Charts for the Day

lemondew

Well-Known Member
With stocks trading there are so many stocks One gets to feel like taking positions in all of them. Then it becomes difficult to track many stocks

Again if one can close positions in the day and reenter it becomes more profitable than holding positions for many days. one can then monitor only 1 or 2 stocks simultaneously .

I read a book against the gods nice book. Its on statistcs and a historical book on various statisticians and their invention since last 4 centuries.

It explains the following concepts.
1. Mean reversion: ( For trading I look it as trend reversion)
2. Diversification
3. Balancing
4. Game theory and so on

Just wanted views on these

Diversification: One of the concepts which are in fad amongst most fund managers or taking positions in many stocks. So probability of all of them missing out becomes less.

Balancing: Have long and short positions. Sell the weak. Buy the strong. In that way some positions are likely to work even in sudden adverse scenarios. This concept explains that one shdnt have be to heavy on one side

Happy weekend :) to all
 
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Controversies are bad in general for company..but after seeing the latest two incidents of stocks one here in india and another in foreign country...result is its good for company stock performance...

Cafe coffee day (CCD) employee after beating law college student observed rise in stock price..similarly in united contntl holdings after the passenger dragged off the plane by airlines employees, here too stock price is on upward path...

Lesson is, ignore the noise..??.....dont know but yes you need to shrug off those news and believe in your stops...
 
With stocks trading there are so many stocks One gets to feel like taking positions in all of them. Then it becomes difficult to track many stocks

Again if one can close positions in the day and reenter it becomes more profitable than holding positions for many days. one can then monitor only 1 or 2 stocks simultaneously .

I read a book against the gods nice book. Its on statistcs and a historical book on various statisticians and their invention since last 4 centuries.

It explains the following concepts.
1. Mean reversion: ( For trading I look it as trend reversion)
2. Diversification
3. Balancing
4. Game theory and so on

Just wanted views on these

Diversification: One of the concepts which are in fad amongst most fund managers or taking positions in many stocks. So probability of all of them missing out becomes less.

Balancing: Have long and short positions. Sell the weak. Buy the strong. In that way some positions are likely to work even in sudden adverse scenarios. This concept explains that one shdnt have be to heavy on one side

Happy weekend :) to all


Stock universe to regular to track in really a cumbersome...First we need to built the universe..this is more difficult...what to include and what to exclude...

From last year or so, i am tracking Nifty500....i mean my trades mostly are in those scrips...I tried to built the universe from good research firms stocks universe, but then again most of stocks in those research firms are stocks in top 200 category..so again you are bound to miss those midcaps which surged 3-5-6 times...

Diversification for poor retailers like us is pure joke...i mean first we have little trading capital then allocation on risk and then watching you should not bet oversize on single sector...Frankly, i just make sure i dont invest more than 3 scrips from a single sector...no more diversification rules apart from this one...

For me rather than balancing money management and position sizing is more that matters, as my trades are long only most of the times...Position sizing is the only thing which differentiates mens from boys...I mean going full throttle on your performing stocks is like one of a killer trade..and cutting on loosing ones simultaneously...

Sometimes i think how many rules we retail investors define and follow them...
 
Anil ji can you post your view on Nifty with charts ?

Thanks





Nifty is in short term downtrend...in intermediate and long term its still up...
MACD on daily is looking down with -ve divergence and weekly too turned down but still above that 9ema crossover...

9603-9625 will act as resistance zone...sustaining above this positive for bulls...
We identified the exhaustion by midcaps & smallcaps and since then nifty is showing fatigue to carry on higher...

With launch of GST from july 1st, lets see whether LIC got mandate to hold market higher till then...

50 SMA in first sight for institutions to add on existing positions..so ideally that a good point to enter stocks again for further rise...Breaking below 50 sma with volumes will put whole intermediate trend under risk...