Market Under Panic!

ankurpcl · #1 19th October 2005, 07:09 PM

Hi All,

As everyone knows Sensex is under correction from last 2 weeks and noone
knows exactly where it going to get exact support.

So I would like to request you all that be very cautious at this moment
of trading phase. Even fundamentally very good stocks today fall by 5% to
10% today.

Wait and just watch where sensex going to get support and at the same
time select your valuable picks at this point of time so that you buy them
as soon as market recovers.

I have started Trading on 1st week of this month and the day I have started
trading my picks are going down day by day.I am feeling little panic but I
wish people should learn from the mistakes of others people and dont lose
their patience and self control irrespective of how market behaves under
any circumstances!

For my failure, more than 80% harm caused bacuse of correction mode
in market.

Just Advice from my side and hope it helps atleast few traders expecially begineers like me that never enters the market whenever its under correction mode.

Thanks,
Ankur

ankurpcl · #2 19th October 2005, 08:27 PM

Seniors If you have any suggestions regarding how should an average trader
behave if market is down everyday drastically then please post.

I will look for your replies as trading is not only about bull markets but also
bear markets and sucessfull trader is only that who can book profits
in either scenarios.

-Ankur

Saint · #3 19th October 2005, 10:40 PM

Quote:

Originally Posted by ankurpcl

Seniors If you have any suggestions regarding how should an average trader
behave if market is down everyday drastically then please post.

I will look for your replies as trading is not only about bull markets but also
bear markets and sucessfull trader is only that who can book profits
in either scenarios.

-Ankur

Hi Ankur,

Such is the nature of the markets and everything in life.......all that goes up must come down,albeit a short while.Corrections are a sign of a healthy market,as more and more participants join the bandwagon.No harm with the correction,the problem sometimes is in our entry point.Catch the stock at its high,and even a minor correction is painful.

Few things you could do:If you are a trend trader,and like to go long on an intermediate uptrend and down with an intermed dntrend,you could always short using futures when the trend is down.Or use options(puts,etc)to make a profit in a down market.

What I used to do in the early phases:Get in as the market and stocks signal an intermed uptrend,get out on a signal that the trend is broken.......and take a holiday.Rest,enjoy,freak out,do whatever you like to do.........but keep an eye on the markets,and position yourself for the next move up.Catching 2 intermed trends a year is more than enough sometimes for wealth multiplication that can put mutual funds to shame.

No need to take part in every move........but if you are a trader who earns his living off trading,then you need to know the art of short selling in times such as these.

If not,and the market is a means to multipy your wealth,take a holiday.Enjoy yourself............have fun.Come back rejuvenated and raring to go,ready for the next intermediate uptrend!

All the best!
Saint

swingtrader · #4 19th October 2005, 11:32 PM

Well said, Saint.

--SwingTrader

ankurpcl · #5 20th October 2005, 07:08 PM

I was just looking into the graph of good fundamental stocks and stocks
that are well known for their swing trades are looking very close to the
levels in which they were 3 months back when Sensex bull run just started
and was at peaks during month of August and Sept.

So I can advice that if any one look for stocks at this time to buy just
see the prices that they had 3 months back. I am very sure that they will
definately show support at that levels and in case that not happens then
I think it would be tough time for everyone.

Because Sensex is getting down so badly, Its sure that it will get support
at 7700 or in worst case at 7550.

So panic in market still continues and no signs of positiveness appears to come before sensex touching 7700 or 7550 levels.

Already cracked support of 7968 today.

-Ankur

darsh_goswami · #6 20th October 2005, 07:31 PM

wEll Ankur,..
For a newbie in trading there u should always keep ur eyes on the prices n next is u should be aware of the trading levels while ur trading ,..
If ur a new bie i would suggest u instead of running after any stock , keep ur eyes on Nifty ,..!!
U can earn well with the use of Call n Puts ,.. N the main thing is that u can decide the intraday trend in the market ,.. from its open to weight avg. selling pressure n all ,..
But the main thing is Dont do intraday trade without stoploss ,..
For Investing purpose ,.. Dont just buy blindly in the penic ,.. Wait for the stock to give a positive break out ,.. ( it might cost u little expencive but that can give u the confirmation to move up ,.. ) U can ask here experts ( not me LOL ) They will guide u what to buy n when to buy ,..
Dont run after TIPS ,..
Thats all ,..
N ya markets still looking weak ,.. Saint ur comments about current markets n hot picks please ,... Thanx for the wonderful advice mentioned above @ Saints ,..
Regards
Darsh

supratik · #7 20th October 2005, 08:36 PM

As Saint had mentioned go short on futures or pick up a put option would be the best to do in these days of the down trend, and of course as times such as these where you could say a free fall

Also it is worth mentioning that do not go for a panic selling in this time, as the rest of the market although you may well feel that 'alas I could have bought it back' when the market falls further.

