DEAR VIJAY CHAUHAN.
SORRY FOR LATE REPLY. HERE I M SENDING U THE METHOD.
U WONT BELIEVE IT ! I HAVE TRIED IT ON TWO SCRIPS ZEE AND TISCO, AND IT WORKS, AND STILL WORKING. RECENTLY I M TRYING ANOTHER METHOD WHICH IS ALSO EFFECTIVE. THAT I LL SEND U AFTER THIS. IN THE MEANWHILE I REQUEST ALL THE MEMBERS TO TRY THIS METHOD AND PL. LET US KNOW THE RESULT.
Rules on how to play the game for a ZERO loss / Only profits move with the stocks:
- Always, play with 20% of the available funds. That to delivery based, if the situation warrants, or else you can square it off.
- Choose the right stock, since a fall from entry point would mean ultimate marriage. One would have to take delivery, and play another 20-40% and operate the way out. Another fall can take the balance funds.
- So once youre stuck with a share, you may have to operate in that scrip for almost 6 months or even 1 year to get out, with ofcourse, atleast 50-75% returns, not bad for one year right?, Very safe too.
- So scrip selection and fund management is the only key to this game, where profits are occasional interludes in this strange game of losses.
- Ones long, and books losses. Ones short and also books losses, and a monthly high low is about 20-30%. So, why not try to tap atleast 10% in 1 month? After all its a lot for a month!
- See, in any business, one has to set up an infrastructure, have a lot of overheads, involve a lot of capital, procure / produce a product, market it and give 30-60 days credit and make a profit, which takes atleast 2-3 months. So an average turnover should be around 4-6 times the capital employed, and with depression or a huge interest outgo, the net profits would be around 40% annualised. Now, we play this game, with an urge to make money in an hour? 3 hours? 5 Hours? Or maybe a week? Not fair right? So always wait for a correct entry, patiently for a week or even a month. Sometimes, even months of waiting can fail, like tatatea. After a wait from Feb peak at 600, non-stop fall and from March, consolidation for 5 full months at 350 levels, now, even that entry at 320 would need to be averaged at 254 (10 year Major Monthly support line), and below that it would mean 233 / 224 / 211 / 185. So one needs a lot of time, patience and money to keep buying and wait for a couple of months to get 40-60% returns.
- So keeping all this in mind, try to buy in the following pattern to always be a winner.
- buy 10 @ 100
- buy 10@ 90
- buy 20@ 81 trade it at 90 if it re-bounds technically.
- Wait and buy again if it falls to 81, same 20 shares.
- Buy 40@ 70-72. Trade it at 75-80 levels 40shares everytime.
- By this time, it should have been a month, and with so many intra-day trades, the cost for 80 shares should be well below the present market price. But bear in mind that you will start selling only above 100, whenever that happens, until then you can keep on trading in that single stock all year through.
- Another, pattern is that say, in SBI, RIL, TELCO, buy 10 shares for every 10 rupees fall & sell on every 10 rupees rise. This works out every week as they all move up & down atleast by 10 bucks EVERY week. So you can enter in the mid-price and keep trading until the year low happens, eventually, once every year, and buy a higher volume there for stock-in-trade and keep on trading until the year high, which also happens once in a year. (Ive seen this happen in the past 2 years and these methods seem to be sure fail-proof methods) But to do this, one needs to control to 2 important values in life, Divorce Desire & Greed, and Marry contentment and satisfaction from what you get. One may see infosys surging or Satyam zooming and Himachal shining..but if youre a trader in SBI, then thats all you should care about, and let the BSE/Nasdaq/INFY/SIFY/EURO/USD and whatnot go to **** for all you should care. There can never be a loss, since you use last-in, first-out basis of trade, and if you buy for every 10 bucks fall and sell for every 10 bucks rise, how can you ever lose? SBI would need at the most 30000 bucks even if it comes to 50bucks. In the long run, over a year, only those with a discipline of taking deliveries and averaging their Blue-chip stocks (not the junk stocks) win in this game, as many a foot has trodden to the brokers office, but only those who invest come regularly, and new faces (traders) come and go, never to be seen again.!
- For this reason, I always choose the BSE-A group stocks as you have the option to carry-forward all through the year, if you keep on trading, that is. (An idle position cannot be carried forward for over 10 weeks as per rules, but your broker may permit that, if there are others trading in that scrip during that 10 weeks).
- Another thing, in this type of strategy, theres no question of any stop-loss orders. After all we want to make profits and absolutely NO losses at any point of time, right?
- Last but not the least, a compulsive trader is always a loser and a conservative trader rarely loses!
- Winners never quit and quitters never win. So, try trading along the lines mentioned above, and bring name to this business of trading in stocks. Its always shunned and treated as a gambling joint, and at times its disgraceful when someone calls it as a pure game of luck and like a card game or like the horse-races, cos 80% of the guys are traders who dont mange their funds. Since they book losses, nobody respects a day-trader much, even though he may trade profitably on these lines. Finally, youll be compared with a smart investor guy who sat at home and bought Infosys at 20 bucks and Satyam at 75 bucks and has make a killing with the bonus and stock-splits, blah, blah,!