start of a equity trader in indian market

[SANJAY.M.P.]

Hello to all,

i am a new member and would like to enter into this world of stocks. i am residing abroad now but when i was in Mumbai 15 years back, i have bought several scrips which are still lying with me and does not know what to do with these. Your expert advises will be highly helpful for me. the below are the shares with me and can i sell these now?

1. Audichem (india) ltd.
2. Anusha International
3. Ashari Properties
4. Kiev Investments
5. JMC Projects
6. Jindal Vijaynagar
7. Superstar Distilleries

looking forward to your valuable advise

 

[oilman5]

yes losingstreak,
first one has to be a trader....jump to successful trading....sp. knack for option trading then he has to master......then only he has to unlearn .....and know real market.........what market is not likely to do....fail safe method.......
then suitable strategy ...for +ive expectency has to be trial run....then only to be applied.
.......that learning and doing..i feel complex....for a start of a new stock trader'....its violating KISS.
......thats why i dont like to discuss .......ur observation is right as usual
with regards
oilman5

 

[oilman5]

as a learner......3subject i believe indispensible.
i]trading psychology
.............................
to understand.....let us have go through great trader .....livermore........
3books r available on him ..read them to understand ......speculative idea....when to fold
....how to initiate a position.....under what condition we fail
......................
next we can go through......dr elder......greatest book-trader i believe
his 3work r classic.....also 2 guide.....read them......it may take one yr..worth it
.....................
next u read van tharp/ari kiev.......any one......it clarify further trading psychology

 

[oilman5]

ii]fa
........
read basic balance sheet/profit loss statement.
....order flow how affect profitability of a company
.....how without vision management is doomed to failure
.......what constraint makes a business failure in reality
btw.....i find rarely people know fa.......those we see r parrot........an mba/cfa..without vision......maxm they produce a report for a company.....on a structured format.
[my comment may hit hard but i stick to it,.......ask av iim prof.....why he loses in trade....u shall understand what i mean to say]

 

[oilman5]

iii]ta
.........
most good work on ta for basic level r available in this great site www.traderji.com
......
only i comment learn basic first......but go in depth.....half knowledge is injurious to financial health
....next define...in which time u can understand....calculate/visualise accurately better than others.

 

[oilman5]

so u think to venture...not yet.
learn risk management ........its not swimming but life jacket

 

[oilman5]

so now make some adventure.............maxm 3month....
comeback and watch now......u as a trader
....do i as a trader apply in optimum level .....what i have learned.
what is my mistake.
....how i can improve my profitability.
one timeframe lower and one time frame higher ......can improve my trade vision...or make it complex?
.........
so my swot is done........now how i could defne indian market.....
where i can see oppurtunity
......chance of being accurate vs. high risk
.....if after slippage/commision.....can i make a decent profit out of this probable trade...
if yes.......go ahead......dont bother
.........................
now ur equity curve suggest -ive return,......reread entire thing.....[have i not said half learning is dangerous thing]
........for further improvement........study market sentiment ....use it as a filter

 

[oilman5]

how many years it may take for u , i dont know...[i can only say mine.....7yr]
........and still grasping......
so further learning i start......particular stock........which move and fall and what condition
.........
next volatility........
to understand volatilty we start first range of a day......and gap concept.
reversal concept in price at top and at bottom.......
....yes i work on it......but predictively i am not sure.
....but i can say before reversal some ...peculiar phenomena observed...but that is case to case basis[on stock.....i can not generalise it]
....historical volatility.......and comparison of it in metasock......is a good tool....
as i firmly.......BELIEVE.....THIS SHALL WORK IN INDIAN MARKET FOR NEXT ATLEAST 5YR
.........
read toby crabel and larry connors[tradingmarkets.com fame]

 

[oilman5]

so coming back to KISS
.................................
use intraday strong reversal as entry........those who entered market and hold on friday..2-3pm know......what i mean
......
how u can learn to do that...........observation......i have dt3/metastock.....with viratech eod.....so when i see 2005-06.....and march'2007.......i know ......how price behave before bottoming out in indian market ........so no doubt its a risky trade.....but worth to be taken.
concept of copy book....buyday..hold....sell [today i shall].
......so hrly....chart has given clear signal......i only have follow it
...........................................
lot of backtesting gimmick i hear.......let me present a real one......simple but effective for short term/intermediate.
.......just see last 2yr data.....when the result out.....how it affect price,........for individual bse gr a stock......if future earning guidance given........how it behaved...that week,....
if nothing given.......how it behaved.....price behavior with expectation.......
shock in both +/- direction.......later bounce back or distribution
.....its the real tool .....which gives predictive way to earn ......not very math oriented[alas i betray math enthuastic /OR STUDENT........no my friend........my operation research knowledge no way helps me........infact it helps to lose money.....by creating a blockade of being right '/ a know better trap'........and still i do my level best to unlearn it,......but in professional service game theory.....and PERT ...HELPS ME LOT..]
.......
THOSE WHO R CORE TA BELIEVER...... i suggest...use omnitrader in game mode. change 1bar @a time..see prediction........on any stock which u want to play.....next bar to right comes...predict...again come next one......enjoy this paper trade/ur guessing
.........
this suggestion r not for intraday......but a basic approach to understand stock trading with kiss.....as mentioned in thread heading

 

[oilman5]

so my friend....here is a brief
..........................................
for stock trading learner........i believe patience to learn ....spend time is very imp.
restraint has to be practiced. a concept of treating trade as business to put....by checking bill and fund flow.....how u can do more right trade,......
.......the concept of risk mangement and responsibility taking.
......then come knowledge ...ta/fa/psychology amalgamated
....after doing swot for self......study market reality
....and market is future oriented......moneyflow and volatility r two key factor......next 5yr atleast in indian market.....do research on it[self study]
........how result vs expectation affects price.......
on what postulate u investrading...........if scenario change......get out first,think later.
if possible,learn market sentiment..........so that in a particular time frame.....u can enter near bottom....and exit near top
......study past trade.
develop a derisk method if u want to earn from market in long term.......erase ur mistake pattern
.............
hope it helps
.....i believe i maintain kiss
oilman5