Daily News & Common Trading Mistakes

18 Feb

END OF THE DAY REPORT (17 April 2015):

Nifty ends down 101 points; Metals and PSU bank gains:

Market witnessed sharper cuts fell to their lowest level in nearly two weeks weighed down by IT stocks as TCS reported weak quarterly numbers which was lower than expected revenue growth. Nifty ends 100 points lower at 8606 while Sensex dips 224 points ends at 28442.

HEADLINES FOR THE DAY:

  • IDBI zooms as much as on the back of huge volumes.
  • Sun Pharma falls as company issued new shares on amalgamation of Ranbaxy Laboratories.
  • Lupin extends its previous day’s losses after Auro Pharma received USFDA final nod for Generic Suprax.
  • Hindalco moved higher on media reports that LIC will hike its stake in the company soon.
  • Rolta dips further despite given clarification on Glaucus dispute report.
  • Reliance moved higher ahead of results.

KEY STOCKS FOR THE DAY:

  • Pharma shares were under pressure for the second consecutive day, Pharma index dips more than 3 percent today.
  • IT stocks like Wipro, Hexaware, Infy were under pressure after it majors TCS, MindTree reported weak Q4 results.
  • Mind Tree today reported Q4 net profit dips by 8.6 percent to Rs 129 crore due to cross currency or on account of forex losses.
  • Private Banks like Axis Bank, Yes Bank, IndusInd Bank dips as much as on profit Booking.
  • Metals stocks moved higher on the back of renewed buying interest. SSLT, Tata Steel gains.
  • Dish TV dips as much as after Goldman Sachs advised sell on the stock.
  • Tata Steel gains in an otherwise market on best production in financial year 15 as well as JP Morgan has increased target with rating of overweight.
  • Shares of BPCL ends on a flat note, company told about new oil discovery in Brazil.
  • Mahindra and Mahindra gains on reports of acquisition plans.
  • Bharat Forge dips after rating agency downgrades stock rating.
  • MRF gains in early trades on media reports that coming is planning to expand its Telangana plant soon, Investment for the expansion of plant will be around 980 crore.

SOME STOCKS FOR NEXT TRADING SESSION:

  • Amtek India gains for the fourth straight week, shows good recovery from lower levels further more buying is expected from current levels. Buy above 89.60 its next resistance is seen near around 95-99 while 80-73 will act as important support levels.
  • AstraMicro gains today on the back of huge volumes. Buy above 157 targets 158.55/160.15/161.75 SL 155.40.

WEEKLY STOCKS:

  • Gujrat Gas gains in the last trading hours today and hits fresh high with huge volumes as well as gains for the third week and ends with a long bullish candle in weekly charts which indicates more buying (its buy on every dips).
  • SRF is heading towards its all time high resistance level i.e. of 1088.90, so buy above it targets 1110.70/1132.90 SL 1065.

RESULTS BLOG:

  • CRISIL shares dips after hits record high today after reported 18% fall in March quarter ending at Rs 56.32 crore.
  • Mind Tree today reported Q4 net profit dips by 8.6 percent to Rs 129 crore due to cross currency or on account of forex losses.
  • TCS faced selling pressure as company reported weak Quarter numbers, net profit down by 27 percent on yearly basis while 29 percent on quarter on quarter.
  • Reliance net profit up by 13 percent to Rs 6381 crore for the March quarter and announced divided today
  • RS Software falls after company reported profit worth Rs 15.5 crore against 17 crore last year.

GLOBAL MARKET:

  • European shares were mixed today as markets were jittery ahead of final data on euro zone consumer prices, although the ECB (European Central Bank’s) latest policy statement continued to support.
  • Asian shares dips from fresh seven-year highs but was still on track to score weekly gains, while the dollar languished after lackluster U.S. economic data made a near-term interest rate hike appear less likely.

NEWS TO WATCH OUT:

  • Watch out for the Quarterly numbers of Hind Zinc, and Tata Sponge on Monday i.e. on 20th April 2015.

