How/When to decide share AVG/SELL/NEW BUY?

babidash@hotmail.com · #1 22nd May 2008, 08:21 PM

HI,

I am kind of new to stock market but willing to know the basic funda/logic behind the decission making.

HOW AND WHEN TO DECIDE SHARES?

1. AVERAGE ( Existing shares )
2. SELL (Existing shares)
3. BUY ( New Buy shares )

Thanks in advance.
Regards,
bABIDASH

fast_rizwaan · #2 23rd May 2008, 12:37 AM

Will you buy gold at 20k?
Will you average your 20k gold with 15K price?
Will you buy gold at 7k?
Will you sell your 7k's gold at 15k?

We need to "KNOW" what is costly and what is cheap. The same amount of gold is available at 7k and 20k, but you'd need to know whether the prices will fall or rise.. that is how you do trading. need to monitor your favorite scrip of it's highs and lows and monthly highs and lows.

For example,

I've been observing RPL..
It's highest point is 210 and it's lowest point is 145.

Now it's trading around 185-200. for me buying rpl @ 145-155 is cheap, but buying above it is costly. because i can get a price of around 185 easily, and patience will pay 200+. for some buying around 185 is cheap as they can get 210+. so, it is relative.

This is just layman's way of trading.. you'd need to learn technical analysis. Please read "Teach a man Fish" by Saint. (use the search feature)

moneygurukul · #3 23rd May 2008, 11:19 AM

Quote:

Originally Posted by babidash@************

HI,

I am kind of new to stock market but willing to know the basic funda/logic behind the decission making.

HOW AND WHEN TO DECIDE SHARES?

1. AVERAGE ( Existing shares )
2. SELL (Existing shares)
3. BUY ( New Buy shares )

Thanks in advance.
Regards,
bABIDASH

1. Buy :-
When downtrend reverses and starts an uptrend.
On support Levels/ Trendline Support
On Break Out or Breakout+Pullback (Breakout is the riskiest).

2. Sell (Existiing Shares):-
When Uptrend reverses and starts an downtrend.
On Resistence Levels/ Trendline Resistence
On Support/Trendline Break-Down

3. Average (Existing Shares):-

Most of the technical analysts will say "No" to it. As Paul Tudor Jones said , "Losers average Losers" but Warren Buffet will laugh in your face and Marty Schwartz will say "Double when you are ready to puke".

As per me, one should average in the following cases:-

1. If the seurity is still in uptrend, buy very near to your stop-loss level and keep the same stop-loss for the entire trade.
2. If one held a position during downtrend, average when the new uptrend starts but keep the new position as a new trade and maintain its seperate stop-loss. Keep adding to this new trade on every decline in the new uptrend. Once the new uptrend is over, the entire position should be sold.
3. If there is a very good support on a higher-time frame, try initiating a new trade with the support level as stop.
4. If holding securities in an intermediate downtrend, keep writing calls to reduce the cost.

babidash@hotmail.com · #4 23rd May 2008, 09:16 PM

Hay fast_rizwaan, moneygurukul

First of all thanks to you guys for sharing information and giving support to new users like me. keep up the good work.

Thanks Again...