How To Make Money in Stock Markets

HowTo MakeMoney in StockMarkets and its Recipe for success in stock market

You need :

• 1 Robust technical Trade signal Reporting system (as its called Trading system) like nifty XL,which tells you, when to trade or when not to trade.
• As per taste Lot of patience and sharpeye to sniff the trades like sniffer dogs.
• A pinch of Gamblers luck
• Suggested garnishing Lot of spare money in form of margin call deposit

How to trade:
Step 1: Wake up early in morning, pray to all powerful almighty (which includes your wife also) for good day ahead.

Step 2: After the market opens, sit idle do nothing (like u do in front of wife) and let the market simmer for 30-45 minutes after opening..

Step 3: Depending situation at home and market... take a call for long or short trade,

Step 4: if hear any negative comments from background, take opposite trade and wait for it to be profitable.

Step 5: wait for a favorable outcome, else close the trade and curse your ancestors for bad luck.

Step 6: strain the trade for brokerage charges and taxes.

Garnish by withdrawing money to bank account.

Enjoy the day in High Spirits (pun intended!). Serves many (Brokers, idlers, exchanges, operators, jobbers, govt, IPOs, banks...etc)

Buyer Beware, We sell it irresponsibly. Harmful to spouses.

More Recipes to come...will update soon

Stock Market Nirvana

Stock Markets has been sometimes very scary and sometimes very kind for my past 6 years of trading.

here is a Trading Act and Emotions:

at Price: Rs.14.
Elation: yaaahoo! Finally my genius brain has recognized extraordinary script/stock. It’s just a matter of time before fame, fortune and a lot of upper circuits forthcoming. Market domination will be mine!!!

at Price: Rs.10.
Disbelief: WTF, its down 40% of buying price, how could i go wrong?

at Price: Rs.9.
Suspicion: Is the promoters and operators are selling the stock in open mkt en masse?

at Price: Rs.8-9 for good time of 3 months
Embarrassment: after braying some time abt PE,EPS, ROR, ROI,... i finally found out to be ASS !! LOL

at Price: Rs.8.(loss of 50%..sob... hey Dirty Mind, its not Son of b*tch..but sob sob...)
Fear:After seeing my Extraordinary Investment going down the mkt drain... i sulk and cuss the operators and my bad luck.

suddenly One day Price at Rs.17...(price jumps 25% in a day)
Smugness: Recognition for my Hard research work and patience! i told you its like Cassandra warning ( I kept telling you It was good script, u dint believe me then)

at Price: Rs.35
Bemusement: When people come ask me? When will this stk go to this-tat tgt?..believe me i feel sometimes...giving such characters nice (u guess)!!

at Price: Rs.75...[sold some at 60 :( ]
Guilt: When i sold some percentage mid way of target, i take calculator to calculate the notional / imaginary(profit)loss..every now and then..and cry for imaginary profit i lost in process.


Trepidation: Oh GOD! it jumped 30% in a day 100 to 130!!, i have to find new stock / scrip to make new money again...

Disappointment: from 130 to 90 tats down 40% in a single day...of not triggering SL,which was  much above.

Panic: from 90 to 70 in few minutes..tats again 30%..i put my hands up in it air by selling remaining quantities at mkt price...

Redemption ... finally.. i grin ..seeing i made correct decision... stock price goes to 50,40,30,20, then finally settles 15-20, and now up again at its some where hanging mid way...

Last stage of trading:
Nirvana: When the trade settlement done and cash is transferred to bank account.

Operators

Operators: Friend or Foe?

Have you ever wonder, When u place an order with the stockbroker and within seconds it is executed, how this is possible.?

This is where the Operator uncle comes in!!..yes heard right Operators. They cannot be avoided, but if you know how they work, you can watch them buying and selling in the market.

The Operator is like a wholesaler. Customers come and go all day long, some selling stocks, others with new purchases from 10.00 am until 3.30 pm every trading day . The difference is that this wholesaler has only one item to trade. These items are continually bought and sold. The only responsibility that the wholesaler has, it that he must keep his doors open during market hours, and he is responsible for setting the prices, second by second and hour by hour. He makes his money by buying stock at a lower price and selling at a higher price. He makes his money on the difference between the two, which is his profit. This may be few Rupees or in paises, but when you are dealing in lakhs of shares it is a vast amount of money.

what happens when a customer comes in for a large buy order (Block/Bulk Deal)?
if there are insufficient goods (or stocks) available. A normal wholesaler in the real business would buy in more goods from the manufacturer to fulfill the order.

Our Operator Uncle does not have this option, so he has to encourage people to sell to him, otherwise he will have nothing to offer his Big customers. So what does he do? He moves his prices down side,i.e.yes at Lower circuit.!!

It also explains why markets fall faster than they rise - in the fall the wholesaler is in a hurry to get new supplies of goods, on the way back up he is taking his time making profits. This technique is known as 'shaking the tree'.

The Operator is of course the market maker. They are professional traders who buy and sell. Some are large international banking organizations, some household names, others you will never hear of.

As professional traders they sit in the middle of the market, looking at both sides of the market. They will know precisely the balance of supply and demand at any point of time.

They also have the unique advantage of being able to set their prices accordingly.

They use every piece of news, world event, rumour and gossip to manipulate prices and the markets, there is one piece of information that they cannot hide.i.e Volume. It shows the activity of operators during the particular time period, that’s why you should not take Volume lightly!

(article has been Re-edited by me,Thanks and Excerpts/article courtesy to the writer Anna @ making-bread.co.uk)