tag:blogger.com,1999:blog-4662980686082541352024-03-21T19:05:47.764-07:00My MistakesVisualizing failures in my life. Be it biz, stock markets and day today affairs. Forgive me for my English. I'm not proficient in English and seeking kind apology for my grammar. Unknownnoreply@blogger.comBlogger24125tag:blogger.com,1999:blog-466298068608254135.post-19655756892483856612014-06-11T01:52:00.002-07:002014-06-11T01:52:27.518-07:00Small Mistakes<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Its long time. More than six months. Yes I made lot of mistakes but those are small to write and it wouldn't be entertaining to read those mistakes. Yes, there are couple of mistakes that are entertaining to read and I'd be posting it in a day or two. Mistakes are not infact losers rather lost opportunity or booked pre-maturely for various reasons. I don't have the habit of justification but I do sometimes justify but I take complete responsibility for those mistakes. </span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-4042654531225148112013-12-19T01:09:00.001-08:002013-12-19T01:09:24.211-08:0010% draw down in single day<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">I made hell lot of money before couple of weeks. At that point of time I thought some special power has come to me on trading. I thought I could easily figure out the way to make money in the markets.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Unfortunately it didn't took 10 days to realize that markets are bigger, smarter than me and I gave back most of my profits in just a day. Yesterday was Fed Event day and I bought both call and put options which is otherwise called as Strangles. I thought I could make hell lot of money on both the sides and wait for the fed to help me for my profits. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Fed tapered, but its not as hawkish as everyone expected and eventually Indian markets did nothing severe to make profits for me. I lost my money. I went for a kill and got killed.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<b><span style="font-family: Trebuchet MS, sans-serif;">What is the lesson?</span></b><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">1. Not all the events would pan out what we expect for.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">2. When a particular event has been focused for so long, one must make sure that it could possibly be priced in the shares.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">3. Don't commit big money, no matter what the out come would be. Always have a shield and approach the markets and markets wont ran away.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><u><br /></u></span>
<b><span style="font-family: Trebuchet MS, sans-serif;"><u>Bless in disguise</u></span></b><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">1. Thank god, this trade didn't clicked. If it had clicked I'd thought myself as hero and would probably try to do the same maneuver during the time of elections. I'm planned to commit big money, but thankfully lesson has been learnt before the elections. Despite this outcome, I'd commit my money, but with best risk management and make sure I make only profits from the trade no matter where markets goes during the day after announcement of results.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">2. I'd be doing my election trade very very carefully because I'd be putting my own money in line which is really big compared to what I was trading. </span><br />
<br />
<span style="font-family: Trebuchet MS, sans-serif;">I'm back to biz of doing my research in depth manner and I'd be doing for next 10 days and would probably stop from trading. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I've no regrets on this loss because its bound to happen and I didn't hesitate to book it when I realized that it didn't go according to my plan. I've to understand few issues on option pricing and would probably come out much prepared for the next big trade. Till then, without any hesitation I'd be licking my wounds. </span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-29061065697035756532013-10-10T06:19:00.001-07:002013-10-10T10:43:02.173-07:00How I become Paratha ( Barotta in vernacular Tamil Slang) master in Bank of Baroda?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<br /></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">I made a loss of almost 75000
before 3 months in a position that made me to laugh till to date while I use to
ask my friends to cut losses in their account. It’s fucking easy to give advice
whereas it’s no way to follow it in our trading. Till date I don’t know why the
hell I did that mistake to the tune of 75000 in that single trade despite
remaining at a healthy profit in my trading account ( I've accounts with multiple brokers and this is one of that account and most of the mistakes are from the same account).<o:p></o:p></span></span></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">Why I become paratha master? I simply bought, sold and again bought and sold and again did like the way how people prepare paratha by squeezing the flour that could be made for paratha. Paratha trade would simply kill you by giving you huge losses since you trade over your position without understanding the trend in the hope that you could simply beat the trend and eventually end up losing lots of money in the process.</span></span></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">Bank of Baroda is one of the
wonderful banks in the country. It has been in the index and attracted me to
trade in that stock. Chart looked great. I didn’t remember the day, but I do
remember what I did on the day.<o:p></o:p></span></span></div>
<div style="background-color: white; text-align: left;">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">I bought 2 Futures and sold 3
options of Bank of Baroda. It went down next day and I simply sold the future
and when it went up again I simply bought that and again it went down and again
I sold and I repeated this for couple of times ( I don’t expect that you shouldn't laugh, because I’m laughing myself). When I looked into the net
result I was in loss of 15000. I should have booked the losses and have gone to
other trade (I do now, because of this experience. Thanks to Bank Baroda)
whereas Paratha master in me didn't allowed me to book losses in my account.<o:p></o:p></span></span></div>
<div style="background-color: white; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">I was in that position from the
price of 735 and I booked the losses at 580. 21% downturn in the stock literally
mean down trend whereas I was long in futures and shorted call options and was
doing this bullshit till I gave up to a particular place of around 580. The
stock went up to 450 bucks. I call myself as a trend trader without shifting my
gears from long to short when the stock turned down 5% from its high that it
made recently (during that time) in the markets. <o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">I still don’t understand how I dare to do this stupid kind of
trading in my account. This is simply amazing for a person who calls himself as
a trend follower or in plain English, a guy who simply follows the price action
of a stock despite noises that is happening in the street. <o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">I still remember doing some stupid stuff like selling call
options on every down tick and covered the options that are out of the money. I couldn't match the fall of Bank Baroda on options because futures position has
been in a pain that at some point it almost went nearly to discount. I bought
future at a premium of one percent and end up losing the position in almost a
discount of quarter percentage. In that itself I've lost more than 7000 bucks
which is almost 10% of my entire loss in that account. <o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">I didn't even understand a simple trading rule that, I should
put a stop loss order in a position which is suppose to turn against my trading
action. This is complete non sense and selling options to compensate loss is a
biggest sucker game in this business. Options that have been sold would take
time to erode in the market and you are bound to miss the 100% premium that has
been sold by the way of options. If you are a trader who ever think to sell
options to cover your losses make sure that you have the cushion to wait till
expiry with multiple options that could match biggest percentage of losses that
could probably happen if a powerful trend goes against your way. I’d rather book
my losses and reverse my position than simply fighting the trend which is one
of the sucker games in this business.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">So when I looked back into the position, I’ve learned that I’ve
lost almost 75k in this position. The beauty is I had back to back loss of 1
lakh (This is 75k and there was another one coming and it had 1 Lakh of loss)
in just couple of positions.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">What the heck is happening? I’ve been reading books and on daily
basis I’ve been reading that cut your losses and cut your losses and despite
this I incurred huge loss of this year. This is simply unbelievable and if you
think it stops with this, then you don’t understand that in stock markets
trader does crazy stuff all the time irrespective of his experience and
mistakes that he has committed in his life as a trader. Another one is coming
and this time with the loss of more than 1, 00,000. This is simply
unbelievable.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">I planned to put as a separate post, but since it was back to
back loss and cut my account size by more than 40% , I thought of writing it as
a single post.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">Second one was Ashok Leyland. While I entered into the futures,
Ashok Leyland was trading at Rs.24 and I bought that at 24. Total lot size was
9000. If it go to 25, I make 9k, but it didn’t happened and it was simply
trading at 23.50 – 24 for couple of days. If it happens now, I might have sold
a call options and wait for couple of days and if it goes down I’d simply book
my losses in futures and keep my options open to cover at lower levels.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">Since it happened before quarter, I was not having that much of
intelligence and did nothing and simply kept the position in a hope that it
would come back and suddenly after couple of weeks, Ashok Leyland was trading
around 17. Next day was result day and I did a fantastic stuff by buying
another (Losers average losers) contract around 17.50 and next day results came
and it went to 16.50 and there I booked my loss for both the contracts and it
costs me more than 100000. <o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">What fucking kind of person (trader) I’m? This is the question I
asked myself after booking back to back losses that eroded almost 2, 00,000.
That moment become one of the darkest hours in my trading career. Mistakes
after mistakes, but I’m not learning anything and went to keep my loss that
cost so dearly in my account. This is simply unacceptable and I hope that I would
never do this ever in my trading account. I took a vow that I’d rather
sacrifice my profit than simply sitting in losses and from there I came back
sharply and made back to back profits that simply put my trading account in
profits. I did splendid trade in GBP/INR that simply gave me a profit that
would simply wipe out all the losses that has been incurred in these two
trades. I’m happy man but I would never forget my sleepless nights that I
overcame during the time of those losses. <o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; text-align: left;">
<span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;"><b><u>What I learned from this trade?</u></b><o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">1.
