"I do not make any warranties, express or implied, as to results to be obtained from using the information in this blog. Investors should obtain individual financial advice based on their own before making any investment decisions."
We believe in technical analysis as a great tool to analyze your risks and rewards in this business and have been practically using and teaching technical analysis and our market reading for the benefit of our clients and students for a long time now and will continue to strive to do so honestly.
Remember one thing trading and investing in stocks is one serious business. Stop searching for tips and hot news. As you do your business you always see the risks involved but people get fearless in markets they take any amount of risks.
Advice for very small investors :
I have seen one thing in markets people who have very low amount to be invested ( say less then 50k ). This is the lot of people who look for hot tips to double or give quick money. They will make say on 30k invested 10k but loose 8k in some penny...In the end u make no money this is the best scenario but majority loose big time looking for quick money ....If it was so easy i think nobody would be studying or working or doing business other then this.....
I meet many such people all the while ... I had written about GMDC , Syngenta , Gujarat Gas co( all gave 25% plus safely ) ....whenever i tell them buy this and do your main profession they say let it be give me something hot n quick......Of late i said Britannia at 1300 now at 1398 will touch 1400-1450 in one or 2 days tgt at 1500-1600. This is 10% safe income in 2 weeks (this was fast i had a 3mth to 6mth view ) ... But people dont want safety they want the thrill of losing and blaming their brokers n advising friends for giving them bad tips... Invest in good safe cos let ur money work easily and ur body too without tension.,..GSPL looks in that segment now... Or equip yourself to deal with the business ....
I think i wont be updating much tonight but i ll update something which is really important some rules or golden words by one of the biggest traders ever recorded in the world....Below are his rules
You must always put a stoploss to preserve capital
A small loss or several small losses can easily be made back with one large profit but when you let large losses run against you it is hard to get them back.
Remember when you are out of the market the only thing you can lose or miss is an opportunity.
The fear of the market is the beginning of wisom.
Never average a loss rather buy on the way towards profits.
The most important of all ( HUGE FNO traders and Margin traders. )
When you make a trade you should never risk more then 10% of your capital and if u have a few losses reduce your units of trade.
If you have lost money doesnot mean you are incapable of making money but educates you to make bigger and easier money.
Better to have small holes in the pocket then big holes in ur portfolio
Ending lines of the great trader and analyst's book on trading and speculation written by W/D Gann.
"If i can throw a single ray of light,
Across the darkened pathway of another;
if i can aid some soul to clearer sight ,
of life and duty , and thus bless my brother;
If i can wipe from any human cheek a tear ,
I shall not then have lived in vain while here."