“Speculation is dealing with the uncertain conditions of the unknown future. Every human action is a speculation in that it is embedded in the flux of time.”- Ludwig von Mises
Tuesday, 30 April 2013
LSL Market Review 30th Apr 2013
Indices trended in and out of the red zone but retail selling forced the main index to falter. High dividend yielding blue-chips were seen trading above their previous closing prices. Treasury yields fell in today’s auction which might indicate that policy rates will see a drop in the next months’ review. Few blue-chips extended their 52-week gains which portrays a healthy market.
ASI fell 14.43 points (0.24%) to close at 5,953.19 and the S&P SL20 index gained points 2.65 (0.08%) to close at 3,365.79. Turnover was Rs. 876.3Mn.
Top contributors to turnover were Colombo Land & Development with Rs. 260.9Mn, Commercial bank with Rs. 117.9Mn and National Development Bank with Rs. 72.3Mn. Most active counters were Colombo Land & Development, Touchwood Investments and Lanka IOC.
Notable gainers for the day were Abans Financial Services up by 20.8% to close at Rs. 34.80, Lanka IOC up by 12.1% to close at Rs. 25.00 and Blue Diamonds non-voting up by 6.3% to close at Rs. 1.70. Notable losers for the day were Ceylon Leather Products down by 6.0% to close at Rs. 4.70, Citrus Waskaduwa down by 5.7% to close at Rs. 6.60 and Ceylon tea Brokers down by 5.7% to close at Rs. 5.00.
Cash amp was 48.5%. Foreign participation was 18.40% of total market turnover whilst net foreign buying was Rs. 85.8Mn.
Monday, 29 April 2013
Quote for the day
"The credibility of any item in finance is inversely proportionate to the amount of publicity it receives."- Michael Scott
LSL Market Review 29th Apr 2013
Retail play was shaky today as most investors were booking profits whilst some were taking new positions to further benefit from the prevailing positive sentiment. A period of consolidation is on the cards as market RSI has reached a high level. Institutional participation was evident but was relatively overshadowed by its retail peers.
ASI gained 5.45 points (0.09%) to close at 5,967.62 and the S&P SL20 Index gained 3.78 points (0.11%) to close at 3,363.14. Turnover was Rs. 846.6Mn.
Top contributors to turnover were Colombo Dockyard with Rs.146.1Mn, Colombo Land & Development with Rs.93.1Mn and Commercial Bank with Rs. 60.6Mn. Most active counters for the day were Touchwood Investments, Colombo Land & Development and Central Investments & Finance.
Notable gainers for the day were Environmental Resource Investments warrant-6 up by 19.2% to close at Rs. 3.10, Environmental Resource Investments warrant-3 up by 17.7% to close at Rs. 2.00 and Convenience Foods up by 9.8% to close at Rs. 220.00. Notable losers for the day were Industrial Asphalts down by 7.0% to close at Rs. 250.10, Citizen’s Development Bank down by 5.7% to close at Rs. 31.50 and Citrus Waskaduwa down by 5.2% to close at Rs. 7.30.
Cash map was 39.63%. Foreign participation was 12.0% of total market turnover with net foreign buying of Rs. 114.6Mn.
Sunday, 28 April 2013
LSL Weekly Market Focus
Interest on blue-chips helped shore up most of the losses caused by profit taking on small and mid-capped counters on Monday. Commercial Bank continued to witness private deals as foreign appetite seems to be focused on banking counters. Retail investors once again proved its thirst for speculation on Colombo Land & Development.
ASI lost 9.82 points (0.17%) to close at 5,872.43 and the S&P SL20 index gained 2.26 points (0.07%) to close 3,338.38. Turnover was Rs. 885.3Mn.
Market ended with positive returns with small caps gaining ground on Tuesday. Lion Brewery and Asiri Hospitals saw crossings of 0.5mn shares at LKR 360.00 and 3.0mn shares at LKR 14.00 respectively. These were the main contributors to the market turnover (a contribution of LKR 188.0mn and LKR 63.4mn respectively) followed by National Development Bank with LKR 56.6mn.
