We like to invest in reputed large companies. Among these, there are several possible candidate companies to benefit from India's nuclear push.
BHEL (BHEL.NS is Thomson Reuters symbol for BHEL) is one such company. There is already a separate discussion on BHEL in Traders Community forum for Investment Ideas/Alert.
Another is LT (Larsen & Toubro). Let us discuss about LT for now.
LT (Thomson Reuters symbol LART.NS) is a large Indian engineering company.
Its stock price has lost more than 12% in last 1 year.
Interestingly, in last 5 years it has hardly changed. Thoug in between it did go up. This again illustrates that even for large established companies like LT, it is necessary to book profit in time.
LT has fallen sharply in recent times. But stabilized for 3 weeks.
India is pushing for Nuclear and is close to sealing deal with Westinghouse for 6 Nuclear plants. India is also discussing with Russia for additional 6 nuclear plants.
LT is one of the companies that may benefit as it supplies nuclear plant parts.
Attached CUE At A Glance chart also demonstrates this.
Does it not look like a good time to buy LT as Longer Term Investment.
What is your tradig system telling you?
There are several essential elements to consistent profit in stock market investment.
One is of course to have a robust System (like CUE trading system; for example) - and one's mental alignment with the way the system invests.
Once that is achieved, discipline is key.
That I remember every day in my live trading.
Yesterday, 22nd December, while watching India market, I entered some Long Term Stock Buy position (as shared in Long Term Investment Ideas forum - this forum is open to subscribers only ...).
Being an active trader, I do take Short Term trades while taking Long Term positions at same time (mostly, on different instruments).
On 22nd Dec, I had taken a Short Term / Day Trade Bearish position on Nifty (India Market Index) using Put Options. I had put the Stop on the Nifty Put at a pre-planned price level - using Sueprior Profit Fine Tune Chart pivot levels.
As it happened, the stop was hit. And I exited the trade. Following discipline. I was not "hoping" that Nifty will fall back down and holding on to the position. I cut my losses. And I am always happy when I follow the plan like that.
No sooner that I exited the trade at my stop level, Nifty reversed and started falling down. Giving me another shot at a very low risk Bearish trade - and I did not hesitate to reenter the Bearish position - again using Nifty Put options.
And this time, Nifty fell sharply - and that allowed me to recover the last trade loss and get an additional handsome profit. I exited the full position by end of day (in view of the fact that the Nifty Put will be expiring soon by end of Decemer).
Below chart explains this disciplined way of investing.
Many investors ask me the secret of successful investing. These two trades explain the secret.
Being ready to take small losses. And not being queasy about re-entering a position immediately after being stopped out - provided the system (for me, CUE system) gives the signal to do so.
Does your system help you invest and trade in such an easy and unambiguous manner? And how is your discipline in following the system you follow? Does your system have clear set of rules as we have in CUE system?
If the answer to the above is affirmative, based on my experience, you are on the way to consistent profit. No reason not to achive that !
If we look at popular investing sites, they are mostly ga ga (whatever that means) about IMAX (Thomson Reuters symbol IMAX.K).
Afterall, Star Wars new movie blasted box office records. And IMAX cinemas are running full house for days.
IMAX closed on Friday (18th Dec) at 37.83.
As per Yahoo Finance search on IMAX during the weekend, analysts' mean target price is 44.13 - that is a more than 16% higher than current price. Pretty good upside prediction you may say.
Another widely popular investment newpaper in US, IBD, declared (at www.investors.com):
"The Force Is Strong With These 5 IBD 50 Stocks" and included IMAX in that list.
While many investors - looking at such "meaningful" analyst recommendation (they are assumed to be experts - right?) and IBD pronouncements - and the fact that IMAX theaters are running full house with Star Wars; would be buyin IMAX right now.
That is not how Superior Profit investors look at investing. They tend to believe themselves. Their eyes. And make investment decision based on what is actually happening with the stock rather than the crowd at IMAX cinemas.
And as we may see from the At A Glance easy to read and unambiguous chart from CUE System, the dreaded Dark Side may be taking over IMAX. At least in the short term - probably enough to make a profitable Short Swing trade.
Are we certain that IMAX will fall hard? No. Not like that.
If we knew, we would load up on the Short side with IMAX. Superior Profit investors do not do that. They always manage risk. Taking (almost) equal size risk in all investments. And make sure that the risk is small - as it seems to be in this case from CUE charts analysis.
What would you do with IMAX? Go Long? Go Short? Stand aside?
Whichever side you choose - choose wisely. Trust everyone if you must - but trust yourself / your eyes (and senses even if you close your eyes) more. Keep the Light Saber handy nearby. We are here to win.
May the force be with you.
Superior Profit Day Traders are particularly fond of one specific kind of day trade - the Gap Trade.
This is explained in detail in Superior Profit books. You may read the complete set of book from here.
For now, we look at the actual Gap Day Trade we took today - 17th Dec 2015.
Yesterday was FOMC rate decision day. After which US market including QQQ (Nasdaq ETF - Thomson Reuters code QQQ.O) jumped up. And closed near High of the day.
Today, QQQ opened above previous day's High. We were watching it to see if it goes below Early Range Low using our Power Tune Template (that is used for Day Trading). We knew that if that happened and the Stop Loss was narrow, we would have a Low Risk High Reward Gap Day Trade Short opportunity. And it indeed happened.
We also watched that while QQQ was falling, two other major US market Index ETFs (DIA and SPY) were also falling (not shown in chart here); giving us increased confidence to take the Short on QQQ.
We shorted using Weekly Put Options. And within about 1.5 hours the position had 80%+ profit. Superior Profit traders would book at least partial profit at that point.
Below chart explains the trade.
We could identify the trade opportunity, decide on the Short and execute the trade confidently. And booked profit when the profit came.
Does your trading system allow you to trade easily and confidently like that?
Superior Profit Investors don't invest following news.
However, they look at news to remain aware of what is going on.
And then look at the chart to find suitable investment opportunity. What is 'suitable"? For us suitable means a higher probility and higher reward lower risk investment.
The investment may as well be against the news. Or it can be along the apparent direction of the news.
Here is one example.
Aurobindo Pharma (ARBN.NS) had a positive news today. One of its drugs was approved by USFDA. Auro Pharma sharply went up. And then stopped at the Daily Memory Resistance line (see chart below). While it hit the Memory Resistance, we watched that India marke benchmark index Nify was shooting up (not shown here). However, Auro Pharma remained ranged bound at the Memory Resistance. It was underperforming the market as seen by Relative Performance tilting down.
Superior Profit investors might take it as an opportunity to Short Auro Pharma. Using Stock Futures or Put Options. And put Stop right above the Memory Resistance. At which price? That is decided by using the CUE Charts Hop Off Template Protection Signal (not shown here) - this signal indicates the appropriate Stop Loss level.
All these decisions could be done using CUE Charts in a matter of minutes - like from the Spotlight template shown above.
We never know whether an investment will make proift for sure. But we have a pretty good idea about what a higher probability and higher reward/risk ratio invesetment may look like.
Will you consider Auro Pharma Short such an opportunity? What does your trading system tell you ?
Citizen of Main Street.