vam,

i think sagi is speaking for short term investors.. u can even use it for MFs.. i think its brilliant..these little tricks in math we miss coz we are not experienced traders, but this board and its boarders taught me a lot...ever since i always book my profits....

technical analysis books

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Posted by : sainik at 23:21 (21st Apr '05) in reply to marketdoubts | message


dear MD,

first of all, please dont be defensive !!!.

it is the duty of 'sainik" to take care of "defence" !!!!.

i will gladly answer all ur questions as best as i can as i do for all other board members.

u are definitely not ignorant. how can a teacher be ignorant ???. it is the noblest profession .

in terms of books, i suggest u read :

1. trading for a living by alexander elder.

2. reminiscences of a stock operator by edvin lefevre.

3. one up on wall street by peter lynch.

4. methods of a wall street master by victor sperandeo.

5. any book by martin zweig.

all these are fascinating books , less on theory and more on real life experiences.

i hv listed them in the order of importance, though the second book is the most interesting of them all.

another book comparable to it and wickedly funny is LIARS POKER by michael lewis.

these 2 books u must read if u consider urself interested in the stock markets.

about , where /when /how

1. where : i began my study of TA in madras . FA i was doing when i was doing my engineering in bangalore.

2. when : i began study of TA in end 1991, when i began actively getting involved in the stock market. i began investing in 1982, but i was a passive investor till 1991.

3.how : in 1991, i met a banker who claimed he could make money the "easy way". i was a youngster (30 years ) and was curious to know about this "magic formula" for making easy money. he taught me moving averages.

and that was it. i became fascinated and read all material on technical analysis by begging , borrowing and literally stealing material (my friend gave me a copy of elliot wave theory and i never returned the book, it has since been stolen from me !!!).

at that time, we had only one known tech analyst ,deepak mohoni, who used to write for eco times, and give reccos based on tech analysis, which were amusing to say the least .

a sample of his recco : (i am not joking , this is the way he used to wriite )

" the market may go either up down or sideways based on current technical parameters !!!!!".

life and technical analysis, has come a long way since then !!!!! [Sensex:6299.2 Nifty:1948.55]

Current Rating : Not Rated

He recommended alex lol.. i dint know only now i realize... and i read alex just as he recommended.....

yes my friend... why?...

why should we book profits: An Insurance.

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Posted by : Sagitarian at 23:48 (21st Dec '04) in reply to Teddy | message


Hi Teddy,

I will attempt to answer your questions with a simple hypotheticAl model example.
Study the table.BELOW.

1) buy 100 @ rs 100 EACH
2) the price of each goes up to Rs 102, u sell 10 shares, the cost price of the 90 shares u hold is 99.77.
3) the share price goes up to 104, u sell 10 shares , and u have now 80 shares with the cost price of Rs 99.25.each
4) price goes up to 106, sell 10 more,at 106 , the cost price of 70 shares that u have is now
98.2 each
5)price goes up to 108, u sell 10 shares more at 108, the cost price of the remaining 60 shares is 96.66 each
6) price is at 110, u sell 10, the cost price of 50 share is 94.each
7)price is at 112 , u sell 10, the cost of remaining 40 shares is 89.5 each.

Now look at what u have done . U have 40 shares in hand at an average purchase price of 89.5 and the present market price of the share is 112. U have insured yourself against 2 lower circuits.of 10% EACH.. BUT on the other hand , if the market goes up to 120 , then u have made a profit of 33%.

tHAT IS WHY i KEEP BOOKING PROFITS AS OFTEN AS POSSIBLE.

That is why it is said "u neVer go broke , by booking profits"

Unquote

What boaders we had isnt it.... see they all disappeared with the new format...

...

shots for 2005

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Posted by : Sagitarian at 02:42 (03rd Jan '05)


Hi dears,

The scrips for the year 2005.

ABB

BHEL

HINDALCO/NATIONAL ALUMINIUM

TATA MOTORS


SBI.
...

you have no business to tire with my area of interest.. did i ask you to read? You dint know god also follows the karmic law when he uses the earth space time? Just read philosophy pranks at least it will cut ur jumpy nature....

my friend who is an expert in my excel lol has sent me some archvied posts of sagi and chest50arms20... you want to know sagi's picks.. wait let me post it for you... she reads my messages on this board but her hubby is very strict about chatting with men on this board since it cant be avoided she has decided to stay away....

Hey radhika......I don't consider myself rich if I can't earn on my own.....I don't know whether it's due to inferiority complex or else.....Just like my dad I would also like to earn with my own efforts and should not depend upon anybody including dad.....That may be another reason I am quiet.....Ofcourse anybody who built so much money on his own would no doubt be bossy and he has no exception.....My mother has little say as far as financial matters are concerned.....But she is allowed to purchase whatever she wants by my dad.....But my mother also who is simple in nature will not buy anything unnecessarily......My fathr is 65 year old and still busy like a 40 year old person......The most important thing is my father never thought that he is extraordinary and should be given extra priviliges and he would like to be ordinary person only....Rgds...

RN, Science by itself is nothing without Nature Nature is mighty Nature is strong Nature is usually always right Nature is rarely ever wrong Nature is beauty Nature is moody Nature is smart Nature always has the greater part Nature is blue Nature is green Nature is every color possibly seen Nature is true Nature is beaming Nature is dreaming Nature is in every place Nature is always with grace Nature is true Nature is you Nature is me Nature will forever be free. ...

0809 Date:15/3/77 Place:A school in B'lore I am sure many brows would have been raised in the subsequent annual day celebrations when the announcement came on the speaker... I prize in General Proficiency for Class VI goes to Ms.Radhika and the prize is 10 shares of a newly floated co called Reliance ...

More over the brokerage you pay will take out most of the gains, If a retailer use normal brokerage services.....

RN, This might not be a good method to book profit of 10 % of the quantity each time the price is up. you should atleast sell the 50 % at 110 ( in our case of example )...

0808 Me? BOD?? As one who CARRIES a heavy load of TD shares for two years without any return can only be given POD award!...

QUOTE of course i am sentimental UNQUOTE - But U always say U arent???????? This is pretty confusing.... Sending accross confusing signals???????? HAAAA haaaaaaaa LOL...