[Altaf Petiwala]

Originally Posted by praful

At the risk of being beaten up by the long timers in this thread. 115 pages is a bit long to go through, I am absolutely new to this. Infact I'm much more behind new also, I have an demat account and that's about it. I have zilch knowledge about anything of stocks.

But, I am really eager to learn. Can someone point me in the right direction as to where and how to start. Don't get me wrong, I'm not here all starry eyed with conceptions that I'd end up with a pot of gold in a few months. I just want to learn as much as possible of this stock market gain. I'm probably going to dabble with just playing with 5K to start with

Looking forward to some guidance from the guru's!

My friend, you have close to 15000 pages to go through before you will be ready to trade like a professional. More like 3 to 5 years of daily 8 hour commitment to the market.

Now people will come and contradict me, saying they were profitable in 2 weeks flat. Well, good for them.

To trade like a newbie, you can skip all 115 pages, and just switch on one of the business channels. Wait for the anchor to mention a company name. Flip a coin ..... heads you buy that company ... tails you short it.... or if you like heads you short it .... tails you buy it....... and you are ready to participate.

I would love to take those 5000 off your hands Please dont get this wrong, its new people who come to the markets that pay for the bills of professional traders. No offence intended please dont react violently, I am a peace loving man.

[kalpeshc]

Okay. So this is for all you technical analysts out there. I've been hunting for news since morning about a company called 'Transport Corporation of India' which touched a daily high of 123 today and this is a sloth which never moves unless there's some strong news about the company. Even the volumes are quiet low, but not today.

Can this be explained by technical analysis or is it some fundamental trigger?

PS: I am a relatively n00b at this and only understand basics of stocks. When it comes to technical analysis, I am zilch.

[Altaf Petiwala]

Originally Posted by kalpeshc

Okay. So this is for all you technical analysts out there. I've been hunting for news since morning about a company called 'Transport Corporation of India' which touched a daily high of 123 today and this is a sloth which never moves unless there's some strong news about the company. Even the volumes are quiet low, but not today.

Can this be explained by technical analysis or is it some fundamental trigger?

PS: I am a relatively n00b at this and only understand basics of stocks. When it comes to technical analysis, I am zilch.

For precisely this reason, I prefer to trade Nifty Futures, as you cannot be sure why anything happens in a company. Always better to trade in something that is averaged over 50 companies.

You have to understand, that technical analysis is to be used on active and smooth counters, say like the top 100 in terms of volume.

If you try to apply it to companies with small volumes and irrational behaviour, you will be frustrated.

As it is, 100 companies should be more than enough for a portfolio of a few hundred crores. So, I would say no need to go beyond those companies.

I personally do not trade in companies. Cant figure them out

Can anyone tell me hjow many posts are required before my posts are reflected immediately?

[carboy]

Originally Posted by Altaf Petiwala

Can anyone tell me hjow many posts are required before my posts are reflected immediately?

Only after 25 Posts, I think. However, posts in "Shifting Gears" do not count towards your post count. So your post count is still zero, I think.

[praful]

Originally Posted by carboy

You need to first figure out if you want to trade or invest?
If you want to invest, you have 2 options
- Mutual Funds
- Individual Stocks.

Either way, if you want to be an investor, I suggest you pick up the book "Intelligent Investor" by Benjamin Graham.

I'm already investing in MF's. I wanted to learn trading.

Thanks for the tip on the book.

Originally Posted by Altaf Petiwala

My friend, you have close to 15000 pages to go through before you will be ready to trade like a professional. More like 3 to 5 years of daily 8 hour commitment to the market.

Now people will come and contradict me, saying they were profitable in 2 weeks flat. Well, good for them.

To trade like a newbie, you can skip all 115 pages, and just switch on one of the business channels. Wait for the anchor to mention a company name. Flip a coin ..... heads you buy that company ... tails you short it.... or if you like heads you short it .... tails you buy it....... and you are ready to participate.

I would love to take those 5000 off your hands Please dont get this wrong, its new people who come to the markets that pay for the bills of professional traders. No offence intended please dont react violently, I am a peace loving man.