</span><!--[endif]--><span style="color: #222222;">Never sell option to cover your losses. It’s a losing game. If
you would like to hedge your position make sure that you have a purpose and
make calculations and make sure that options would last long till expiry.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">2.
</span><!--[endif]--><span style="color: #222222;">If trend goes against you don’t fight it by selling out of money
options by thinking that a losing position would come down and you could make
money in options as well as in futures. Trading is not that easy.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">3.
</span><!--[endif]--><span style="color: #222222;">Covered call, Selling protection and other stuff are most of the
time a losing game. Never do that. Its only for losers like me and now I
understood that I don’t want to be a loser.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">4.
</span><!--[endif]--><span style="color: #222222;">Cut your losses short, Cut your losses short and cut your losses
short. This is the most important rule in trading. If you don’t do this you
would probably have sleepless nights like me and suffer in trading.<o:p></o:p></span></span></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">5.
</span><!--[endif]--><span style="color: #222222;">Don’t be afraid to be wrong. Losses are part of the business and
don’t think that you are fucking smart by selling options. Markets would simply
screw you right, left and center and give you sleepless night that exactly
happened for me.<o:p></o:p></span></span></div>
<div style="text-align: left;">
<br /></div>
<div style="background-color: white; background-position: initial initial; background-repeat: initial initial; margin-left: 0.5in; text-align: left; text-indent: -0.25in;">
<!--[if !supportLists]--><span style="font-family: Trebuchet MS, sans-serif;"><span style="color: #222222;">6.
</span><!--[endif]--></span><span style="color: #222222;"><span style="font-family: Trebuchet MS, sans-serif;">Accept your mistake, book your loss and move on. This is as
simple as that. Never and ever try to be smart.</span><span style="font-family: Arial, sans-serif; font-size: 10pt;"><o:p></o:p></span></span></div>
</div>
Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-466298068608254135.post-38641974558766270272013-06-19T22:27:00.001-07:002013-06-19T22:27:11.798-07:00Fed Said Nothing<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Yesterday Fed announced its policy and there has been no
change in its stance and its committed to contribute $85B to mortgage markets.
Markets sold off. Financial pundits appeared in TV and they gave new theory
which is complete non sense and its bullshit. </span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Everyone on TV said that Fed is going to taper immediately
and they are simply going to wind up the support. Bernanke has clearly said
that he would wind up the support gradually on the basis of data. He added that
if data doesn’t support fed is not going to withdraw its support. </span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">He also added that he would start tapering on slow pace
based on data and only after tapering he would look on to withdraw QE and only
after that he would think about raising interest rates. Whereas pundits have
conveniently forgotten everything and they simply shouted that he has signaled tapering
which is complete ignorance or purposely shouting for some unknown interests.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">INR has depreciated almost 2% against USD and I believe this
is complete panic. This is not 2008 and if something goes wrong Fed would
simply pump more money and could continue to support system. Secondly there has
been no disorderly default like Lehman Brothers that happened in 2008. </span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">If a trader has been in panic situation he would never see
money making opportunities. There has been lot of money making opportunities
but that has to be done in intelligent manner by taking small trades and go
aggressive on confirmation.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">GBP, Euro has been trading at higher levels and if you watch these counters you would simply identify that the raise of both
these currencies happened on not so higher volumes and are completely speculative in
nature. This is bound for small correction and one could try in these couple of
currencies. </span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Its always advisable to trade small position in order to
keep our emotion intact despite panics that are bound to happen in the markets.
</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<strong style="font-family: Verdana, Arial, Helvetica, sans-serif; font-size: 12px; line-height: 20px;"><span style="font-family: 'comic sans ms', sans-serif; font-size: x-small;"><span style="text-decoration: underline;">Disclaimer:</span> Do it at your own risk and don't blame me for your losses.</span></strong></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-14977563433545796022013-06-15T00:39:00.002-07:002013-06-15T01:28:44.609-07:00Rally on cards!<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;">I've been reading negative articles on daily basis. From Oz to US there has been fear mongering and doom happening in MSM and on blogs. Everyone in this world are talking about tapering of fed and they have started speaking the eventual crash that is bound to happen in matter of months and could witness the situation or scenario that would be much worse than 2008. I'm not well versed in Economics ( Not in anything, but that is different) and I don't know much about economies of world. With this kind of negative sentiment there is a possibility of huge rally and its right in the corner. If you have intention to short the market it would be better to wait for couple of days before going to short the market. </span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;">Trends and charts simply looks negative. I don't have any debate on that. But I always think like " There are always trends in the markets and there is Federal Reserve". </span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;">I'd like to present couple of scenarios on the market. If fed tapers we could witness a crash that could make 2008 as a laughable one because there would be huge long unwinding which is much more dangerous than shorts in the markets. After long winding we could witness shorts that could tear the markets. Dow could very much go to the place where it has started at 2009. Few of the pundits ( whom I have great respect and they are highly educated, highly experienced and have lot of sense in their opinion) believe that Dow could correct not more than 20% and I simply differ with them purely on the basis of sentiment. Sentiment is important for the markets and if fed tapers it would simply break the sentiment across the world and there would be nothing but a " Global Sell off". I don't expect anything less than that. We could witness huge problem in mortgages and bond markets that could add further pain and could possibly face liquidity crisis which would contribute to insolvency of the system. I don't have second thought in this issue and this is going to happen only because of sentiment and sentiment is much powerful than common sense. All these things are known to everyone in the world and I'm not writing anything intelligent or unique that is not known to world. Unprecedented crisis is bound to happen if fed tapers their commitments from the markets. </span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;">On other side. Fed have been watching the action in the global markets. All EM currencies have depreciated almost 10% against USD and bond markets have been sold off. Central banks of EMS are simply waiting to see how things pan out and they simply don't know how to respond in the markets. Fed understands that this is not just going to be a carnage in stock markets but its going to carnage in all asset classes across the world. If EM currencies witness huge sell off it would eventually affect the profits of Fortune 500 companies that are having operations across the world and particularly in Emerging Countries. Secondly just put yourself in the shoes of Ben Bernanke. He simply supported the markets and has made things calm in mortgage, debt and capital markets for the past 5 years. Without witnessing comfortable unemployment rate, Inflation and GDP its simply unnecessary to withdraw support from the system and Fed would never do that. They simply don't want to see everything in dust in matter of months. They can't accept things going to dust because they have worked hard for the past 5 years and they simply can't afford to allow to go burst in matter of months or even minutes. Fed simply understand that sentiment itself would simply create a catastrophe and they know that their hard work would be put in vain in minutes. </span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;">It could atleast take a decade for fed to taper the markets. As of now I don't see any evidence or need for the fed to taper the markets.</span></span></div>
<div>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><strong>Important Note:</strong> Withdrawing QE and tapering are completely different. Please don't compare tapering with Withdrawal of QE.</span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></span></div>
<div>
<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><strong><span _mce_style="text-decoration: underline;" style="text-decoration: underline;"><span style="font-family: Trebuchet MS, sans-serif;">Meaning - We could probably witness huge rally of 5% before getting sold off!</span></span></strong></span></div>
<div>
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<span _mce_style="font-family: 'comic sans ms', sans-serif; font-size: small;"><span style="font-family: Trebuchet MS, sans-serif;"><strong><span _mce_style="text-decoration: underline;" style="text-decoration: underline;"><span _mce_style="color: #ff00ff;" style="color: magenta;">Disclosure:</span></span></strong> I've taken position and I could <strong>probably make</strong> profits on rally as well as on sell off. I can't simply afford to sit in my opinion of continuing the support,because I won't get bail out from Fed. I've already taken the position.</span></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-11928499914561363482013-05-15T23:56:00.000-07:002013-05-15T23:58:36.699-07:00Biggest trading mistake - USD/INR<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">USD/INR has been money making bet for most of the times. Last time I lost Rs.45000 was before 3 months. Rs.45K is definitely a big loss and recouped that with the help of trades that was made in equities. I use to lose money in trading stocks. So I simply stopped trading stocks and instead trade futures and hedge options when the trade goes against me. I had that Rs.45K loss and vow not to make it in my trading. For the last 3 months I didn't had too much losses (had minor one of Rs.5k-10K) and was making consistent money in my trading. And there is not much difference between an amateur trader and a drinker since both of them don't keep their promises. I made ( I still consider me as an amateur after having experience of 7 yrs) my mistake in USD/INR in a big manner. Initially during the month of April I've been short USD/INR around 54.60 and when it touched 54, I was sitting in huge profits which I didn't booked and was planned to doubling it on the expectation that USD could go down further despite noticing its strength against all the currencies in the world. I thought INR is different and trend made me to believe that it could notch down further. I was writing call options and also have been writing out of money put options. After a particular point USD simply stopped going lower and it was trading above 54 levels. This was the crucial sign which I completely missed and this sign has been warned by my partner and I was simply over confident of my trades since we booked lots of profits in USD trade. I was simply sitting in the profits and I didn't booked my profits. We made couple of right things and due to over confidence and arrogance ( definitely in my part) I stayed short in USD. My only problem was not the short trade I had, but the magnitude of the trade that has made me to face such a precarious manner which I faced today and closed all my positions. I was having too many lots of USD which was completely huge and was trying to console myself that I would get it eventually right (what a fucking asshole I'm). Well last time when we had loss of 45k, I was completely patient because mistake was done by my partner and he become completely bull on USD whereas I was level headed and reiterate him that USD was a range bound trade. Finally we succumbed to his pressure and covered the position and we had a loss of 45k. This time he was simply remembering about the loss and was constantly asking me to book partial profits and I become too greedy to post huge profits. Short squeeze happened, we did too many things and we infact did right things, but eventually got confused and simply lost our way and end up making huge losses. This loss happened simply because of me and he warned me lot of times and despite that I simply discredited his warning due to my over confidence. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Only reason why we didn't end up in huge loss is because luckily I caught the trend in futures and made huge profits. When I made calculations, I end up giving almost 60%-65% of my profits in this USD/INR trade. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;"><b><u>Lessons:</u></b></span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">1. You're good only up to your next trade, which means you are an ordinary joe and you have to prove you are worth in every trade.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">2. Position sizing is important for any trade. Don't have too many positions which is beyond your manageable capacity.