Long or Short Opinion

[crown]

Crown ,

Please have a look at attached charts of TATA MOtors. I am also trading in this stock so posting my actions for your view.

Thanks Raj bhai,

can I have a debate on it, with you kind permission. Because, the logics and points you mentioned, I am not able to understand.

thanks bhai and awaiting ur permission.
please

 

[rajeabc]

praveen bhai

Then I shorted SBI Bank because I found Banking Sector a little weak. It also went down a bit, but then again it went up straight. On that day when I shorted SBI, I had three options to go short in banking sector SBI, ICICI and Axis Bank. I chose SBI while Rajput Bhai Chose Axis. I am sitting on loss while Axis has done its job. Where am I missing? It is really so much painful to not able to understand, despite all best efforts and sleepless nights working on charts.

Crown ,

My view about few of your stocks .

SBI : I don't see any weakness in banking sector rather I feel this sector is most bullish one. ( Do you Remember , I told you in some thread . Try to catch up move as whole market is in up.)
Specially SBI is looking very bullish since 27/07/2010 . Small drop after a big candle is a bullish pattern untill drops don't close below the big candle.
Have a look at chart
I don't have any position in SBI. Had long position but closed early and not taken again.

 

[rajeabc]

Thanks Raj bhai,

can I have a debate on it, with you kind permission. Because, the logics and points you mentioned, I am not able to understand.

thanks bhai and awaiting ur permission.
please

crown , you don't need any permission. If I can comment on your calls then you can too.
Please let me know.

Please don't take it otherwise or think that I am trying to teach you. Just posting what I think.
I have made few blunders in this series as well .Not closing RIL call even when system gave signal , Closed SBI Long too early ,etc...

 

[rajeabc]

praveen bhai
me kya detail bataon


I shorted Ashok Leyland by taking put of 70 at 1.70 and at that time Ashok Leyland was at 73.80. Now even after 3 days, the price of Ashok Leyland is 71.65 and also made a low of 70.80. but there is no increment in my put. Why, I really don't know?

Ashok Leyland is in up trend since March 2009 . It is always taking support at DMA(20) which is a bullish sign.
I had posted same few weeks ago on a thread in this forum only.

 

[crown]

Crown ,

My view about few of your stocks .

SBI : I don't see any weakness in banking sector rather I feel this sector is most bullish one. ( Do you Remember , I told you in some thread . Try to catch up move as whole market is in up.)
Specially SBI is looking very bullish since 27/07/2010 . Small drop after a big candle is a bullish pattern untill drops don't close below the big candle.
Have a look at chart
I don't have any position in SBI. Had long position but closed early and not taken again.

thanks bhai
and yes I do remember your advise
but the point is, why am I not able to understand it
Like you said about Tata Motors
that there was a morning star formation on which you squared off.
I am still not able to understand, how can you find out that it is a morning star, unless there is subsequent positive candle; because as far as I have read in books morning star comprises of three candles and the middle one small dozy is morning star.

 

[crown]

Ashok Leyland is in up trend since March 2009 . It is always taking support at DMA(20) which is a bullish sign.
I had posted same few weeks ago on a thread in this forum only.

thanks again bhai
but my point is why the put price is not increasing even after a decline of around 3 rupees.
One more thing Raj Bhai, had I taken the position in Futures, I would have been in decent gains.
One thing, which I am able to grasp just now with your kind advise, is that I shouldn't be shorting in strong scripts even if there is a signal to go short.
Thanks bhai

 

[rajeabc]

thanks bhai
and yes I do remember your advise
but the point is, why am I not able to understand it
Like you said about Tata Motors
that there was a morning star formation on which you squared off.
I am still not able to understand, how can you find out that it is a morning star, unless there is subsequent positive candle; because as far as I have read in books morning star comprises of three candles and the middle one small dozy is morning star.

Crown , I have highlighted Three candles I guess. I closed my short because of three reasons ,

1: I was expecting fall to be fast but did not happen
2: I was expecting it to come to DMA(20) before bounce back or give green Candle.
3: Also I had Trailing stop loss which got triggered.

I took Long Position Because of following three reasons.

1: I knew , it could be a formation of Morning star
2: Price was trading above closing of previous day (4th August 2010)
3: Bullish through out the day (5th August) . I was late to buy because I was waiting for positive sign and waited till 1300 Hr.

I am open to any suggestions/Input to improve my trading.
Thanks

 

[rajeabc]

thanks again bhai
.. I shouldn't be shorting in strong scripts even if there is a signal to go short.
Thanks bhai

If market and script are strong better be careful. It does not mean that you should not go for shorts.
See , AXIS Bank. Raj went for short. Even then I was sceptical and told to Raj that It always bounce back from DMA(20) but he was confident (which is good) and took short position and got reward.

 

[rajeabc]

thanks again bhai
but my point is why the put price is not increasing even after a decline of around 3 rupees.
One more thing Raj Bhai, had I taken the position in Futures, I would have been in decent gains.
One thing, which I am able to grasp just now with your kind advise, is that I shouldn't be shorting in strong scripts even if there is a signal to go short.
Thanks bhai

This could be because you paid lot of premium . Bought when it was trading high. It always happen (atleast I think) when you try to catch rising or falling stock.

 

[rajeabc]

I had posted this msg in a different thread :

We follow these Indicators. These Technical Indicators are just the reflections of actions taken by TAs/Investors. If we want to know the true picture better we start looking around and try to read Raw data : News ,Economic out put , Political events, etc .You may process these data better than these TAs then output could differ from the Technical what we follow because these Technical indicators have lag and meant to follow.

In short term I see Nifty trading at 5550-5600 .This is my view.