Re: Queries on Profit Booking
LT,
Thanks a ton for the detailed analysis and the amount of time you put in the analysis. Learnt a bunch things - especially the importance of looking at volumes as well in any price action.
I cannot monitor my stocks often during market time but do I spend time on EOD analysis.
Even for Praj, having bought in during a consolidation, I could see that 100 to 105 band is the resistance with prior pivot highs. Coupled with price piercing the upper BB, I should perhaps have booked partial profits atleast at that level.
The answer is also partially in what Savant said - deciding what timeframe I am comfortable with. For Praj, either play the 70 to 100 band till it breaks one way or wait for the long haul with much lower stop losses.
Once again thanks a lot - even whatever little bit I have learnt of charts is just because of all the seniors here.
Regards,
Enygma.
Enygma, I feel (personal opinion) that the amount of money you make is the direct result of effort you put in managing your money/stocks. If you are a laid back person or dont have much time for stock analysis or prefer the take what the market gives you then it is best to place trailing stops.
If you prefer to monitor your stocks continously and want to make as much as possible then learning a bit about analyzing chart will help. It will help in capturing more profit. However predicting stocks moves is difficult or looking for tops and bottoms will not be possible and even if you try will meet with losses.
So all said, your trades depends what make you feel comfortable. I have learnt a lot in this forum and continously learning more, because I am a person who likes to look at the details I analyse charts more closely but it takes more time. Since time=money it all fits together too well - spend more time to analyse stocks = make more profits.
Below is a chart with my analysis on praj. I would like to re-iterate, for those who think it is too complicated or advanced you dont have to go through charts in such detail. It is important we trade the way that we feel comfortable the same way we take the risk that we are comfortable with.
I've tried to explain as simply as possible but due to lack of space it looks cluttered. Take it one at a time from Left to right. I owe it all to traderji.com and seniors in this forum that have helped me in my TA journey.