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">3. Never and ever be arrogant or over confident. These two qualities would make you bankrupt. Luckily my losses got compensated due to the fact that I've made decent profits in index futures.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">4. If some one warns you make sure to listen to it ( not gyans that have been given in TV like European problem or US problem rather genuine trading positions and booking profits) and verify the credibility and truth in that warning. My partner insists me to book the profits and have been continuously asking me to prune my positions. I never listened to him and eventually lost lot of money in a trade.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">5. Due to huge size of my position I reacted for 15-25 pip move on daily basis(both the sides).</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">6. Over all this is really a biggest sucker trade in my life. My previous one was Unitech, but this USD/INR has beaten it since Unitech was made in my first year of my trading whereas this USD/INR has been made on my 7th year of my trading after managing more than $25Million in assets and supporting more than $600Million. This is ridiculous. </span><br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-91519420714527940822013-05-07T00:51:00.000-07:002013-05-07T00:51:38.272-07:00Big miss of big trends<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">I use multi strategy to trade for me and my clients. I predominantly use trend following for my trades and I'm ashamed to say that I'm a trader who trade on trends. I missed one of the biggest trend which is Reliance Communication. I traded in and out and made decent money in that counter. However I missed huge trend and the stock rallied more than 60% in just a matter of 45 days and I've clearly missed the trend. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I also missed Reliance infra and Reliance capital that are from the staples of ADAG group and none of the trend traders would forgive me for my sin. I've missed biggest trending stocks and I'm calling myself as Trend trader. WTF! I need to grow up and grow up massively in terms of intelligence in following big trends. Hope I should and I would and anyhow should and would shouldn't have any place in trading. That is for another day.</span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-87108285168350261772013-04-23T23:09:00.000-07:002013-12-02T09:41:52.901-08:00Why following Warren Buffett won't be good for (y)our trading<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;"><b><u>For Reader's note :</u></b> I guess it is better to put disclaimer before starting this article. Please read this completely before coming into conclusion. If you are too sensitive about Warren please read why following Warren Buffett is not good for my (means Guruprasad) trading.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Warren Buffett is an icon of Value Investing and he is so successful that most of the books on value investing has been written based on his success with stock markets. After reading few books I come to conclusion that Mr. Warren Buffett could never be my role model to make money in markets.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">There are many reasons and I'd like to put all those reasons.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">1. Warren Buffett was born at right time and at right place to reap the success of capitalism whereas I've not got that kind of luck.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">2. Warren Buffett is a genius, hard worker and he could do complex mathematical calculations in matter of time whereas I'm a mere mortal and have got failed in my Math Examination ( I got failed in my Higher Secondary Final Examination).</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">3. Warren Buffett is a king of complex analysis and he could easily anticipate things that are no way near to my imagination. I don't even know what would happen to companies that are bought by me in markets ( I don't even know what would happen to those companies the very next day of my purchase).</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">4. Warren Buffett is a greatest stock picker and I'm a worst stock picker.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">5. Warren Buffett is a guy who could easily pick up a phone and could make a call to CEO of a company which he would like to invest for his next winner. I can't even make a call to a GM of a company and even if I make a call only an employee from investor relations could attend my call and answer my questions regarding the company which would be of no use because it was already known to thousands of other people who intends to make investment in a particular company. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">6. Warren Buffett could be bailed out by Federal Reserve whereas in my case I've to pay myself for my mistakes. I know few of you guys might not accept this. In 2008, Warren Buffett had stakes in lot of financial institutions that are on the verge of collapse(WFC is a prime example). He simply lobbied with others and protected his investments. I don't care whether you guys accept this truth.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">7. Warren Buffett is so influential and his word could make a stock run in few percentage points whereas no one knows me. Not even a neighbour knows that I trade in stock markets and trade for living. </span><br />
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<span style="background-color: white; line-height: 17px;"><span style="color: blue; font-family: Trebuchet MS, sans-serif;"><b>"The most important thing is to have a method for staying with your winners and getting rid of your losers."-Gary Bielfeldt</b></span></span><br />
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<span style="font-family: Trebuchet MS, sans-serif;"><b><span style="background-color: white; border: 0px none; margin: 0px; padding: 0px; text-align: justify;"><em><span style="line-height: 20px;">If a trade doesn't look right, I get out and take a small </span></em></span><span style="background-color: white; font-size: 13px; line-height: 20px; text-align: justify;">loss.</span><span style="background-color: white; border: 0px none; color: red; line-height: 20px; margin: 0px; padding: 0px; text-align: justify;">-Gary Bielfeldt</span></b></span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I make my living by trading on stock markets. I've my method to trade stocks and this article clearly states that I'm not a value investor because I don't even know how to value stocks and I don't even know what would happen to the companies that are bought in stock markets. I don't have the knack of anticipating future course of markets and business of companies that are traded in stock markets. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">In order to overcome my weakness I simply follow simple mathematical calculations of 30 Day Simple Moving Average for Short Term Trading, 50 Day Simple Moving Average for Mid Term Trading and 10 Months Moving Average for Long term trading. I normally trade on 30 Day and 50 Day and seldom trade on 200 day average. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">If it goes below any of these averages I simply short the stocks and have stop loss and If it moves above any of these averages I simply buy the stocks and also have stop loss for those trades. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">If my trade doesn't move for a week I simply cut my position and look for another trade. I firmly believe that this seems to be best method for mediocre like me to make money in stock markets. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I still read Warren Buffett. Now a days I don't have any expectations or false thinking on becoming next Buffett. </span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I never pretend to be a value Investor because I simply cut my losses short and accept that I've made mistake. I know that I'm not a value investor like Warren Buffett. This understanding helps me to accept my mistake and make decent money in stock markets. Most importantly I love the fact that I'm a mediocre and an obscure stock picker.</span>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-36249627916768044192013-04-15T02:34:00.001-07:002013-04-15T02:34:13.723-07:00Infy - This is going to be test of skills and nerves<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">I wrote about Infosys and today huge short covering happened. I have made some adjustments and have kept the profits. I'll put that in post. I guess INFY would make me to work till this expiry. Trend is clearly downside. But lets wait and watch how things work. </span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-37321246292879225582013-04-12T23:26:00.001-07:002013-04-12T23:26:45.946-07:00INFY - HOW I FUCKED UP THE POSITION AND EVENTUALLY MADE IT IN MY FAVOR - II<div dir="ltr" style="text-align: left;" trbidi="on">
<b><span style="font-family: Trebuchet MS, sans-serif;">My Trades as of Thursday 11.04.2013</span></b><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Infy - 2804 May Long</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Infy - 2184 April Short</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Infy - 2700 Call Option Sold at 190</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Infy - 3000 Call Option Sold at 35</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Infy - 2800 Put Option Sold at 115</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Infy - 2600 Put Option Sold at 35</span><br />
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<b><span style="font-family: Trebuchet MS, sans-serif;">My loss on Friday 12.04.2013</span></b><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I cleared my Infy May long position 2434</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">I covered my 2700 call option at 5</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I covered my 3000 call option at 1.50</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I covered my 2800 put option at 358.50</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I covered my 2600 put option at 172</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;"><b><u>Let us calculate the profit and loss ( Loss indeed)</u></b></span><br />
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<span style="color: #38761d; font-family: Trebuchet MS, sans-serif;"><b>2700 Call Option 190 - 5 = 185 Profit</b></span><br />
<span style="color: #38761d; font-family: Trebuchet MS, sans-serif;"><b><br /></b></span>
<span style="color: #38761d; font-family: Trebuchet MS, sans-serif;"><b>3000 Call Option 35-1.50 = 32 Rounding up Profit</b></span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><span style="color: #38761d;"><b><br /></b></span></span>
<span style="font-family: 'Trebuchet MS', sans-serif;"><span style="color: #38761d;"><b>Total Profit = 185+32 = 217</b></span></span><br />
<span style="color: red; font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="color: red; font-family: 'Trebuchet MS', sans-serif;"><b>2804 - 2434 = 370 Loss on Futures</b></span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><b><br /></b></span>
<span style="color: red; font-family: Trebuchet MS, sans-serif;"><b>2800 Put Option 358.50-115 = 244 Rounding Up Loss</b></span><br />
<span style="color: red; font-family: Trebuchet MS, sans-serif;"><b><br /></b></span>
<span style="color: red; font-family: Trebuchet MS, sans-serif;"><b>2600 Put Option 172- 35 = 137 Loss</b></span><br />
<span style="color: red; font-family: Trebuchet MS, sans-serif;"><b><br /></b></span>
<span style="color: red; font-family: Trebuchet MS, sans-serif;"><b>Total Loss = 370+244+137 = 751</b></span><br />
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<span style="font-family: Trebuchet MS, sans-serif;"><b>Total Net Loss = 751 - 217 is equal to 534 is the net loss</b></span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="color: #444444; font-family: 'Trebuchet MS', sans-serif;">I kept my short in Futures. I shorted April Infy Futures at 2815 and now Infy is trading at 2300. This is 515 Points.</span><br />
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<span style="color: #444444; font-family: 'Trebuchet MS', sans-serif;">I sold 2400 Call Options(3 Lots) and got 200 Points ( Price rates) assuming that I would be keeping it till expiry. I might cover it around 3 bucks, but I would be writing further calls for 30 bucks and 20 bucks to compensate loss of 3 bucks. I always approach Infy in cautious manner and would write calls only above 100 points to safeguard against any knee jerk reaction. On top of that my loss on put option could go down if Infy goes up during the day.</span><br />
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<span style="color: #444444; font-family: Trebuchet MS, sans-serif;">I sold 2450 Put Options at 65 and in Total I've got 265 Points.</span><br />
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<span style="font-family: 'Trebuchet MS', sans-serif;"><b>While doing all these, Infosys was trading around 2450 and May month futures was at substantial discount (Eventually got adjusted during the close)</b></span><br />
