Important Posts by Smart Trade_ Part1

Gaur_Krishna

Well-Known Member
#1
Dear Friends,

I am hereby starting a new thread to COPY & PASTE ST da's important posts. :lol:

As we all know that using Traderji, we can only search for about 500-600 of last posts, so many of us will miss great posts previously posted by ST da. Also, after some time from now, if somebody new joins, he will have this as an advantage.

Purposefully starting this thread in MEMBER DISCUSSION FORUM to keep limited interaction. If you find a great post, please PM me.

Regards,
Gaur_Krishna
 

Gaur_Krishna

Well-Known Member
#2
Now as we are in the new financial year, many are plannig their investment in stocks, mutual funds, real estates etc for the current year. Came across the following articles which compare investments in real estate and investments in diversified equity mutual fund.

http://www.advisorkhoj.com/articles/...h#.UzwduqiSyE4

http://www.moneycontrol.com/news/mf-...er_850951.html

From my own experience I bought a flat for investment in 2001 at 6 Lacs ...which is worth Rs 50 Lacs today. But if I had invested the same Rs 6 Lacs in equity mutual funds like HDFC Top 200 fund, then the value of that investment is over Rs 110 Lacs today or more than double and that total amount is taxfree....we need to plan our investments more carefully.

If economy is growing at 8 % pa...real estate grows at 14-15 % CAGR and equity mutual funds will grow at 18-20 % CAGR ( Compounded Annualised Growth Rate ). So if we can make more than 15 % CAGR, we will be ahead in the investments game.

Just sharing some thoughts....

Smart_trade
 

Gaur_Krishna

Well-Known Member
#3
Quote:
Originally Posted by AFORASTRO View Post
Maut ko log yuhi Badnaam karte hai ... Takleef to Zindgi Deti hai

Maut,Zindagi ki Takleef yeh khayal abhi se kyun aa rahe hain bhai ? Abhi aapki umar zindagi banane ki hai,enjoy karneki hai.....zindagi bahot khoobsoorat hai, zindagi koi takleef nahi deti...takleef to hum aapne aap ko kar lete hain...

Smart_trade
 

Gaur_Krishna

Well-Known Member
#4
One of my trader friends got a heart attack and after he was operated on and was stable, we few trader friends went to see him in the hospital. He is a delivery based trader, takes delivery of stocks with his own money and sells after it goes up never did any speculation. Very safe type trader.

One of us told him that he suffered heart attack because he does not trade F & O....he said " yar tu satta nahi karta is liye tera dil kamzor hai....ferget all the medicines, start trading 1000 Nifty or 300 BNF and your heart will get used to all the shocks so much that you will never get heart attack.

Smart_trade
 

Gaur_Krishna

Well-Known Member
#5
One police officer from economic offence wing went to my trader friend to take help in solving a financial bungling case. The accused had lost huge money in speculation and the police guy was trying to understand how exactly it was done...he had got copies of brokers contract notes,ledgers but still he was lost in the trading part.

My friend explained him that he sold 25 contracts of Reliance.....the next question was where is Reliance ? He never has any Reliance, so how can he sell ? Is he selling others property ? that is another offence...so F& O was explained to him and he still was not convinced...he kept on saying " it is like someone selling Tajmahal of Agra without owning it...how can it be done...."

Later he accepted that short selling concept...but then said all that is fine but he lost so much money where is "muddemaal" or the stolen property so that he can produce that in the court as evidence something like chori ka maal....then my friend told him all these are speculative losses and there is no muddemaal.....it is all mark to market losses.....he found it very difficult to explain all the process....and police found it difficult to understand and believe.

