New Intermed Uptrend!!

[Saint]

Hi Saint,

Arvind Mills is in continuous downtren for a while , today it has reached to it's 52 wk low.

I've bought 350 @110 ? Should I accumulate more at this level or square off with some loss ..I'm ready to hold it for another 6 months.

Please give me your view on what should I do now ?

Thanks
Mejo

Hi Mejo,

Your stop loss should have been at 99 on Arvind Mills...........not taking a stop loss is not only damaging to one's capital,but to one's psyche as well.I also do not propagate that you average down.All these are breaks in discipline that can destroy an investor/trader.

In the case of Arvind Mills,we could be near the bottom of this fall.......but we don't know that.Averaging down constitutes gambling,not trading.Breaking 91.5,get out.......stalk it for a reentry and try to get in later.

When there's a massive bleed,first priority is to stop that bleed.

Saint

 

[sandynisha]

Hi Sandy,

Happens in this line all the time,the important thing is to take your stops when hit.In Usha Martin,so far looking great,a higher pivot low on the weekly and a sideways consolidation on the monthly.But in the markets anything can happen.So get out at 160 max.Lots of other stocks we can make money from.

Happy Trading!
Saint

usha martin hit 159.65.....stop loss was 160..... .......i sold my shares...at a heavy loss.....thats alrite......thanx for ur advice saint.....looking forward to ur calls.......thanx

 

[xtiger]

Saint, can you plz tell me what is the support for Tata Tele. It is going down day by day!

 

[vizzie]

Hi Vizzie,

ALLSEC TECH :Nice pullback on the daily,but let the weekly consolidate a bit more either through time or price.Wait an watch.

KAMAT HTL :In the middle of a pullback for now.Wait and watch for now.

For now,both on your watchlist........but this is as per a medium term trade.Looking at the daily charts alone,ALLSEC looking good to go for the short term,but I'd wait for more consolidation or pullback before entering it.

Nice finds as always!

Happy Trading!
Saint

Hi Saint !!

Thx for replyin..
Allsec - Small drop in quarterly profits... stock is hammered.. down 10% as I write..

Both on my watchlist now..

cheers
vizzie

 

[dheerajmehta]

Hi saint,

Could u plz gove your suggestions regarding the following counters:

MSK proj. entered@ 95.5 its current price 88.2
Max entered@613 current 570
Bharti entered@345 current 330
Shringar cinema entered@83 current 76.2
autoaxles entered@552 current 570

I had enetered eastsilk@206 currently its at 242 ...should i book profits?...i've noticed that this scrip is controlled by operators and tends to shoot up or fall rapidly

Regards,

Dheeraj M

 

[Saint]

Hi Saint !!

Thx for replyin..
Allsec - Small drop in quarterly profits... stock is hammered.. down 10% as I write..

Both on my watchlist now..

cheers
vizzie

Great going,vizzie.......now is the time to stalk it.

Remember that the trader is like a tiger,.......the tiger doesn't pounce on a deer the moment it sees one.It waits,it follows,it stalks the deer.It waits for that perfect opportunity before it strikes.It is a master of patience......and when that perfect opportunity comes,it strikes.The tiger is successful after all its perfect stalking only every one in 10-20 tries,but importantly,it knows when to give up.

So too the trader,he waits,and follows and stalks that stock that he is after.When that perfect opportunity comes he attacks.........and every now and then after all the perfect planning,he fails,but importantly he knows when to take his stop loss and look else where for another prey.

Keep em and all the many others that you've been throwing out on your watchlist,stalk it and attack when that perfect opportunity arises.

All the best!
Saint

 

[game4trade]

Great going,vizzie.......now is the time to stalk it.

Remember that the trader is like a tiger,.......the tiger doesn't pounce on a deer the moment it sees one.It waits,it follows,it stalks the deer.It waits for that perfect opportunity before it strikes.It is a master of patience......and when that perfect opportunity comes,it strikes.The tiger is successful after all its perfect stalking only every one in 10-20 tries,but importantly,it knows when to give up.

So too the trader,he waits,and follows and stalks that stock that he is after.When that perfect opportunity comes he attacks.........and every now and then after all the perfect planning,he fails,but importantly he knows when to take his stop loss and look else where for another prey.

Keep em and all the many others that you've been throwing out on your watchlist,stalk it and attack when that perfect opportunity arises.

All the best!
Saint

Wow Saint what an analogy.....after reading this post I will not even rate myself as a cub (I started recently ) as I pounces after deer the moment I spot one and have burned my fingures in this correction. Lesson learnt the hard way.