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<span style="font-family: 'Trebuchet MS', sans-serif;"><b><u><span style="color: #674ea7;">How I calculate </span></u></b></span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">2815 - 534 = 2281 has been taken as my shorting price.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">2815 is the price which I originally shorted Infy.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">I reduced 534 loss and made my price as 2281.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">In 2281, add 200 Points and it would come to 2481. I sold 2450 Put option at 65 which means my price of short has gone to 2515.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Now Infy is trading at 2300 and in my future position I'm in profit of 215 Points</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">In my 2450 Option there has been a loss of 150 Points. In total I've got 65 Points which would give me a profit of Rs.8000. </span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">While making the decision I was in the loss of more than 20K, but eventually sat and made the decision. I believe I hold my nerves and made my calculation and eventually got it right. Its a bit of luck and calmness that made me to turn around my position in my favour. The game is still not over. Let's see how Infy reacts till expiry.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">I guess at this point of time I have got the grip over my position and hopefully would continue till expiry. I learnt hell lot of lessons in this trade and I'll line it up.</span><br />
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<span style="font-family: 'Trebuchet MS', sans-serif;"><b><u>Lessons learned in Trade.</u></b></span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">1 . Never write options during the event that would have parabolic outcome. Candidly speaking I never expected 20% drop in Infy and that's why it has happened.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">2. Its always better to trade after results. One could always have visibility and more probability to trade the stock after results.</span><br />
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<span style="font-family: 'Trebuchet MS', sans-serif;">3. Don't panic while you are in loss. Be Calm and see how you could reduce it than simply losing patience.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">4. Have self belief. Nothing is end of the world. But make sure that you have total risk management in place while making a trade.</span><br />
<span style="font-family: 'Trebuchet MS', sans-serif;"><br /></span>
<span style="font-family: 'Trebuchet MS', sans-serif;">5. Please be careful of people who say its easy to make money trading on results. Its always expect the unexpected.</span><br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-39681503451431000252013-04-12T06:22:00.002-07:002013-04-14T00:10:40.045-07:00INFY - HOW I FUCKED UP THE POSITION AND EVENTUALLY MADE IT IN MY FAVOR - I<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Infosys is one of the India's largest IT company and it has tremendous craze among IT employees and students in the campuses across India. It also has craze among traders and I've not seen anyone going short in that counter.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<br />
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Infosys – I always try my hand during the time of results
and not even once I got it perfectly right in my call. I might go on right path
with long but I always have an option (derivative instrument) attached to it
(meaning – I limit my profits by simply writing options).</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">Before going to the main picture I’ll tell you what happened
last time. I went long and ofcourse I wrote an option and I limit my profits to
Rs.100 (Rs.12500). I never anticipated huge short covering rally and that
exactly happened in Infy. LIC made blockbuster profits by selling Infy around
Rs.2900 levels which they bought atleast 30% below their selling rates. </span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">During the result day I went long through futures and wrote
call options. By this strategy I made Rs.10k and in total I made Rs.25k. If I
didn’t fucked up with the hedge I could have made more than 50k and that is how
I work in the markets. I’m too much afraid to carry unhedged positions during
the times of big results like Infosys.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">This time initially I went short around 2818 and wrote 2800
Put Option at 115. After couple of days I went long on May month futures at
2804 and wrote 2700 Call option at 190. After a day I wrote 3000 call option
around 35. Yesterday I wrote 2600 Put Option at 35.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">By this time you know how I’ve been fucked up in my
position.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">I was expecting neutral results from Infy and I thought it
would only by 5%-10% (on the worst case) move on either side. Today morning I
watched the results and I thought Infy could correct not more than 7%-10%. In
that anticipation I go to my office and I had a shocker awaiting me.</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">When I made calculations I was sitting in the loss of 30k. How to recover?</span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">I sat down and made huge calculations and eventually I believe I got it right. What I do is the lesson that is important for me.</span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<span style="font-family: Trebuchet MS, sans-serif;">I myself couldn't believe I got right and eventually got it right and I was actually sitting in the profit of Rs. 8 k. I'll explain in part 2 of this post.</span></div>
<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: Trebuchet MS, sans-serif;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1TKZYLvuA-iT5ZRKqYYMuvFhewZDHUA-DqVNlRE3DzdfAW30NeCpYmSQboOzO5w6-qd1UcdJIOYK64JWDr9bkZco3ooZBJDyF2nE80g7hvgJhruuYrhjZnM3ttIpeuTm_9zUXXLnTtJE/s1600/INFY-2.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1TKZYLvuA-iT5ZRKqYYMuvFhewZDHUA-DqVNlRE3DzdfAW30NeCpYmSQboOzO5w6-qd1UcdJIOYK64JWDr9bkZco3ooZBJDyF2nE80g7hvgJhruuYrhjZnM3ttIpeuTm_9zUXXLnTtJE/s320/INFY-2.jpg" width="320" /></a></span></div>
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<div class="separator" style="clear: both; text-align: center;">
<span style="font-family: Trebuchet MS, sans-serif;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrdb950FMQRBjoqbNSZ9Abgbve4rCxuE2cQuDbE-ppwuUgNwO0IZ6KhjBtS3kCR4EfXpNahvMbOZ4mBYH5iS3xxBNn1vR-iUNPpEDEcBk5Qkt5W5OsN5JPJqw9FvzAuBcZZYgUKxdZYPg/s1600/INFY-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="191" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrdb950FMQRBjoqbNSZ9Abgbve4rCxuE2cQuDbE-ppwuUgNwO0IZ6KhjBtS3kCR4EfXpNahvMbOZ4mBYH5iS3xxBNn1vR-iUNPpEDEcBk5Qkt5W5OsN5JPJqw9FvzAuBcZZYgUKxdZYPg/s320/INFY-1.jpg" width="320" /></a></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-60993120479289613572013-03-21T23:31:00.000-07:002013-03-21T23:31:09.344-07:00Chaos in Trading<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">Today I lost Rs.3000 for trading too many times despite the market being at same place. Small volatility of 15 Points is giving me a panic. What has happened to me? Small volatility is making me to panic despite having experience for 5 years. I'm thinking too much and that is the reason for stupid behavior. At this point of time, I've decided to shut down my computer and planned to read a book written by the Great Martin Zweig titled Winning on Wall Street. I'm looking like a fool and believe that my thinking has been too much erratic in the recent times. Only way to stop this is to stop trading and start reading books. If you are in relentless pursuit to do something in a market, you would probably lose money. </span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-16660308860517933362013-03-20T22:29:00.000-07:002013-03-20T22:29:44.799-07:00Most of the Nifty stocks are weak<div dir="ltr" style="text-align: left;" trbidi="on">
<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 444px;">
<colgroup><col style="mso-width-alt: 3547; mso-width-source: userset; width: 73pt;" width="97"></col>
<col style="mso-width-alt: 3254; mso-width-source: userset; width: 67pt;" width="89"></col>
<col style="mso-width-alt: 3145; mso-width-source: userset; width: 65pt;" width="86"></col>
<col style="mso-width-alt: 2048; mso-width-source: userset; width: 42pt;" width="56"></col>
<col style="mso-width-alt: 2157; mso-width-source: userset; width: 44pt;" width="59"></col>
<col style="mso-width-alt: 2084; mso-width-source: userset; width: 43pt;" width="57"></col>
</colgroup><tbody>
<tr height="20" style="height: 15.0pt;">
<td class="xl67" height="20" style="height: 15.0pt; width: 73pt;" width="97"><span style="font-family: Trebuchet MS, sans-serif;"><b>Symbol</b></span></td>
<td class="xl65" style="width: 67pt;" width="89"><span style="font-family: Trebuchet MS, sans-serif;"><b>52 Week High</b></span></td>
<td class="xl65" style="width: 65pt;" width="86"><span style="font-family: Trebuchet MS, sans-serif;"><b>52 Week Low</b></span></td>
<td class="xl65" style="width: 42pt;" width="56"><span style="font-family: Trebuchet MS, sans-serif;"><b>30</b></span></td>
<td class="xl65" style="width: 44pt;" width="59"><span style="font-family: Trebuchet MS, sans-serif;"><b>50</b></span></td>
<td class="xl65" style="width: 43pt;" width="57"><span style="font-family: Trebuchet MS, sans-serif;"><b>200</b></span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ACC</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,545.35</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,104.05</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1282 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1316 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1336 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">AMBUJACEM</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">223</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">135.75</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">193 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">195 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">191 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ASIANPAINT</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">4,829.65</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">3,001.00</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">4529 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">4464 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">4045 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">AXISBANK</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,516.05</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">922</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2203 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2041 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1812 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">BAJAJ-AUTO</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,229.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,425.10</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1282 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1316 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1336 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">BANKBARODA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">899</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">605.55</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">755 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">801 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">746 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">BHARTIARTL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">370.6</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">215.8</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">318 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">329 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">299 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">BHEL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">297.95</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">195.1</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">207 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">216 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">225 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">BPCL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">789.35</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">315</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">394 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">396 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">364 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">CAIRN</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">381</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">285.8</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">308 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">318 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">326 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">CIPLA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">435</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">286.3</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">385 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">395 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">369 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">CNX NIFTY</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">6,111.80</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">4,770.35</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1282 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1316 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1336 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">COALINDIA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">386.25</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">289.4</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">332 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">341 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">349 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">DLF</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">289.25</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">169.75</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">270 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">261 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">222 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">DRREDDY</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,970.