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SIMPLE TRICKS - ONLINE

NOTE TO ALL: If you cannot understand the subject given below, you cannot under stand anything even by going to the live class and paying 10,000/- to him. He i s not going to keep you in mind and spend time for you. AFTER SEEING THIS BLOG HE MAY CHANGE THE NAME OF THE TECHNIQUE, BUT THE METHOD IS THE SAME. G4 SIMPLE TRICKS TRADING NUANCE: These are only 6 techniques, but your opponent on the other sid e is more powerful and he has 6000 techniques to trigger your stop loss and take away your money. He will not stick to the below prescribed stop loss levels. He is free to move any side, his motive is to trigger your stop loss and take aw ay your money, which is his profit. Ask him these questions before you attend his class. 1. Is he himself trading or it is just the preaching to the world? 2. Ask receipt for the money you pay. 3. While he asks your details, ask his address in return. 4. Can he give a certificate? Is it an authorized course? Who gave the permissi on to conduct the class? 5. Ask him while the techniques are already in the market from the beginning ho w can he rename with fancy names and claim that he has got patent rights from SE BI, what is the proof. If so, why he did not name the techniques after his name - as usual. 6. What is his response if his techniques do not workout, can he compensate the loss? T1 or 9:45: High and low till 9:45 a.m. of a scrip should not cut until 10:20. Half of the high and low is the target 1 if the levels are broke, and T2 is another half. S top loss is 60% of the high and low. You have to watch futures. (Pros: You wi ll get opportunity daily. Best for minifty, not for scrips. If you want to tra de with scrip, trade only one well known scrip from nifty50 with high volume. Co ns: If you trigger stoploss, the loss will be up to 80%, whereas your profit wil l be 30%) Compare with spot nifty and minifty for trade in nifty. Compare equit ies with futures and vice versa. Eg: High: 5411.1 Low: 5373.05 Target Calculation 5411-5373= 38/2= 19 So, T1 is 5411+19= 5430 T2 is T1+19= 5449 Stop Loss is 60% of the High and low, i.e. 38x60%= 22.8 Your stoploss is a double stoploss in this technique. PROS AND CONS: Here, the first target is just the 50% of the high and low. Tho ugh this technique almost gives you an entry it gives you only first target. Af ter that nobody knows in which direction the market goes. The drawback in this technique is the 60% stoploss while the target is only 50% of the high and low d ifference. By using that if you win a trade, the result profit is only 30-40% o f the high and low whereas if you trigger single stoploss, the trade will get ne utralized and you will exit with 20% loss, due to the two margins and the double brokerage you have to pay. If you trigger double stoploss, that will take away 120% of your earned profit. Out of 20 days you might win 10 trades but the res t 5 days you will trigger single stoploss, 4 days double stoploss, and 2 days no profit days on an average. So at the end of the month you end up with only los s, depression and hatred on Damodaran. 15 days profit can be taken away by just

3-4 day triggering double stoploss. THEORIES ARE PROFITABLE ONLY TO TEACH, NOT PROFITABLE TO TRADE. T2 or 1%: The concept is, the first bar of the nifty should be 1%. Suppose, 1% of a 5000 nifty If the high and low of the first bar is 100th of a scrip ,i.e. 1%, and if the se cond bar cuts high or low levels, then the immediate bar will be twice of the fi rst bar, and the market tend to go in single direction for the whole day. Stopl oss is the high and low of the third bar. Book your profit at 1 pm or 2 pm wher e you feel it is peak and returning. (T1 and T2 are time based.) Ex: Date Aug 7th, 2012. In the below chart the first bar was 6 pts, the second bar gave another 6 pts down, so from another six pts there it turned upward. T he whole day it goes up. Your stop loss is the lowest of the third bar and vice versa. PROS AND CONS: It is not certain that as explained above. Even if first bar at the end of the day, the market may oss. You will lose all your profit in N1 or Yesterday Hi/Lo: If market opens above yesterday s high and returns it gives all the down points. For yesterday s low vice versa. Merits: No need to compare with futures. Breakout time is 9:45. (The probability is low so I will update you shortly with the chart) Actually th ere is no much difference between the below N2 technique and this. If it perfor ms downward from yesterday s High that is called N1. PROS AND CONS: The market will not move in the same manner as explained above. It is free to move in any direction even if it starts above or below yesterday s high/low. Your opponent is more powerful with 6000 techniques than you to trigg er your stoploss and lose your trade. Even if the conditions are satisfied in t he beginning, at the end of the day, the market may fully return. You will lose all your profit in front of your eyes. N2 or Yesterday Open/Close: If open and close is <0.5% in an EOD report, then for the next 2 days the profit will be huge, you can hold for 1 to 2 weeks. (N1 and N2 are meant for the next day and for those who are working in the offic e. Note: Trade in an enclosure, not in open work place.) Breakout time is 9:45. Suitable for futures. Merits: No need to compare with futures. Date July 26, 2012. PROS AND CONS: This too is uncertain as to which direction the next day goes. It all depends on NIFTY. The market may return on the next day or in two days, not guaranteed that it will go in a single direction for the next two weeks as p rescribed above. So, if you trade in equities, the scrip goes into DP account a nd it takes three days to square off the position, by that time the loss will be heavy. Or if you trade in futures, that loss also will be too heavy. Importan tly: Trading from work place and/or at 9:00 o clock busy hours is not possible fo market will turn upside or downside only is 1% and other conditions are satisfied, fully return and even trigger your stop l front of your eyes.

