FROM AN EXPERIENCE
1. The market expects you to
accept losses. If you want to play in
the market you better be prepared to play by the market’s rules. Accept the losses, make them small based on
proper risk parameters, and the market will consider it a tithe. Just set it aside and help pay for a pew, not
the entire church.
2. The market wants you to admit when you are
wrong. Commit to admit. If the market is always right, and it is, then
go ahead and let the market know NOW that you understand and accept its
omnipotence. Broadcast it to the heavens
and to depths of the earth; broadcast it to your friends and family; broadcast
it to your neighbors; broadcast it in every chat room you use to brag in. Let everyone know you will be wrong more
often than right and that you are OK with that.
If the market knows you do not mind being wrong the market will leave you
alone.
3. The market will reward your discipline. Let’s face it, the market is one disciplined
son of a gun. When it says it is going
to crush the bears with their death cross and the bulls with their golden cross
it does. When the market says a bearish
economic report does not matter I am going higher anyway it will. When the market says that cute little support
line you drew is nothing but “a lead pencil and I am an eraser”, then erasing
it will go. Stick to a discipline of
listening to what the market is saying and the market will whisper its
direction instead of shouting its lies.
4. The market is the calculator. If you are attempting to reach 10 via the
calculator, there are many and various ways of getting there: 5+5, 2+8, 15-5, 25 –15, or even 2 + 2 –1 –1 –2 –2 +3 +3 +3 + 3. When it comes to making money in the market
our calculator may want to make it to 10 much quicker than the market does and
we may want to add 5 + 5 to get there but be prepared for the market to take
its own sweet time adding things up. If
all that matters is getting to 10, then make sure the road you take is paved
with minuses along with pluses along the way or all your money will be going to
the 5508 (punch this number into your calculator and turn it upside down to see
what it spells), which will make the employee a very unhappy and broke
individual.
#The market does not beat them. They beat themselves, because
though they have brains they cannot sit tight. Old Turkey
- Jesse Livermore
#After spending many years in Wall Street and after
making and losing millions of dollars I want to tell you this: It never was my
thinking that made the big money for me. It always was my sitting.”
- Jesse Livermore
#What beat me was not having brains enough to stick to
my own game – that is, to play the market only when I was satisfied that
precedents favored my play. There is the plain fool, who does the wrong thing
at all times everywhere, but there is also the Wall Street fool, who thinks he
must trade all the time. No man can have adequate reasons for buying or selling
stocks daily – or sufficient knowledge to make his play an intelligent play.”
- Jesse Livermore
NIFTY FUTURES LEVELS FOR AUG
21
NEARBY RESISTANCES NOW @ 5440-5521
NEARBY SUPPORT NOW @ 5350
Day’s Resistance @ 5402-11-20-40
Day’s
Supports @ 5382-54
If sustains above 5383 for 5 minutes with good
bulls volume see a sure hike upto 5404-11
Suppose if trades below 5382 for 5 minutes see
an intraday slide upto 5362-58
SELLING TIPS TODAY
SELL
KESORAMIND, DREDGECORP, HINDALCO,
JSWSTEEL, JINDALSTEL,
ADANIPORTS, POWERGRID
But when & where today....?
- Only our subscribers know to mint money by that - Join Hands and Enjoy
RATE CUT CANNOT BE PREDICTED: RBI
Amid widespread demand for a
reduction in interest rates by banks, RBI today said rate cut cannot be
predicted at this moment.
“You cannot say when the rate
cut will come. Wait for our September policy,” RBI Deputy Governor H R Khan
said on the sidelines of a function organised by the Institute of Chartered
Accountants of India (ICAI) here.
The Reserve Bank is scheduled
to review its monetary policy on September 17.
Khan’s comments incidentally
come on a day when Finance Minister P Chidambaram asked banks to cut interest
rates and keep EMIs at affordable levels to encourage sale of consumer durables
that will restart the engine of manufacturing.
“The middle class is
complaining about increasing EMIs and stretching payment cycle. The middle
class, which consumes consumer durables postponing purchases, and that is not
good for the industry,” he said.