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,526.40</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1835 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1867 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1741 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">GAIL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">397.2</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">302</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">337 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">348 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">354 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">GRASIM</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">3,510.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,210.00</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">3018 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">3041 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">3001 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HCLTECH</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">785.9</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">440.6</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">715 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">696 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">594 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HDFC</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">882.3</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">610.5</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">799 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">806 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">754 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HDFCBANK</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">705.5</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">482.2</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">650 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">656 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">621 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HEROMOTOCO</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,279.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,615.00</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1706 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1753 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1874 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HINDALCO</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">144.9</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">93.85</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">106 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">113 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">116 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">HINDUNILVR</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">580.45</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">380</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">455 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">472 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">496 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ICICIBANK</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,232.00</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">767.4</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1117 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1142 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1027 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">IDFC</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">185.3</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">110.35</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">156 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">161 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">151 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">INFY</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">3,009.80</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,060.55</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2850 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2775 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">2450 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ITC</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">310.9</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">206.1</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">298 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">294 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">275 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">JINDALSTEL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">627.7</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">320.4</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">372 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">402 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">408 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">JPASSOCIAT</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">106.7</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">58</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">73 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">81 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">82 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">KOTAKBANK</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">697.2</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">510.5</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">666 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">658 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">617 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">LT</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,720.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,106.05</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1462 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1505 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1492 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">LUPIN</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">631.95</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">490.35</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">597 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">595 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">578 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">M&M</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">976</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">621.1</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">890 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">900 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">827 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">MARUTI</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,639.00</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,051.00</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1487 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1513 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1343 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">NTPC</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">181.3</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">137</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">150 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">153 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">159 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ONGC</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">355</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">227.4</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">320 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">318 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">283 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">PNB</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,035.00</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">659.2</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">841 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">858 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">798 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">POWERGRID</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">124.7</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">95.2</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">109 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">110 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">114 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">RANBAXY</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">578.4</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">370.8</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">416 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">444 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">497 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">RELIANCE</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">955</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">673.05</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">853 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">861 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">801 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">RELINFRA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">667.9</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">415</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">468 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">497 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">502 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">SBIN</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,551.70</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,802.30</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2239 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">2236 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">2184 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">SESAGOA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">215.1</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">145</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">166 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">176 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">180 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">SIEMENS</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">840</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">482.35</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">567 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">604 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">664 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">SUNPHARMA</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">839.8</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">535.9</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">784 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">761 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">609 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">TATAMOTORS</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">337.4</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">203.05</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">296 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">304 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">267 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">TATAPOWER</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">113.15</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">84.6</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">97 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">101 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">102 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">TATASTEEL</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">482.25</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">333.35</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">370 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">389 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">399 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">TCS</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,597.60</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,047.65</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1462 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1405 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1310 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">ULTRACEMCO</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">2,154.20</span></td>
<td align="right" class="xl63"><span style="font-family: Trebuchet MS, sans-serif;">1,342.00</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1908 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">1919 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">1806 </span></td>
</tr>
<tr height="20" style="height: 15.0pt;">
<td height="20" style="height: 15.0pt;"><span style="font-family: Trebuchet MS, sans-serif;">WIPRO</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">456</span></td>
<td align="right"><span style="font-family: Trebuchet MS, sans-serif;">295</span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">417 </span></td>
<td align="right" class="xl64"><span style="font-family: Trebuchet MS, sans-serif;">413 </span></td>
<td align="right" class="xl66"><span style="font-family: Trebuchet MS, sans-serif;">383 </span></td>
</tr>
</tbody></table>
