I started to follow the chart pattern of the stock because I was sensing some money to be made here on the short side instead of investing and see how and when I traded to make some extra money for me.
Tarun on October 21, 2010 at 10:50 am (Remember the date) in a comment here asked
My friend has suggested me to buy Samtel Color at 16 telling me that it may go upto 50 – 60 levels in short term .and the source is tried and tested.
Can you suggest anything
I am thinking of buying upto 15000
To which my reply was
Tarun, Stay away from that stock. Your friend’s tried is tested is very doubtful for multiple reasons.
- The stock is hitting circuit without any news. Looks phishy to me
- The stock is hitting circuit and so you will not be able to get that many shares and your buy order may actually make it run-up
- I do not see any reason for it to go bizzare.
Ask your friend to tell you the fundamentals or technicals of the stock and why he thinks such a big run is expected. You can share with us here and we can suggest if it is something really that good to triple in weeks.
You can sense that I was seeing the stock movement as doubtful.
First let us look at the 1 week chart pattern for the stock. At 12:50 PM today this is what we see.
Clearly we can see that there was some interest in the stock starting On October 21st 2010. This is when Tarun also asked the question.
As you can see in my reply to Tarun, I searched Google to see the reason for the interest and if there is any news floating in the market. I could not find much of information and so stock was moving without any news.
I started to follow the chart pattern of the stock because I was sensing some money to be made here. No no not investing but doing a trade on the short side.
Now let us look at the chart pattern of the stock for today.
I saw an opening high volume trade but that did not last long and so I shorted the stock at 19+ but the stop loss for the stock for me was 19.75 i.e. days peak where we saw maximum volume. If the stock moved above 19.75 on good volumes my trade would have been a bad trade and I would have come out of this stock on stop loss. Remember not only the price but also the volumes were needed for me to trigger my stop loss.
Now from almost 9:45 to 10:15 roughly I saw that stock is neither breaking out of 18:80 nor breaking down 18:70 but still the volume was low and so I expected the stock to break down but still covered my half position at 18:80. Soon after the cover as expected the stock broke on the downside. This is when I covered my all the position. I still expect the stock to go down further but then not much from here to my likings.
So next time you get tips about stock doubling, tripling in short term do some check on why the stock can double in such a short span of time.
I will update this post tonight when I get my Contract Notes and this is when you can clearly see my trading time as well as the price
Finally my question is how reliable are your tips and where do you get your tips from? Share in comments.
Update : Trade Details Attached
Does these Nifty or any stocks paid tips works…?
All I can say is I am yet to see anything myself that works. See this
Do you offer online tips for trade too?
Can we follow up and do trades like you ?
I have read the sample chapters, but honestly, being a doctor, I am not sure that I would be able to maintain / read these charts on a minute to minute basis.
I am online however most of the times, and could follow your trades via SMS/ emails,
Gaurav,
I don’t offer online tips but what I do is offer people how to get such stock ideas yourself.
Yes you can do trades like me and you don’t necessarily always trade but that book can also help in investment as well. I have a complete chapter on how it can help you in investment as well.
Yes what you say about SMS/Email is fine but then I am not a person who tell people to buy something after I buy and then sell when everyone else buys into it.
Anyway, I invested already. Now please suggest the way forward. Should I hold on to it ( I bought @ 73.1 per share). I can hold it but does it ensure any further move up?
I wonder why CNBC experts suggest this stock if it is not that good?
No the issue is not with the CNBC experts or the stock but when it flashes on CNBC millions of people jump to that stock and you un-necessarily spiking it and many people just buy into that spike.
hi,
Some one on CNBC had reccomended Auto stocks and suggested Ashok Leyland.
I hold around 150 nos. DO you have any negative opinion about this scrip Shabir?
Salman, nothing but it is just that few stocks which has done nothing in the last 1 year and second thing is your way to buy when someone on CNBC recommends it.
Hi
What is your call on Ashok Lyland stock? I hold them quite few of them.
I don’t like them personally and there is no reason to be liking them as well. Do you have any reason to hold them?
thanx for illustrating
shabbir when are you sharing your next multibagger?
what about tax planning when you say that people shud go for sip?
i have no idea about sip
how to go for it ?, and take tax benefit for this fy ?
Tarun, I don’t like sharing multibagger’s really because what I like is help people to find multi bagger’s themselves.
When I find them I am confident but I don’t see a reason for you to invest as I say because we both may not have the right frame of mind to invest in the same stock.
You articles are really an eye opener and I am slowly becoming the fans of your content.