I can help you with stock chart reading

[rvgandhi]

for short and longer term ...
Please explain what U mean by these terms. If you are losing badly would U keep in long term case? Or if you are making money, U will sell because U thought it was short term!! I don't believe in short term or long term. I look at a stock's chart. If its good and has an entry point I enter. I give it a chance with a stop loss. If it hits, I come out. I can't take the pain thinking this is long term. Similarly, if its winning, I ain't stupid to come out.

Just curious... how do you manage your taxes then ? Indian Taxation law taxes short term/long term capital gain separately and multiple trades may qualify your short term gain as business income.... Can anyone share their experience ?

 

[vvonteru]

Thanks for your analysis. It is correct that this stock has something going on. It has sold some of its other business lines over the last 2 years to concentrate on the airline business. I have attached the funadamental analysis of ICICI Direct. Doesn't this clarify your reservations? I know that you do not advocate looking at anything other than charts, but sometimes a look into the fundamental analysis gives an insight into the chart behaviour. Do let have your comments. The attached file has been zipped to conform to the forum's upload size restrictions.

I am not against fundamental analysis. If you think thats going to help, why not. In fact, more information you get to support your pick the better. But, when U look at fundamentals of a stock, don't forget to compare it with similar companies with in the sector or industry. U may find some info over here:
http://alpha.myiris.com/shares/sectors/sectorPlayers.php?cSelect=6&icode=KALCONSU

 

[gracec]

THANKS VVONTERU

VERY NICELY EXPLAINED.
YOU HAVE LOT OF PATIENCE.
KEEP IT UP!!!
REGARDS

GEETA

By the no.s given by you for stop loss, I think you are taking it too arithmetic. We need to go by the chart. I suggested 815 to 820 level for stop loss because of the base, which is below the average low of couple of day prices. Print the 6 month chart (if you can), put it on the floor. Standing, look at the chart and see where is safer to put the stop. Thats the test. Don't go into details. If we micromanage, we will lose the longer play. Our objective is to get the max out of the trade.

]

 

[gracec]

THANKS SANJAY, PNBALAJI & PANKAJ FOR YOUR INPUT. I'LL TRY AND LET YOU KNOW.
GREAT JOB
CHEERS
GEETA

Hello geeta

It calls for another down load . I had to do the same. There would be many free softwares to unzip a rar file, i downloaded WinRaR from here http://www.rarlab.com/rar/wrar36b1.exe

Regards
Sanjay

 

[vachhanipm]

hello vvonteru,

Reading this thread since many days. You have got a great deal of knowledge & above all big heart to share tht knowledge. Keep it up , friend !!!

I have recenetly bought hindalco @158 , Reiance Natural Resorces @41 & Nagarjun [email protected], IFCI @12.20. Can u please tell me wht should I do??

And I am planning to enter ITC. Weather it is feasible to enter at this level??

Thanks in advance

Vachhanipm

 

[vvonteru]

hello vvonteru,

Reading this thread since many days. You have got a great deal of knowledge & above all big heart to share tht knowledge. Keep it up , friend !!!

I have recenetly bought hindalco @158 , Reiance Natural Resorces @41 & Nagarjun [email protected], IFCI @12.20. Can u please tell me wht should I do??

And I am planning to enter ITC. Weather it is feasible to enter at this level??

Thanks in advance

Vachhanipm

hindalco @158
The stock is doing good. If not taken, take partial profits and trail the stop around 170.

Reiance Natural Resorces @41
This is a new stock. There is nothing we can do right now. When U entered this, U might have believed in this company (fundamentals). Validate those when they come up with results. Are they what U think or what they would be?

Nagarjun [email protected]
U are wasting time. Switch to better ones. Go thru the thread. U should find couple of them. We don't need lot. All we need is 5 to 10 stocks to follow.

IFCI @12.20
Same as above. U should note something. A stock is cheap for a reason. A stock goes down and remains down for a reason. When we look at a cheap stock, lets not think that we found treasure. We should think that, here is a stock which no one wants and therefore its cheap.

ITC
Look at the chart. Due to deeper pull back and stock has not come up at, there is still a chance for entry. However, I observed the volume going up is less than when it went down. Further the MACD is negative. MACD negative may not mean this stock will going down. What it means is, there is a posibility of change in current trend. It may go for a trading range. So, its your call to go in or not. If you really want it, but sceptical, I suggest to reduce position size to 50% of the normal you trade.

 

[SGM]

U are wasting time. Switch to better ones. Go thru the thread. U should find couple of them. We don't need lot. All we need is 5 to 10 stocks to follow.

Hello,
Yes, you are right, it is v difficult to track soooo many stocks. May be the lure/fiction of finding a big one hidden there undiscovered intices us into futile searches.
Regards
Sanjay

 

[alok]

Vvonteru,

Can you please look at the chart of 'internation travel house', it gave a nice breakout recently.... however, I want to know your advise also.

 

[jntrade]

Hi vvonteru,
Thanks for ur suggestions!
Can I know what software u using to analyse stocks?
What u recommend for newbies!

 

[vvonteru]

Internation Travel House
--- Been there till Rs80 from 1998 to 2005 March. From there it doubled and staged till now. Look at the volume spike in 2005 April. A similar volume spike is happening now. This stock current pattern looks like, breakout and stage. So, if you are a break out player, this stock is for you. If you are a trend player, this stock may not (things may change) be for U.

Software:
I am using FCharts and several other websites (U should find this info in my thread). FCharts is simple. It has scanner and its language is simple. Data is an issue. U should find some help in this thread to load the data.

Tracking 5 to 10 stocks:
For beginners that should be it. Just track them. Wait for pullback and enter. Don't go around 100s of them. U go around and comeback, these 10 are gone (Isn't there a saying One rabbit in your hand is better than 10 around the bush). Once U get hang of it, I suggest use a scanner to program patterns U like the stocks to exhibit. Once U get the result of the scanner, U should be able to judge based on the charts.