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I put up this data before couple of weeks and took positions and made some profits and also booked few losses. Over all most of the Nifty stocks looks bad and have been trading below 200 day simple moving average. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">IT sector is the stand out. Sun Pharma is a clear winner in Pharma sector. HCL Tech, TCS, Infy and Wipro are looking strong. Banks looks very weak. Reliance Infra is the weakest stock in the index.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">I don't know why the hell NSE is having Asian Paints in its index. Volumes are very thin and float is minuscule and it could be easily manipulated. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">There might be some bounces, but it should be used as a selling opportunity. I'd be a buyer only when index closes above 52 week high. </span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<br /></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-32857027609214104082012-12-19T21:11:00.000-08:002012-12-19T21:11:05.772-08:002 trades eating all the profits<div dir="ltr" style="text-align: left;" trbidi="on">
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<div style="font-family: "Trebuchet MS",sans-serif;">
<span style="font-size: 10pt;">Stock market is a
profession where you would be learning a lesson on daily basis. I guess this is
one of the reasons why I'm staying humble in my life. For the first 15 days, I
made 25% gains on my capital. I took one big position and from then I was not
able to manage it. Just imagine two trades wiping out your 25% gains. This is
one of the biggest blunders I’ve committed in my trading. Couldn’t digest what
I’ve done with the trades. I know that I should cut my losses. I guess I should
go back to school and learn how to maintain discipline in my trading. </span></div>
<h2 style="font-family: "Trebuchet MS",sans-serif; text-align: left;">
<b style="mso-bidi-font-weight: normal;"><u><span style="font-size: 10pt;">Lessons:</span></u></b></h2>
<h2 style="font-family: "Trebuchet MS",sans-serif; text-align: left;">
<span style="font-size: 10pt;">Never take a
position that is not possible to manage.</span></h2>
<h2 style="font-family: "Trebuchet MS",sans-serif; text-align: left;">
<span style="font-size: 10pt;">Always think
negative once you take your position. </span></h2>
<div style="font-family: "Trebuchet MS",sans-serif;">
<br /></div>
<div class="MsoNormal" style="font-family: "Trebuchet MS",sans-serif;">
I’ll explain both these lessons. Managing a position is
important in stock market. One should have reasonable control over position. We
should make sure that we shouldn’t afford to lose more than 2% of the capital
(Total Capital). In my case I was just complacent ( 25% profits in less than 15
days) and took a position that instantly became out of my control and didn’t
had the common sense to book the loss once I saw the weakness in the particular
position. </div>
<div class="MsoNormal" style="font-family: "Trebuchet MS",sans-serif;">
If you didn’t have the inclination to book loss then you’re
preparing for the disaster. This is one of the biggest lessons I learnt in this
month. I have taken a vow not to do these kinds of trades in my life time and I
believe I wouldn’t do that in my trading.</div>
<div class="MsoNormal" style="font-family: "Trebuchet MS",sans-serif;">
It is important to develop negative thinking in trading. I
know I would receive some rants, but let me explain the thesis behind this
thinking. If a trade goes according to our plan then there is no problem for us
to make money in the markets. Only when it goes against us, we should have a
strategy to manage it and comes out with minimum loss. I’d recommend traders to
always think negative about their positions and dig deep into the negativity to
find solution for the problem. I didn’t have this negativity and as a result I’ve
given up all my profits I made in just couple of trades. It’s a pain and I’m
feeling like an Ass****!</div>
<div class="MsoNormal" style="font-family: "Trebuchet MS",sans-serif;">
<br /></div>
</div>
Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-466298068608254135.post-6653605907857909342012-10-26T07:45:00.000-07:002012-10-26T07:54:15.097-07:00HOW I SCREW UP WITH ULTRA SHORT ETFS<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: left;">
<br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">One of the sucker stories in my trading career (My job at Muscat, where I managed $25 Million and supported almost $600 Million). If someone speaks with me, they wouldn't believe that I've made such a pathetic trade in my life. But that’s the beauty of stock markets. You never know until someone really discloses their real position. Here it is –Enjoy</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">I guess I took a large position in Ultra short. Ultra short on basket of ETFs – I’ll name them – SKF, SDS, DXD, SMN and that’s it. Before going into story I just want to explain why this would become a loss making trade even before taking a position.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">All these Ultra shorts are completely asymmetrical trade and it’s identical to buying deep out of money calls in which call price remain same despite rise in the prices of shares. If markets go down, all these ETFs would go up twice and vice versa. If markets go up it surprisingly goes down too much and it was not at all designed properly by the issuers.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">I’d rather prefer to short than going long on these kinds of instruments. Well, now coming into the point.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">I took total of almost $700,000 position (Managed $25Million) in the mentioned ETFs. My superior (Manager) is completely against shorting the market ( Well he is actually an Ultra bull who completely missed 2008 downturn as well 2009 raise of the markets) and he was rightly critical about my trade. In couple of day, position was up by 5% and he asked me to book the profits (He was right, but I didn’t do that). I kept that position and eventually went on to keep and saw my position value bleeding by more than 30% in couple of months.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">In the mean time, I was right in my short call of EUR/USD at 1.51 and rightly predicted the problems of Europe and asked him to take position in couple of structured instruments (Please check www.investopedia.com for the meaning of structured instruments). He didn’t took that because I got wrong in Ultra shorts and he took some position which he didn’t disclose properly ( He is one of the worst person to work and that is the reason why I left the job, despite performing reasonably well and I’ll put that in a separate write up) and he didn’t took the position. In January 2010, problem in Greece happened and markets sold off and my ETFs got into the place where I bought before couple of months (Break Even point in simple English).</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">From November and December I asked him to take lot of positions in stocks which he took but didn’t disclose properly to me. I asked him to take position in Apple around$200, Amazon around $100, basket of Agricultural stocks (I clearly predicted Terra as a takeover candidate and it was taken over by CF industries in the month of Jan, 2010) and other possible takeover targets and other stocks. He took that but he didn’t disclose me properly. He screwed me right and left for my ultra short position and he keep on saying that till I put my papers (I made huge money on McDonalds, and almost all Agri stocks, Broadcom, Amazon, and most importantly in Apple for my organization) from the organization.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">I was carrying the position for another 4 months and there comes May 2010. I was seeing few erratic movements in the market and I predicted a knee jerk reaction (didn’t discussed within organization but to my close friend) in the markets. Charts also seem to validate that event. There is a technical analyst in our organization and I discussed with him and sent a write up asking him to take further position in that for a short time.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">On that day he simply blow down my confidence (Despite that I was confident) by filthy words and he was not interested to add any positions. D-day came and Dow crashed 1000 points (Flash Crash), but nothing happened in my account.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">Lessons:</span><br />
<span style="font-family: Trebuchet MS, sans-serif;"><br /></span>
<span style="font-family: Trebuchet MS, sans-serif;">1. Don’t make asymmetrical bet without understanding the underlying instruments</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">2. Always use stop loss irrespective of your confidence in a particular trade</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">3. If you get opportunity to minimize the loss and get out of the trade, use that opportunity and exit from the trade.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">4. Don’t let your manager to talk about other trades that are no way related to new bets you are making for the organization. Say FUCK OFF in his face, if not it would affect your performance.</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">5. Ask for transparency in the bets you’re making for the organization. Ask for complete P&L with your manager (Don’t adjust with him in this regard. I did that, but eventually I thought enough is enough and quit the company).</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">6. Don’t work under Lucky Fool (My manager is a lucky fool than intelligent loser).</span><br />
<span style="font-family: Trebuchet MS, sans-serif;">7. If you didn't follow the above six lessons, your bonuses and performances would be swallowed by your so called Manager whose primary aim is to screw his subordinates and put the trades in his own name and make money only for him.</span><br />
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<span style="font-family: Trebuchet MS, sans-serif;">Note: I felt deep pain while writing about this particular incident. I dreamt of conquering world with the job I got in Muscat. I really thought I could do lot of things and make money for myself and my organization. I really worked very hard and made lots of money (This Ultra short is the only losing trade- This is the real truth and I could give references) for my organization. Despite my hard work, I've been literally screwed by my filthy manager who cheated everyone who worked for him. I’ve lot of failures in my life and I’m planned to pen down everything in this blog. I believe that this one is failure in a victory. Yeh, I made money for my organization, but not recognized by the members of family office and on top of that my performance bonus got swallowed by my manager. </span><br />
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-2819393352005077622012-10-25T00:51:00.000-07:002012-10-25T01:17:57.343-07:00How I lose 90000 bucks in Unitech<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Unitech is one of the biggest losses in my life
that really devastated me in 2006. I believe I lost almost 90000 (89500 is the
exact amount) in that trade. My broker was Kotak Securities. I still remember
that day. I was at Chennai. I bought 500 shares while Unitech traded after
split and bonuses and was around 350 bucks. On that day it went to upper
freeze, got released and was trading down a percentage point. I bought 500
shares at that time and at lower freeze I bought 300 shares (Don’t show a fucking
urge to average your losers-Important lesson). I owned almost 800 shares. From
that day Unitech continuously opened at lower freeze and it continued for
almost a week and Unitech was trading around 180 bucks while I returned back to
my home town to pay my margin of more than lakh and half to my broker. They
thought I ran after that day (I remember a guy who got abscond after losing 5
lakhs in 2006 crash). Luckily for them, I’m a decent guy who really wants to
pay the dues and continue to pay tuition fees to the market to make a career in
stock markets. Despite paying one and half lakhs I was in debit and pressure
was made to cut the portion of the shares to pay for them. If you are real
loser you would blame Kotak securities, but I still remember of not making any
complaints against them for their pressure (Even today I couldn’t believe that
I showed that kind of maturity despite doing sucking trade) to pay their
margins. I asked their permission for 3 more days and they gave me that and
eventually booked my losses at 215(215-220). A week after booking my
losses Unitech was added in futures and from there it started to rally and it
eventually crossed than my buying price of 350. What an irony? I lost 90000
bucks in that trade.<o:p></o:p></span></div>
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<span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;"><br /></span></div>
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<b><u><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Lessons:<o:p></o:p></span></u></b></div>
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">1.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Have an idea on stock which you want
to buy. Idea doesn’t necessarily mean knowing all the fundamental stuff and
technical stuff. Idea means atleast a price movement of the stock.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">2.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Don’t rush to catch the so called
momentum stock. You know what was in my mind. I thought Unitech would continue
to put more upper freezes and I planned to sell after 3-4 upper freezes by
making a leveraged bet. Even now I can’t stop laughing about my idea of
entering into that trade.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">3.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Don’t make leveraged bets without
knowing stuff (Even now I make leveraged bets).<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">4.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Don’t blame your broker or dealer for
your sucking trade (Candidly speaking this is one of the thing that I’ve never done in my entire career). I have seen people doing this and I really feel
sorry for those dealers.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">5.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Don’t bet on your own imagination.
