Saturday, March 5, 2016

Market Bluffs – Dough Contracts


Earning a cent is tough and you realize this when you start doing trades in penny stocks. Assume that you got your dough with which you can buy a 1k shares of a penny stock at rock bottom price. But, your festival does not end with this. You need to sell these 1k stocks at a little bit higher price. Only then the difference makes you and your near and dear ones make happy. However, it is not that much easy as I have written here. It needs you to study a bit of what stock to buy, its movements, volumes, and extra impact regions, if any, on that particular stock. Before you hit the buy or sell (short sell) at a particular price, you need to check the band in which the stock has been moving so far. Ask yourself whether this is the right time to buy or sell?

As per my experience, most of the times, I happened to took all the above precautionary measures but still lost my dough! Precious dough! Without which I cannot buy anything on stock market! I told above, I checked the band more than 3 times before I hit Buy/Sell depending on the movement of the stock. I don't know, really, whether it is the play of my bad luck or anti-analytical thinking of so called brain, after I did my trade, quite often the stock moved in opposite direction pushing and putting me in a corner. Although, I set Stop-Loss, yet I have to lose some percent of my dough, which I think should not happen, frequently.

How to set and execute profitable trades, increase the quantity of my dough, and celebrate the positive happening?

Stock, God, & Me!

This morning I woke up from a nightmare. The stocks are crashing. I saw the sensex moving down in my dreams. Actually, it is not moving down, it is crashing. Like an arrow that left the bow, like a stern instruction from a military commander's mouth, like a missile that is in chase of its hot target, the graph is shooting toward the base like a fighter plane which lost its balance, hurling towards earth cutting through atmosphere leaving a sharp trail blaze, and is about to crash. A shudder started in my spine. Although my eyes are closed, they are open inside and I am seeing a big Imax movie. My mind is experiencing all the emotional ups and down inside while projecting a baby-like peaceful sleeping face on the outer side. How can it happen? No! It can't happen. It should not happen! I was screaming when I woke up.
It is still dark outside. I swiped away the perspiration that formed on my forehead and sat in the same place where I slept gasping for breath. Why this dream now? What is going to happen today? Why I am thinking negatively? Does my 6th sense have anything to do with this? Is this dream going to turn true? They say that early morning dreams become true! Oh God! Don't do this to me. I pray you every day and still you put me in all sorts of problems. This is not fair. All my investment is sitting in stock market now. Even a slight shake will break my financial position. Ok! I have a deal for you. If you are really there and look after all of us with a kind heart, then whatever I saw now should be turned opposite. That means the market should go up which in turn makes the sensex move UP. Prove yourself God! Prove yourself!
Its 9.30 am. The market started like Mumbai local train. How the local leaves the station, both the BSE and NSE markets zoomed up for 2 seconds and started crashing down. Oh God! What is this? We had a deal, remember?  Then, how can you do like this to me? John! John! Someone was calling my name. I was not in a mood to entertain anyone. But then, I heard the voice becoming so close for me to avoid that. I turned back and found it is Anbu.
Anbu is a trading rockstar among us. If at all some magic has to happen, Anbu can do that. He has that skillset. But, he should feel that the situation is apt for his entry; otherwise, he won't touch a trade. But now, Anbu is in the right place. I thought God sent him for my rescue. Without losing time, I told Anbu my situation and he understood the urgency and dreadfulness of my financial situation and decides to help me. Anbu is good at micro-trading. He has the capability to turn the tables from a negative position to a positive within a few minutes. Anbu sat on the hot chair and did a few logical trades. And within the next few minutes, my position is clearly out of danger and I am out of the market with my kitty + profit. I thanked Anbu and God, who listened to me and took my deal seriously.
Anbu and me took a short break, went outside, took a few puffs, and Anbu left from there. Relaxed, I came again to my office, sat on my hot chair, and started observing the movements of stocks with amusement. After understanding the current position of the market, I felt that itching sensation again. I want to invest as I am seeing lot of potential to make profit now. The moment the investment thought stroked me, I did a few short sales with vengeance on my favorite stock throwing away all the cautions to the winds. I am in a different world altogether as I am sure that I am going to book profits by the end of the day given the nature of the way the market is moving.
I took a short relaxed breath, pulled air inside my lungs, filled them, kept them like that for 1 second and pushed it out. Slowly, I opened my eyes and in that dreamy state looked at my monitor. I am seeing some blurred red figures. Slowly, my eyes adjusted themselves and I can see the figures on my monitor very clearly. The stocks on which I did short sale are going UP. Actually, they are moving like just now fired rockets chasing their targets up into the ceiling; the reverse way I saw in my dreams. And Anbu is not here with me for my rescue. The stocks ate half of my capital now and are still rising. My invested capital is evaporating into thin air without leaving a trace. It seems that I am reliving my dream here but in an opposite way. 
Suddenly, I realized my today's morning deal with God; I asked him to move the market UP and he did. God listened to me but I failed myself. I don't know whether to pat my back because God listened to me, entered in to a deal with me, and did what I requested, or repent on my aggressive and slapdash attitude which caused me huge loss today!
What to do?