Thanx for your informative post.....post like these will help us all to become the Lion King of the market.

Cheers

 

[vizzie]

Great going,vizzie.......now is the time to stalk it.

Remember that the trader is like a tiger,.......the tiger doesn't pounce on a deer the moment it sees one.It waits,it follows,it stalks the deer.It waits for that perfect opportunity before it strikes.It is a master of patience......and when that perfect opportunity comes,it strikes.The tiger is successful after all its perfect stalking only every one in 10-20 tries,but importantly,it knows when to give up.

So too the trader,he waits,and follows and stalks that stock that he is after.When that perfect opportunity comes he attacks.........and every now and then after all the perfect planning,he fails,but importantly he knows when to take his stop loss and look else where for another prey.

Keep em and all the many others that you've been throwing out on your watchlist,stalk it and attack when that perfect opportunity arises.

All the best!
Saint

Hi Saint !!

What do I say. Wonderful post as always..
Been learnin frm u ever since I joined this forum..
m very sure of many more informative posts frm ur side..
For now, stalking as u said..

cheers
vizzie

 

[jraj]

Great going,vizzie.......now is the time to stalk it.

Remember that the trader is like a tiger,.......the tiger doesn't pounce on a deer the moment it sees one.It waits,it follows,it stalks the deer.It waits for that perfect opportunity before it strikes.It is a master of patience......and when that perfect opportunity comes,it strikes.The tiger is successful after all its perfect stalking only every one in 10-20 tries,but importantly,it knows when to give up.

So too the trader,he waits,and follows and stalks that stock that he is after.When that perfect opportunity comes he attacks.........and every now and then after all the perfect planning,he fails,but importantly he knows when to take his stop loss and look else where for another prey.

Keep em and all the many others that you've been throwing out on your watchlist,stalk it and attack when that perfect opportunity arises.

All the best!
Saint

Hello Saint!

Yet another excellent post.It's always a pleasure to read your posts.

Thank You
Jay Raj

 

[Saint]

usha martin hit 159.65.....stop loss was 160..... .......i sold my shares...at a heavy loss.....thats alrite......thanx for ur advice saint.....looking forward to ur calls.......thanx

Hi Sandy,

Was quite sad to read the above post,more sad that a stop could have led to a "heavy loss".There's a problem with the share sizing I think that you need to address.Also not all of your capital should be in 1-2 stocks.I usually have 15-20 at any time,but that's per your comfort levels.

Please read the post below that I had written some time ago.........

Share sizing is an art form .....Understanding it gives you great power and great profits.Also the stop loss when triggerred does not affect you in the least.One just moves on to get another stock and make profits there.

Let us for example use ISPAT INDS.I caught this move from November last year so it's easy to quote this as an example.

STEP 1:First,I should know the capital that I have.Let us presume it is 10 lakhs that I am playing with.How much am I willing to risk per trade?Anywhere bet 0.5%-2%.Let us say that I am willing to risk only 1% per trade.Therefore what is my risk per trade?Ans:1/100 times 10L=Rs10,000/-

STEP 2:Next we go to our charts.Entered on November 3rd at 13 with a stop loss of 11.So we got our ENTRY and STOP LOSS.

STEP 3:Now is this trade worth it?Therefore we calculate the reward to risk.The ratio should be greater than 2:1.Our target is 20.That gives us a 3.5:1 reward to risk.

So this trade is worth taking,We have a great entry point,a stop loss and a target.The reward to risk is worth it.But how many shares?

STEP 4:A s we calculated just now,for a capital of 10lakhs,we are risking only Rs10,000 for this trade.Meaning if the stop loss is hit,we lose Rs10,000.So how many shares do we buy?Ans:10,000 divided by the dist from entry to stop loss=10,000 divided by(13-11)=5000.

So we buy 5000 share of ISPAT at 13 with a stop loss of 11 and a provisional target of 20,with a reward to risk of 3.5:1.

Once a perfect entry,stop loss and share size is looked into,the trade is now on auto-gear.Then we trail stop it upwards till target or till taken out.

Hope I have helped answer your doubt.

Happy Trading!!
Saint

In a nutshell,we buy only after a stop level has been figured out.Then we share size according to the distance to the stop.If the wider the stop,obviously the lesser the number of shares you can buy.Whatever happens,take only a 0.5-1% loss on your total portfolio.I stick to 0.5% but that's per your comfort levels again.

Never,never again,my friend,will you say that a stop triggerred resulted in a heavy loss.

Take this as tuition money to the market.It happens every now and then to the best of us.

Wishing you all the best!
Saint