This is one of the worst things you could do in stock markets.<o:p></o:p></span></div>
<div class="MsoListParagraphCxSpMiddle" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">6.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">Don’t predict on direction of the
stock. If someone says that they are making predictions on stocks, be wary to
work with them. <o:p></o:p></span></div>
<div class="MsoListParagraphCxSpLast" style="mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%; mso-bidi-font-family: "Trebuchet MS"; mso-fareast-font-family: "Trebuchet MS";">7.<span style="font-family: 'Times New Roman'; font-size: 7pt; line-height: normal;">
</span></span><!--[endif]--><span style="font-family: "Trebuchet MS","sans-serif"; font-size: 10.0pt; line-height: 115%;">If you are operating in Indian
markets, try to put stop losses on momentum stocks that are having price limits
(stocks that are not in futures) in trading.<o:p></o:p></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-14608875643851370922012-10-24T23:05:00.002-07:002012-10-24T23:12:15.341-07:00Blogging helps to learn<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">I'm not proficient in English. Despite this problem, I'm trying to blog about my experiences in my career as a trader. I'm planned to update my blog on continuous basis. If there are any readers they would definitely be entertained to read about my failures that are really laughable for experienced one in markets. I believe I'd be able to bring entertainment value for learned gentleman who read my writing(If at all if someone really read my blog). I believe that blogging would help me to learn more about trading. In order to learn more I've planned to update my blog on weekly basis. I'm going to write my spectacularly wrong trade on Unitech which was made in 2006 that helped me to lose 90000 bucks.</span></div>
Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-466298068608254135.post-57856844727236472742012-08-28T01:22:00.002-07:002012-08-28T01:22:56.130-07:00I've got a good news for me<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Trebuchet MS, sans-serif;">With the help of my friend, I'd be able to manage money for funds (I'm currently doing for US markets, but got chance in Indian markets) to invest in Indian Markets. I have got some tight agreement to sign that gives guarantee on investments. I've to accept to that agreement since I'm a starter and there is no other way for me than accepting to this agreement. I've got so many strategies and I've infact followed all those strategies now for the accounts of my friend (which is around Rs.4Lakhs). Most importantly I've made profits using those strategies. I made some calculations and come out with the possible profits and chances of losses and how to minimize those and come out with profits. I have agreed for 12% guaranteed return to my investors. It doesn't matter whether I make or lose money I'm suppose to return 12% to my investors. I did that and I might be signing contract within a fortnight with pool of investors. If possible, I'd probably scan those agreements and display it in this blog(with the permission of those investors, if not permitted not possible). I guess this would be a start for me in India. I'm also speaking with few investors. Let me see who would bet on me. I'm a starter and don't have much credibility to show it to my investors. Let's see how things move from here.</span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-77084883535537433832012-06-24T02:08:00.001-07:002012-06-24T02:08:07.984-07:00Trading is not easy<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: 'Trebuchet MS', sans-serif;">Last week is really really hectic. I've been reading, reading and reading lots and lots of things. I learned that Trading is not that fucking easy. I thought that intelligence could work in markets and I've been proved dead wrong. I've to caution everyone about trading. If you're an IIM or Harvard MBA or from Wharton School of Business there is a huge possibility that you could lose lot of money in trading. There is no doubt that you'd definitely be smarter than others. Unfortunately Markets doesn't care a shit about you. That's the beauty of markets. If you ever think that having an MBA from premium school matters in trading, then you'd lose more since your ego would makes you to lose lot more than mediocre traders (like me). I don't have intelligence to have boat load of egos with me. Atleast this could be helpful for me to cut my losses, since I won't be having problem to admit that I'm wrong. But wait, have I done that in my trading. Honestly no! I've waited waited and waited to see some of my stocks going below 30%-50% of my initial buying price. I've to admit that I'm a complete asshole in managing egos. Now after so many tuition fees ( Losses in stocks) I've somehow ( that's true, still not completely) adjusted and cut my losses within 5%. This is really working. I've been saved by big fall. This is true. A trader who takes early losses would sustain for long period of time. I'm amazed when I saw this working for me. I don't care for others. I'm talking only from my point of view. Cutting losses earlier is really really working for me. Now I'm trying to become a trend follower. Initially I was laughing about others who speak about technical analysis (Still I don't believe in lot of technical analysts,since most of them are big failure) and trend following. I learned in a hard way from my own experience. Trend following really works. For that you should concentrate only on fucking price and not about other opinions. Another important thing is shedding ego. This is not taught at B-schools and at least world is not flat as thought by IIMers, Harvards of this world. In Trading everything is same, it would remain same for years to come. Everyone are equal. You could be a drop out, An MBA from world class B-School or a PhD in Quantum Physics,but markets doesn't care a shit about who you're and what is your qualification. It would continuously do what it wants to do irrespective of your opinions. Trading is not easy. Will be continued...., </span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-66567079328206493402012-06-09T00:51:00.003-07:002012-10-25T09:41:34.114-07:00What is my credibility?<div dir="ltr" style="text-align: left;" trbidi="on">
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Credibility is most important for anyone to give advise in stock markets. Anyone can write about anything about stock markets. At end of the day is the person qualified enough to give the suggestions or advise is what a wise man think about the suggestions he read from the sources.</div>
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<u><b>What is my credibility?</b></u></div>
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I started my trading in the year 2006. BSE crashes 1000 points in the first month of my trading history. I witnessed 1000 points collapse in my first month of my trading career. I didn't lose money because I didn't had any positions.</div>
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2006 is losing year. I lost 7 lakh rupees in that year. My most unforgettable loss is Unitech. I lost around Rs.60000 in that trade. I'll write this in another post.</div>
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2007 is my 2nd year of my career. I lost 6 lakhs in that year. I clearly predicted financial crisis, but was bit earlier to short the market. I took lots of put options and eventually lost lots and lots of money.</div>
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2008 is my 3rd year of my career. I made huge bucks in that year by simply shorting the markets. September and October are important months of the year that gave me huge bucks and I covered all my previous losses (13 Lakhs in 2 years) and was infact in profits in my career as a trader.</div>
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2009 is a block buster year for me. I simply watched Nifty rallying from 2500 levels to 3000 without doing single trade. I was preparing for May election trade. I made trade of my life and made a blockbuster return in a single week ( bought a house on the trade without any loan)<span style="font-family: arial; font-size: x-small;"> </span>. After that I went overseas to manage money for a family office.</div>
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2010 is no trade year.</div>
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2011 lost almost 5 lakhs (Despite this 5 lakhs loss, I'm still in huge profits in my trading career) in trading. I lost almost 2-3 lakhs by shorting Gold.</div>
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2012 - No trade . I'm yet to trade because I've invested my money in Real estate. The trades which I've mentioned this year are all done for my clients (All are friends) and I've not made any personal trade for my account.</div>
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If I look into my history I've to admit that I don't have any fucking credibility to give suggestions or advise to anyone in trading. I'm not giving it to anyone. I knew that I'm unfit to advise but I'm fit to learn lot of things in trading. I've read more than 25 books in this year alone and all are real gems.</div>
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Examples : Jack Schwagger - Stock Market Wizards</div>
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Buffettology, How to be a stock market genius and so many books on trading. I'm still planned to read lots and lots of books.</div>
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Hope I'd be able to learn and become qualified to help others ( I don't like giving advise, because I know that I'm unfit) in trading. </div>