During the day ASI advanced by 11.09 index points (+0.19%) to close at 5,883.52 and S&P SL 20 Index advanced by 6.47 index points (+0.195) to close at 3,344.85. Daily market turnover was LKR 708.6mn.
Indices gained considerable ground helped by gains on Ceylon Tobacco Company and Chevron Lubricants on Wednesday. Retail favourite Colombo Land & Development rallied with solid activity. A major shareholder of Panasian Power reduced their stake whilst Hemas power was the buyer. The latter will be expanding its portfolio of power generating sites in effect. Investors speculated on Ceylon Tobacco Company announcing its interim dividend anytime soon. High dividend yielding counters are expected to see price appreciations in the short-term.
ASI gained 50.21 points (0.85%) to close at 5,933.73 and the S&P SL20 index 13.66 gained (0.41%) points to close at 3,358.51. Turnover was Rs. 975.3Mn.
Retail investors made merry of the prevailing optimistic sentiment on Friday. Retail favourite counters were seen rallying whilst most blue-chips were largely unchanged. Colombo Land & Development, Touchwood
Investments and Colombo Fort Land & Buildings were some of today’s hot picks.
Meanwhile, Nestle announced a hefty dividend with the counter moving up around 1.7%.
ASI gained 28.44 points (0.48%) to close at 5,962.17 and the S&P SL20 edged 0.85 points (0.03%) to close at 3,359.36. Turnover was Rs. 1,345.1Mn.
Top contributors to turnover were Lion Brewery with Rs. 194.1Mn, John Keells Holdings with Rs. 114.1Mn and Colombo Land & Development with Rs. 85.8Mn. Most active counters for the day were Touchwood Investments, Colombo Land & Development and Citrus Kalpitiya.
Notable gainers for the day were Touchwood Investments up by 25.8% to close at Rs. 7.80, Colombo Fort Land & Buildings up by 17.0% to close at Rs. 38.50 and Colombo Land & Development up by 12.8% to close at Rs. 52.90. Notable losers for the day were Hemas Power down by 4.8% to close at Rs. 20.00, Namunukula Plantations down by 2.3% to close at Rs. 80.50 and ACL down by 2.0% to close at Rs. 67.70.
Cash map was 60.92%. Foreign participation was 27.23% of total market turnover whilst net foreign buying was Rs. 328Mn.
ASI lost 9.82 points (0.17%) to close at 5,872.43 and the S&P SL20 index gained 2.26 points (0.07%) to close 3,338.38. Turnover was Rs. 885.3Mn.
Market ended with positive returns with small caps gaining ground on Tuesday. Lion Brewery and Asiri Hospitals saw crossings of 0.5mn shares at LKR 360.00 and 3.0mn shares at LKR 14.00 respectively. These were the main contributors to the market turnover (a contribution of LKR 188.0mn and LKR 63.4mn respectively) followed by National Development Bank with LKR 56.6mn.
During the day ASI advanced by 11.09 index points (+0.19%) to close at 5,883.52 and S&P SL 20 Index advanced by 6.47 index points (+0.195) to close at 3,344.85. Daily market turnover was LKR 708.6mn.
Indices gained considerable ground helped by gains on Ceylon Tobacco Company and Chevron Lubricants on Wednesday. Retail favourite Colombo Land & Development rallied with solid activity. A major shareholder of Panasian Power reduced their stake whilst Hemas power was the buyer. The latter will be expanding its portfolio of power generating sites in effect. Investors speculated on Ceylon Tobacco Company announcing its interim dividend anytime soon. High dividend yielding counters are expected to see price appreciations in the short-term.
ASI gained 50.21 points (0.85%) to close at 5,933.73 and the S&P SL20 index 13.66 gained (0.41%) points to close at 3,358.51. Turnover was Rs. 975.3Mn.
Retail investors made merry of the prevailing optimistic sentiment on Friday. Retail favourite counters were seen rallying whilst most blue-chips were largely unchanged. Colombo Land & Development, Touchwood
Investments and Colombo Fort Land & Buildings were some of today’s hot picks.
