Monday 21 July 2014

Technical view by Nooresh on Sensex/Stocks/Commodities

Technical view by Nooresh on Sensex/Stocks/Commodities


The thrill of Day Trading Gains- Instant Gratification

Posted: 20 Jul 2014 11:40 PM PDT

One of the biggest things which attracts a lot of people to Day Trading is the thrill and chills it gives to the trader more than the absolute returns over a period of time.

 

We have over the years realized that purely day trading needs a lot of emotional temperament apart from analysis which is extremely tough. ( We do not have an intra day trading calls service. )

 

But still when we get a short term trade turn into a 8% intra day gains its much more thrilling that other trades.

 

Lets take an example.Today in the morning we initiated this trade.

 

10:27:07 AM 

nooresh merani: Buy hercules above 148 stoploss 142 targets 160-165

 

10:34:30 AM 

nooresh merani: Book half Hercules at 156-157

10:41:54 AM 

nooresh merani: Book fully Hercules ar 160-161

 

The entire trade lasted for around 15 minutes for a gain of 7-8% from initiated price.

 

Also it does not bother much that the stock is up another 10 bucks after booking. Stock on upper circuit at Rs 172:)

 

This is the Problem of Instant Gratification icon smile The thrill of Day Trading Gains  Instant Gratification

 

The technical reasons are below but it does not give a time frame for the targets.

 

Hercules Hoists – Technical Breakout above 148 and boom on 20% circuit.

 

Hercules thumb The thrill of Day Trading Gains  Instant Gratification

 

But this excited us more than a bigger conviction trade we took on a stock like HCL Infosys from 58 to 68 in 4-5 days. ( although we booked early yet again of instant gratification and we tend to give exits early and let stock price hit higher levels also post the update to provide executable trades to clients)

 

Jul 11, 2014

2:36:04 PM 

nooresh merani: Strong buy for Delivery Buy HCL Infosys at 58-59 ad on dips to 55 sl 53 tg 75

 

Jul 16, 2014

2:51:34 PM 

nooresh merani: Book fully HCL-INSYS at 68-69

 

Lets look at the reasons. ( Disclosure – HCL Infosys has been a reco in Big Value 1 at 37/44 and even at 65 in Big Value 2.0) Continue to like it for next 1-2 years view.

 

HCL Infosys – 20% bounce from support levels

 

HCLInfosys thumb The thrill of Day Trading Gains  Instant Gratification

 

-> Strong uptrend with nice higher tops and higher bottoms.

-> Retest of previous breakout point as well as trendline support made it a good risk-reward entry point.

-> But you can never put a time approximation to how many days or weeks or months it would take the stock to do the target.

-> So this was thought of as a few weeks trade ended up doing targets in 4 sessions.

 

In both the above instances we made a lot more money on HCL Infosys than on Hercules Hoists and were much more convinced on the above but its more gratifying when a short term trade turns into a day trade. ( partly because we dont focus on day trading )

 

 

This is how our psychology is today.

InstantGratification thumb The thrill of Day Trading Gains  Instant Gratification  instant thumb The thrill of Day Trading Gains  Instant Gratification

 

The psychological concept of Instant Gratification refers to the idea that humans like to have what they want right now; not later and they don’t want to wait. You will notice that products and services that promise instant push-button results tend to do well. Think Aspirin for pain and McDonalds for fast food. Humans are mostly short term and Instant Gratification orientated because if you value immediate results you stay alive. It’s an Evolutionary advantage that has played out over a period of millions of years and was very valuable when we were living in different times.

 

This is what is being sold to us icon smile The thrill of Day Trading Gains  Instant Gratification

 

Pizza in 30 minutes

Flipkart same day delivery

Home Delivery

Lose weight in 7 days etc etc

 

We need a solution for this as traders/investors and even as consumers !

 

Luckily in markets instant gratification can only lead to loss of opportunity and not losing money icon smile The thrill of Day Trading Gains  Instant Gratification but as individuals when we spend money on instant gratification it is loss!!

 

Another video which i liked and would highly recommend to watch

 

 

 

TECHNICAL ANALYSIS TRAINING MUMBAI – AUGUST 2-3

For details about the program check http://www.nooreshtech.co.in/technical-analysis-training

To register yourself call us – Nooresh 09819225396 Ankit 9899899989  ( after market hours )

Thanks and Regards,

Nooresh Merani

www.analyseindia.com

Twitter – https://twitter.com/nooreshtech

Facebook – https://www.facebook.com/nooreshtech

nooreshtech@analyseindia.com

 

Was i victim of instant gratification by writing this article during market hours ? Do comment.

The thrill of Day Trading Gains- Instant Gratification is a post from: Technical view by Nooresh

Aditya Birla Nuvo – Headed to 1800. Technical Trades July 2014

Posted: 20 Jul 2014 09:43 PM PDT

AdityaBirlaNuvoTechnicalTrades thumb Aditya Birla Nuvo – Headed to 1800. Technical Trades July 2014

 

This is the chart as posted in our Technical Trades July 2014 report

-> Its now close to a breakout of a trendline above 1450.

-> Continue to like the stock as a core long term pick.

 

TECHNICAL ANALYSIS TRAINING MUMBAI – AUGUST 2-3 

For details about the program check http://www.nooreshtech.co.in/technical-analysis-training 

To register yourself call us – Nooresh 09819225396 Ankit 9899899989  ( after market hours )

 

Thanks and Regards,

Nooresh Merani

www.analyseindia.com

Twitter – https://twitter.com/nooreshtech

Facebook – https://www.facebook.com/nooreshtech

nooreshtech@analyseindia.com

Aditya Birla Nuvo – Headed to 1800. Technical Trades July 2014 is a post from: Technical view by Nooresh

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