Smart_trade
 

Gaur_Krishna

Well-Known Member
#6
Originally Posted by TraderRavi View Post
m very angry , inverter not working may be MCB tripped , bot NF and SBIN 1850 CE in the morning , then electricity went off around 12:30 , after that had to watch quotes in nsemobile in my tablet, this nsemobile fkker when I tried to login but message was incorrect password , khali pili sala , 4-5 times I tried but this ******* did not let me login and cud not exit at profit, light bhi nahi aayi , last mein call & trade se square off karwa diya , NF at cost and SBIN 4.5 point loss , light aayi sala 3:15 par @#@#@#@@ , anyway after that I checked charts and within 5 mins of my squareoff there was a selloff
no trading unless inverter starts working, electrician ke hathh meinn hai,, how many days rest
I remember I had once lost 45 K because my UPS coil burnt and brokers phone was engaged ...from that day bought a stabiliser and a second inverter with separate batteries in manifold works much cheaper and full peace of mind.

ST
 

Gaur_Krishna

Well-Known Member
#7
Actually I started with Elliott wave studies, studied Frost and Prechter, Glenn Neely.....broke my head in countless hours in deciphering which wave is unfolding. But I soon realised that I lost more money on my analysis than I made on it.

As Thomas DeMark puts it " Elliott wave is like smoke...you can see it...you can analyse after the event but you cannot catch it ...."

Hope no Elliott wala around...had neither intension nor patience for getting into arguments.

Smart_trade
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Nahi bhai...bade zagdalu log hote hain.....argumentative types...only market makes them silent.You cannot win the arguments with a Elliottician worth his salt.

ST
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When RIL was quoting some Rs 300 odd they had declared 1:1 bonus. One very reputed Elliottician told me his target for RIL is Rs 15....I asked him what ? Rs 15??? he very seriously said yes and that is cum bonus ...so ex bonus Rs 7.5 ......

ST
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I and the analyst mentioned in the industrial group post happen to learn Elliott from a same teacher we used to call him Sir....he was a very flexible person, a great trader and my first mentor. One day our analyst friend rang up sir and said " Sir, only two persons in this whole world know what exactly the market is going to do next..." Sir asked him who are those two persons...analyst replied one is me and second is of course you. Sir said boss..count me out...I dont claim that I know exactly what the market is going to do next...I know only probabilities...so that makes only one person who knows what the market is going to exactly do next and that is YOU...

Smart_trade
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Gaur_Krishna

Well-Known Member
#8
Regarding time to write and time to act there is clear cut separation. We are traders so our main job is to trade the markets (ie to act) which we do from 9:15 to 3:30 but after the markets we can spare time to write and share what we have learnt or come across any new trading idea,experience or even a light chit-chat. Writing /sharing and actual trading both have their own places and one does not replace the other...both important in my view.

Best wishes,

Smart_trade
 

Gaur_Krishna

Well-Known Member
#9
Bull trap is always layed when there is a bullish trend and people expecting market to remain bullish.Market made a bottom at 6000 and started a bullish trend with the hope of Fed tapering getting delayed and BJP getting majority in 4 states. The market went up on opinion poll results with a gap and after the actual results there was another gap so the sentiment was clearly bullish. Most hardened bear would have expected that the uptrend will continue for some more time and the market may go upto 5600-6700 in that momentum. There are no triggers but that was known before the election gap also. If you have heard different analysts all were predicting 6700-7200 in near future....this is the ideal set up for a bull trap.

The downtrend started after the election results and all traders are not so good to change as per the trend and that is why people get trapped in a bull trap...if all are good traders there will be no one getting trapped in any bull/bear trap.

But no issues, if you want to say that it was not a bull trap and all traders were savvy and everyone was expecting the uptrend to end on election announcement and the down trend to start then that will mean that we will have lot many less loosing traders than what they are in the markets....and that is a welcome so it does not matter whether we call it by any other name.

But I see and agree with your point but everyone is not an objective trader in his views about the market like you and that is why people get trapped in loosing positions dont they ?.

Smart_trade
 

Gaur_Krishna

Well-Known Member
#10
It is much better to not to take any position ahead of policy decisions atleast in daytrading.After the decision is out, trading is on fact and not on hope/guess/news..money can be made by trading after the announcement too.

Smart_trade
 

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