[carboy]

I have written this earlier in this thread, but this is what Warren Buffett said about technical analysis
"I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer."

This is what Peter Lynch said "Charts are great for predicting the past."

The point is newbies who are trying this, research and analyse before putting your money - that's true for anything, I think.

[Altaf Petiwala]

[quote=vsh;2943213]

Originally Posted by Altaf Petiwala

Oh! come on altaf!! You are not the only one who knows how to trade. Dont judge people by their place. Trading is more psychological than mechanical. I have seen many people buying black box systems and go bust.

If you want to debate and test my knowledge, you can pm me.

My dear friend, you are saying exactly what I am saying. Black boxes do not make money. The statistics mentioned by me, if derived by someone for a system makes sure, that he is not trading a black box.

And completely agree with you on the psychological part, and in fact, am trying to surmount that issue myself.

As for testing your knowledge, I have complete respect for your knowledge.

What I meant by my post was, that most people do day trading by following brokers tips, wife's freinds husbands advice, or gut feeling. THAT is wrong.

[Altaf Petiwala]

Originally Posted by black12rr

vsh , how does one start day trading technically ? . Where does one start ?.Software ? ,data feed ? .Kindly shed some light .

Though your query is not adressed to me, you can start off with opening an account with sharekhan, not for trading with them, but for the charts they provide with their trading software. For executing trades, you can opt for discount brokers that charge per trade, not based on turnover. As for a professional setup, you could go for Amibroker professional, with GDFL as your data feeder.

Cost is close to 10,0900 for the software, and roughly 1100 per month for the data feed.

As for software, if you dont want to spend 10,000, you could also ask around for a more reasonable option ( WINK! )

[vsh]

Originally Posted by carboy

I have written this earlier in this thread, but this is what Warren Buffett said about technical analysis
"I realized technical analysis didn't work when I turned the charts upside down and didn't get a different answer."

This is what Peter Lynch said "Charts are great for predicting the past."

The point is newbies who are trying this, research and analyse before putting your money - that's true for anything, I think.

Fundamentals and Technicals are opposite and warren/lynch are from first camp. By the way the biggest derivatives are written by the same warren buffet, just check it out.

Moreover charts do not predict anything, it just represents the data in a convenient way. Trading does not contain charts ony, its just one of the tools to trade. It is left to you how you interpret it.

You must be emotionally mature to become a successful trader. Trading is 80% psychology.

You can search for the people like jesse livermore, mark fisher, joe ross, jeff cooper and the book market wizards which contains interviews of successful traders.

[ECM]

Do not think too much of Buffet and fundas.Let me give you few examples.Satyam in those days was good funda stock,same was for Global tele and HFCL.List can be long and I do not forget DSQ software(bad funda it had)which had a high of 2200 and I saw the low of 3 Rupees in past when internet boom ended.Just read how Buffet studies stock,he has an art of picking stocks and this art one needs to develop.Generally during meet,I have seen people discussing stocks's business as per Buffet now please tell me if you are a software engineer how the hell you can understand the business of mining,paints,cement,pharma etc..

[carboy]

Originally Posted by ECM

Do not think too much of Buffet and fundas.Let me give you few examples.Satyam in those days was good funda stock,same was for Global tele and HFCL.List can be long and I do not forget DSQ software(bad funda it had)which had a high of 2200 and I saw the low of 3 Rupees in past when internet boom ended.Just read how Buffet studies stock,he has an art of picking stocks and this art one needs to develop.Generally during meet,I have seen people discussing stocks's business as per Buffet now please tell me if you are a software engineer how the hell you can understand the business of mining,paints,cement,pharma etc..

You need to understand the business only upto some level.

Warren Buffett's teacher 'Benjamin Graham' almost totally ignored the business & concentrated totally on the financial statements and account books. Read his book 'Security Analysis' - it's rather heavy. Warren Buffett went a little more. He also looked at the management of the company and business, but I don't think he claims to understand the business thoroughly. All he needed to do was make sure the people who ran the company understood the business.

This Canadian Company called Veritas has gone through the financial statements & accounts and flagged several Indian companies with problems in their accounting without having any insider knowledge of the companies. Veritas was one of the earliest to flag Kingfisher Airlines.