r regular office goers. That is their busy hour in their respective office. If you lose the first half an hour to watch, you will surely lose the trade. By t rading at workspot, you could lose your bread-winning job. M1 or COMPRESS: If high and low of one day market is less than the previous day, i.e. compressed , then the third day it over performs. Ex: Date June 14, 2012 High and low and the difference is 5138.75-5046.25=92.5 Next day June 15, 2012 high and low and the difference is 5156-5072.80=83.2 See the performance on the third day. PROS AND CONS: This is also the same situation. It is not hard and fast rule f or the market to perform in the prescribed manner. It may or may not perform. With the disclaimer, trade at your own risk you are digging your own grave. M2 or SPIKE: Some days, market abnormally creates huge high or huge low. Which indicates the following days market may dip or rise the same size in the same or opposite dir ection. (M1 and M2 are magic techniques) (Pros and Cons: Works well, but happe ns very rarely. Spike in Nifty is very useful to trade) Ex: Date April 10, 2012 gave a high and low of 5353 and 5000 respectively. See the following days the market went down even more. This spike forms in just a m inute, which nobody can catch, clearly seen in intra-day chart. And the recent spine was on August 3rd, 2012. See the market moving following days for yoursel f. PROS AND CONS: This is also the same situation. It is not hard and fast rule f or the market to perform in the prescribed manner. It may or may not perform. With the disclaimer, trade at your own risk you are digging your own grave. After a week or two the loss can be so high you will not have a penny to trade anymor e you are knocked out and out of the game. You just cannot take any scrip and start experimenting for 9:45 technique. The data given by your broker is not perfect, so use nseindia.com To Select a Scrip. 1. Have to select a volatile, voluminous, and a well known scrip from most acti ve securities in nseindia.com and its futures. 2. For N1 and N2, scrips have to be filtered from bhavcopy from nseindia.com Take only equities. Take only rates between 300 and 1000/Take only which have open and close difference % less than 0.5 Take only high volume scrips. Avoid scrips which have much difference in high and low. Select from nifty50 as much as possible. Finally select 4 to 5 and watch which scrip starts near close price or above the close. GENERAL ADVICES: MONEY MANAGEMENT Trade with only 10% of your principle. Do not use exposure. Do not generate ca sh by artificial means. Do not have only trading as your main source of income. RISK MANAGEMENT

Calculate how much loss you can face a day in an aggregate one month. Assume if you can tolerate that loss. If not, reduce your number of shares per trade to the lesser number to where you can bear the loss. FIXING YOUR TARGET Your ideal target should be your day's salary. Increase or decrease number of s hares in your trade accordingly. Expect 1% of your investment as target. IMPORTANTLY: From all the above techniques, what one should know is, there are more opportunities to lose your trade than to win. Your opponent is more powerf ul with 6000 techniques. These 6 techniques are not new to him. The market wil l lure you everyday. At most, having the confidence of winning the market for o ne week or one month you will go back and borrow, sell, hypothecate your house o r do anything and everything to generate finance and dump into the market. With number of shares increased, your risk also increases, if you lose the trade, ju st in one day, all your house, jewellery, your future and your kid s future will b e dumped into the dist bins. BUT THIS DAMODARAN IS SAFE WITH ONE SINGLE CLASS F EE. HE WILL NEVER TRADE. BUT REST OF YOUR LIFE IS IN DUST BINS. FOR ONE CLASS FEE HE DECIDED TO RUIN ANY NUMBER OF LIVES AND THROW INTO DUST BINS. ONLY QUALIFICATION for trading is: A person with plenty of money, don t know how to spend, have plenty of time, no one around, all business going well, people to take care of that, no one to question, no responsibilities having sent sons and daughters married and don t know how much he is winning or losing. ONLY GOOD TEACHER FOR TRADING IS: He has to sit next to you till you start maki ng good profit. Just flashing in TV or flashing in the city for one hour is not sufficient. Everything else is a fraud.