Gann


What are the first steps to invest in the Indian stock market?

My answer to What are the first steps to invest in the Indian stock market?

Answer by Ruchir Gupta:

Everybody else might be able to guide you for the first steps, while I dont know if any one else will share what I am going to share, this should be the critical part before you think of investing in any stock.

Be aware of your broker:

  • Go to market as an investor, in case you visit broker office regularly he will try to engage you in intraday and short term trading be aware of it. Never ever buy on Broker recommendation get the ability to identify good stocks your self.

Behave like a stingy fellow:

  • Hesitate to spend money for any stock you are paying, if you bargain for everything else in life then why not for stocks. In the first few months spend time on learning about identifying good stocks.

How to Identify good stocks:

  • Prospectus of top performing mutual funds: See the top performing mutual fund prospectus, the stock held by them, their yearly returns and performance , this could give you the idea where you should invest your money. Old funds are better as they have a more historical data
  • Promoters Holding and Honesty: Good Companies will also be majorly owned by their promoters (as owner why will some one sell his company to outsiders if its making good profit and has enough potential?) Good companies share profits with their share holders in the form of Dividends and Bonus.
  • Numerology: Use simple numerology to know if the stock selected will suit you (in case I write an article on this subject I will update the link here, I am yet testing this on my trades)
  • Check the historical charts: check the historical charts of the stocks. In case you are from India then look and HDFC Bank, Kotak Mahindra Bank, Ajanta Pharma, Eicher Motars, Maruti, Bajaj Auto, M&M. All these stocks go up in 45 degree angle and even in case of any corrections fall less than the market
  • Look for consistent companies: dont invest in companies which report losses or their profit falls dramatically, instead look for companies posting profits on a consistent basis. the Stock price of such companies also become less volatile.
  • Keep away from Debt Companies: Keep away from the companies that have heavy debt or expensive debt (debt taken at higher rate of interest) in their balance sheet. These companies will be paying most of their profits to debtors and then what ever will be left after will be shared with share holders. Many a times nothing is left and shareholders receive their part of losses and hence stock price declines further. Eg: Reliance Communication and all other Anil Ambani Stocks
  • Past performance gives faith: The stocks which have performed it the past will continue to perform, don’t buy cheap stocks because of lesser price

Key Planet and other cycles:

Money Management

  • 70% or more of your saving should have to in safe assets like Fixed Deposits, Bonds, Gilts. After doing that saving only you should turn towards Stocks.
  • Always keep a idle cash 30-40% to buy bargain stocks
  • Divide your money in to different stocks to diversify company risk
  • Divide your money into different sectors to diversify sector risk
  • Fix an a equal amount to invest each month, don’t change that figure.
  • Wait for the right time with cash in hand
  • Only invest the money which you will not need for next 20 years. Minimum investment criteria should be atleast 7 years.

What are the first steps to invest in the Indian stock market?


EW and GANN analysis:Ajanta Pharma Target Achieved- 1465 to 1600, Time Target was off by two days

Again in my quick Facebook page update, on 8th April 2016, with the help of my Gann and Elliott Wave Analysis,I updated my view on Ajanta Pharma to trade around 1600 by 15th May, while it was trading @1465 on 8th April 2016.

Result- Price target was achieved, however Time Target was off by 2 days.

 

 

Ajanta Pharma Target Achieved - Time target off by 2 days

 

 

View the original post on my Facebook Page – https://www.facebook.com/Learn-Elliott-Waves-Gann-299034886964403/

I request you to view my first youtube video @ my youtube Channel- Learn Gann and subscribe and like the videos as many more educational videos to be uploaded in coming days. Thank You 🙂

 

 

 


Gann Analysis was able to Predict panic declines of 25% and above in four stocks

IF you remember I updated on 4th of January 2016, that as per my Elliot Waves and Gann Analysis there will be a panic decline of at least 25% in four stocks namely M&M finance (Mahindra and Mahindra Finance), IDBI Bank, NCC (Nagarjuna Construction Company) and Andhra Bank .  I was in such a hurry to share that I just quickly updated my prediction on my website and forgot. What happened after that?

 

Here is the link of the Prediction we made some days back about the panic declines of 20-30% in some of the stocks namely Mahindra& Mahindra Finance, IDBI, NCC and Andhra bank. http://ruchirgupta.co.in/mm-fin-idbi-ncc-andhra-bank-to-see-panic-declines-as-per-gann-analysis-nifty-might-see-a-bottom-near-14th-jan/

 

As per my Gann analysis, M&M finance declined from 246 to 195, decline of 20%

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As per my Gann analysis, IDBI Bank declined from 92 to 55, decline of more than 40%

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As per my Gann analysis, NCC declined from 77 to 59, decline of 25%

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As per my Gann analysis, Andhra Bank declined from 65 to 50, a decline of 25%

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This is how I traded M&M finance 220 Strike Put, bought three lots @ 1Rs, 1.25Rs an 1.45Rs on three different days. average buying cost was around 1.25Rs.  and I exited from 17 to 19Rs (15 Times) This is how the power of 20-25% movement be utilized by selecting a option strike that will become IN-the-Money in coming days. This can happen in positional trading only. My friends traded in IDBI 80 Strike PUT by entering @ 90 Paise, I suggested them to exit at 5 Rs , while that PUT became 25Rs (nearly 26 Times). Also, our Andhra Bank Puts which we bought at 25 Paise (55 Strike) became 5 Rs (20 Times).

