Category Archives: Stock Trading Strategy

Teach a Man to Fish…

Its long time since I have written any post here. Last when I shared my view, market was near 8800 levels, and I was of the opinion that it can easily go towards 9400 mark, and where we stand today, but it was early call to take because, before going towards 9400 market has corrected a bit and then resumed higher.

I was there in market all through but not shared anything here, just because I realized one fact that, there are lot of people who freely share their view, but important is to give hand-holding to the readers, and which is not at all possible for anyone.

If handholding is not possible then what is the best alternative available. I read somewhere that give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. So, I think it is best possible alternative available for my readers.

Objective of writing this post is to share with you one important observation which I have made in last couple of months. Lately, I realized one thing no matter how good you are in your analysis, but if you cannot decisively say where to buy and where to sell, your analysis will not make any sense to anyone, because here everyone comes to mint money, and all are interested to know the location of action.

Solution to such problem is to build a strategy and implement in the market, and if it fulfills your criteria then use it. With my reading and understanding I have developed one strategy which has given superlatively fantastic results according to me and I will share the details of such results below. If you are interested to learn this strategy from me you can contact me on my email address info@way2profits.com . I will teach you strategy one to one basis online, and make you understand the whole idea.

 

NIFTY RETURNS WITH STRATEGY

It is for you

  • If you know bit about the market and ready to put some efforts
  • If you are seeking proper guideline for entry, exit and stop loss
  • Even if you are seasoned market player, it will certainly add value to your experience.

It is not for you

  • If you are seeking constant advise, then you’ll be disappointed.
  • If you are looking for intraday opportunities.
  • If you don’t have patience to wait for right signal to emerge.
  • If you cannot accept the loss, which is an integral part of the system.
  • If you cannot accept overnight risk.

Frequently Asked Questions.

  1. How can I learn this strategy?

Ans : I will teach you this strategy online till you understand the concept. I will solve all you query with charts and examples.

  1. Do I need to be expert in the market?

Ans :- No, you don’t need to be expert in market or technical analysis. But yes, you are expected to know the basics of market, because without knowing the basics I cant explain things in details, so make sure you know the basics.

  1. How much time it will take to learn and implement the strategy?

Ans : I will teach you method in roughly one session of 2-3 hours, but in case if you don’t understand then I don’t mind to stretch further, ultimately you should be satisfied to the fullest. And as far as implementation is concerned, I advise everyone to backtest thing on your own, so to build confidence in the system and if you can do it, you  can implement strategy from next week only.

  1. Can you take classroom session?

Ans :- Yes, classroom session can be arranged, if I get 5-6 students in your city, otherwise I am ready for online sessions.

  1. How much Margin I need?

Ans : To implement this strategy you need minimum two lots margin.

  1. Can I implement this strategy with the help of Options?

Ans :- Yes, but in that case results will differ accordingly. But once signal is generated you can buy/sell given instrument or its options also, it is up to you.

  1. Will you give me support after completing the course?

Ans :- Yes, after learning the method you can certainly ask me any query regarding the method, I am happy to help you.

  1. When you will conduct the training?

Ans : On every Saturday between 6-9 I will take the training programme. And it will be one to one basis only, so with you there is no other person will be joined, so you can freely ask you query. So you may confirm the availability of Saturday and book your slot.

  1. What is the fees for training?

Ans :  Its Rs. 10000/ for training and if you book it early, you’ll get discount of Rs. 2000/-, effectively it will cost you just Rs. 8000/-

  1. What materials you’ll give?

Ans :- I will share presentation of strategy with rules to be followed with examples, with that backtested results

  1. Will I make same returns in future out of the strategy?

Ans :- No, technically it is not possible because future is unknown to everyone. But be rest assured that if you follow the give guidelines you will make very good returns from the strategy.

  1. Refund policy.

Ans :- Kindly note that, in any case whatsoever maybe, money once receive will not be refunded back, so request you to kindly make sure before making a payment.

  1. Is this holy grail of stock market trading?

Ans :- Kindly understand there is No Black Box system in the world which can be called as Holy Grail of stock market trading, so keep your expectations real.

  1. Do I need charts?

Ans :- Yes, you need charts for backtesting the instrument.

  1. Is it an intraday trading stragegy?

Ans :- No, this is swing trading strategy, and you need to wait for signals to come.

  1. Will this strategy, give me a constant advise?

Ans :- Absolutely No, you have to wait patiently for system to give you signal.

 

 

Grasim Inds – Technical Analysis

Grasim Inds as on 07 May'13  – 3018.35

Grasim Inds as on 07 May’13 – 3018.35

In our last article on Grasim Inds, on 24 Dec’12, I have asked my reader to Sell on Rise when it was trading at 3171. After which Grasim made a low of 2666.75 and took a rebound in last few days.

Technically, Grasim Inds was trading in a falling channel from mid Oct’12 and recently prices broke out from this channel. Prices are trading below its its 200-day EMA which is placed near 3065. In last session prices moved and settled above its 38.2% Fibonacci Retracement of last down leg. Momentum oscillator RSI (14) is giving positive indication.

