broom bundle of stocks in bull trend

 suppose we buy 30 stocks. on the day of buying they are like a bundle of sticks tied with a string.

while we often wish that the stocks in the bundle will go this way👇

we fear the stocks actually going opposite way with falling market

but that is a baseless fear which often prompts an investor into wrong actions or unnecessary anxiety

because in reality, it is often seen that the bundle of stocks behave like a broom.

all stocks going in their way depending upon their merit.

all a trader has to do is to try to pick only those stocks where the chances of all stocks/sticks in one direction (up) are higher

In fact,  even if market (index) dips, it momentary disturbs/ distorts the good stocks which again come back to their original track

Something like this

Pick good stocks in bull trend and don't worry about the broader index

Just because the world is going to hell doesn't mean good people and stocks are not living in heaven already. They are merrily marching to happiness and wealth

the class of '87

stocks are like the class 10th bunch. all are together during 10th/matriculation (index). but over time, they all go their way, different from each other and that of the class/index.

so no need to worry about stock price movement wrt the index if the stock selection is right. fluctuations in good stocks on the way up is just a mark of respect to the hiccups of their alma mater.

a portfolio gets torn apart and scattered in different directions like the coagulation of colloidal solutions like milk and blood. that's the formation process of cheese in investing. a balanced portfolio takes care of any churning.

casino royale - II

[10:30 AM, 2/14/2017]

lot of options premium to be eaten by operators. they needing range IMO                      

what better proof required than this being the 9th day within 8700-8800 nifty spot range.                      
it's a premium eating and computers controlled casino royale...

in casino, players play to win or lose, casino operators exist to erode by letting everyone come and play

they manage stocks to manage nifty. nifty in itself is nothing but a derived Mirage                      

and they have cleverly devised instruments like nifty futures and options to trade even that Mirage.... hats off                      

trading fundamentally strong stocks with signals from nifty is the only non premium losing game positional traders can play..,

the logic of buying "costly" stocks

when u r sinking....where do u put ur dry cookies? 

in the container which has already sunk or in the one that is still dry? 

.....so, by this logic i keep buying/adding those stocks on every nifty decline which are not falling or have fallen much less....

earlier i used to buy the stock which was available much cheaper than earlier....the one which has fallen the most....instead of those which were still relatively dearer.....

curious case of stock split!

every icici bank share split into 5 today
from 1798, it "fell" to 361 (cmp)

no of shares became 5 times, value per share became one fifth.
market cap of the company remains same...

so why split the share?

this simple curious question led me to the article

http://www.investopedia.com/articles/01/072501.asp

in simple words, it is more of a psychological pricing tactic. instead of 1kg sugar packs, the same amount now availble in 5 packs of 200gms each!

amusing! interesting! intriguing!

but to me, it has done irreparable damage......my technical chart is damaged.....blasted......no tech analyses possible now for a long time!

A rose by any other name would smell as sweet.....sure
but a stock will blow bigger and faster like a bubble when split!!!

(caution: to an unsuspecting amateur investor, such splits can split end the life with a cardiac arrest)

liars on the dalal street

"30% festival off!"

"upto 50% off!!!"

"50+30% discount"

"Buy 1, Get 1 free"

"Buy 2, Get 3 free"

"upto 90% off!"

These are some of the funniest and most amusing lines I see in the markets!

Everyone asks for discount before buying!

Every shop worth his trade ensures that he gives discount after some tantrums!

Before even that he ensures that he has changed 400 price label with 500!!

Abraham Lincoln was probably wrong when he said - "You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time...."

Discount culture has been fooling all of the people all of the time!

Or, put it differently, all of the people have being deliberately yearning to be befooled all of the time.

In still other words, all of the people have been befooling themselves all of the time!

It is a mirage we all know but we all love to ignore!

Afterall, what does a 30% or 50% or 80% discount mean?

Why should anyone expect a discount and why should one give a discount?

Why not price it fairly?

A discount can mean one of the five things:-

1) Either you were being overcharged earlier, or

2) There is a problem with the product or service being sold now, or

3) They have jacked up the price before window dressing it with "discount" or

4) They are selling it now at a loss, or

5) It is a distress sale.

Distress sale doesn't happen everyday, everywhere and with every product or service!

Also, obviously, nobody sells at loss unless it is a distress sale!

So, the truth lies somewhere in the first 3 lines.

=======

The same logic applies to stock prices

1) Either it was earlier overpriced, or

2) There is some fundamental problem with the company or sector or economy, or

3) The "insider" brokers along with the "friendly" media create an impression of a "discount" after a jacked-up price!

=======

An aware trader or investor should be sharp to spot the reason and call the bluff!

