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The move above 4750 is extremely important. This level of 4700-4750 has been a resistance at least 3 times this last couple of months. It also has been a resistance last year. In fact the weekly chart shows that the Nifty has broken above a RHS neckline connecting the mid Aug 2008 highs to the Aug 2009 highs. If this is indeed true then 4700-4750 should now be a very strong support for the Nifty. The Nifty should now move swiftly to the 4900-5000 region in the coming days.
I had made a specific mention of Unitech, DLFU and JPA yesterday. A rally in the Nifty typically brings out the best in these stocks. I have also sent a TMSG yesterday on TATA Steel. All of them are doing well. But then the very fact that I mentioned them again today means that they are doing well. Obviously I would not have mentioned them in my notes ever again if they had moved down!!!
This is the great advantage that a note writer has over a trader. He can write only about his successes whereas the trader has to live with both successes and failures. But despite saying this I do not mean that writing a note is devoid of any skills. In fact there a few essential traits that a note writer should have. Selective memory is really a very important skill. The writer should be able to completely forget all the times he got it wrong. Do not get me wrong. I am not talking of a devious external forgetting. His entire being should remember only the times he was right. Another important ability is to have a very thick skin. I cannot begin to stress how important it is. It allows a writer to continue to write on a daily basis despite going wrong.
But both these skills pale in comparison to the one most important ability. Ambuigity!!!. The ability to write a note in such a way that whatever the market does the writer can claim that he was right!!!. If one has that quality then the first two skills become redundant.
I am yet a novice in this area. But I am trying hard. And as they say practice makes perfect!!!. One day I hope to achieve the levels of ability displayed by the best in this field.
That is it from me today. We will meet again tomorrow when I will talk about the Fine Art of Sales!!!. Au revoir!!!
I had made a specific mention of Unitech, DLFU and JPA yesterday. A rally in the Nifty typically brings out the best in these stocks. I have also sent a TMSG yesterday on TATA Steel. All of them are doing well. But then the very fact that I mentioned them again today means that they are doing well. Obviously I would not have mentioned them in my notes ever again if they had moved down!!!
This is the great advantage that a note writer has over a trader. He can write only about his successes whereas the trader has to live with both successes and failures. But despite saying this I do not mean that writing a note is devoid of any skills. In fact there a few essential traits that a note writer should have. Selective memory is really a very important skill. The writer should be able to completely forget all the times he got it wrong. Do not get me wrong. I am not talking of a devious external forgetting. His entire being should remember only the times he was right. Another important ability is to have a very thick skin. I cannot begin to stress how important it is. It allows a writer to continue to write on a daily basis despite going wrong.
But both these skills pale in comparison to the one most important ability. Ambuigity!!!. The ability to write a note in such a way that whatever the market does the writer can claim that he was right!!!. If one has that quality then the first two skills become redundant.
I am yet a novice in this area. But I am trying hard. And as they say practice makes perfect!!!. One day I hope to achieve the levels of ability displayed by the best in this field.
That is it from me today. We will meet again tomorrow when I will talk about the Fine Art of Sales!!!. Au revoir!!!
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