General Trading Chat

[Smart_trade]

Sir,
I fully agree with what you said. My query is how do you time (or confirm) a buy (for long term) in an uptrend on a daily chart? I only do intraday trading based entirely on Price Action (IDF) plus a 20EMA for reference and nothing else (no indicators etc.)
Thanks

Most important factors are growth in earnings,quality of management,sector it is in,Govt controls in that sector,how big you think is the opportunity in that sector ,scalability etc.Growth in earnings is very important.Take TCS as an example...great company,great management but no earnings growth in last 2 years so it is stagnating.Same way Reliance is stagnating for last over 5 years destroying shareholders wealth as no growth in earnings.

On longer term, I have found that the CAGR which the stock gives approximates the growth in earnings.So HDFC and HDFC bank will grow at 25% CAGR ...it will not grow at 40 and 50 % but Bajaj finance will grow at 40-50 % CAGR because it's profits are growing at that rate.

One can study the fast growth in past in companies like Pressure Cookers and Appliances,Nestle,Heromotocorp,Asian Paints,Sun Pharma ,Lupin etc and every time we find that the superlative growth in prices are over periods when the profits have grown in similar manner.

Smart_trade

 

[Nifty2830]

Old post of ST da on Stages of traders life

All the stages describe by ST is 100% true such type of stages (The real education) you can"t get from a book, it is something you need to live through.

 

[vivektrader]

Most important factors are growth in earnings,quality of management,sector it is in,Govt controls in that sector,how big you think is the opportunity in that sector ,scalability etc.Growth in earnings is very important.Take TCS as an example...great company,great management but no earnings growth in last 2 years so it is stagnating.Same way Reliance is stagnating for last over 5 years destroying shareholders wealth as no growth in earnings.

On longer term, I have found that the CAGR which the stock gives approximates the growth in earnings.So HDFC and HDFC bank will grow at 25% CAGR ...it will not grow at 40 and 50 % but Bajaj finance will grow at 40-50 % CAGR because it's profits are growing at that rate.

One can study the fast growth in past in companies like Pressure Cookers and Appliances,Nestle,Heromotocorp,Asian Paints,Sun Pharma ,Lupin etc and every time we find that the superlative growth in prices are over periods when the profits have grown in similar manner.

Smart_trade

Sir Thanks again.
One more thing, to study fundamentals (as you enumerated) of a particular company, please suggest a dependable source to get the data from.

 

[newuser_RK]

Sir Thanks again.
One more thing, to study fundamentals (as you enumerated) of a particular company, please suggest a dependable source to get the data from.

Annual report of the company.
Broker reports
Screener.in


In the mentioned order.

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[princy01]

traders i need your help

i am trading in fno and in loss for financial year ending march 2016 , i want to carry this loss forward for next years , but my chartered accountant dont know about fno audits or anything at all, kindly suggest how to get it done asap , i am in delhi ncr area .

i have downloaded mprofits software , how can i use it for income tax return for fno ??

regards

 

[stock_trader84]

Hi,

I was watching NSE Forex data. I can see the prices moves by 0.0025 , how much will i earn for every 0.0025 move.

Thanks in advance

 

[candle]

Hi,

I was watching NSE Forex data. I can see the prices moves by 0.0025 , how much will i earn for every 0.0025 move.

Thanks in advance

Multiply it by lot size. That much is the tick size. Now howmuch u earn is just another fact.

 

[markidharhai]

Hi Anybody There?

It just occured to me that there is one similaruty between pre 1929 and these days, its that, before 1929 depression
1) banks used to provide loans to buy shares to general people.
2) Lots of general people were involved in the stock market.

am I the only one who sees the point no. 2 prevalent these days ?

 

[PreSap]

Hi All,

I trade Nifty and I generally have a 20 point SL for my trades which I key in as soon as my initial trade is executed. So the effective SL in terms if money is 1500 Rs.

I have noticed people mentioning that stocks are more volatile. Does this mean that percentage risked is different for stocks. Do people trade stocks keeping a SL of the same amount of money as they would incase of Nifty? For example would it be possible to trade some stick like Tata Motors futures with a Rs. 1500 SL?

Thanks folks!

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[vivektrader]

Hi All,

I trade Nifty and I generally have a 20 point SL for my trades which I key in as soon as my initial trade is executed. So the effective SL in terms if money is 1500 Rs.

I have noticed people mentioning that stocks are more volatile. Does this mean that percentage risked is different for stocks. Do people trade stocks keeping a SL of the same amount of money as they would incase of Nifty? For example would it be possible to trade some stick like Tata Motors futures with a Rs. 1500 SL?

Thanks folks!

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The best part in trading stocks (in cash market) is that you can trade exactly that much quantity as your risk management allows. For e.g. if your trading capital is 1lac and risk per trade is 1% or 1000, and your stop loss in Tatamotors is 2rupees away, you can trade 500shares.
Percentage risk is same.
In stock futures however the lot size is fixed, so your risk will vary as per your SL.
The leverage in cash market you get is 10 to 11x.
In futures leverage is 55x for Intraday BO/CO (Zerodha)
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