Investor Choices

  How to know if the stock of a company is in 'Accumulation Phase' or Distribution Phase'?   This is a very common question every investor asks before an investment in value stocks. Sometimes what we see is stock, take the move and go sideways so it becomes difficult for an investor  to identify whether this sideways phase is for accumulation or distribution and how we should understand this ? Here is the simple trick with the help of which you can easily identify the stock phase. There are three major players (Smart Money) which play an important role in shareholding of any company. a) Promoter. b) Mutual fund or Insurance companies. c) FIIs (Foreign Institutional Investors) So let us understand how we will identify smartly which company is good for investment. Step 1: Find a good fundamental company.( Smartly) a. Sales must be increasing. b. EPS should be increasing. c. Low debt. d. P/E should be less than industry. eg. KEC intnl. Step 2: L...

How To Trade Demand/Supply Zone??   "MULTIPLE TIME FRAME ANALYSIS" Step One. Find the  Supply/Demand Zone : This is the zone from where the price has been departured too far.   Time frame 5 min Step Two Go to 5 or 6 times Lower Time Frame 1 min in this scenario as the above chart is for 5 mins.   Step Three:  Find the *reversal candlestick* pattern only on a lower time frame and Supply/Demand Zone whatever the case may be. *Hammer *Doji *Piercing. *Engulfing *Tweezer Top/Bottom. Note: Remember these patterns are only useful and effective in Zones. Take the trade with proper SL  R: R must be at least 1:2 Trading is a combinations of Zones, Candlesticks patterns and indicators. Rules to remember: 1. When trade zones never trade only one time frame. Otherwise you will not get better risk and reward. Moreover you may missed the trade because lower time frame change earlier than higher time frame. 2. Trade only those reversal candlestick patterns which are ...

 Why do most of the traders fail to make money? Can a 12th pass candidate earns millions from the stock market...   Emotions play a very crucial role in trading in the stock market. I have observed that many times a well educated person (i.e. Technical Analyst) fails to make money and a common person who knows nothing about it but basics does wonder.  How does it happen? See, Stock Market is filled with the numerous of brains which comprises of several major emotions which every human being does carry i.e. Fear, Greed, Anger and Hope. And these emotions have no link with the education qualification of any person. A highly graduated masters degree holder or a normal graduated person both can have these emotions. Major winner will always be the person who will manage their emotions, not the one who is more qualified. Briefly understand how the market works, Whether you agree or not but it is true, Market is moved by market makers (20% people have la...

  Truth behind trading in the stock market. There are a lot of advisors in the stock market (i.e. so called 'Technical Analyst') who keep predicting levels of the security weather it is a 'Stock' ( e.g. Reliance, Tata motors, Cipla etc.) or an 'Index' (e.g. Nifty, Bank Nifty etc..) with so much of conviction that you can't stop yourself besides believing to those. My first question is how can you predict the price? There are not only a few people who are making the price but billions of people's minds are working behind the price movement. How can you read those minds?  Anyhow they start predicting with daily price levels, weekly price levels, monthly price levels and so on. Which is leading to people a tendency of speculation.  Just try to understand what happens in the stock market. These people predict the price with so much of conviction that you have no other choice but to believe them. When the price goes up they come up as a 'HERO' . Hey !...