Return of 500% in just 5 years.: May 15, 2012

Tuesday, May 15, 2012

8TH BINGO! ORCHID CHEM FUTURES REACHED OUR SECOND TARGET OF 130.40

TODAY WE RECOMMENDED TO BUY ORCHID CHEM FUTURES AT CMP OF 125 WITH A STOPLOSS OF 123 FOR A TARGET OF 128.80, 130.40 AND 131.80. OUR SECOND TARGET OF 130.40 ACHIEVED TODAY ITSELF. BINGO AGAIN!

7TH BINGO! CAIRN FUTURES REACHED OUR SECOND TARGET OF 317.40

TODAY WE RECOMMENDED TO BUY CAIRN FUTURES ABOVE 311 WITH A STOPLOSS OF 308 FOR A TARGET OF 314.80, 317.40 AND 319.80. OUR SECOND TARGET OF 317.40 ALMOST ACHIEVED TODAY ITSELF. BINGO AGAIN!

6TH BINGO! CAIRN FUTURES REACHED OUR FIRST TARGET OF 314.80

TODAY WE RECOMMENDED TO BUY CAIRN FUTURES ABOVE 311 WITH A STOPLOSS OF 308 FOR A TARGET OF 314.80, 317.40 AND 319.80. OUR FIRST TARGET OF 314.80 ACHIEVED TODAY ITSELF. BINGO AGAIN!

BUY CAIRN FUTURES ABOVE 311 WITH A STOPLOSS OF 308

WE RECOMMEND TO BUY CAIRN FUTURES ABOVE 311 WITH A STOPLOSS OF 308 FOR A TARGET OF 314.80, 317.40 AND 319.80.

BUY SHRIRAM TRANSPORT FUTURES AT CMP OF 511 WITH A STOPLOSS OF 498

WE RECOMMEND TO BUY SHRIRAM TRANSPORT FUTURES AT CMP OF 511 WITH A STOPLOSS OF 498 FOR A TARGET OF 523, 528 AND 533. HIGH RISK TRADERS CAN HOLD POSITIONS FOR A TARGET OF 533, 548 AND 563.

MARKET FRUSTRATION

This post is about the frustrations that market fluctuations generate for a trader and how to deal with them. My message is a simple one: be content with what is possible.

I have been in this business full time for nearly 30 years now. I have known many traders. The majority of them were only in the business a relatively brief time. Most of these left because they lost money but some left because, even thought they were making money trading, they couldn't stand the constant frustration traders experience.

Markets move up and down, sometimes quite violently. People tend to evaluate their trading performance not simply in terms of profit and loss but also in terms of how much money they could have made had they been able to catch a substantial part of most of the market's up and down swings. In fact, I have known profitable traders who were constantly frustrated and unhappy because they felt that they had left so much money on the table.

Put simply, this is crazy behavior. What basis do you have for thinking you can catch a substantial part of the market's many swings? Sure, in hindsight everything is obvious and we can see how we might have become gazillionaires.

But we cannot trade the past. We can only make profits betting on the future. And people who bet on future price fluctuations must necessarily rely on very, very cloudy crystal balls. So as a practical matter you should count yourself fortunate indeed if you consistently capture a small part of any given market swing.

What does this mean for you? It means that you should be focused on one thing and one thing only when evaluating your trading record.Have you been making consistent profits or not? Forget about how much you might have made - those sort of calculations are not in the realm of what's possible. What's possible is steady, month-by-month, quarter-by quarter profitability. Some people can achieve higher rates of return on their capital than others, but so what? Don't worry about what other people do. Focus only on what you can do based on your market knowledge and trading skills.

I had a friend who was a member of the Chicago Board of Trade and later a member of the Singapore exchange. He had a profit goal he aimed for each year. When he reached it he stopped trading for the rest of the year. It didn't matter whether it took him two months or six months or eleven months to reach his goal. When he reached it he stopped.

For him trading was just a way to make a good living, not a test of his value as a person or an affirmation that he was smarter than everyone else. This is an example of sane behavior in a business where various forms of insanity are the rule, not the exception.

5TH BINGO! SINTEX FUTURES REACHED OUR FIRST TARGET OF 56.80

TODAY WE RECOMMENDED TO BUY SINTEX FUTURES AT CMP OF 55.25 WITH A STOPLOSS OF 54 FOR A TARGET OF 56.80, 57.40 AND 58.80. OUR FIRST TARGET OF 56.80 ACHIEVED TODAY ITSELF. BINGO AGAIN!

4TH BINGO! TTK PRESTIGE FUTURES REACHED OUR THIRD TARGET OF 3073

TODAY WE RECOMMENDED TO BUY TTK PRESTIGE FUTURES AT CMP OF 3010 WITH A STOPLOSS OF 2980 FOR A TARGET OF 3043, 3058 AND 3073. OUR THIRD TARGET OF 3073 ACHIEVED TODAY ITSELF. BINGO AGAIN!

3RD BINGO! TTK PRRESTIGE FUTURES REACHED OUR SECOND TARGET OF 3058

TODAY WE RECOMMENDED TO BUY TTK PRESTIGE FUTURES AT CMP OF 3010 WITH A STOPLOSS OF 2980 FOR A TARGET OF 3043, 3058 AND 3073. OUR SECOND TARGET OF 3058 ACHIEVED TODAY ITSELF. BINGO!