Why should I react violently

There's some place to start right, every one starts with nothing right. So I'd rather start small with 5K etc and atleast see get the basics right.

[carboy]

Originally Posted by praful

I'm already investing in MF's. I wanted to learn trading.

Thanks for the tip on the book.

The book I suggested is not for trading at all. It's for investing.

[vamsi.kona]

Originally Posted by kalpeshc

Okay. So this is for all you technical analysts out there. I've been hunting for news since morning about a company called 'Transport Corporation of India' which touched a daily high of 123 today and this is a sloth which never moves unless there's some strong news about the company. Even the volumes are quiet low, but not today.

Can this be explained by technical analysis or is it some fundamental trigger?

PS: I am a relatively n00b at this and only understand basics of stocks. When it comes to technical analysis, I am zilch.

Originally Posted by Altaf Petiwala

You have to understand, that technical analysis is to be used on active and smooth counters, say like the top 100 in terms of volume.

If you try to apply it to companies with small volumes and irrational behaviour, you will be frustrated.

As already said by our friend above, Technical Analysis doesn't work properly or should I say cannot be applied profitably in counters with very low average volumes.

Technical Analysis in other words can be said to be the study of Mass or Collective Psychology of traders/investors/speculators or whatever one may call. The stress on volume is higher in technical analysis because it relies upon a premise called Herd Mentality which wouldn't be effective if the participation is too low and erratic. I touched upon this Herd mentality before in totally different context, which however applies as good here.

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{{ http://www.team-bhp.com/forum/indian...ml#post2089335

Actually this herd mentality is not limited to Indians or to only certain aspect of life. This behaviour is present across the world and across many aspects of life, which was proven by a group of psychologists and analysts while studying the behaviour of traders in financial markets.

Their conclusions were pretty surprising for themselves as they observed that the thought process of even highly educated professionals, like doctors, engineers, lawyers changed drastically when they were alone and when in groups.

The reason was pretty simple. Its an inherent trait that we humans have carried on for long as we evolved. Right or wrong we feel safe in numbers. Now all Fiat should do is try to create that mentality

For those who are into financial markets or just are curious, there is a new theory and study that is gaining popularity in the field of human behaviour, especially related to financial markets, Socionomics.

Here is the link Socionomics Foundation - Advancing the Science of Social Prediction}}
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Now the best part of Technical analysis is it can be applied across markets - equities, commodities, forex, bonds - and across segments - cash/spot or derivatives, for it relies on study of price. It is more concerned with the What? aspect of price rather than Why?. In simple terms it doesn't bother with reasons behind the price action, but rather it sees what happened and is happening to the price.

The most important thing when relying on Fundamental analysis is to know that nobody ever gained by knowing what happened and what is happening. One can gain only when he/she applies the knowledge of past and present to arrive at a reasonable and sound forecast, which obviously comes with risk, but then thats also where profit lies.

Lastly the best way would be to know the broad scenario using fundamentals and time your trades using technicals. Best of both worlds. (Sorry for the lengthy post. )

Happy trading/investing however one prefers.

[BaCkSeAtDrIVeR]

Originally Posted by carboy

Maybe the same thing can be said for mutual funds in equity also.

Thanks for that link; but if that is how things are planned india, it is already Doomed.

1. If they own properties, almost any city / town in India is covered by rent protection laws, and the trusts' income is severely limited.

2. If they mortgage, please note that Indians prefer suicide than see their properties foreclosed.

Face the reality.

It will be dumb to invest in real estate funds in present Indian society. Please feel free to contradict me.

[SDP]

Originally Posted by Altaf Petiwala

Can anyone tell me hjow many posts are required before my posts are reflected immediately?

Altaf, Your post-count is showing as zero. That means that you have been contributing exclusively to non-Auto threads (Shifting Gears etc). IIRC you need 25 (Auto-related) posts before your posts start appearing directly without going through a moderator.

PS : I searched for "Technical Analysis" thread which you were about to start, but could not find it. Is it stuck somewhere in approvals?

