Sunday, June 7, 2009

How much market can reacts...........

I have been asked by many friends that,
How much market can react so that they can buy in reaction.
But the point here is first from here how much market can go up and then react ?
And then another question that will arise is, How much individual stock will go up by then and how much they will react down when market will react?
These are the two question every investor needs to ask themselves.
These are question no one can answer.If the interest of the Operators and market participants is big then a perticular stock can go up with the market and when market reacts still that stock may not react as much as one imagine.
That is the crux.No one knows what can happen to the stock which one wants to buy.It may happen that , for example, we take , XLTele, it is Rs 70 now and if market still go up , XL Tele will move up with market and it can out perform market and say it touches Rs 90-95 .
OK now when market reacts , XL Tele may even not come to Rs 70, which is the present price and one waits thinking that XLTele has not reacted even to Rs 70, which was the price they saw when they thought they will buy on reaction.
That can also happen and one will lose the opportunity to buy even at Rs 70.That is why I always write buy stock first.Getin first.If you will not buy now you can lose the stock for ever.Buy even small quantity but buy it.That is the first thing one needs to do.
I have seen and many has wrote me that they were not able to buy stocks.When I see that stock was available still they were not able to buy I assk them why that happens?They say that they feed the price and that never came and that price never came and they were never able to buy and then it went up and up from there and then they lost the courage to buy at higher price.
Well, my only suggestion to them is ,buy at whatever price you get on the day they wants to buy.But buy it.
If I say about myself , I never feed a price to buy it.I buy at the market price and I sell at the market price.When one wants to buy , why there is a feeding of price to buy.Just go ahead and BUY it.When one needs to sell, why we need to put a price?Sell at the market price.Whatever price market give , sell it.
I think this much of insight is enough for readers what they need to do in market and how to play it.
And I have written many times and am writing again.Buy even 100-200 shares.It can make FORTUNE.I have done that.I have paid my big debts with just 200 shares.But that can only happen when one is able to take the full profit.Sell at the maximum not at all time high but still that is possible.
There are many stories to tell here of my own experiance as well of others, that includes some big operators, but I can't disclose it here in public place.That is my drawback but mind well that once the operator is in he can take stocks to dizzy heights.There is no doubt in it.
I have to write here that market can still go up for another 600-700 points and then react.But the reaction would be the best time to buy.Well, if one is sure of fundamentals then they even do not need to sell in reaction as well.Just hold it.If someone sell and if it will go up even for 3-4 rupees then he will curse himslef that why I sold it.
Once I buy a share I never sell it untill I get my price.I do not sell in reaction to buy later.I do not sell to buy for 10-15 rupees.Leave that for biggies.They buy in thousands or in lacs and hence even Rupees 10 will give them big profit and so they sells 25% or 50% of their holding but we are small investors , with 200-300 shares or 1000-2000 shares and hence 10-15 rupees makes no difference to us.We are for big profit with small holding.So we need not sell for small profit unless the stocks doubles.Sell 50% at double and make the holding FREE.

If luck favours and we have 2000 points correction,then that would be the best time to buy.Don't sell anything assuming that the market is gone now.Reactions will come and will shatter your confidence but don't lose heart.We are in a new Bull Market and this bull market will take us to newer highs .Records will be broken.
As usual this is my thinking and I maybe wrong and may also prove wrong if one mimic it.Take your own call and be comfortable.Remaining comfortable in the market is first priority.......After buying something one needs to be able to sleep soundly.That is the bottomline here.


  1. market can react 3000 points
    then you can buy

  2. very matured write up. based on my personal experience i agree with rajeev that one needs to buy atleast a few shares if one thinks they are worthy.

    I bought just 3 shares of walchand nagar at 1100 and thought of buying if it reacts to some 700. it infact reacted to 550 or 600. At that time i saw that price but thought if it can come down from 1100 to 600 which is 50% down why cant it go down by another 50%? so i wanted to buy at 250 or 300. But in this entire time period i had only one intention i.e to buy the stock. My conviction to buy the stock has never changed but only the price i wanted to get in changed.That was the biggest mistake i have ever done.

    walchand nagar went from 550 to 12,600 in 8 months. Had i bought atleast 50 or 100 without nagging for few rupees i would have been in profit even in the entire bear phase.I later adopting rajeev desai's method to buy atleast 50 or 100 shares as no one knows which one can give u superb returns.


  3. Hi Rajeev:

    I was looking at your past tip Jayswal Neco 26, do you think its correct time to enter. I looked the results it is under loss but due to higher interest cost ,sales are still high. Do you feel fundamentals still hold good, can I enter at this levels.

    I have also picked up Transport corporation @78 any comments on it.

    I also picked up Shivani oil but entered at higher price @334 it went down to 328 on friday,but will hold it with target of 400.


  4. Dear Hiren,
    Difficult to answer whether Jayaswal is still a buy or not.No one knows when it will correct or will still go up.
    I do not track Transport Corp so no view.