As we have all discused in this forum that after the 8000 level mark we are having a majority of our investment in technically strong counters and the remaining in penny and short term counters.

Do not be morose that you have lost a great amount; because A CORRECTION IS WORTH A HEALTHY GROWTH.

The best to do if you cannot decide the market direction is to go for both a call and a put option at moderate prices. This would help you to gain in either direction.
Similarly, you could buy a counter say Infosys and take a put option, so a good movement will give you a good profit anyhow.

It is advisable to play with options if you are good at it otherwise do consult.

Another statement I would like to make is, there are pretty good counters that could be bought in this panic selling. I am not suggesting to jump into them right now but ofcourse this correction phase should be utilised to buy counters like SAIL, Infosys, Royal Airways, Maharashtra Seamless, Deccan Chronicle etc.

You could buy these counters in small amounts and buy/sell when the price moves down/up.

Thanks and Regards

Saint · #8 20th October 2005, 08:49 PM

Quote:

Originally Posted by darsh_goswami

wEll Ankur,..
For a newbie in trading there u should always keep ur eyes on the prices n next is u should be aware of the trading levels while ur trading ,..
If ur a new bie i would suggest u instead of running after any stock , keep ur eyes on Nifty ,..!!
U can earn well with the use of Call n Puts ,.. N the main thing is that u can decide the intraday trend in the market ,.. from its open to weight avg. selling pressure n all ,..
But the main thing is Dont do intraday trade without stoploss ,..
For Investing purpose ,.. Dont just buy blindly in the penic ,.. Wait for the stock to give a positive break out ,.. ( it might cost u little expencive but that can give u the confirmation to move up ,.. ) U can ask here experts ( not me LOL ) They will guide u what to buy n when to buy ,..
Dont run after TIPS ,..
Thats all ,..
N ya markets still looking weak ,.. Saint ur comments about current markets n hot picks please ,... Thanx for the wonderful advice mentioned above @ Saints ,..
Regards
Darsh

Hi Darsh,

Taking the Sensex,on the daily charts,we are now sitting on support with multiple down days.Expect a strong bounce soon.But from a longer term perspective,monthly charts are showing a top reversal pattern,weekly charts are showing cracked uptrendlines..............this bounce is going to attract a whole lot of investors gleeful that they caught the pullback,and entered the markets at 7900 ..........but I am not so sure if we are going to take out the 8800 levels,and go to new highs till monthly charts do a bit of grinding and consolidation through price and time.

So,from day trading to swing trading perspective,the bounce could put some money in our pockets.From a long term trading and investing perspective,this bounce may just be a signal of more downward move after that.We are not in a correction that lasts days,personally feel that we are in a correction that could take weeks to months to set up another blast up.

So for now,no buys for long term...............only day trading and possibly swing trading,if you are adept at it.Going swing long when the market is correcting is not that easy.

If new and planning an entry into the markets,stay out for now..........this isn't done yet,a bounce is coming and you are going to feel that you missed out on a lower entry,but for intermed to long term traders,not yet.......Day trade if you can or if you are any good at it(Of course,not to learn day trading now.If never done before,don't bother starting now).

Like I said before,beautiful time to take a break..........spend time with your family,enjoy the little things in life ,have a holiday,have fun....

All the best!
Saint

supratik · #9 20th October 2005, 09:00 PM

Yep our girlfriends and wives may be just complaining that "You love the Sensex more than you love me, look I told you the market would come down, and you would loose" ....but they were the most inquisitive ones when we got them new dresses and they asked us "Hubby!! I saw necklace at, cute one"...one nice smile.."Its not very expensive..about 10000....you just got a profit on Maharashtra Seamless na..."

Yes, I told her yesterday..You f/wed your resume to CNBC..They have called you for interview and would like you to be their Chief Analyst.

Ha!!!!1

karthikmarar · #10 20th October 2005, 09:30 PM

Quote:

Originally Posted by saint

Hi Darsh,

Taking the Sensex,on the daily charts,we are now sitting on support with multiple down days.Expect a strong bounce soon.But from a longer term perspective,monthly charts are showing a top reversal pattern,weekly charts are showing cracked uptrendlines..............this bounce is going to attract a whole lot of investors gleeful that they caught the pullback,and entered the markets at 7900 ..........but I am not so sure if we are going to take out the 8800 levels,and go to new highs till monthly charts do a bit of grinding and consolidation through price and time.

So,from day trading to swing trading perspective,the bounce could put some money in our pockets.From a long term trading and investing perspective,this bounce may just be a signal of more downward move after that.We are not in a correction that lasts days,personally feel that we are in a correction that could take weeks to months to set up another blast up.

Saint

Saint

Sounds Interesting. Top reversal in monthly charts ! Would be nice if you can post the chart for us to study.

regards

karthik

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