morning thoughts...
The markets witnessed a profit booking on the ist day of february expiry as we move into an eventful month with the union budget ahead.
Many investors seem to be obsessed with the near-term direction of the markets. Their thought process often lingers around the questions mentioned above. What they are really trying to do is time the market. Exit before the market corrects. Buy again when stock prices drop. They are trying to predict every market wave... all the time focusing simply on stock price movements. While in their minds they believe that they are being contrarians, they are often doing what almost everyone else is doing - trying to judge where the markets are headed.
When it comes to market timing, most people get it wrong. If you look back into the history of the US stock market, the 1950s was a great time to invest. It was in 1954 that the Dow Jones Industrial Average surpassed the 1929 peak for the first time. But most investors kept away from the market during this period. They kept watching, waiting for the right time. They started investing by the droves in the early and mid-60s, after seeing how good the markets had been in the 1950s. They were hoping that the 1960s would be just as good. But well, here is what happened. The markets hit their peak in 1966. Many investors ended up entering the market close to peak levels. Had they started investing regularly in the 50s for the long term, they would have enjoyed handsome returns on their investments.
Here is another piece of insightful information that we would like to share with you. As you already know, the markets do not move in a linear pattern. There are certain days when there are big gains. Some days tend to be lackluster. On some other days, there can be big losses.It is nearly impossible to consistently predict which will be the days of big gains. So if you keep jumping in and out of stocks, you might miss out some of those big gains.And over longer time periods, this loss can be significant. Consider this example. From 1982 to 2005, the US stock markets delivered average annual return of 10.6%. Now, if you eliminate the 50 best trading days during this period, you would end up with a meagre annual return rate of just 1.8%. The trick to making those big gains was simple - stay invested for the long term. Don't worry too much about when the markets will correct.
Coming to the commodity markets bullions , energy and base metals looks positive in the coming sessions.
Fridays calls sent
Gold Mcx - booked profits at 27850 - long from 27369
Triple gun Dlf 170 ca - booked profits at 11.30 - long from 6.75
Double bumper Hdil 90 ca - booked profits at 20 - long from 7
Fii Reliance capital - buy at cmp 477 sl 470 targets 500 - booked at 498
Jackpot Reliance infra - buy at cmp 479 sl 470 targets 520 - booked at 509
Tech mahindra 2900 ca - buy at cmp 90 sl 80 targets 145 - holding
Nifty - sell at cmp 8977 sl 9000 targets 8875 - booked at 8890
Bob - buy at cmp 202 sl 200 targets 210 - hit sl
Zee - sell at cmp 376 sl 378 targets 370 - hit sl
Double bumper Hexaware 230 ca - buy at cmp 8.50 sl 6.75 targets 15 - holding
Jackpot Ranbaxy - buy at cmp 700 sl 692 targets 730 - holding
Btst Sparc - buy at cmp 330 sl 325 targets 350 - holding
The markets witnessed a profit booking on the ist day of february expiry as we move into an eventful month with the union budget ahead.
Many investors seem to be obsessed with the near-term direction of the markets. Their thought process often lingers around the questions mentioned above. What they are really trying to do is time the market. Exit before the market corrects. Buy again when stock prices drop. They are trying to predict every market wave... all the time focusing simply on stock price movements. While in their minds they believe that they are being contrarians, they are often doing what almost everyone else is doing - trying to judge where the markets are headed.
When it comes to market timing, most people get it wrong. If you look back into the history of the US stock market, the 1950s was a great time to invest. It was in 1954 that the Dow Jones Industrial Average surpassed the 1929 peak for the first time. But most investors kept away from the market during this period. They kept watching, waiting for the right time. They started investing by the droves in the early and mid-60s, after seeing how good the markets had been in the 1950s. They were hoping that the 1960s would be just as good. But well, here is what happened. The markets hit their peak in 1966. Many investors ended up entering the market close to peak levels. Had they started investing regularly in the 50s for the long term, they would have enjoyed handsome returns on their investments.
Here is another piece of insightful information that we would like to share with you. As you already know, the markets do not move in a linear pattern. There are certain days when there are big gains. Some days tend to be lackluster. On some other days, there can be big losses.It is nearly impossible to consistently predict which will be the days of big gains. So if you keep jumping in and out of stocks, you might miss out some of those big gains.And over longer time periods, this loss can be significant. Consider this example. From 1982 to 2005, the US stock markets delivered average annual return of 10.6%. Now, if you eliminate the 50 best trading days during this period, you would end up with a meagre annual return rate of just 1.8%. The trick to making those big gains was simple - stay invested for the long term. Don't worry too much about when the markets will correct.
Coming to the commodity markets bullions , energy and base metals looks positive in the coming sessions.
Fridays calls sent
Gold Mcx - booked profits at 27850 - long from 27369
Triple gun Dlf 170 ca - booked profits at 11.30 - long from 6.75
Double bumper Hdil 90 ca - booked profits at 20 - long from 7
Fii Reliance capital - buy at cmp 477 sl 470 targets 500 - booked at 498
Jackpot Reliance infra - buy at cmp 479 sl 470 targets 520 - booked at 509
Tech mahindra 2900 ca - buy at cmp 90 sl 80 targets 145 - holding
Nifty - sell at cmp 8977 sl 9000 targets 8875 - booked at 8890
Bob - buy at cmp 202 sl 200 targets 210 - hit sl
Zee - sell at cmp 376 sl 378 targets 370 - hit sl
Double bumper Hexaware 230 ca - buy at cmp 8.50 sl 6.75 targets 15 - holding
Jackpot Ranbaxy - buy at cmp 700 sl 692 targets 730 - holding
Btst Sparc - buy at cmp 330 sl 325 targets 350 - holding