Majority of the trades in the market are bluffs

Learn to know the real worth of a stock, catch every liar on the dalal street!

when to catch a falling knife!

A stock is compared to a falling knife when it is falling fast and non-stop.

If a not-so-famous small or midcap is falling, nobody pays any notice.

Everyone says "it is falling, so it must be a bad bet"

Consequently, those small and midcaps fall more and faster.

But if it is a Bharti or Satyam or Suzlon or Reliance or RNRL or Ranbaxy that is falling

the same statement changes dramatically!

The brand pull of these stocks is big enough to lure anyone!

Many tongues start coming out of their dens!

Many eyes start popping out of their sockets!

This is often a trap for traders.

Countertrend traders are lured to latch onto these stocks.

"It has never fallen this much. It is surely a steal at these levels."

"It can't fall more than this."

"Lets start entering in steps"

Arguments given are numerous....

Many "I am smart" traders don't even announce their intentions in their friend circle and silently start accumulating these falling apples (they don't yet know that it is a knife!).

One thing they forget in the excitement is - why is it falling like this in first place?

Are the big players nuts while dumping? Afterall, this is not a routine correction! The market is going up and this apple is falling?

When the apple keeps falling

the "I am smart" traders start realising that what they have caught is a knife instead!

----------

A stock falling due to fundamentals is basically a sell-on-every-rise.

It is not wrong to leave it alone if you are not sure about the fundamental logic!

So what is the best time to catch a falling knife?

Never!

falling knife....never!

fallen knife....again never!

knife.....never!

so when to buy it?

...when it is no more a knife but a spoon

....a golden spoon

Very often, a stock knocked out of the fundamental orbit remains free floating and wandering for a long time.

First it keeps falling.

then it keeps consolidating while the management realises the mess and starts working on the cleanup act.

Finally, when the poor stock has come out of the long oblivion

big players start pumping money into it....

That is the time when the stock starts showing life!

It is no more a knife now but a golden spoon.

Its graph makes a higher low!

That is the time to put this spoon in mouth!

PAT on the back

If you want to invest in a company on the basis of minimum research

then look for PAT.

PAT = Net Profit after Tax, Depreciation and Interest

Afterall, we do business and do investment for profit.

But before you invest, just check where from this profit has come, and

how does this profit relate to the revenue!

Four situations may arise

I. PAT has increased and the Revenue has decreased

II. PAT has decreased and the Revenue has increased

III. PAT and Revenue have both decreased

IV. PAT and Revenue have both increased.

In First case, the company is not growing but is becoming financially healthier by controlling the costs (except in case of extraordinary income case).

In Second case, the company is facing extra-ordinary pressure on cost side due to competition or input costs etc.. If the decrease in profit despite increase in revenue is because of inefficiency it is a danger signal! Anyway, this second case is a "stay-away" or "wait and watch" signal.

Third case is a big No-No.

Fourth case is a big Yes, IF

it is sustainable and more than the expectations!

go with the growth! (Quick Word)

Consider 4 types of companies

1. Large cap growing companies

2. Small and Mid cap growing companies

3. Large cap stagnant companies

4. Small and Medium cap stagnant companies

The third ones struggle to be as good as bonds.

The fourth ones are the biggest advertisers of bonds.

The first type grow faster than inflation and bonds.

The second types grow fastest.

Smell the sustainable growth & follow

almost blindly!

Trade the Cheetahs, avoid the Elephants

As a trader I respect big,good and stable companies like L&T, SBI, Infosys, Maruti, Bharti, etc...

I call these Elephants.

They are big, solid, stable, reliable and profitable!

You can be sure of your investments in them!

But, as a trader

who knows what he is doing and is not an amateur,

I look for more than stability, strength and size!

I want excellent returns in the same time without sacrificing the respect of elephants!

I want "speed"!

So, I avoid the elephants and prefer the Gazelles and Cheetahs!

(surely I don't want unreliable and unpredictable monkeys!)

A Cheetah can move at speeds as high as 112 kmph!!!

A great hunter, fit and fierce!

Highly respected!!

So, how to look for Cheetah stocks?

I did a simple exercise.

I calculated the percentage rise of 52-week high value over the 52-week low value (as on 10th March 2010)

of 200+ select stocks

(including elephants, horses, giraffes,...and ofcourse cheetah stocks).

(Mind you, in this same period, nifty rose 108%.)

The results were surprising!

I have got my Cheetahs identified!!