Continue reading

Tata Steel – Opportunity for Investors to look in

Tata steel as on 3 May’13 – 311.20

Tata steel as on 3 May’13 – 311.20

Tata Steel was consistently falling from the beginning of 2013, till last few days. As depicted in attached chart, prices were falling in a channel and recently it broke out from this channel line, and attempting to move higher. Current pullback is supported by momentum also.

According to my understanding, price correction in Tata Steel can be over; it is very much possible that it may extend in time.

Stock Trading Strategy

Continue reading

L& T Technical Analysis as on 26 Apr’13 – 1540.85

L&T as on 26 Apr'13 - 1540.85

L&T as on 26 Apr’13 – 1540.85

Larsen & Toubro Ltd is moving consistently moving higher after posting a bottom of 1313 on 9 Apr’13. In last 11 trading session L&T made a gain of more than 17%. Yes, whopping 17% gain. Lastly stand at 1540 reached near a point where multiple resistance pivots will come in play.

But, we should notice some important points here.

  • From beginning of 2012 L&T is making higher highs and higher lows.
  • After posting 1720 in end of Oct’12 prices were moving with weak bias, and lastly on 9 Apr’13 it made a low of 1313. This was loss of around 23% in more than 5 months. And we witnessed gains of 17% in matter of 11 trading sessions only.
  • As it is marked in attached chart, momentum oscillator RSI (14)  gave clear indication with forming Positive Divergence between price and oscillator. And lastly RSI (14) gave a minor Negative Divergence, but still it is very early to comment on it, as this divergence can be easily negated.
  • From last Monday onwards, prices are moving above its 200-day EMA, and with that prices also moved out from Falling Channel line.

From above observation, I sense that still there is scope for L&T to move higher, subject to, prices holds above this 1550 levels where multiple resistance comes as hurdle to prices, and according to my observation, Nifty and Bank Nifty may witness minor pullback in days to come. So it can be threat for L&T too. As long as L&T holds above 1490 level, I would like to maintain my bullish stance on it. Of course risk is involved, but if L&T holds above this level than it has potential to go much higher.

Alternatively, below 1490 prices may enter into consolidating phase and start weakening, but weakness will be confirmed below 1450 levels.

At this point in time, both possibilities have an equal chance to run its course. So we don’t have a choice, but to take risk or keep close eye on it.

Dear readers, please share your view with me, whether you like my articles or don’t like, it add value to your trading? Because I believe in saying what I feel, I never cut, copy and paste any articles, and never try to misguide anyone. Your opinion is important to me, please come ahead and share.

 

SBIN –State Bank of India Technical Analysis

SBIN as on 26 April’13 – 2287.95

SBIN as on 26 April’13 – 2287.95

On last Wednesday only I become little skeptical about Bank Nifty performance (click here to view Wednesday’s post), but some how due to holiday and global peers were high, it opened Gap up and on next day it gave away some gains. But, integral part Bank Nifty, SBIN was not performing at par. In the last session, SBIN gave one weak close.

If you see attached chart, than SBIN is finding resistance from 61.8% (2340) Fibonacci Retracement of last down leg from high of 2555 to low of 1979.50. Almost from last four trading sessions SBIN is struggling to move above this level, and finally yesterday it gave up.

Look at RSI (14) it also bended down towards 60 level, which indicates loosing steam from the counter.

(To view latest Bank Nifty Trading Strategy click here)

SBIN – Technical Trading Strategy.

From above observation it is evident, weakness is setting in, but still there is a risk involved in going short. It has some important supports in between. If you are risk takers, than follow this strategy, if SBIN opens below 2280 take one short position with stop loss of 2340, and look for next move, whether it holds above 2240 or not. If you think it holds above 2240 than better to exit at whatever small profit you get, but if SBIN moves below 2240 than immediate target comes near 2190.

 

Reliance Infra – Technical Trading Strategy

reliance infra

Reliance Infra

Reliance Infra as on 22 April 2013 – 382.45

In the last session prices moved sharply higher. I sense that this rally will continue, based on my technical observations.

Trading Strategy –

Ideally, due to yesterday sharp rise we should wait for better entry level in Reliance Infra, near 373-375 level (cash), with this buy trader can put stop loss below 355. Initial target is around 415.

Or alternatively,

Traders can Buy Rel Infra call option of 400 strike price for next month expiry, which is lastly closed at 15.90.  Don’t jump to buy, as premiums are high at this level, enter near 12-13 range, and based on cash level. Stop loss will be 355 only.

Technical analysis on Tata Motors.

Tata Motors as on 18 Apr’13 – 282.45

Tata Motors as on 18 Apr’13 – 282.45

As It can be seen in attached chart, Tata motors has made a low of 203 in end of July’12, and since from then making higher tops and higher bottom up till Jan’13 where it made a high of 337.40, notably which is higher than life time high of 320.75 made in Apr’12.  From Jan’13 price corrected exactly 61.8% last up leg from low of 203 to high of 337.40.

From last two weeks after making a low of 251.80 (61.8% Fibonacci Retracement) prices are moving higher on gradual note. In the last session we saw spectacular move where prices moved sharply higher.

According to my observation, Tata motors will continue to move higher. Undoubtedly, it has to cross some strong resistances in between, but I believe broader market can retest its highs, in such scenario Tata motors can also move higher.

Continue reading