Saturday, April 12, 2014

Share market & The art of money making


Go short whenever the result is announced... (16)

 
Whenever the quarterly or half yearly or even annual result is announced by a company means you have to do the role of Bear! Even though the result is good,the company is good and the market position is
also good,go short the scrip.
 How to do this?
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 Suppose when a company is going to announce its result on a particular day,you first collect the data of previous day low,high and close.Then if the result is seems to be good,assume a price rise of the stock from its previous day-high,put a sell order just above that price,sine everybody is interested to go long
in that scrip,the price will move ups,your sell order will be executed.Wait.Put a covering order.,buy order just few amount lesser than the sell price and keep wait. Due to continuous buy order by other people,the scrip will move further and due to profit booking,it may comes down and it may also crosses down your buy price and then your buy price will also be executed.So you are booking profit in the oppposite direction without other's notice your play with the scrip on result day.This is a game of going against the wind.
Go ahead!

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