Have a look at the scores below:-

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DR.REDDY'S L 5

Adani Power Limited 25

D.B.Corp Ltd 35

JAIPRAKASH POWER... 35

NTPC LTD 44

GEOJIT BNP PARIBAS... 45

HINDUSTAN UNILEVER LTD. 45

POWER GRID CORP. LTD. 51

AKRUTI CITY LTD INR10 52

KOUTONS RETAIL (I) LTD 67

INDO TECH TRANSFORM LTD. 71

SUN PHARMA- DEPO SETT 71

ITC LTD 74

RELIGARE ENTER. LTD. 74

STERLING BIOTECH LTD 78

GTL INFRA.LTD 80

HINDUSTAN PETROLEUM CORP 80

EIH LIMITED 82

AMBUJA CEMENTS LTD 83

INDIAN OIL CORP LTD 84

GTL LTD 86

CIPLA LTD 87

BHARTI AIRTEL LIMITED 92

CAIRN INDIA LIMITED 93

OIL AND NATURAL GAS... 94

INDIA CEMENTS LTD 96

ACC LIMITED 96

GATI LIMITED 99

BHARAT PETROLEUM CORP... 100

BHEL 100

HANG SENG INDEX 104

DABUR INDIA LTD 107

S&P CNX NIFTY 108

MAHANAGAR TELEPHONE... 108

HERO HONDA MOTORS LTD 109

IDEA CELLULAR LIMITED 110

TATA TEA LTD 112

Mahindra & Mahindra... 115

GRASIM INDUSTRIES LTD 115

APOLLO HOSPITALS ENTER... 116

MARICO LIMITED 122

RELIANCE INDUSTRIES LTD 123

CHAMBAL FERT - DEPO... 123

GAIL (INDIA) LTD 123

INFOSYS TECHNOLOGIES LTD 127

ELDER PHARMACEUTICALS... 127

Great Eastern Shipping... 130

Glenmark Pharmaceuticals... 132

RELIANCE POWER LTD. 135

HDFC BANK LTD 135

GRINDWELL NORTON LIMITED 138

TATA COMMUNICATIONS LTD 138

Edelweiss Capital... 139

HDFC LTD 139

CONTAINER CORP OF IND... 140

Gujarat Gas Company... 148

ULTRATECH CEMENT LIMITED 150

ABB LTD. 151

Zenith Infotech Ltd. 151

TATA POWER LTD-DEP SETT 152

UNION BANK OF INDIA 153

Gujarat Narmada Valley... 158

Dish TV partly pd up 159

UNITED PHOSPHOROUS LTD 159

The Shipping Corp. of... 160

MAX INDIA LTD 162

NDTV LTD 162

TATA TELESERV(MAHARASTRA... 164

Neyveli Lignite Corp... 164

BANK OF INDIA 165

UNITED SPIRITS LIMITED 165

PRAJ INDUSTRIES LTD 166

Garden Silk Mills... 166

PETRONET LNG LIMITED 169

MARUTI SUZUKI INDIA LTD. 171

GMR INFRASTRUCTURE LTD. 172

Rei Agro Limited 173

GODREJ CONSUMER PRODUCTS 174

RELIANCE COMMUNICATIONS... 176

GREAT OFFSHORE LTD 178

INDIABULLS FIN. SER... 178

Moser Baer India Limited 179

STATE BANK OF INDIA 180

FORTIS HEALTHCARE LTD 182

EVEREST KANTO CYLINDERLT... 184

GUJARAT AMBUJA EXPORTS... 184

TITAN INDUSTRIES LTD 185

ASIAN PAINTS LIMITED 190

BANK NIFTY 191

Gujarat Alkalies &... 192

UCO BANK 193

GRUH FINANCE LTD. 199

CANARA BANK 206

CNX IT 207

INDIAN BANK 208

GVK POW. & INFRA LTD. 208

WOCKHARDT LIMITED 209

JAIN IRRIGATION SYSTEMS 210

LARSEN & TOUBRO LTD. 211

INDO RAMA SYNTHETICS LTD 211

SUN TV NETWORK LIMITED 212

ADITYA BIRLA NUVO... 213

ISPAT INDUSTRIES LIMITED 214

Television Eighteen... 216

BAJAJ HOLDINGS & INVS... 217

CORPORATION BANK 219

The Indian Hotels Co... 222

RELIANCE INFRASTRUCTURE... 223

REL. NAT. RESOURCES LTD. 224

ANDHRA BANK 224

Gujarat State Petronet... 229

ORIENTAL BANK OF... 229

GUJARAT STATE PETRO LTD 231

Gujarat Industries... 233

VIDEOCON INDUSTRIES... 233

PUNJAB NATIONAL BANK 236

EID PARRY INDIA LTD 238

