I can help you with stock chart reading

Hi VV,
Thanks for sharing your views on Hercules. I will hold on to this stock for now.
Thanks,
Jude

Hi vv,

i would like ur views on SUVEN LIFE SCIENCES LIMITED
icharts : SUVEN
due to current news i bought 200 @ Rs.113
should i stay in or get out????

Incase of Exide probably not yet. Infact I wanted to ask what would you do now. Options would be
Book profit at Entry price + 6*ATR on the 14th day of entry @ Rs 380
Have a trailings stop at 0.5 ATR from tomorrow = C-7.5 =356
or continue with the Chandilier stop Loss which is at 329.

Where as Rain Commodities has penetrated the BBT and has closed below the Band with an Engulfing Bearish Candle. Also has hit Rs 151 which is Entry price + 6 * ATR of 14th. giving a profit of 28%. Isn't it time to take profit.

Appreciate your Views
Thanks
ken

TA: Stock still looks good, even though I admit last 2 days have been bad. Not because of price action, but because of Negative Volume. Remember, buy before news, sell after news. That is the reason it went down after the news. I don't trade based on news. Because, by the time we get the news, its tradable value is reduced. We are at the end of the food chain for news.

This is more of a MIND question rather than a TA question.

Think hard before U get in. Not after!!!.

One of the reason you need to track trades is to specify buy and sell conditions. When you make a buy, write down the reason why you are buying and what will make you sell. Once you hold the position, continue to see whether conditions have changed.

So, I ask you why you bought the stock. If the answer is NEWS, then did that change in the last 2 days. Or is the downturn in the last 2 days has made you fearful of loss. If you get swayed by a tick up or tick down, it will be hard to trade. Do not have emotions for failure or success. One trade will not matter. Even if you make a success in this trade, what guarantee is that you will be positive at the end of the year.

Use the points below in changing how you trade.

1. An outcome of 1 trade does not matter.

2. If you make 40 trades a year, think how your portfolio can be positive after those 40 trades.
U could have 20 loses straight. But, you could also have 5 gains straight that make up 20 loses. What is the point in pondering about 1 trade loss.

Let me give an example. Let say you have 15 gains and 25 loses in an year. Lets use marbles of 2 colors, green and red for this example. Green, win, red a loss. Put these marbles in a bag. Draw each marble out of the bag.

Q) What are the chances of drawing a red or green marble. If the probability of drawing a red marble is more, then did that change the portfolio amount at the end of the year.
Q) Is it possible to draw 10 red marbles out of the bag straight.
Q) Similarly, is it possible to draw 10 green marbles straight.
A) Yes, it is possible, probably both with a lower probability.

The key in this example is, the marbles are constant, the action of drawing (trading) is constant and the risk (stop loss) is constant for either green or red marble. Can we do that with stocks? Stop Loss! yes with position size management. No matter what stock trade we lose, our loss should be constant. Position size should only change. Trading methodology should be constant. Don't trade arbitrarily. If not, results will be skewed.

3. Before you put a trade, assess the loss using Stop. If you can't take the loss, pass the trade. Because, once you put a trade, nobody can determine its outcome.

4. If you can't think in terms of total trades in a year, probably you are trying to gamble. Remember, there is no easy money in stock market. U might have realized this already in the last couple of months.

Thanks a ton,VV!!

Shashank

Hello vvonteru ,

Can you give your technical views regarding these scripts

1) Peerless Abasan ( hit d upper circuit )


2) Indiabulls FInancial Services

And since im a learner please mention which indicators you used which made you arrive at the conclusion .

Thank You very much

Harsh Sheth

Hi VV,

I have bought Exide Industries Ltd(EXIDEIND) @ 370 . It's fallen till 361.What to do .Should I sell with loss.As I usually trade for Intraday
What does "FV SPLIT RS.10/- TO RE.1" mean.

Raju

Recently i recieved a letter from Chakradhari Softwares, Bangalore.
It is conducting a 2 day work shop by Mr. Chandra Kumar, Technical Analyst.
Does any one have any information on this?
How reliable/useful is the workshop?
They are charging Rs.7800/-

Its a Rs10 stock. How hard is to move this around. Don't go for stocks less than Rs50. Even those 50 to 100, make sure they have at least 100,000 volume. More the better.

From TA stand point of view, nothing great. Its in trading range.
This satisfies setup condition. Wait for entry.

Here are the steps I follow.

1. I look at price chart. Question: Is it in trading range or trending?
2. Answer: trending, then go to 3. Trading Range, avoid the stock.
3. I look at the volume chart. Question: Does the the recent uptrend has good volume?
4. Answer: yes, then go to 5. No, avoid the stock.
5. Look at MACD. Question: Is there divergence against the trend?
6. Answer: No, then go to 7. Yes, avoid the stock.
7. Look at Williams oscillator. Question: Is the stock in overbought condition?
8. Answer: No, then stock is selected for setup. Yes, avoid the stock temporarily.

At each of the step above, I am constantly asking myself why I should (not) trade this stock. Once a stock is selected based on setup condition, I look for my entry condition to satisfy to put a trade. Hope the steps will help you.

Why would any one buy above the bollinger band. Either way, if you have chosen to trade intraday, why did you keep beyond that. It tells me you just gambled. You thought you can just make a profit. You were not prepared for the loss. You never had a exit plan. Please read my earlier comments on Mind game.

TA: I am not worried about the price action today. I am more worried about the red volume. There were many trades that took profits. And why not after gaining 40 points in one day. There may be another down day to make it come below bollinger band. Other than that, chart still looks good.

Look at CLASSIC. It does have a pull back now, even though I would have liked it to come down more. U should know that this stock is exceptional in the way it is trending, unlike the market itself. As these stocks go far from 50 day EMA, they have tendency to correct themselves. Other than that, it does satisfy the setup and retracement entry condition.