Common Trading Mistakes

Many beginners and rising stock traders invest in the markets with high earnings hope, after investing a big amount they thing it is a simple task, but in reality it is a more risky game as they expected. Share market trading basically is game of full of emotion, every day lot of people trade in the market in which some are ruined because of lacking of market knowledge and make some profits. Before emerging in the market trader should clear all the fundamental concepts related to trading after that if the trader has confidence about a specific stock then defiantly he or she will make profits, but sometimes trader needs to the smart tips such as Stock Tips and expert Option Tips. In fact, most of the traders have performed several trading mistakes, according to trading specialist. The magnificent thing about the trading market is that you know all the time when you’re correct or incorrect. When you’re losing capital, then you’ve almost certainly done something erroneous. Finally, if you have understood your mistake, then you should work on it and after that you will feel great.

The following blog is providing you common mistakes that made by active stock traders.

1. Little Homework or Training

When you enter in the share marketplace, you had superior be ready. Many expert traders suggest for books because of the few books instruct you for the necessary basic concepts related to stock and for a become expert trader you require to know every fundamental information about  trading stocks, so You shouldn’t undervalue the time, commitment, and loyalty it gets to be a victorious trader. You can’t just go into the market with a handful of capital and expect to receive money Instead of the professionals. If that’s the situation, then you’re doing gamble, it is not a trader. When you have to enter into the market, you should have deep knowledge about current market and for taking it there are many sources are available like as stock news channels and much stock market news website and expert books are very helpful to clear the entire basic concept. Stock markets hold a high level of instability.

2. Being Emotional About Capital

According to specialized, many new traders fail every time to get profits because of their observation about money is the major reason. Many trading experts offer their point of view. Sometimes numerous traders get so sensitively involved in their share trading. If a thread performs trade and trading goes against them, then they feel lost.

Luckily, there are many techniques to desensitize one’s emotional which connected to the capital. Many trading experts’ advices that through trading minor share sizes approximately 100 shares per trade latte, traders can

Suggest them to be less sensitively charged. If trading in smaller size, then it can help out to diminish both the losses and the emotional suffering that frequently feels with losing a bigger amount of money. On the other hand, if a trader becomes more profitable in trading, then specialist suggests gradually increase the share size otherwise a big loss ready for you, it’s size should be perfect by which trading will perform  without increase your BP (blood pressure)  to an individual comfort zone is achieved.

3. Lacking of Own Record

It’s logical why most of traders turn into emotional when they doing trade. Our stock trader says, if you precede a trade, in this everything is possible, such as going increase or decrease. Here we can experience that we have no power for controlling over what is happening in the market. With the unstable character of buying and selling stock because of you have no idea of strangers who are providing you money or taking money, and that can be extremely hectic.

Two controls these emotions, our experts suggest to you keep a trading diary or records; this record helps you for future trading and for making expert analysis or tips like as Currency Tips, Nifty Tips. Whenever you enter for a trade in the market, you should print out the support and resistance graph or chart and note down why you participate in the trade, you must know whether it was technical or fundamental, if you taken a loss then you should note the reasons of the mistakes. You mark the entry level on the left and exit level on the right side. Here diary can help you in achieving two purposes. The first purpose is to create money and second is to become a superior trader. In case if you might not be succeed on the first, but you must certainly succeed in the second purpose. You should effort to become an improved trader after every trading.

4. Not determining the Risk-Reward Ratio

Many traders do not determine the RRR (risk-reward ratio) of their stock trading before they set up a position. The RRR (risk-reward ratio) for a stock trade is the link between the desires of investors for capital protection at the end level and require maximizing results at the other end.

With the help of trading experience, traders can find their trade’s comfort level for calculating this ratio; it is a simple calculation not a magic number. For this calculation, we need three common components: current stock price, a profit objective and stop exit price. In calculating stop exit and profit objective, we need computation of many factors which are standard deviation and technical indicators. Most of trader always been excited to trade; they have not enough patience, but trading is the game of smartness and intelligence. Sometimes traders need broker because they have not enough time to market watch, then most of broker trade to the investors and provide tips like as Stock Tips and Equity Tips for difference trading segments.

It’s general to listen about the successful people have traded stocks, but you infrequently listen regarding to the losses. As a consequence, it is a simple task for emerging in trading, but the difficulty is that staying with profits. Most experts are aware of that trading is a complex business and challenging too. It needs an ongoing dedication. As a kid, you didn’t become a good rider until you take a few falls because practice makes man perfect.

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