SATYAM COMPUTER SERVICES 238

OMAXE LIMITED 241

BIOCON LIMITED. 242

Gujarat State Fertilizer... 244

ZEE ENTERTAINMENT ENT... 244

GEOJIT FIN. SERV. LTD. 247

HONDA SIEL POWER... 250

Rural Electrification... 250

EMAMI LIMITED 253

DCM SHRIRAM CONSOLIDATED 253

OPTO CIRCUITS (I) LTD. 254

FUTURE CAP HOLDING LTD. 257

TATA CHEMICALS LTD 259

INDIABULLS REAL EST. LTD 260

Blue Star Infotech Ltd. 260

TATA CONSULTANCY SERV LT 261

ASHOK LEYLAND LTD 262

STEEL AUTHORITY OF INDIA 264

BANK OF BARODA 266

HERCULES HOI. LTD. 267

IRB INFRA DEV LTD. 267

WIPRO LTD 270

Gujarat Fluorochemicals... 271

EXIDE INDUSTRIES LTD 274

INDIAN OVERSEAS BANK 276

DIVI'S LABORATORIES LTD 279

ICICI BANK LTD. 280

Mahindra & Mahindra... 282

Hindustan Zinc Limited 283

DLF LIMITED 284

STERLITE INDS (IND) LTD 285

RELIANCE CAPITAL LTD 290

IFCI LTD 291

IVRCL INFRAST & PROJ... 291

TORRENT PHARMACEUTICALS... 294

DREDGING CORP OF INDIA 294

FINANCIAL TECHNO (I) LTD 295

BALRAMPUR CHINI MILLS... 297

ALLAHABAD BANK 298

Siemens Limited 300

KOTAK MAHINDRA BANK LTD 302

DCM LTD 303

Bajaj Auto Limited 304

RANBAXY LABS LTD 305

Mahindra Forgings... 311

3i Infotech Ltd 312

JAIPRAKASH ASSOCIATES... 313

BHARAT FORGE CO LTD 318

HMT Limited 318

HONEYWELL AUTOMATION IND 321

SINTEX INDUSTRIES LTD 323

AXIS BANK LIMITED 323

JAIPRAKASH HYDROPOW LTD. 327

INDIA INFOLINE LIMITED 329

JUBILANT ORGANOSYS LTD. 332

PANTALOON RETAIL (I) LTD 336

ADANI ENTERPRISES... 337

PUNJ LLOYD LIMITED 337

TATA STEEL LIMITED 338

HEG LTD 339

SUZLON ENERGY LIMITED 341

GARWARE OFFSHORE SER... 341

APTECH LIMITED 350

Gujarat Apollo Industrie... 352

GODREJ INDUSTRIES LTD 353

MPHASIS LIMITED 354

JINDAL STEEL & POWER LTD 354

ESSAR SHIPPING LTD. 355

GOKALDAS EXPORTS LTD. 357

THERMAX LTD 359

CROMPTON GREAVES LTD 362

TECH MAHINDRA LIMITED 366

UNITECH LTD 374

DCM Shriram Industries... 376

HT MEDIA LIMITED 381

Hindalco Industries... 383

PARSVNATH DEVELOPER LTD 389

NIIT TECHNOLOGIES LTD 392

LIC HOUSING FINANCE LTD 396

MAHINDRA LIFESPACE... 408

Mahindra Lifespace... 409

ROLTA INDIA LTD 415

ELECTROTHERM (I) LTD. 418

ABG Shipyard Limited 420

JET AIRWAYS (INDIA) LTD. 426

InfoTech Enterprises... 443

NIIT LIMITED 458

HINDUSTAN CONSTRUCTION... 463

POLARIS SOFTWARE LAB LTD 465

CENTRAL BANK OF INDIA 474

Gujarat NRE Coke Ltd. 483

GANESH HOUSING CORP LTD 489

NATIONAL FERT. LTD 492

GREAVES COTTON LTD. 505

Gujarat Mineral... 505

HAVELLS INDIA LIMITED 507

TORRENT POWER LTD 513

BAJAJ HINDUSTAN LTD 520

HTMT Global Solutions... 536

SESA GOA LTD 550

HOUSING DEV & INFRA LTD 556

WELSPUN GUJ ST. RO. LTD. 558

YES BANK LIMITED 609

ABAN OFFSHORE LTD. 660

JSW STEEL LIMITED 669

Hindustan Copper Ltd. 688

BHARATI SHIPYARD LTD. 692

Hindustan Oil Exploratio... 806

GREENPLY INDUSTRIES LTD 1018

LANCO INFRATECH LTD. 1396

EDUCOMP SOLUTIONS LTD 1477

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There are many more cheetahs out there!

Find yours'!