tip in the pot to the top

all tips are not bad.


some are good

few are excellent.


but surprisingly

almost all

especially the ones mass circulated

seem to go in opposite direction

for some time

before they show their worth.


reason?


well,

the technical calls are based on

technicals.


good technical tips

are pro-rally

and more importantly

pro-fundamentals.


big-pocket operators

know it and see it all.


while they certainly can't ignore

the fundamentals and the rally for long

they definitely have the reason, intention and power

to rock the boat

in opposite direction

atleast for some time.


good "tipsters"

know all this.


they try to give tips

after some delay.


i.e. they don't pass on the tip

the moment one pops up!


but hold it

keep it in the "pots of ready tips"

till the tips season out

mature

age

get despirited

denatured

and

de-stinged!


once the operators are done with their tricks

the tippers

reach their golden "pots"

recheck

and release the tips!


a good tip

must go in the pot

before going to the top!

platinum rule of trading

have u ever been to pushkar?

it's famous globally
for its pushkar fair.

hundreds of shops are set up
to trade camels, horses, bulls, cows and much more.

very hard bargaining takes place.

prices as high as five times the correct price can be quoted initially!

many traders throng the place
spend a day or two
to trade the livestock.

everyone wants
the best
for the least.

every animal gets sold
except
(and this is what i want to underline)
....except
the sick ones
or the ones with some or the issue.

hardly any trader in his thinking cap
is interested in an animal
he is not sure of its survival.

but very very surprisingly
in stock market
everyday
thousands and lacs of traders
trade in (live)stocks
which are not only sick
but seriously sick.
some are
shockingly
terminally sick!

since nobody can see the stock
unlike a horse or a cow,
hardly any amateur retail trader
bothers to check the health
of the stock he or she
is going to trade.

the result?

operators play their tricks
and the innocent traders
get trapped
amidst sick stocks
with little or no chance
of returning to health
atleast not so soon!
they are left with no choice
except to either keep bleeding
or book loss.

so,
here is the lesson
a crucial critical one
- never trade in fundamentally weak stocks
always trade in fundamentally strong ones.

so that
even if the operators play their games
(which they will)
you will still be
amidst
healthy camels
with enough "water"
to survive any desert.

trading in sick stocks
(fundamentally weak)
is like
swinging on the circus ropes
without safety net.

trading in weak stocks
is like playing
the devils game
with the devil.

think medium, think small, look deep in the crowd

indian large caps have grown big
they are clueless about how to get next bout of big growth.
they can't grow bigger
unless they go global big time
or government unleashes next round of liberalisation.
none seems easy at this moment.
they seem to have fatigued.
they don't seem to be going anywhere.
--
this is the time
when
out of the big weary crowd
next largecaps pop out
from amidst the midcaps
and
next midcaps pop out
from amidst the small caps.
--
while existing sectors are not growing
only yo-yoing
newer segments
and niche segments
are about to greenshoot.
--
get ready
for the next big big wave
from the most unexpected quarters.
--
even i don't know what it will be
but i am ready
to recognize it
as it happens.

fundamental bites

---------------------

per capita consumption of paints in India is very low at 1.5 kgs/year compared to 15-20 kgs in developed countries.

when seen in context of india's population, the numbers are mind boggling.

big big long term upside in good paint companies. lot of growth opportunities.

11 laws of averaging declining stocks

1. average only the fundamentally strong stocks. never average the weak.

2. time the averaging on the basis of technical indicators.

3. never average blindly the losers. all losers are not worth averaging. fundamentally weak should be handled as per the law 4.

4. average the fundamentally strong losers by selling the fundamentally weak losers.

5. averaging is not bad. rather, it is an opportunity. you get an opportunity to accumulate more of the good stock at even lower price.

6. never average if you want quick results. don't average for the short term.

7. don't average if you can't digest the stock slipping further.

8. never average in one go. average in steps.

9. don't hesitate to average the fundamentally strong stocks even in bear markets.

10. there is no end to the number of times you can keep averaging a fundamentally strong stock. provided, ofcourse, your judgement of the fundamental strength of the stock is correct.

11. never average in f&o. average only in delivery.

point of smooth sailing

i constantly try to figure out
how the market can trick or fool
the majority of investors.

then after the majority have been fooled
i get in
at what i call
the 'pointof smooth sailing.'

a so-called failed signal
can actually be the beginning of
a more complex pattern
that is far more reliable
than the initial signal
based on a conventional pattern.

- mark minervini

1325 trading wisdom quotes

http://www.scribd.com/doc/59950770/Trading-Wisdom-Quotes