“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren E. Buffett

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Sunday, October 14, 2007

An important clue that works

This is an important clue for all those interested in share trading , almost all those who trade might definitely know CNBC TV 18 and Mr.Udayan Mukerjee. During the CNBC Market Opening Bell (From 10:00 AM to 11:00 AM on trading days), Udayan interviews CEOs of atleast two to three companies which are in the news for various reasons. Recently they have started picking a small cap stock daily to interview the management.

Before taking a stipulated commercial break, Udayan will tell us which management he is going to Interview after the break. Purchase the stock after the announcement. Be vigilant during the Interview and Exit the stock after the interview suitably depending on the developements and announcements during the Interview. Often in 95% of the cases, these deveopements turn out to be positive and you will end up with a decent profit in your trade. But the catch is, you have to trade all the days, to negate the effect of remaining 5% losing trades. And remember, this is a very short trade.

This clue was given to me by one of an experienced trader while checking with this sort even I agree with what he told to me, but share market is unpredictable also.