Posted at 7:06 PM , on May 22, 2015
Most traders and investors ignore this very important rule. They believe that identifying a good stock and managing the risk is good enough. For your information, trading details are not for clerks to worry about. When you buy a little higher and sell a little lower, your total cost of trading is adding up over a longer period of time. And you are missing the icing on the cake!
Why order execution is so critical
A delighted investor told me that his investment had earned an incredible return of 12% in a 3-month period between May 2014 and August 2014. I was hardly surprised, considering that the market was up 30% during this period. In such a raging bull market, a 12% return was nothing to write home about. But it set me thinking on a different trajectory altogether! Continue reading
Posted at 7:50 PM , on May 8, 2015
Remember the difference between a trade and a gamble. When you gamble, you are neither able to predict, nor have a control over the outcome. When you trade, you have control over both. This is fundamental difference is at the core of being a successful trader. Traders know their odds, understand their risks, make a mental note of their return expectations and work within these constraints.
Trading is different from gambling…
During one of the investment conferences, an eminent speaker was addressing a group of active traders in the market back in 2012. Asked why they trade in the market, the response were weird as well as humorous. Some traded so as to multiply their capital. Some traded for building portfolios. But most, it seemed, were trading merely for the thrill and the adrenaline of trading. Continue reading
Posted at 2:50 PM , on April 15, 2015
A successful self trader – Rule # 9
Before getting into any trading or investment position, it makes sense to check out what the men in the know are doing. Try to check out what the directors and promoters of the company are buying. Also check if global institutions and mutual funds are trying to go aggressive on either side. Track the bulk deal and block deal patterns and the ownership changes to pick up useful signals before investing.
What are informed investors doing?
Informed traders give you the best clues about any stock. Back in 2009, before Satyam owned up to its massive accounting fraud, a group of very large institutions had been silently offloading their long positions in the stock. Not only some of the men in the know exited the stock, but many also made a fortune by short selling the stock just before its disastrous fall from grace. Continue reading
Posted at 2:26 PM , on July 16, 2014
by- Jayant Manglik, President of Retail Distribution at Religare Securities Limited
My view is that 7000 is a distinct possibility and is in fact a healthy sign for markets because the markets are currently overheated. Continue reading