Saturday, February 20, 2010

PESCo PESRIIICO...(Fundamentals of Fundamentals)

Fundamentals are fundamental,

Liquidity and Sentiments are secondary and feast on the fundamentals!

To be a profitable trader we must be a well-informed trader.
And to be a well-informed trader, we must understand the following factors which make the "fundamentals" we daily talk about!
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P=Country's Political State-of-affairs

E=Country's Macro-Economy

S=The concerned sector's state-of-affairs

Co=Company's state-of-affairs (Topline, Bottomline growth,EPS,ROI,PE ratio, etc.)

P=Global Political Environment

E=Global Economic Environment

S=Global state-of-affairs of the said sector

R=Rate of Interest

I=Global Market Indices

I=Institutional Investors (FIIs,DIIs)

I=Inflation

C=Currency (Dollar v/s other currencies)

O=Oil (Crude)
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Daily, before the market hours, write a '+' or '-' in front of each of this factor.

And in the end, cancel every '+' with '-' and see what is left in the end.

This will give you a fair idea of the "hidden fundamental pressures" in the market for that day!

You can take a technical call more confidently now!

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