Invest Without Emotions
The NIFTY ended on a negative tone, drifting down -0.64% for the week.
Biggest losers were DLF (-9.57%), SIEMENS (-7.74%) and BHEL (-7.01%).
And the biggest winners were SUNPHARMA (+4.50%), JPASSOCIAT (+4.45%) and ULTRACEMCO (+3.73%).
Decliners eclipsed advancers 32 vs 18
Gold: +0.46%, Banks: -1.14%. Infrastructure: -1.50%
Net FII flows for the week: $1,345.00 mm (Equity) and -$20.21 mm (Debt)
Daily news summaries are here.
You can now get a live snapshot of the biggest movers within an index. Head over to the “Indices” 
page and click on “Movers.” The page is automatically refreshed every minute.
You an also track the top gainers and losers while you are at it 🙂
Using a Trailing Stop Loss (TSL) is one of the best ways to limit your downside and protect your winning trades. Instead of relying on your gut, here’s a straight-forward way to derive the appropriate TSL percentage for your trades.
ATR stands for Average True Range. It provides a measure of volatility that incorporates gap/limit moves. The range of a day’s trading is simply high – low. The true range extends it to yesterday’s closing price if it was outside of today’s range.1
To set a TSL percentage, just multiply the latest daily ATR value by 2 and divide by the previous close.
What you are doing here is simply attaching a risk tolerance level (2) based on the stock’s intra-day moves averaged over a period of time.
For example, if you were trading [stockquote]COLPAL[/stockquote] today, you would set the TSL to
2 * 30.5/1,250.65 = 4.88%
You can use StockViz to set a TSL alerts for your trades. Read this to see how.
The NIFTY ended on a positive note, drifting up +0.87% for the week.
Biggest losers were LUPIN (-4.66%), BAJAJ-AUTO (-4.32%) and CIPLA (-4.17%).
And the biggest winners were JPASSOCIAT (+7.84%), AMBUJACEM (+7.08%) and BHEL (+6.86%).
Advancers lead decliners 30 vs 20
Gold: -1.04%, Banks: +0.64%. Infrastructure: -0.70%,
Net FII flows for the short week: $457.62 mm (Equity) and $193.11 mm (Debt)
The biggest data point that investors will ponder over the weekend is the US unemployment rate hitting 7.8% for September (8.1% previous).
Erroneous orders placed by Emkay sends Nifty crashing by 16%, to 4880.20 on Friday morning. Emkay has been temporarily barred from trading. Fat fingers indeed. (WSJ) [stockquote]EMKAY[/stockquote]
Daily news summaries are here.
Setting a stop loss can often times be an emotional decision. When you buy a stock, you expect it to go up; setting a stop loss at that point in time makes you play the devil’s advocate with yourself. Its not a nice feeling. However, setting a trailing stop loss, takes some of the pain away.
Quite simply, a trailing stop is not a fixed price at which you exit a loss making investment – it is a percentage below the most recent high set after you have made the buy.
For example, lets assume that you bought a stock at Rs. 100. It then proceeds to move in this fashion:
Watch how the trailing base, hugs the highs made by the stock after you bought it.
The stop loss is then triggered when the price falls x % below the trailing base.
In this example, if you set the trailing stop loss % as 5, the stop loss is triggered at point (7) highlighted in the chart.
The positives are many:
StockViz is proud to announce the availability of Trailing Stop Loss Alerts for our users. Start using them now!