[ECM]

Then you tell me one thing,Lehman brothers,Enron were having different ISO levels but still they vanished.Why?
How reliable the books are?Most of books can be painted artificially.
If one ask me to be fair,each companies are having loopholes in their system today,only thing is we need to figure them out.
The best stratergy is to find a company which having a promising business,I picked up sail at 7,Shipping Corp at 9 and BEL at 68 and Gail at 77.In those time people were running behind IT stocks though I sold Tisco and Telco in those days below 400levels-both I bought below 100.
You tell me another thing,what is block deal and stake sell?I can't write much on this but I wish you get some idea what I am talking about.

& concentrated totally on the financial statements and account books.

[jagan0677]

Originally Posted by carboy

......

This Canadian Company called Veritas has gone through the financial statements & accounts and flagged several Indian companies with problems in their accounting without having any insider knowledge of the companies. Veritas was one of the earliest to flag Kingfisher Airlines.

+1
Veritas has very bluntly put forward the lack of good compliance/corp. governance. As a sample they have named some of the stalwarts of India Inc - RIL, Kingfisher, DLF, etc.

What is really bothering in their analysis is - it is quite easy to spot the lack of compliance / corp. governance in Indian corporates - shows how casual their approach to accounting, audit and reporting is. very alarming for investors.

Cheers,
Jagan

[carboy]

Originally Posted by jagan0677

+1
Veritas has very bluntly put forward the lack of good compliance/corp. governance. As a sample they have named some of the stalwarts of India Inc - RIL, Kingfisher, DLF, etc.

We need http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act

Top Management will then be responsible - they can't say one of my employees did it.

[faustus77]

Originally Posted by singleton

Is Cairn India a good stock to buy now - considering that the parent company is selling a good percentage of their shares which would keep the prices down for some time?

Singleton
Hi
A few days back(26th oct.) I bought Cairn India at 335.35(Incl.rs 5 dividend)
Hope it gives decent returns
Regards

[Bomi]

Cairn is a good scrip with a great potential. Unfortunately, the new owner of Cairn is not investor friendly. His past moves in companies like Sterlite Industries were more for his benefit than shareholders. I think one of them received so much shareholder criticism, that he had to back off.

[faustus77]

Originally Posted by Bomi

Cairn is a good scrip with a great potential. Unfortunately, the new owner of Cairn is not investor friendly. His past moves in companies like Sterlite Industries were more for his benefit than shareholders. I think one of them received so much shareholder criticism, that he had to back off.

Bomi
Hi.Very true about the about the new owner mr.Aggarwal.That is why it is available at this price.
Have bought this for trading not for my core portfolio.
Whenever the sentiment or their output increases this should go up.
Regards.

Hi everybody
Today's economic times(13/11/2012 Bombay edition)pages 12 and 13 paints a very rosy picture,some brokerage houses as optimistic as seeing 26000 on the sensex by next diwali.Personally I feel 26000 is way too optimistic and I would be quite happy with 21000+
Happy investing
Regards

[lambuhere1]

Is it what it is ?

Hi Guys
Was idling away yesterday eveing in office reading ET, rarely I do, as my grey cells were working ovetime. Guess what, when I see the first page, my head goes bonkers.

First image on the sheet tells everything what is happening in India currently, no matter how much you try hard, you are going nowhere.

Btw, this is the image I was talking about.

http://lite.epaper.timesofindia.com/.../Pc0011700.jpg

If anyone in the stock market field knows about charts, what I could see it that we have formed a H-S pattern on India's GDP. Correct me if I a wrong.

More info on H-S pattern can be found at
http://en.wikipedia.org/wiki/Head_an...(chart_pattern)

Do you guys see what I see in here ? Need to learn more on charts though !

Peace

[KSM-Vtec]

Originally Posted by lambuhere1

Do you guys see what I see in here ? Need to learn more on charts though !

Peace

You are right about the HS pattern and there could be a downward breakout, but the optimistic side is that the right shoulder is not strong and more often than not the breakout fails in such situations. (or is not very bad)

[faustus77]

Originally Posted by Bomi

Cairn is a good scrip with a great potential. Unfortunately, the new owner of Cairn is not investor friendly. His past moves in companies like Sterlite Industries were more for his benefit than shareholders. I think one of them received so much shareholder criticism, that he had to back off.

Bomi
Hi.
Cairn is going nowhere inspite of the market being good.If anything it is losing ground.
Hope the things turn for the better.
Patience is the key in the stock market.Just hope that it is not misplaced.
Regards