Struggle to make money from stocks

• If the stock falls and you were expecting it to rise, drop it. Don't hold onto a stock just in terms of trying to average out something if you don't have confidence.
• Never trade with money you can't afford to lose. Don't take loans for the purpose of investing in the stock market.
• Always have a plan of action for your trading. People who have a plan and follow it (and modify the plan from time to time depending on the market situation) make more money from the stock market.
• Always follow your plan of action.
• Don't hold on to losing stock. It's termed as catching a falling knife, which can cause more damage to your investment.
• Even if your stock continues to rise, you should still sell in accordance with your plan.
• Don't hold on to winning stock longer than you planned; things can all too easily turn against you. Greed is something that needs to be controlled.
• Set a limit for how much you can afford to lose in a day. Use a stop loss judiciously.
• If you lose your limit, get up and walk away; stop trading. If you continue, you could even lose your shirt.
• Accept that you will lose money sometimes and be prepared.

Labels: Investing in the market, Investment, Safe Investments, Stock, Stock Market, Tips

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The Indian stock market has seen a recent high, even though there are sporadic days when the market drops (although the drops have not been of the type that we would see earlier) when the market would suddenly drop by 200-400 points in the last one hour of the market. The growth rate in the Indian economy seems to be on the higher level, the Government is making all the right noises about continuing the growth stimulus and disinvestment of PSU's. However, the global economy still has a long way to go. China seems to be going strong, but a recovery in the US still is in fits and starts, and not a clean recovery.
Right now, the market has jumped up a bit, and there are fears of a correction imminent, but the trend overall seems to be that the market will keep on going higher (but one should have the courage to take the roller-coaster ride that comes with such a movement). For the past several weeks, I have been also looking at studying more technical indicators so that can see stocks for the short 2-3 weeks, as well as for longer periods.

Fundamental based stocks:
Mahindra Ugine - Rs. 60
JBF Industries - Rs. 102
Indiabulls Securities - Rs. 36
Sharyan Resources - Rs. 88
Walchandagar - Rs. 225
Rishi Lazer - Rs. 55

Technical trends upwards:
Andhra Bank
Asista
Maral Overseas
Bajaj Finserv
Financial Technologies

Labels: Equity, India, Indian, Stock, Tips

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The market is behaving a bit unpredictably, with sudden ups or downs, even though the fundamentals have remained roughly the same. Many people would argue that this is exactly how the market behaved in the last few years, so this up and down is actually consistent. One needs to consider the different factors involved in taking the market up or down:
1. World wide market moves
2. Indicators of the recession worldwide and in India
3. Macro economic situation in India, such as whether monsoons will be good or deficient, whether the Government is hoping for a improvement in growth, changes in overall economic mood
4. Policy measures by the RBI or by the Government, such as interest rate movements, monetary and fiscal policies, disinvestment and reform, or the blocking of such reforms
5. Overall political scenario, where the Government is seen as stable, or too dependent on its allies and hence prone to instability
6. Influence of the Communists and Leftists
7. Overall sentiment, such as if the market has moved too much in the recent past, time for a correction, or vice versa
And so on, but these are the chief reason for the movement of the stock index.

Now, what is the current position. India is not in a recession, but growth is very sluggish and the monsoon shows every chance of being deficient in the northern states, leading to an effect on the economy. At the same time, the Government keeps on stirring up the path of policy reform from time to time, even when it is pumping huge amounts of money into poverty alleviation schemes, but without proper oversight (and hence spending more than it should normally do).
The market has moved up a bit, to almost 16K, and there are 2 contradictory advices coming in; one is that there are no fundamental reasons for the market to rise, and the other mentions that overall economy is looking better, realty is improving, production seems to be on an upward jump.
From my side, the mantra remains to be cautious, and look for opportunities. I have invested in the following for the past few weeks, and would be investing more from time to time:
KLG System
HCC
JMC Projects
Bharti Airtel
Cairns
Ashhiana Housing
DLF (this and Unitech are dependent on housing market looking up)
Unitech
GRAUER & WEIL
Nirlon
Satyam Computers (riskier than the others)
Supreme Industries

Labels: Economy, Equity, India, Indian, Recession, Shares, Stock, Tips

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