2ND BINGO! TTK PRESTIGE REACHED OUR FIRST TARGET OF 3043

TODAY WE RECOMMENDED TO BUY TTK PRESTIGE FUTURES AT CMP OF 3010 WITH A STOPLOSS OF 2980 FOR A TARGET OF 3043, 3058 AND 3073. OUR FIRST TARGET OF 3043 ACHIEVED TODAY ITSELF. BINGO!

1ST BINGO! ORCHID CHEM FUTURES REACHED OUR FIRST TARGET OF 128.80

TODAY WE RECOMMENDED TO BUY ORCHID CHEM FUTURES AT CMP OF 125 WITH A STOPLOSS OF 123 FOR A TARGET OF 128.80, 130.40 AND 131.80. OUR FIRST TARGET OF 128.80 ACHIEVED TODAY ITSELF. BINGO!

BUY SINTEX FUTURES AT CMP OF 55.25 WITH A STOPLOSS OF 54

WE RECOMMEND TO BUY SINTEX FUTURES AT CMP OF 55.25 WITH A STOPLOSS OF 54 FOR A TARGET OF 56.80, 57.40 AND 58.80.

BUY TTK PRESTIGE FUTURES AT CMP OF 3010 WITH A STOPLOSS OF 2980

WE RECOMMEND TO BUY TTK PRESTIGE FUTURES AT CMP OF 3010 WITH A STOPLOSS OF 2980 FOR A TARGET OF 3043, 3058 AND 3073.

BUY ORCHID CHEM FUTURES AT CMP OF 125 WITH A STOPLOSS OF 123

WE RECOMMEND TO BUY ORCHID CHEM FUTURES AT CMP OF 125 WITH A STOPLOSS OF 123 FOR A TARGET OF 128.80, 130.40 AND 131.80.

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DISCLAIMER

Trading in stock market is very risky. Please analyze yourself what is your risk profile. This blog is not perfect. This is not an advisory service to buy or sell. The contents of “this blog” are only for educational purposes. No liability is accepted for any content in this blog.

The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments

SGRG – SIP: BE THE MASTER OF YOUR OWN DESTINY

Welcome to the World of S.I.P. (Systematic investment Plan).

Thanks to the massive amount of time, money and efforts put in by the Mutual Fund Industry over the years, investors are now very much aware of this technique of investing.

Lets revisit the logic of SIP. We call it SGRG-SIP.

In a SIP you invest a fixed sum at a particular interval ( say a month) over a given period of time. In SGRG-SIP, instead of choosing a regular MF scheme, we decide an Index Benchmark, which can be NIFTYBEeS, JUNIORBEeS, GOLDBeS, BANKBEeS depending upon your risk profile.

Disciplined Approach

The first benefit of a SGRG-SIP is that you imbibe discipline in your investments. On a given date of every month you buy the pre-decided index Benchmark. However, the amount to be invested every month keeps on changing i.e. It will be communicated by us every month. You don’t really apply your mind whether to buy or not. Just go ahead and do it.

Don’t worry about the timing

Let me choose the worst possible month in recent history – January 2008 I Hope everybody remember this month.

So we baptize you with fire, by making you begin investing from 26^th December, 2007, a sum of Rs 25,000 every month on the last day of the month. This you religiously do every month for 36 months i.e. 25^th Decemeber, 2010.

Lets see how the Nifty faired. The Nifty that was 6070 on 26^th December 2007 closed on December 26^th 2010 at 6013. This is a fall of 0.94%. And say you like Reliance a lot. The price of Reliance on 01.01.08 was 1445 and on 01.03.12 it was 811 down -43.80% over a period of 3 years.

But our’s SGRG-SIP in Index benchmark’s actually gave A WHOPPING Annualised Return of over 50% p.a. during the same period.

What we mean to say is since, we cannot track the working and performance of each and every scrip, when you fundamentally like a stock, you should like the stock more if the price falls, other things being same. But human psychology will ensure that you get jitters when the price falls. And expecting that the price will fall further you don’t buy. A further fall in price will validate your fears and you would wait for a still larger dip. One fine day the stock will bounce back, leaving you in a frown.

But a SGRG-SIP will ensure that your fear does not come in the way of your investment. This ability of SGRG-SIP to systematically buy Index Benchmarks at all levels ensures good returns in a volatile market. So honour the sanctity of a SIP.

Power of Compounding

The power of compounding will ensure that even small investments in early part of life will leave a giant footprint over a longer period of time. You don’t really have to save big. The stress is not on the amount, but on the need to start early. And even if you have lost considerable time, don’t worry. Today is a good day to begin ! Let us also dispel a myth that SGRG-SIP is only for beginners or for small investors. Nothing stops you from allocating even large sums for SGRG-SIP. In fact experienced investors would find it more useful.

SOME REAL FACTS ABOUT SGRG–SIP

PRICE	S&P	JUNIOR	BANK	GOLD	SILVER
	NIFTY	NIFTY	NIFTY	SPOT	SPOT
01.01.05	4484	2080	3531	6301	10415
01.12.10	9095	5871	11988	29035	55900
% P.A.	15%	26%	34%	52%	62%
SGRG %P.A.	58%	399%	679%	1201%	10000%

Here are some real facts about our SGRG – SIP. We have compared the prices of some of the Indexes and Top Commodities in the World market since 1^st Januray, 2005. Here also you will appreciate that SGRG –SIP outforms all the asset class mentioned below by 100% at least.

Be the master of your own fortunes.Write your own success story. Choose your own Index Benchmark, which you will be investing over a period of time. Since your returns will be function of what asset class you choose, ensure that you put in serious efforts in terms of understanding what you are investing in. Ensure that the Index Benchmark you choose match your risk stance and return expectations.