Sensex Technical View :
Sensex continues to march ahead towards the resistance zone at 16800-17200 . Short term supports are placed at 16220 -16050 range . As being mentioned in last 2-3 posts the need is to be stock specific as many of them would see good bounces and quite a lot of them jumped 15% or more. Traders should continue to roll money from one stock to other.
Stocks to watchout for :
TTML gave a super spurt of 15% and mtnl too tryin to do the same . Noida Tol Bridge also moved up 15% . Others should follow suit and keep stoplosses in case they stay stagnant for long .
Dabur and Titan are stocks to watchout if crosses 111.5 and 1160 .
Ashapura Minechem if crosses 225 for tgt 250 -260 .
Bottom bounce high risk picks with 2-3 weeks view can be sooner too .
Seamec , Artefact Software , Varun Shipping
Sunday Thoughts :
One thing which i have seen in markets is there is a major bunch of intraday traders , swing traders and addicted traders and a small set of people who are long term investors and have genuinely stayed investors for a long time.
So starting of with traders will paste excerpts from one of the stock market books which i like. As many traders dont like to read a lot few lines every week or day would be good for all of us 🙂
Excerpts of one of the interviews in the book.
What advice do you have for people who want to follow in your
footsteps and trade for a living?
If you decide to. trade for a living, you have to treat it just like anyother business endeavor and go into it with a plan. If you want to starta business, and all you do is walk into a bank, smile pleasantly, andask for a $200,000 loan, do you think you'll get it? Are they going tosay, "You have a really nice smile; here's the money." I don't think so.You need to have a solid business plan. The trouble is that most peoplestart trading without any definitive plan.
What other advice would you give to people who want to becometraders?
Approach trading as a vocation, not a hobby. I periodically give seminars for traders. I once had a tennis pro who attended my four-day seminar.On the third day, I asked people what they had learned so far andhow they were going to apply it. When it was his turn, he said, "I'm notgoing to give up my tennis career. I give lessons on Tuesdays and Thursdays,so I'm going to trade on Mondays, Wednesdays, and Fridays.""If you do that," I told him, "I guarantee that Tuesdays and Thursdayswill be the days when you will need to be watching the market.You'll be making a hundred dollars giving a lesson and losing a thousanddollars in the market."
"I'm not going to have that problem," he said, "because I'm going to close out my positions every day." Six months later, he gave up trading.He did two things wrong: First, his primary passion was tennis.Second, trading wasn't a vocation to him; it was a hobby, and hobbiescost you money.
To be continued in coming days .... Slowly ...