Yet Again, Saurav Ganguly!!!

The importance of knowing where your off stump is!

All of you who follow the game would know this term from cricketing parlance, which means that a technically sound batsman at all times is aware where his off stump is. No matter the kind of wicket, whether turning or fast, or the ball be full length or just short of it, or angling away or coming in, he is not likely to be bowled out or go LBW or edge a catch behind the wicket....all because he knows where his off stump is, and is disciplined enough not to be lured too far away from it.
Now, to stretch all this to cover what we all do here: Trading.
In our context it seems to me, to know where one's off stump is, is same as knowing exactly where the INDEXES are going to be and where they are heading, at the time we enter a trade. This is in addition to whatever the technical outlook for the trade may be. And here the off stump takes in not just NIFTY or SENSEX, but at times even more vitally, MIDCAP INDEX, BANKEX or whatever.
How many of us are often lured into a trade purely on the technical merit of the scrip in a bull run, only to be trapped as it abruptly turns around to follow the major or the minor index when the correction comes, and just sit back and watch as the scrip loses steam and strength and falls into consolidation? Quite a few, I'm certain, and consistently continue to do so.

Some what like...for the Nth time Ganguly has lost sight of where his off stump was, hung out his bat, and is taken gleefully in the slips cordon! (Fans kindly pardon!)

As we sit around awaiting the reversal, besides being quite demorolised, we are also losing out on opportunities to rotate the money we work with.
I feel in this great forum, perhaps on a daily basis, those who are quite adapt at technical charting could start a separate section as a listening post for the benefit of all of us. This section could deal with the daily shifts of the important INDEXES, whether they are over bought or under sold or whatever.
Certainly this would be an even better and complete trading forum if such an exercise is done.
I'm all for it.
Kindly comment.
Traderji, kindly do initiate something along this suggestion please.
Regards.

[quote=AMITBE]The importance of knowing where your off stump is!

All of you who follow the game would know this term from cricketing parlance, which means .............................

The analogy here to cricket is a very welcome change,
Not that it's new to this forum & it'll surely happen again;
Only that nowadays it's very few & too far between,
We need the shift at times from trading to a much lighter scene.

I'll talk about Saurav here & leave the rest to the rest,
His fans & I really wish our skipper the very, very best;
He never ever knew for once where his off stump lay,
But he is a blessed guy who has an eye for brilliant off-side play.

Now come to it my friend maybe we're trespassing I do fear,
This part of the forum is not for things we're both talking here;
So let's move our talk to the general chit-chat section that's herein,
That way we'll be OK and no one would have sinned.

Hi Jaideep,
Its great to have a few bards in our midst....I'm aware there're a few around, and I do appreciate all of you....keeps things quite interesting.
But I feel you may not have addressed the real point in my post, rather.
For me the subject remains pertinent to where it was posted.
Thanks, though.

Good analogy and poetry. Not only the indices all the other information that CNBC spouts should be covered and be shown as to what is relevant to a given situation.

Right you are AMIT, the subject is pertinent to where it is posted. My appologies; got a bit carried away by the cricket & the verse I guess.

Now coming to the beans, looks like you are a great follower of the Indices. Some here in this very forum & elsewhere too have shot down the theory of the Indices leading the scrips. Many, many do swear that they only lead the herd (read as MOB). Even as recently as a couple of days ago CV (CREDIT VIOLET), one of the leading lights in this forum of wizards cautioned someone against worrying about the Indices too much & instead follow your nose with respect to your scrips. That sounds like very good advice. Perhaps sectors, fundamentals & the like make scrips behave in their very own manner, irrespective of where the Indices are heading. All this is worth pondering about as there are umpteen examples supporting this school of thought. Scratch your head a bit too & let's hear what you have to say. In prose would be OK but in verse would be great.

Hi Jaideep,
Having dutifully scratched my head, I feel this thread is drifting away from its original point. I had not discussed the merits or otherwise of what you have gone on to write. I had suggested we have people posting daily guidances of the NIFTY etc. to keep an eye on the bigger trends, which a lot of us in the euphoria of riding a trending scrip, tend to neglect to do.
What you have said is true only some of the time as is what I had tried to underscore. It is obvious that it is the trending scrips that lead the Indexes. And since so much is made of the Indexes, they in turn too lead the herd or the mob as you put it. On the other hand in the bigger picture quite often when the bigger Indexes reverse or correct, even the most strongly trending scrips get trapped. Some times the stronger scrip tries to make up lost ground and at times it takes a longish spell. As I had written, money gets stuck. This is a routine occurrence.
Another point is, all the leading luminaries here, and there are some good ones, tend to stay only with the less expensive Midcaps mostly outside of the NIFTY etc. We all know while there is maximum return on investment in these, they tend to be volatile and vulnerable to all-round profit booking. This has been the case during the current bull run where merely a very few largecaps have taken the Indexes to where they are. There has been a clear spookiness and a lack of conviction amongst the Midcap traders. Things have been mainly news related.
So I would like to again suggest that an Indexes posting be created. It will certainly do no harm, and the benefits are obvious. I am sure there are people here who trade Indexes too.
On a different though related point, it is great to see a lot of junior members participating in the Forum for some time. The seniors have been rather quiet lately.
I'd love to know the criteria for the two categories though.

Now on to lighter matters.

To indulge your literary cravings there is some verse below. All for a laugh!




The learned Senior of a certain school
To a junior of another one espoused,
The lofty Theory of the Nose
Where you impudently rode
The scrips that you chose,
While the Indexes bled and fell about.

Now, in certain cases
A Nose we do realise
Is an impeccably unfailing Index
Of pompousness and pride
That takes this trait quite conceited
With its daily growing average
And on twice its average losses
Displays the underlying
Mulishness (Bullishness!) of the
Qualities above described.

So then to Short this Theory, there's
Not much left to say nor write
Except when winds of changes come
'Tis prudent to shift the stride
And if you'd rather brave the storm
Then tally up the expenses
For you'd better have some mollah left
To put it where your mouth is.