How to make Judgment Call on Markets?

Click Here to Receive Free Daily Tips to your email

Dear Investor,

All of us try to judge the market by our gut feeling about How we feel when the market is falling. I did the same thing for years and could not judge correctly. One thing I am pretty sure about is we can't Judge the market just like that. Its just impossible to do it. More you try to do it, more mistakes will be done.

I mentioned few times that market needs to trade in a range before it can actually start moving higher. That is the rule. It will not just shoot higher just like that. It will take its own time. Currently the situation is more in favor of market makers than us. You need to learn to be objective decision maker than an emotional one. Market will not move the way you feel. You need to follow the market instead of making judgement calls. Bounce and Corrections will be the part of base building process, they key is where is next direction after the base. You will not know this until market start going in that direction. That is why you need to follow the market.

The long term investors are okay be on side because they really don't care about what is happening day to day. The issue is with people like us who are playing the game actively. Year 2009 was a unique year in our life, wherein anything you buy would only go up. It does not happen like that all the time. Rest of the time you have to have a good game plan to win the money.

Look at the Nifty chart above its not giving any buy signal. The red 150 day line is not in favor of going long. That is why always say, don't be early to the party. Its hard to stop when market keeps moving up. I am pretty sure that everybody is fully invested now because its hard to decide on anything when market only goes up.

For any new investment time is just not right. If you buy today and sell tomorrow than what I say will not apply because that is different game. What I advise is for short term (1-3 month) plays. If possible, wait for market to base out for 3-6 weeks.

Thanks

Anil

Got a Question/Send your contributions for other members:

email:indiastocktrend@gmail.com

Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.