HINDPETRO

stock started moving from  level 400.61 it seen good upward journey with price rise up to level 434.64 in 10days period of time which has  proven as resistance or top level. The movement from LEVEL 400.61  TO434. 64 Level    .was 8.50% which can be your return on investment .

 selling pressure or supply become heavily as traders started booking profit as they got 8.50% return on thier investment , due to heavy selling pressure price fall down near Level 400.61

Now  you know past movement of this stock ,remember history repeat itself  we coming to the sector position this stock belong to oil and gas sector which shows in consolidation phase . There are possibilities that trend will remain continue. So Level 400.61is a good buy for this stock subject to your money managment setup.

Posted by Team 

Mob ; 98202 77043

 LTTS

stock started moving from  level 968.77 it seen good upward journey with price rise up to level 1127 in 15days period of time which has  proven as resistance or top level. The movement from LEVEL 968.77  TO 1127 Level    .was 16.33% which can be your return on investment .

 selling pressure or supply become heavily as traders started booking profit as they got 16.33% return on thier investment , due to heavy selling pressure price fall down near Level 968.77

Now  you know past movement of this stock ,remember history repeat itself  we coming to the sector position this stock belong to IT sector which shows in consolidation phase . There are possibilities that trend will remain continue. So Level 968.77 is a good buy for this stock subject to your money managment setup.

Posted by  Team

Mob ; 98202 77043

    BAJAJ AUTO

stock started moving from  level 3101 it seen good upward journey with price rise up to level 3328 in 15days period of time which has  proven as resistance or top level. The movement from level 3101 to Level   3328 .was 9% which can be your return on investment .

 selling pressure or supply become heavily as traders started booking profit as they got 9%  return on thier investment , due to heavy selling pressure price fall down near Level 3101  .

Now  you know past movement of this stock ,remember history repeat itself  we coming to the sector position this stock belong to auto sector which shows in consolidation phase . There are possibilities that trend will remain continue. So Level 3101is a good buy for this stock subject to your money managment setup.    Have A great week Ahead

Posted  By Our Team 

Mob: 98202 77043

HOW TO USE A MOVING AVERAGE TO BUY STOCKS?

Before we get into the application of the moving average in buying stocks, it would be prudent to define the concept first. The moving average identifies reversals and trends, measures an asset’s  momentum strength and also determines potential areas for an asset to locate resistance or support. It is seen and established that varying time periods monitor momentum and moving averages can set stop-losses.

Identification of Trend 

Trend identification is a primary and key function of moving averages. This is used by a large number of traders who wish to befriend trends.  Moving averages happen to be lagging indicators, i.e they don’t predict any new trends. Instead, they confirm trends when they are established. A stock becomes an uptrend one when its price goes above the moving average which slopes upwards. Conversely, traders take recourse to a price that falls below a sloping average that is downward to confirm downtrends. It is also often seen that traders only hold a long position in any asset when prices trade above the moving average.

Measuring Momentum 

Many novice traders are often curious about the measurement of  momentum and how a moving average may be applied to achieve it. The answer is simple. What one needs to do is to pay attention to time periods that are used to create the average. Every single time period provides valuable insights into different momentum types. Generally speaking, short-term momentum is measurable by taking into consideration moving averages over twenty or lesser number of days. Medium-term  momentum is measurable from moving averages created within a span of twenty to one hundred days. Similarly, long-term momentum can be measured using moving averages over one hundred days or more. The common thumb rule is using a fifteen day moving average to measure short-term momentum.

A proven method to ascertain the direction and strength of the asset’s momentum is by placing 3 moving averages on a chart and then analysing how they relate to each other. These 3 moving averages are taken from price movements taken from the short, medium and long-terms.

Providing Support 

Moving averages are also commonly used to determine potential price support. It is often seen that while applying moving averages, the dipping price of a particular asset often stops and reverses its direction at the identical level of a notable average. For instance, a two hundred -day moving average is generally able to prop up a particular stock’s price after it dipped from its highest level. Many traders anticipate  bounce offs on the notable moving averages and resort to other specialized technical indicators to confirm an expected move. 