“EMI must be kept at
affordable level so that people will buy two wheelers, cars, refrigerators, washing
machines, cooking ranges, mixies and grinders.
“That will keep the engine of
manufacturing going and large industries continue to produce these goods. The
suppliers of parts and accessories in the small and medium enterprises will
continue to do business.” Chidamabram said.
A fall in inflation in July
has boosted hopes of a rate cut by RBI. Inflation based on Wholesale Price
Index (WPI) declined to 6.87 per cent in July from 7.25 per cent in June. It is,
however, still above the RBI¿s 5-6 per cent comfort level.
Khan also said RBI is taking
steps for flow of capital with focus on creation of non-debt capital, “We are
trying to improve capital flows through FDI and NRI deposits.”
On rupee’s exchange rate
volatility, Khan said, “Our approach is that there should be orderly movement
of rates in the market and there should not be any volatility.”
“Let us see what can be done
to contain gold demand,” he said, adding a committee formed by RBI will come
out with its report in two-three months.
Earlier addressing ICAI’s
conference, Khan said focus should be on the domestic exploration of oil and
gas as 70 per cent of it were being imported while 100 per cent of gold
requirement was also coming from other countries.
He also underlined the need
to increase agricultural productivity in order to survive the impact of the
global financial crisis.
RBI to decide on rate cut in
Sept
RBI is taking steps for
capital flow into the country and will decide interest rate cut in its
Sepetmber policy.
“You cannot say when the rate
cut will come. Wait for our September policy,” RBI Deputy Governor H R Khan
said at the sideline of a function organised by Institute of Chartered
Accountants of India (ICAI) here.
Stating that RBI was taking
steps for flow of capital with focus on creation of non-debt capital, Khan said
“We are trying to improve capital flow through FDI and NRI deposits.”
On the market slide, he said
RBI was making efforts to contain rate volatility. “Our approach is that there
should be orderly movement of rates in the market and there should not be any
volatility.”
The RBI deputy governor said
import of the yellow metal has come down and a committee formed by the apex
bank will come out with its report in two-three months. “Let us see what can be
done to contain gold demand,” he said.
Earlier addressing ICAI’s
conference, Khan said focus should be on the demestic exploration of oil and
gas as 70 per cent of it were being imported while 100 per cent of gold
requirement was also coming from other countries.
He also stressed on the
increase of agricultural productivity in order to survive the impact of the
global financial crisis.
POSITIVES & NEGATIVES OF THE WEEK
Positives:
1) Continuing the Draghi put rally, the Spanish IBEX
trades higher each day this week and closes at 4 month high. It takes the
Italian MIB index with it.
2) US Retail Sales bounce back in July after previous
3 months in a row of declines.
3) Initial Jobless Claims about in line at 366k but
below 370k for 2nd week and clean of July auto distortions.
4) US
5) July IP up .6% (but June revised lower) led by
auto’s.
6) NAHB builder survey rises 2 pts to 37, highest
since Feb ’07.
7) Multi family starts rise in July as do permits for
multi and single family.
UoM confidence
in Aug ticks up led by current conditions at best since Jan ’08.
9) India
Negatives:
1) If Fed’s goal is to keep rates as low as possible, what
do they do now if reason for recent jump is temporary calm in Europe ?
QE3 alive and well after voting member Williams says he wants it.
2) NY and Philly mfr’g indices for Aug show
contraction, Philly for a 4th straight month.
3) Single family home starts down 35k in July.
4) MBA said purchase apps fall for 5th straight week
to lowest since Feb.
5) Economic outlook within UoM confidence falls to
lowest of the yr.
6) Inventory to sales ratio within Business
Inventories rise to most since Feb ’10 due to sales drop.
7) PPI both headline and core rise above est.
Euro zone Q2
GDP contracts .2% q/o/q.
9) German ZEW falls to lowest of the yr.
10) Japan
11) FDI in China
12) AAA says gasoline price moves up another .04 to $3.72,
to the highest in 3 mo’s.
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