BHEL Mid Term View

BHEL made a triangle pattern. Keep close eye on 214 and 235 level.These levels will work as trend decider in coming days. Any closing below 214 may lead this stock in to bearish. However there is a uptrending trend line support around 190. If stock is not able to hold that than it may witness 130-90 levels in mid term. and any closing above 235 will make stock in bull trend and may see 280-310 levels in coming days

Nifty View for week starting at 19 Nov 2012

Last week nifty made high of 5719 and low 5560. this movement shows 5620 is nearest resistance for NSE nifty. sustaining below this bears will have upper hand on market . Nearest support for Nifty 5548 below this 5460 is next target.
Key levels for the week are as follows

5940-5782-5623-5511-5460-5300


Disclaimer apply

Nifty View for week starting at 5 Nov 2012

Last week Nifty open at 5665, made high of 5711 and low of 5698. for the week starting on 5th Nov 5660 will act as a crucial level and will work as a major support. till than nifty trades and sustain above it Bulls has no need to worry. 5750-5775-5820 and 5920 will work as resistance levels for the week and down side support at 5610-5530 and 5400..

HOW TRADERS FAILS??????

1. Lack of motivation. A talent is irrelevant if a person is not motivated to use it. Motivation may be external (for example, social approval) or internal (satisfaction from a job well-done, for instance). External sources tend to be transient, while internal sources tend to produce more consistent performance.

2. Lack of impulse control. Habitual impulsiveness gets in the way of optimal performance. Some people do not bring their full intellectual resources to bear on a problem but go with the first solution that pops into their heads.

3. Lack of perseverance and perseveration. Some people give up too easily, while others are unable to stop even when the quest will clearly be fruitless.

4. Using the wrong abilities. People may not be using the right abilities for the tasks in which they are engaged.

5. Inability to translate thought into action. Some people seem buried in thought. They have good ideas but rarely seem able to do anything about them.

6. Lack of product orientation. Some people seem more concerned about the process than the result of activity.

7. Inability to complete tasks. For some people nothing ever draws to a close. Perhaps it’s fear of what they would do next or fear of becoming hopelessly enmeshed in detail.

8. Failure to initiate. Still others are unwilling or unable to initiate a project. It may be indecision or fear of commitment.

9. Fear of failure. People may not reach peak performance because they avoid the really important challenges in life.

10. Procrastination. Some people are unable to act without pressure. They may also look for little things to do in order to put off the big ones.

11. Misattribution of blame. Some people always blame themselves for even the slightest mishap. Some always blame others.

12. Excessive self-pity. Some people spend more time feeling sorry for themselves than expending the effort necessary to overcome the problem.

13. Excessive dependency. Some people expect others to do for them what they ought to be doing themselves.

14. Wallowing in personal difficulties. Some people let their personal difficulties interfere grossly with their work. During the course of life, one can expect some real joys and some real sorrows. Maintaining a proper perspective is often difficult.

15. Distractibility and lack of concentration. Even some very intelligent people have very short attention spans.

16. Spreading oneself too thin or too thick. Undertaking too many activities may result in none being completed on time. Undertaking too few can also result in missed opportunities and reduced levels of accomplishment.

17. Inability to delay gratification. Some people reward themselves and are rewarded by others for finishing small tasks, while avoiding bigger tasks that would earn them larger rewards.

18. Inability to see the forest for the trees. Some people become obsessed with details and are either unwilling or unable to see or deal with the larger picture in the projects they undertake.

19. Lack of balance between critical, analytical thinking and creative, synthetic thinking. It is important for people to learn what kind of thinking is expected of them in each situation.

20. Too little or too much self-confidence. Lack of self-confidence can gnaw away at a person’s ability to get things done and become a self-fulfilling prophecy. Conversely, individuals with too much self-confidence may not know when to admit they are wrong or in need of self-improvement.

WHY TRADERS LOSSE MONEY

When a new player enters in market in his first few trades he makes good profit and after that he starts losing loosing and losing and finally quits from market. Today here we will tell you why it is so?

• When a new player enters in market he has less knowledge so he follows views given by his friends and broker.
• He initially use small amount of money loosing which will not affect his life style and he also satisfied with whatever he gets thus avoiding greed factor. Greed and fear factor is the biggest reason for people to lose money.
• After few successful trades he introduces more money to market even beyond his capacity and when stop loss for trades done using this money triggers than he starts fearing. We suggest all trades to use only limited money within his capacity and use only such amount of money loosing which will not affect his life style u can’t avoid risk factor associated with market.
• People followed tips given by their broker and we all know brokers only works for their brokerage so when u ask idea about market they gave their own idea about market so that you may trade and they get their brokerage.
• When people start trading before opening market they develop their own strategies about trades for the day but when market opens they forget their strategies and start trading randomly. Doing this is very dangerous in market.
• When stop loss are getting hit, traders stop using stop loss and now they have unlimited risk and limited gain.
• To avoid such kind of scenarios use your own analysis, use stop loss order and trade with define risk. When this situation comes traders end up with loss and finally quits from market
  

your suggestion and comments are always welcome. add your comments and suggestion and if we find it valid than we will add in our post too.

HOW TO DECIDE TRADING QUANTITY.

This is the most frequently asked question by all day traders as you cannot move original Stop-loss level to any other levels. Than its become very difficult to decide in how much quantity you should trade. Normally 2-3% risk of your trading capital treat as good trading risk.

Lets take a case that your trading capital is Rs. 50000. as per 2% calculation you should take only Rs. 1000 risk per trade. Now question comes that how much quantity should I trade so that if stop-loss triggers than I must loose only 1000 Rs per trade. Infect Your trading quantity depends on your risk ability. Means your risk ability will decide in how much quantity you should trade. For Example you got tips to buy SBI at 2000 with stop loss of 1950. And your risk ability is Rs. 1000 per call. Than how much quantity u should buy of SBI??? Confused????

Quantity=Risk Ability/(buy price- stoploss price)
=1000/(2000-1950)
=20
That means should purchase 20 shares of SBI so that if sl trigger than you will loose only Rs 1000 as you had decided earlier.

Let’s take another example of unitech. For example you got a call to buy unitech at 70 Rs with stop loss of 68.50 and your risk ability is Rs 1000, than how much quantity you should buy unitech. Just calculate like this-

=1000(70-68.50)
=666.66
~666
Means you should buy only 666 shares of unitech. In any case if stoploss trigger in unitech than you will loose only 1000 Rs