Why market always exist? but traders always do not exist continuously

Vertigo_1985

Well-Known Member
#51
As some one very new to this arena, I would just like to point what I am understanding of Trading since around 2 months of reading and studying. In this time I have studied Buffet, Lynch and Murphy and I think how it works is like this.

1) Long term Fundamental Analysis always works. Technical is doubtful, maybe it does but I have to still understand.

2) Mid term TA has more provenance as there are times the market takes time to adjust to the fundamental values of a company.

3) Short Term TA almost always works, if you follow Ranbaxy's stock for example it is following TA quite well but fundamentally Ranbaxy is a chor company.

However TA and FA can not explain certain things, The Syrian war, Draghi's speech or the tapering of QE by Bernanke.

So I am going to go ahead and make my strategy of following news papers and keeping my 70 strong trading list updated for any short fall or high and TA all these stocks for signals constantly checking FA to confirm.

As a soon to become day trader if some one tells me to read the balance sheet of a company and then place a buy order, by the time I will be done who knows where the share will be. Also a FA approach requires a very deep pocket to play, trading using TA even with 20,000 Rs is possible.
My friend nothing "always" works in market, be it t.a, f.a or some vodoo-shodoo.
Psychology is most important for a day trader(not undermining technical edge or money management) and if you have a belief like "always" then it's going to give you pretty tough time.
 

Vertigo_1985

Well-Known Member
#52
Your keeping track of FA of 70 companies?! :O Your a god! It takes a week to research on one company and you have researched 70 and keeping track of them? Amazing.
He is a beginner, would not be looking in that much depth so information and work needed would be less.

Mr.G can you post your investments ?
 

SaravananKS

Well-Known Member
#53
I am sorry to hear about your loss, But I tract only 8 companies as in currently in the market there are only 8 companies that meet my investing standards. And I never stopped anyone from investing in property.

By your speech I can understand that you have no knowledge of fundamental analysis and you just made an educated gamble at the most. And you are also financially illiterate. For how long do you think that the real estate bull run will continue? People said the same thing about gold. They said the same thing about stocks in '07. All bull runs end, All hearts are broken.

I wont reply to you after this. You are clearly a retard.
By your words you clearly proved as analyst....( ie escaping with gimmick words)

in india it is common that a stock exchange would go bankrupt then why not a stock....

your words shows you that you did not compare equity returns with Real estate... Can you post any period ( at least 10-15 years when equity market gave much better return than real estate??)


if one build an index that includes all Public limited companies which traded in BSE and NSE from 1990 will give a real picture about reality

Most of companies looted public money.... you like people gives example of warren buffet ,graham Dodd and Rakeshji..


Dad..... here most of us not such big Millionaires such as buffet most of us here looking for safe investment for their hard earned money

Pls guide us if you find any simple method that gives better return which beats inflation

don't ask us to work to study use less balance sheet or Company profile ( which are not reflecting any reality) to get a better return than FD
 

Mr.G

Well-Known Member
#54
He is a beginner, would not be looking in that much depth so information and work needed would be less.

Mr.G can you post your investments ?
Yeah I have them on my thread on dividend growth investing in the fundamental analysis forum. :)
 

Mr.G

Well-Known Member
#56

aryan.

Active Member
#58
As the lone FA guy in this forum everyday I see people run after new AFLs run after new methods.
You are not alone :)

I started with TA, learned everything I had to about TA and I actually made money but then I realized that this is hard, there is no margin of safety in TA, one little mistake can have serious consequences and not to mention that you have to constantly monitor your positions.

FA on the other hand provides a margin of safety. If you invest in the right company you dont have to monitor it daily. If you invest at the right price you can ignore the daily market fluctuations. e.g In wipro I went from an unrealized profit of 20% to an unrealized loss of 20% to a realized profit of 40%. Ofcourse you need to be cool and not panic when you have an unrealized 20% loss.

even one had invested randomly 50 stocks in 1993 could not able made money better than Bank FD.....
Why do you want to invest your money randomly?

in scenarios Pls tell me how a normal investor pick right stock and confidently hold for years...
By reading the financial statements and the annual report.

OK if you say investment on index ETF is better then What is Return one would got in last 5 years???
That is the risk of equity market, is there a rule that markets will go up all the time. Why dont you look at the 10 year Nifty return.

some companies Purposefully showing negative results to buy back their share at lower levels
Can tell the names of those companies.

don't ask us to work to study use less balance sheet or Company profile
Seriously?? If the investors of Kingfisher read the balance sheet and income statement before investing they would not have lost their money in KFA.



Even an average person can figure out from the above image that KFA is a bad company to invest.


However if we had exited tata steel, bhel at the right technical levels, we would have saved a lot of money.



You had plenty of time to exit from Tata Steel, tata steel had net profit margin of over 20% in 2005, it kept dropping every year and in 2010 it finally went negative. Why do you want to invest in such a company. You can know such things only through FA and not TA.

I havent studied bhel in much detail but a quick look tells me that its looking attractive at current valuation.

Ofcourse in the end what matters is that are you making money. If you are making money using TA, use TA.
 
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Mr.G

Well-Known Member
#59
You are not alone :)

I started with TA, learned everything I had to about TA and I actually made money but then I realized that this is hard, there is no margin of safety in TA, one little mistake can have serious consequences and not to mention that you have to constantly monitor your positions.

FA on the other hand provides a margin of safety. If you invest in the right company you dont have to monitor it daily. If you invest at the right price you can ignore the daily market fluctuations. e.g In wipro I went from an unrealized profit of 20% to an unrealized loss of 20% to a realized profit of 40%. Ofcourse you need to be cool and not panic when you have an unrealized 20% loss.


Why do you want to invest your money randomly?



By reading the financial statements and the annual report.



That is the risk of equity market, is there a rule that markets will go up all the time. Why dont you look at the 10 year Nifty return.



Can tell the names of those companies.



Seriously?? If the investors of Kingfisher read the balance sheet and income statement before investing they would not have lost their money in KFA.



Even an average person can figure out from the above image that KFA is a bad company to invest.







You had plenty of time to exit from Tata Steel, tata steel had net profit margin of over 20% in 2005, it kept dropping every year and in 2010 it finally went negative. Why do you want to invest in such a company. You can know such things only through FA and not TA.

I havent studied bhel in much detail but a quick look tells me that its looking attractive at current valuation.

Ofcourse in the end what matters is that are you making money. If you are making money using TA, use TA.

Thanx man! I did'nt know if anyone else used FA here aswell! You've given me hope after all!