Resistance Provider

If an asset’s price dips below a powerful support level in the long term, it is usually seen that the average acts as a powerful barrier preventing investors from raising the price to above the average level. Traders often take this resistance as signs to book profits or close out any long positions that may already be existing. Short Sellers  also make use of these averages to make entries as the price may often bounce off  such resistance and continue to keep dipping. As a long position holder of an asset that keeps trading below the most notable moving averages, you definitely need to keep a close watch on these levels as they stand to affect your investment’s value greatly. 

Managing Risk

The two main characteristics of moving averages — resistance and support — make the latter a most effective tool for risk management. Moving averages have the ability to locate strategic points for setting  stop-loss orders that allow traders to exit losing positions prior to more damage being done. Traders holding long positions in stocks who set stop-losses below influential and the notable averages can thus save plenty of money. And that’s exactly why moving averages are so important to frame successful trading strategies.

In sum, it goes without saying that moving averages are an inextricable part of any trading strategy and over time, have proven again and again to be one of the most effective tools of risk management. Particularly in volatile markets, they help prevent financial losses to retail investors who stand the risk of losing heavy sums of their hard earned money by way of the stop loss mechanism.

Source by Angel Broking 

HOW TO AVOID EMOTIONAL INVESTING

Emotional investing is dangerous, given the vagaries in the most unpredictable mood swings of the stock market.

Your investments, as they say, are your best friends. They may also turn out to be your worst enemies. This is more so for stock market investors who let their hearts rule their heads. In other words, emotional investing is dangerous, given the vagaries in the most unpredictable mood swings of the stock market. Emotion-fueled actions like buying stocks at a premium and selling them at lower prices do not make a wise investor. Similarly, clinging on to particular stocks for sentimental reasons is bound to negatively affect portfolio performance.

The following ways may be remembered to avoid emotional investing:

Don’t Run After Returns Only: Don’t over-react when the stock market starts moving. Think before you leap. Even though news of the market crashing unsettles us very much, taking rash decisions and offloading all your stock could lead to huge financial losses. It is always prudent to remind yourself that any investment plan or stock in which you put your money must work long term and should be linked to your retirement objectives. A day’s market fluctuations is no determinant of drastic buying or selling. So investing in stocks when the market streaks upwards or dumping them post a downturn won’t benefit you in any way.

Be realistic:  If your tolerance is low risk and your portfolio includes stable and well known companies with steady past performances and which guarantee long-term growth, your returns, in all probability, will not be fantastic at least in one calendar year. Remember, the more risky your portfolio is, the more it will fluctuate. Most investors desire the best benefits without taking any risk. This is definitely unrealistic. Your diverse and long-term plan that has been created with your final goals in mind shall help you in setting realistic and practical expectations in the future.

The Stock Market Is No Playground: Some dare devil investors take the stock market as a challenge which they want to overcome at any cost. They take it like a game where the stock market, as an opponent, has to be beaten no matter what. It’s truly a myth that investing constantly in the market gets you better returns. It certainly isn’t wise to make investments and then let complacence set in, expecting that the same investment will get you the best returns every year. So invest smarter instead of playing the typical buying and selling game which you most probably won’t win.

Long-term Plans Are Essential: Emotional investing usually takes over when long-term plans do not exist. Any long-term plan needs to be customized in order to meet some specific goals that you may have. When you don’t have a long term plan, you are actually like a ship without sails and don’t have a definite course to chart. You are actually veering off track and this could lead to some very disastrous consequences. Investment choices vary from person to person depending on age, income potential and your long term needs. You could make investments for buying a house in future, your children’s education and marriage, medical needs etc.

Take Professional Help: For newcomers to the stock market, it is always advisable to consult professional financial advisors who are experienced, knowledgeable and more importantly, reliable. Take advice from friends and associates who have used their services and then select one to guide you through the motions, at least initially.  It could be a worthwhile investment for the fees that you would be paying him and his advice, if correct, will always work to your benefit in the long run. However, you have to choose carefully after taking his overall goodwill, experience and knowledge into consideration. Rest assured, selecting the wrong advisor will inevitably work to your detriment.

Always remember that it’s your hard earned money that is at stake. And protected it must be at any cost.  When the going is good, offload all stocks that have appreciated your capital without allowing sentiment to rule your moves. As Warren Buffet once said, “Don’t we discard garments that have outlived their use?” The same applies to stocks also.

Source By Angel Broking