What Stock Market Teaches Us

For traders  stock market teaches a number of lessons. According to some statistics more than 90% traders are loser in the market but to be in the club of less than 10% they try again and again and lose a lot of money over some period of time.A successful trader also passes through such situations but by utilising his analytical ability he learns  some techniques and skills to be followed while trading.Traders also observe about their behavior during trading. They might feel impatient and indecisive specially in situations of loss making. If anyone want to be a successful trader one should come out with these situations.Successful traders realize that stock market teaches atleast three things , one is patience, secondly discipline and third one is decision making.These all will be developed gradually. If all these virtues are being developed in your behavior and you are feeling it in yourself while trading certainly you are leading towards a successful trader.At last I would like to say with my own experience that it is  journey from stock trading to spirituality.You feel calm and cool when you become a successful trader.

About ITC

This view is just an angle to see  how deeply the stock price of ITC is depressed in coparision to the others FMCG stocks.On comparing its price to the price of HUL  it is just one third.  Imagine a company of Rs 430000 cr is just making  the profit of nearly Rs  2000 cr and a company of just Rs 215000 cr is making profit of more than  Rs 3200 cr. Is it justified? Absolutely not .But  it is stock market.Here prices of stocks doesn't follow any rule.Perhaps this is the beauty of stock market.

Turnaround of housing sector

 News are coming from all corner that sales of homes is increasing and demand is reviving in real estate sector. This is the right time to see and think about stocks related to this sector.ln my opinion hdfc,lic housing, mas finance  are some name to be mentioned worthy.On Monday anyone may keep attention on lic housing finance.It has increased around 7% with very high volume in Friday session. If  there is nothing abnormal in local and global conditions.it will open in green it's probability is very high.On account of any reason if it opens in red that will be buying opportunity and no one should miss it.I have taken long position in lic housing finance in the anticipation of positive opening. Positional call is also recommend in hdfc and lic housing finance.All facts mentioned above are true only in terms of probability.

Changing visions about yes bank

• We have already written and given a vision on fortune of yes bank on July 18.Now I would like to thank moodie for upgrading  yes bank on the same ground what I have mentioned.When yes bank was in crisis, group of banks specially SBI came out and invested big money in the bank and gave lifeline to yes bank.After sometimes yes bank showed confidence and took a very big & bold step and launched a very big fpo of 15000 crores and it was almost fully subscribed. This successful event is the solid foundation for changing the fortune of yes bank.It was firstly  banks and then investors who were main instruments behind the success story,if it happens, of yes bank. It is also appreciable the way this crisis was resolved.

Gold to set new targets for Equity Market

At present the price of gold is running very fast and is in the process of making highest point in this cycle of run. It will take time to reach at the highest point.After that it will consolidate for longtime with negative bias.That will be the  time when equity market start to pick up and try to set new highs and highs. First it will break  record high which has made earlier and after that new highs and highs for a longtime until its cycle completes.It has been observed that it is gold that navigates the coming prices for equity market. If gold price is to be set anywhere between 53000 to 60000 or beyond this limit that will be the new target for equity market. Equity market will gradually follow the target set buy gold and after sometimes it will go beyond that point and remain will be in bull run for a long period. It will make many highs during this period . Cycle of gold and equity market goes in this way. For illustration If highest price of gold is to be set at 60000 per 10 gram , in 3- 4 years equity market sensex will cross this point

Yes Bank's Fortune

Yes Bank FPO got tremendous and wonderful response.It subscribed more than 95%. Remember it was a very big FPO of almost 15000 crores.Although retail investors did not participate enthusiastically ,the FPO got  almost fully subscribed.Most of the shares are in the hands of QIB and HNI.It may turn the fortune of yes bank. It seems that it's price will not come below 15 and after three months it may go above 30.Good Luck for retail investors.

Rules to be followed while trading

Keep eyes on price increase of shares and corresponding  trading volumes . If Price increase is significant with very high volumes before just closing the market , traders should certainly make positions in future of that stock and should square off positions on next day when market opens.This rule should be followed by every individual trader who trades in small quantity such as in one ,two or three lots.
Here it's very important to know that small individual traders has very less power to hold the stock for long duration.When small trader hold the stock for long duration and do not book the profit immediately their profit may be converted into loss within no time.
Entire practice is illustrated in the following trade
 On July 04,2019 I bought  2 lots ie 1800 shares of UPL at Rs 697.80 just before closing of the market and sold it at Rs 705.05 on July 05,2019  just on opening of the market and got handsome profit.
How it happens this should be analysed at micro level.
On July 04 during market hour I observed price movement of UPL carefully along with trading volumes in cash market. It is observed that around closing of the maket UPL increased almost 7% with huge increased in trading volume in cash segment. Clearly huge trading volume was supporting the increase in price and it was the perfect situation to take buy position in derivative segment of this stock for higher opening price next day.Exactly the same was happened what I speculated.
In any trade , risk is always involved particularly when you take overnight position.But you have to take risk if you want to make money from stock market.
In the above case it might be possible that opening price is to be down to the purchased price. In that case you should hold it, there is good chance that share price will come up in green  in due course of time ,so  here you should wait for it.If opening price is marginally down you may again wait or you may sell it immediately and try to catch it at some lower price and again hold it for sometimes,good chance that price will come up in green.The latter is done  only by smart trader.
The above analysis needs normal conditions of the market .Also stock should be liquid enough.