Meanwhile, Nestle announced a hefty dividend with the counter moving up around 1.7%.
ASI gained 28.44 points (0.48%) to close at 5,962.17 and the S&P SL20 edged 0.85 points (0.03%) to close at 3,359.36. Turnover was Rs. 1,345.1Mn.
Top contributors to turnover were Lion Brewery with Rs. 194.1Mn, John Keells Holdings with Rs. 114.1Mn and Colombo Land & Development with Rs. 85.8Mn. Most active counters for the day were Touchwood Investments, Colombo Land & Development and Citrus Kalpitiya.
Notable gainers for the day were Touchwood Investments up by 25.8% to close at Rs. 7.80, Colombo Fort Land & Buildings up by 17.0% to close at Rs. 38.50 and Colombo Land & Development up by 12.8% to close at Rs. 52.90. Notable losers for the day were Hemas Power down by 4.8% to close at Rs. 20.00, Namunukula Plantations down by 2.3% to close at Rs. 80.50 and ACL down by 2.0% to close at Rs. 67.70.
Cash map was 60.92%. Foreign participation was 27.23% of total market turnover whilst net foreign buying was Rs. 328Mn.
Saturday, 27 April 2013
Quote for the day
"The success of contrarian strategies requires you at times to go against gut reactions, the prevailing beliefs in the marketplace, and the experts you respect." - David Dreman
10 Deadly Trading Mistakes!
The following are 10 most common but deadly Trading Mistakes, which traders should avoid at all costs. Anyone of them can literally destroy one’s financial dreams and goals!
1. Trading for excitement & thrill Not for profits
Many traders consider stock market as casino and trade for thrill and fun only. As soon as one has a losing trade, he wants to quickly make back the lost money. He thinks about the other things he could have done with the money, regret taking the trade and want to recover as quickly as possible. This in turn leads to further mistakes. Be patient and wait for the next high probability opportunity. Don't rush back in.
2. Trading with a high ego
Many individuals who have remained highly successful in other business ventures have failed miserably in trading game. Because they have a fairly big ego and thought they couldn't fail. Their egos become their downfall because they can not except that they would be wrong and refuse to get out of bad trades. Once again, whoever or wherever has anyone come from does not concern the markets. All the charm, powers of persuasion, number of degrees & diplomas of business management on the wall or business savvy will not budge the market when you are wrong.
3. Three 4-letter words that will kill you! HOPE--WISH--FEAR--PRAY
If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! Markets has own system of moving up & down. All the hoping, wishing and praying or being fearful in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-GET OUT!
4. Trading with money you can't afford to lose
One of the greatest obstacles to successful trading is using money that you really can't afford to lose. Examples of this would be money that is supposed to be used in any other business, money to be paid for college/school fee, trading with borrowed money etc. Ultimately what happens is that when someone knows in the back of their mind that they are risking the money they can not afford to lose, they trade out of fear and emotion versus logic and no emotion. If you are in this situation It is highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks.
5. No Trading Plan
If you consider yourself a trader, ask yourself these questions: Do I have a set of rules that tell me what to buy, when to buy and how much to buy, not just for the next trade, but for the next 10 trades? Before I enter a trade, do I know when I will take profits? Do I know when I will get out if I am wrong? These questions form the first part of a trading strategy. There simply cannot be any expectation of success if we can't answer these questions clearly and concisely.
6. Spending profits before you make them
Nothing is more exciting than getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market reverses and wipes off all your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade.
7. Not Cutting Losses or letting Profits run
One of the most common mistakes made by traders is that they let their losses grow too large. Nobody likes to take a loss, but failing to take a small loss early will often result in being forced to take a large loss later. A great trader is not someone who has never had a loss. Great traders have made many losses. But what makes them great is their ability to recover quickly from a string of losses.
Every trader needs to develop a method for getting out of losing trades quickly. Research and learn to apply the best methods for placing protective stop loss orders.
