There have been only two Januarys since the last 10 years when the Nifty ended positive. And they were not really that spectacular either.
So far this month, the Nifty is up ~7.5%
So could this be “that” January?
Author: shyam
Image via Wikipedia
It there’s one thing that I observe among successful traders that I talk to, its that they are highly methodical and disciplined in what they do, almost algorithmic if I may say so. They have a defined trading methodology: a simple, uncomplicated way of looking at markets. In my experience, it doesn’t really matter if you use the Turtle trading system, Elliot Waves, RSI, whatever. But you need to zero in on what constitutes for you a ‘buy’ or a ‘sell’.
The second thing is discipline: you need to have the patience and persistence to follow the model you have defined for yourself. If your goal is to develop a model for investing over a one year time horizon, you need to give it a year before you discard it. It may be painful if real money is involved but StockViz makes it easy for you to build a portfolio and track its performance over a period of time.
StockViz also provides you with a world-class technical Screener and an Alerts system to setup your methodology for the stocks you follow. Use these tools to develop your two things.
Good luck!
… we should keep in mind that GDP is just the sum of consumption, real investment, government spending, and net exports, and then ask what will drive that reversal. Have the credit strains in Europe been durably addressed? Can European economies presently be expected to expand? Is there now less need for fiscal restraint in the U.S.? Has the overhang of troubled mortgages in the financial system been worked out? Have savings rates rebounded or pressure on household budgets eased? Is consumer demand is sustainably rebounding? Is there pent-up demand for capital goods despite having drawn spending forward due to expiring tax credits last year? Are exports to the rest of the world expected to accelerate? Are profit margins likely to expand from already record levels in order to accommodate growth in corporate profits? Do companies expect demand to be strong enough to commit to large-scale or multi-year investment projects? …
Read more here.
Image by Tulane Public Relations via Flickr
I don’t follow much of Jim Cramer, but he has a pithy saying: “Tips are for Waiters”. I bring it up now because people keep asking me to send out tips on what they should be buying/selling/etc. The problem with “tips” is that they are almost always money losers for the punters playing them. Even the big shops like Motilal Oswal can’t get it consistently right: their actively managed M50 ETF actually underperformed the NIFTY50 last year.
But we get why there is a demand for tips: research is hard work. It requires consistent effort and access to information that is not readily query-able. Some investors don’t know where to start, for them we came out with Groups. It provides a visual launchpad for further research (more green blocks => good). But its definitely not for someone looking for a quick fix. However, we strongly believe that tips provided by “gut” traders do more harm than good and we want to stay away from it.
We stumbled on the alternative today: create a quantitative model to generate buy/sell signals and make that model public. This way the magic is replaced by methodology. So what we are working on now is a model based on technical analysis, that will be open-sourced, and its calls will available through StockViz. The trick would be to start with something basic and keep adding complexity as we refine it.
Stay tuned!
Image via CrunchBase
The NIFTY ended on a bullish note, shooting up 2.10% for the week.
Biggest losers were INFY(-9.25%), TCS(-7.28%) and HCLTECH(-4.62%). And the biggest winners were RPOWER(19.20%), JPASSOCIAT(17.38%) and RELCAPITAL(14.70%)
Advancers lead decliners 41 vs 9
Gold: -1.39%, Infrastructure: 7.09% and Banks: 5.84%
Have a nice weekend!
