near the end of the bull market ( or already seen a bull market top at 9200...

All participants felt that bull market has many more years to go...the signs of bull market topping out was not seen and the signs are as under :

1) Inflation goes up and out of Govt's control.

2) Interest rates are high.

3) The excesses are clearly seen. Markets gallop and the last phase is a blow off phase where markets go up few % points every day.

4) Cats and Dogs shares and shares with poor fundamentals go to dizzy proportions.

5) Retail participation increases and the retail gets trapped at the bull market top.

6)Traders find it very easy to make huge gains ,your driver or maid servant's husband will tell you how he made money in stocks....that is a sure sign of top approaching.Rikshaw drivers,taxi drivers will talk about stock market gains.

7) After the top, the market will crash and will come down not by 8-10 % but 50-60 % from the top....traders and investors trapped will get devastated.

8) Everyone even new investors will find making money in the market very easy and they will get sucked in...

Having seen atleast 4 bull and bear market cycles I agree with most of the observations....and hence thought of sharing....my view is also that we are not even at 1/3 distance in the current bull market.Corrections of 8-12 % will keep coming in between...

Smart_trade

In addition to the above points:

1) At bull market top, there will be business magazine interviews of brokers,fund managers and large traders.

2) There will be sudden rush for companies to come out with share issues and these issues will get hugely oversubscribed irrespective of the merits of the issue.

3)There will be rush of mutual fund houses floating all kind of fancy funds with innovative names.

4) All traders ( even 1 -2 months experienced traders) will start feeling that they are the Market Wizards and they have figured out everything about the market...

5) Traders will start aggressively managing outside money promising very high % returns to the investors.

6) Traders will be the most popular people at parties with everyone asking for tips to make money.

Smart_trade

Adding some more
Source:Internet

1)Retail investors have been pouring money into stock mutual funds.
2)Sentiment indicators are pessimistic.The VIX, the put-call ratio and other major sentiment indicators suggest that investors and traders are getting complacent.
3)Fundamentals are being ignored. Obscenely high P/E ratios are passed over.
4)Media comment:The press and TV tend to give more prominence to the stock market and to be optimistic near the top. If prices appear high in relation to value, the argument is that ‘it will be different this time’. The few bearish articles that warn of dangers to come are ignored by investors.
5)In order for a bull top to be formed , it must be preceded by a bull market , a rally of atleast 9 months.
6)Look at the market breadth.Has the number of new net highs diverged negatively with the major averages?If this is not , this may not be a top.If it has then there a fewer number of stocks driving the market higher,and this is sign of weakness.If the number of highs has decreased considerably,it means that it is becoming more difficult to make money as the selection process is getting more and more difficult.
7)Short term oscillators may be registering mega-oversold or extreme swing conditions.
8)If key companies report excellent earnings and the stocks decline,this adverse response to good news indicates extreme technical weakness.Remember,if good news cannot send a security higher,what will?
9)If the media are full of optimistic news and stories of huge returns are being publicized,this is a type of atmosphere associated with a top.
10)Since brokerage houses thrive on bull markets,they become very prosperous.If you see reports of any of these companies moving into larger and more expensive office accommodations,this is often a sign that the uptrend is in a very mature stage.

 

[DIVYEDIX]

everything else is subdued but tcs is firing, missed it

 

[amitrandive]

everything else is subdued but tcs is firing, missed it

TCS was bound for a breakout.9 days of sideways price action.Price near 20EMA and also today's Open=Low.

 

[manishchan]

Nice link for practice for new traders.. and timepass for old traders

http://chartmantra.economictimes.indiatimes.com/GameBoard.htm

 

[TraderRavi]

BNF spot open = high =18500

 

[TraderRavi]

BNF spot open = high =18500

post karte hi HOD broken :rofl:

 

[niftyexceltrader]

BNF spot open = high =18500

Ravi bhai, do not rely on this equation too much.
Thode shabdo ko jyada samjho

 

[cinderblock]

Rip parag parikh ...he died in a car accident with the CIO of his fund at the wheels. The street is poorer today...may his soul rip...

The CIO at the wheel is now charged with misdemeanor homicide.