This explosive power of Gann Analysis comes under our course in the following link at http://ruchirgupta.co.in/gann-cycle-decoder-course/

 


Elliott wave and Gann analysis: Cairn India reversal

Mixing the Gann and Elliott Wave analysis could be truly rewarding. Here is an example, just posted on my facebook page- https://www.facebook.com/Learn-Elliott-Waves-Gann-299034886964403/

 

Cairn India

As Elliott Waves Cairn has completed 5th of the 5th on the downside. While , I posted about the reversal today around 11pm it was 4th wave where the stock was trading 129. Wave 1 and Wave 3 were clear impulse and hence 5th was coming. However, this 5th was to be on the small degree and after it the 3rd wave of a larger degree has to be followed. Since target mentioned could take more than a months time so the better strategy seemed to go long in cash. Also, wave 2 which will unfold in near future. The stop has been placed below the recent low of 121. Cairn India went to 134 after I posted my analysis.

 

CAIRN - Alternate 1 - Dec-21 1606 PM (6 hour)

CAIRN - Alternate 1 - Dec-21 1608 PM (1 hour)


EW & Gann Analysis: SBI could test 228 and then may be 220

As per Gann and Elliott Wave Analysis on SBI , it may first reach 228, first , based on AB= CD pattern. lower it can reach 220. 221 is also the previous swing low of sept fall. Lets see, what happens.

Also, in the smaller AB=CD, if the pattern is actually AB= Wave 1 or A, BC=Wave2 or B, then we may see a Impulsive 3 or C, in the form of CD.

The AB if you see has fallen in 5 waves , which on larger scale is wave 1 or A, and the upside of bigger BC= Wave 2 or B , then bigger C or 3 Could also unfold which could take it to below 200 levels. But I am not considering this case unless there is a close below 220 levels.

There is also a bigger AB = CD , that can take it below 200. However, right now expecting it to hold the 220 levels.

As per Gann Analysis, SBI will also be in downtrend till mid December. Also, the fall might have got triggered coz of Sun Saturn conjunction. Last time Sun Saturn Square in August brought the fall in the market.

SBIN - Alternate 2 - Dec-03 2128 PM (1 day)

Also Read :

EW & Gann Analysis: Reliance Power about to complete its 5th of 5th of 5th and merged with Gann Cycles


EW & Gann Analysis: Is Nifty moving towards the 8500? 2

Going by EW Analysis Nifty refused to break below 7500 and now the upside could be termed as a C wave or 3rd Wave. While, Pitchfork’s Mid line is placed near 8500. Gartley Pattern also gives the range o 8414- 8504. Above all Gann uncle also have the similar views and Time wise the top should be expected 30 Dec to First half of January 2016.

NIFTY - Alternate 1 - Dec-01 2121 PM (1 day)

If the top is delayed and is made in January mid to second half then we could also see the levels of 8700.  8700 levels also lies a Gann planetary line. If I shift the Gartley pattern to the lower top then it also gives 8700 levels. But If 8700 comes then I want you to send me a smiley on my mail Ruchirgupta2000@gmail.com


Trick to learn sequence of Zodiac Signs

Those who face problem in learning the sequence of Zodiacs here is a mental movie which you need to Visualize.

Aries (goat, mesh) goes to Taurus (bull, vrish) since both of them look similar they are know as Gemini (twins, mithun). when their powers become one they become Cancer (crab, cark). This crab goes to Leo (lion, singh) and gives him a message to go to Virgo (a girl, kanya). virgo takes out the Libra, (tula, beam balance) on this beam balance there is sitting a Scorpio (Scorpion, vrishchik) and he has a Sagittarius (bow and a arrow, dhanu) in his hand, which he shoots at Capricorn (crocodile, makar), and Capricorn run towards the Aquarius,(water, kubbh) to save his life. Aquarius (water) is the place where Pieces (fish, meen) live.

Hope now you can remember the sequence in the form of this story.

If you had already known what picture represented what zodiac sign it will be easier for you.

Once you learn these, we can move ahead with your learning.


Mercury Retrograde period 19 May – 11 June 2015

Mercury Retrograde period 19 May – 11 June 2015- Why you should not trade in the times of Mercury retrogrades?
Mercury retrogrades have been famous for their uncertainty, even the best of the best traders struggle to trade this period. If you are trading in this period high chances are targets will be reached but first they will hit your stops or may be the prices will reverse few points before your target gets achieved. The profits that were earned previously were given away. This period is not good for any kind of financial decision making. If someone still wants to trade in this period he/she should trade with very light position. Its like a Storm, a powerful wind the trees who are too stubborn and high with egos tend to fall in this wind. Trade safe.