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Make no Mistake - I don't have Credibility! </div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-32688799140727047552012-05-22T23:08:00.002-07:002012-05-22T23:09:38.843-07:00Shankar Sharma Used Media to exit his holdings<div dir="ltr" style="text-align: left;" trbidi="on">
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Shankar Sharma is one of the famed broker of First Global who has various predictions that made him an iconoclastic or celebrity among informed traders. He rightly predicted New Highs of 2008, and again the crash of 2008 , Sell call on PSU Banks and you name it he has done most of the things correctly.</div>
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Jan 13, 2011 Interview on Market Correction</div>
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<a href="http://articles.economictimes.indiatimes.com/2011-01-13/news/28427978_1_etfs-shankar-sharma-market"><span style="font-size: small;">Markets could fall by 10-20% in 2011: Shankar Sharma</span></a></h1>
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Recently he (January) appeared in Television channels and made a propaganda that Indian Markets could go new highs and INR could come around 45 bucks against USD and he added that India Macro is great. I'm one of the guy who believed his words, but fortunately I didn't invested in Markets. I'd say that its purely because of luck that I didn't entered the markets because the investment which I intends to invest is (currently) locked in Real Estate ( Thankfully with nice profits- Again Lucky than my intelligence).</div>
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<b><u>This is Recent Interview with ET: </u></b></div>
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<span style="background-color: white; color: #393939;"><a href="http://economictimes.indiatimes.com/opinion/interviews/by-end-of-the-year-india-will-be-the-best-among-emerging-markets-shankar-sharma-first-global/articleshow/13165599.cms">By end of the year, India will be the best among emerging markets: Shankar Sharma, First Global</a></span>
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<span style="background-color: white; color: #393939;"><b><u>Shankar's big call of INR Appreciation - Jan 22, 2012</u></b></span></div>
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<a href="http://articles.economictimes.indiatimes.com/2012-01-22/news/30651043_1_rupee-current-account-global-trading-strategist"><span style="font-size: small;">Shankar Sharma's big call for 2012: A strong rupee, 45-46 to dollar</span></a></h1>
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<b><u>Indian GDP outpacing Chinese GDP - Feb 27, 2012</u></b></div>
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<a href="http://articles.economictimes.indiatimes.com/2012-02-27/news/31104262_1_global-trading-strategist-india-s-gdp-gdp-growth" style="line-height: 25px;"><span style="font-size: small;">India's GDP growth may outpace China this year: Shankar Sharma</span></a></div>
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<b><u>This is the stunner</u></b></div>
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<a href="http://articles.economictimes.indiatimes.com/2012-05-12/news/31679739_1_shankar-sharma-devina-mehra-technologies"><span style="font-size: small;">Shankar Sharma bids goodbye to Dalal Street for his start-up 'Cerebra'</span></a></h1>
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If Shankar Sharma believe that markets are going to go for new high why in this world he should unnecessarily concentrate on new biz that would take time to become profitable. This could be tricky question or else it could be unrealistic question, but Shankar needs to answer this question to all his viewers.<br />
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Well, my key take away is IN STOCK MARKETS EVERYONE HAVE VESTED INTERESTS. There is no room for sentiments. Markets are meant only to make money and we should never, never believe in the words of anyone irrespective of his/her credibility.<br />
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I've not lost money in the markets. But I've been blinded (I've to admit this) by the views of this guy whom I'd great respect. Here is the guy who said that markets would go new high, but is winding up the business and getting hell out from the markets and he still believes that listeners should believe his words.<br />
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WTF!</div>
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</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-28706543659200835782012-04-23T23:07:00.001-07:002012-04-23T23:07:13.918-07:00MY STANCE IN REC VINDICATED<div dir="ltr" style="text-align: left;" trbidi="on">
My position in REC is vindicated. I know, I know what was your thinking. This is suppose to be a blog about mistake and how come I'm writing about winning position. Yeah, there is a glitch in this. I didn't took huge position in REC and my profits are not that big. This is one of the biggest mistake I've made. Despite seeing the momentum I didn't bet big and eventually end up making only small profits. This is not accepted and its poor trading strategy.</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-70156408535608164522012-02-28T22:25:00.002-08:002012-02-28T22:31:54.075-08:00I missed blockbuster Nifty RallyHaha, Another biggest mistake. I missed blockbuster Nifty rally. I was actually long Nifty around 4590 and booked my profits at 4710 and waited for a pull back. Again I entered Nifty at 4895 with hedged position and booked my profits and covered my shorts in call option and eventually lost money because of hedged position. Again at 5300 I enter into nifty with a bang by buying call options of SBI, Axis Bank and ICICI Bank. I was holding big long position in PFC and REC. I prematurely booked profit and wasted the opportunity and in that process I almost lost making more than 3 Lakhs (Actually made a small profit of 50k, but it simply compensated my earlier hedged losses that I made by writing call options). I believe that this rally clearly has legs and I personally believe that Nifty could make New High. Let me see whether I could make profits. I'm long in few positions that are very high beta names which I've never gone before in my life. Those are infrastructure names and I'm really afraid to hold it but still holding it in a belief that I could erase all my previous mistakes. Let's see what happens?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-466298068608254135.post-91633394063350829352011-08-08T22:39:00.000-07:002012-10-25T01:23:23.516-07:00Failure is not a sin<div dir="ltr" style="text-align: left;" trbidi="on">
I've seen a funny behavior from people who didn't want to reveal mistakes they made in stock markets. If they made winning position they use to boast that for months and years. But they didn't want to open anything that went against them. You know what it would be. Only few make 70-80% winning trade. Most of the traders or investors doesn't reveal their true losses. I just want to be opposite to others and would like to put my losses in writing. I believe that I could learn a lot from my losses and could learn more in the process of becoming a decent trader. As a result, I'd like to put my mistakes on board.<br />
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From here on you'd hear mistakes that has been made by me in stock and commodity markets. I'm willing to reveal all my dumb mistakes I've been doing in this trade. Hopefully I'd learn a lot from my mistakes.</div>
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<b><u>My First Mistake in blog:</u></b></div>
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I shorted Gold and got trapped heavily and today morning I covered my position. I'm least bothered about the losses I made in this trade. But the manner in which I made is what that is concerning me. Despite being Gold Bull, I shorted Gold for temporary pull back and caught by the bull.</div>
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I lost almost Rs.40K in panic covering today. This is one of the worst day for me. Honestly, I'm losing big money after 4 years. This is the first time in 4 years I've been making big losses in my life. I've lost almost Rs.2 Lakh in Gold Short. Last time I made my loss of this magnitude was around July or August 2007 when I was shorting nifty and it rallied more than 500 points. </div>
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After that loss, there was no looking back. I've been continuously making decent profits and in 2008 I made big profits during September sell off and in 2009 I made huge huge profit during Nifty Upper Freeze, which was my biggest one day gain every in my history of trading. My profits were more than 2000% in a single week. That was tremendous time.</div>
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I was consistently making money in stock markets. Well I had bad day too. But the magnitude of losses were very small and I didn't remember making losses more than 10000 in a single day. Today I booked losses amounting to Rs.2 Lakh and in this process I could have reduce my losses by more than 40K-50K. Well, it is panic covering and I'm ashamed that I made this. Despite having great gut feeling and temperament I covered in panic and this is a biggest lesson for me. Hope to make mistakes and learn for another couple of thousand times. </div>
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Note: I'm formulating strategy to recover my 2 lakh losses and I need to work hard to formulate strategy to overcome my losses. Till then, I'll be licking my wounds.</div>
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Unknownnoreply@blogger.com0