[Altaf Petiwala]

Originally Posted by SDP

Altaf, Your post-count is showing as zero. That means that you have been contributing exclusively to non-Auto threads (Shifting Gears etc). IIRC you need 25 (Auto-related) posts before your posts start appearing directly without going through a moderator.

PS : I searched for "Technical Analysis" thread which you were about to start, but could not find it. Is it stuck somewhere in approvals?

Yes it is... maybe people with zero posts cannot start threads. I have made about 25 plus posts in this thread, and even answered so many queries. I really wish the moderators would count my posts on this thread as actual posts.

Because to be able to post in the auto section, I do not have the required knowledge, nor any questions right now. And I dont want to fake posts.

Please moderators, can you make an exception for me?

[carboy]

Originally Posted by Altaf Petiwala

Yes it is... maybe people with zero posts cannot start threads. I have made about 25 plus posts in this thread, and even answered so many queries. I really wish the moderators would count my posts on this thread as actual posts.

Because to be able to post in the auto section, I do not have the required knowledge, nor any questions right now. And I dont want to fake posts.

Please moderators, can you make an exception for me?

I have created a thread - use this -> http://www.team-bhp.com/forum/shifti...-tutorial.html

Originally Posted by J.Ravi

The RII category of Punjab&Sind Bank IPO was over-subscribed by record-breaking 44.45 times! I applied for the maximum number permissible shares, 1650, but I will have to be very lucky to get one lot of 50 shares allotted as this IPO is small compared to MOIL.

I am not the lucky one among 71 out of 93 to get 50 shares allotted in Punjab&Sind Bank IPO. But, one of my daughters is lucky.

[greenhorn]

a bit offtopic
could someone explain what this is
High-frequency trading - Wikipedia, the free encyclopedia

[vahss_11]

I dont understand why people want to trade while they are having a proper Job, I mean majority of the general public dont invest at all (96-98%), and what ever remaining public who deal in market want to turn themselves into trading, Let me tell my knowledge.

Trading is something which should be done fully, its not a game that you enter a position and forget about it, or get scare to book loss, or get greedy to book profit and cause it to turn into a loss.

Only and Only those who have Market's as their life should trade and rest its better off as doing investing. Every one is happy trading even though they dont have time/resources required for been a trader thinking that its a game that anyone and everyone can play.

The so called "Tech analy" is not that easy to learn, infact you cant learn anything untill you have your own money on line, and when you see your wealth getting reduced with market fallings, Just TA wont make you a trader, you need to have a gut feeling about the trend, and many other factors,
Sorry if this offended any one.

Keep investing and stay away from trading.

[Altaf Petiwala]

Originally Posted by vahss_11

I dont understand why people want to trade while they are having a proper Job, I mean majority of the general public dont invest at all (96-98%), and what ever remaining public who deal in market want to turn themselves into trading, Let me tell my knowledge.

Trading is something which should be done fully, its not a game that you enter a position and forget about it, or get scare to book loss, or get greedy to book profit and cause it to turn into a loss.

Only and Only those who have Market's as their life should trade and rest its better off as doing investing. Every one is happy trading even though they dont have time/resources required for been a trader thinking that its a game that anyone and everyone can play.

The so called "Tech analy" is not that easy to learn, infact you cant learn anything untill you have your own money on line, and when you see your wealth getting reduced with market fallings, Just TA wont make you a trader, you need to have a gut feeling about the trend, and many other factors,
Sorry if this offended any one.

Keep investing and stay away from trading.

I second this opinion. Trading is for people dedicated to the markets. It cannot be done on an on and off basis. Trading needs dedication along with knowledge.


Though I disagree about having a gut feeling about the trend. Technicals require you to be a gutless, brainless trader, who just follows what his charts tell him, irrespective of what the news or the channels might be telling him. All the thinking part is to be completed well before you enter the markets, and once you are trading, you just execute trades. You dont involve your emotions or guts. If you do, you might as well flip a coin and trade according to heads and tails.