HOW TO MAKE MONEY IN THE MARKET

A Guideline for the members of the PREMIUM family

By S. P.Tulsian

We have seen mixed reactions coming in from our members, in the last two weeks, wherein investors those who are not doing F&O, having made good money, while members exposed to F&O and few concentrated mid and small caps,  having lost money in the market, thereby questioning on the accuracy of our calls. Taking note of all these feedbacks, we have made slight modifications and changes in our strategies and calls. The same are detailed as under:-

Changes made in the Portal

1.      Number of calls are curtailed or restricted from hereon, as majority of the members were unable to cope up with them, as they were seen too many on daily, weekly and monthly basis. Now, intra day section will not have more than 2 calls in a day. Exceptional days may see 1 or 3 calls as well. In market whispers, only 3 calls will be given on each trading days. In FC section, 2 calls will be given on the stocks, while 1 call on Nifty and 1 call on Bank Nifty, on all trading days.

2.      Trading Tips section is now designed for a positional trader, with a view of week to series expiry, where, gain of 2% to 4% should be aimed in this period. We will stick to our given targets, as far as possible and exit advise will now be given at reasonable trading gains. Hence, proportionately calls will also get reduced in a month, which is the major feedback.

3.      Investment Stocks section is designed for investors, with aim to earn a gain of 2% to 10% in a period of 1-3 months. Restricted calls will be given with longer time horizon, as also, exit calls will not be given till the reasonable returns are earned.

4.      In Option Calls section,  our endeavour shall be to give 6-8 calls in a month, which can give a return of over 10% pro-rata, on monthly basis, on the amount invested, either as margin or as premium paid for purchase of the given calls.

5.      Golden Stocks section is designed for pure investors, and not for playing in F&O, to enable them to keep bringing down the cost of their LT investment. Never get upset, in case stock gets sold on exceeding our targets, where delivery of a stock needs to be released and avoid booking losses by buying the sold calls.

6.      All the sections are having Guidelines, which must be read, before entering or transacting on the calls given in that section.

Why Members loose money

1.      They listen to too many experts on electronic media and mix those calls with our calls as well. We don't say that you rely on our calls only, but choose any one or two experts, the way you choose your family doctor.

2.      Never over-indulge in Futures & Options. Restrict it to 1–2 calls with 1–2 stocks only, at one time, as open interest position.

3.      It is seen that members look for the target given by us, without adhering to the given timeline as well, in the call. This causes haste and desperation to the members only, which results into losses, as real time price  tracking is unlikely to yield gains to the members.

4.      Members are seen playing in F&O without knowing the rule of the game, which will only result in the losses. No player can win a game without knowing nitty-gritty and rules of that game.

5.      If any member feels having not gained from our calls, our earnest request to them to avoid renewal of subscription and get disassociated, as subscription window now has been kept restricted to month or quarter duration only. Avoid creating unpleasant atmosphere at both the ends, by throwing brickbats and our replies to those brickbats in defence.

6.      We are probably the only portal, who review each of our call given, with results of all calls displaying on the portal, of  last 20 to 30 calls. We have seen many experts, including big brokerage houses, blowing their own trumpet on few successful calls only, while failed calls are never disclosed or discussed.

7.      Those who feel dissatisfied with our calls, we earnestly and with folded hands, request them to try with other experts as well, to realize the big difference of personalized, professional and virtual 12 hour service available during the trading days.

8.      Members seen getting greedy and don't book profits on stock reaching to our given target as well, by perceiving them as LT investor but scream in case of its fall thereafter. Avoid this habit  of greed.

9.      Members also love to buy a stock, if it keeps moving up for 3-4 days and seen in many cases having bought even on crossing our target. In such a scenario, they invariably land in buying at its top and than look to recover their cost.

10.  Members must have rational distribution of equity funds, amongst front-liners, midcap, small cap and micro cap. Read Guidelines of each section.

11.  Few members were seen criticizing our buy calls,  given by us during expiry of March F&O series, inspite of our range for the market having been given between 8,200-9,000 in few answered queries. If market rules below 8,400 on Nifty, obvious advise has to be buy and not to sell. However,  caution will be  advised when Nifty reaches at or around 8,900. But they try to prevail and dominate on us, by trying to be expert.

12.  Few members feel that long calls can only give gains in bullish market and vice-versa, which is a big myth. Yesterday, when Nifty was up by 100 points, JSPL was marginally down, on which we gave sell call. So avoid extrapolating the trend.

13.  Some members try to direct and instruct the experts, which is a big mistake. If members are not convinced with any given call, no need to trade on those calls and give it a pass.

14.  Choose to trade in 25-30 stocks only, where they are seen moving in a range, giving an opportunity to earn 3% to 5% in a month. For such stocks, they should be bought on fall and sell on rise. Case in point now, to buy LIC Housing, ICICI Bank, Hindalco, TVS Motors, Apollo Tyres, Axis Bank etc. Conversly, caution is now required on Bharat Forge, Voltas, Havells to name a few.

15.  A share can give two way big volatility ahead of an event. Try to gauge it. For example, Adani Ent is unlikely to fall below Rs.570, even if Australia land issue intensifies further, in view of restructuring move announced by the company, offering shares of Adani Power, Adani Port and Adani Transmission.. But, share can move past Rs.700 if positive outcome is seen coming from it. Strangely, all experts were giving sell call with big negative seen on Adani Ent, which has not resulted or seen turning out to be so, yesterday. Similarly, telecom stocks are now ruling firm, inspite of aggressive spectrum auction, putting additional debt burden, only due to technical factors, while fundamentals are not favouring the current prices. Similarly, PSU banks after RBI meet on 7^th April, can become quite attractive, only till expiry of April series, as no major Q4 results of any PSU banks will get released or declared by 30^th April.

16.  Look to earn 24% to 36% on your funds employed by keeping a mix of ST/LT/MT view, as also, some combination of F&O. Draw satisfaction levels. It is seen members asking targets of expected return of over 10% to 30% in 1-3 months. This is ridiculous. Even if this target get achieved, no sane expert will give or confirm it.

17.  Some members are seen desperate and wish to move to momentum stocks only, even from quality slow moving stocks. This approach need a change, as all stock don't move in tandem and portfolio must be broad based. Also, conviction is required by investors, while patience is required by the traders. But strangely members flip it, which proves disaster. Some members were also strangely seen calling their F&O positions, as their portfolio or holdings. A real laughing point.

18.  Lastly, don't expect success in all the given calls. No person can win all the games in this world. No cricketer has hit centuries in all the matches.

Wish for safe trading and profitable investing, which is bound to happen, if it is restricted and rational, respectively.