1. Trading for excitement & thrill Not for profits
Many traders consider stock market as casino and trade for thrill and fun only. As soon as one has a losing trade, he wants to quickly make back the lost money. He thinks about the other things he could have done with the money, regret taking the trade and want to recover as quickly as possible. This in turn leads to further mistakes. Be patient and wait for the next high probability opportunity. Don't rush back in.
2. Trading with a high ego
Many individuals who have remained highly successful in other business ventures have failed miserably in trading game. Because they have a fairly big ego and thought they couldn't fail. Their egos become their downfall because they can not except that they would be wrong and refuse to get out of bad trades. Once again, whoever or wherever has anyone come from does not concern the markets. All the charm, powers of persuasion, number of degrees & diplomas of business management on the wall or business savvy will not budge the market when you are wrong.
3. Three 4-letter words that will kill you! HOPE--WISH--FEAR--PRAY
If you ever find yourself doing one or more of the above while in a trade then you are in big trouble! Markets has own system of moving up & down. All the hoping, wishing and praying or being fearful in the world is not going to turn a losing trade into a winning one. When you are wrong just use a simple 4-letter word to correct the situation-GET OUT!
4. Trading with money you can't afford to lose
One of the greatest obstacles to successful trading is using money that you really can't afford to lose. Examples of this would be money that is supposed to be used in any other business, money to be paid for college/school fee, trading with borrowed money etc. Ultimately what happens is that when someone knows in the back of their mind that they are risking the money they can not afford to lose, they trade out of fear and emotion versus logic and no emotion. If you are in this situation It is highly recommend that you stop trading until you earn enough to put into an account that you truly can afford to lose without causing major financial setbacks.
5. No Trading Plan
If you consider yourself a trader, ask yourself these questions: Do I have a set of rules that tell me what to buy, when to buy and how much to buy, not just for the next trade, but for the next 10 trades? Before I enter a trade, do I know when I will take profits? Do I know when I will get out if I am wrong? These questions form the first part of a trading strategy. There simply cannot be any expectation of success if we can't answer these questions clearly and concisely.
6. Spending profits before you make them
Nothing is more exciting than getting into a trade that blasts off and puts you into a highly profitable situation. This can cause major problems however, because this type of trade puts you in a highly euphoric state and leads to daydreaming about the huge profits still to come. The real problem occurs as you get caught up in the daydream and expectations. This causes you to not be prepared to get out as the market reverses and wipes off all your profits because you have convinced yourself of the eventual outcome and will deny the reality of the situation. The simple remedy for this is to know where and how you will take profits once you enter the trade.
7. Not Cutting Losses or letting Profits run
One of the most common mistakes made by traders is that they let their losses grow too large. Nobody likes to take a loss, but failing to take a small loss early will often result in being forced to take a large loss later. A great trader is not someone who has never had a loss. Great traders have made many losses. But what makes them great is their ability to recover quickly from a string of losses.
Every trader needs to develop a method for getting out of losing trades quickly. Research and learn to apply the best methods for placing protective stop loss orders.
The only way to recover from many (small) losing trades is to make sure the winning trades are much larger. After a series of losing trades, it becomes difficult to hold a winning trade because we fear that it will also turn into a loss. Let your profitable trades run. Give them room to move and give them time to move.
8. Not Sticking to your plans & Changing strategies during market hours
If you find yourself changing your strategy during the day while the markets are still open, be mindful of the fact that you are likely to be subject to emotional reactions of fear and greed. With rare exception, the most prudent thing to do is to plan your trading strategy before the market opens and then strictly stick to it during trading hours.
9. Not knowing how to get out of a losing trade
It’s amazing that most of the traders don't have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. It must be kept in mind that market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out.
10. Falling in love with a stock (Just Flirt)
Many traders get fascinated by just a stock or two and look for opportunities to trade in those stocks only ignoring the other profitable trading opportunities. It is because they have simply fallen in love with a stock to trade with. Such tendencies can be suicidal as for as trading is concerned. It may cost any one dearly.
Source: http://www.stocklinedirect.com
8. Not Sticking to your plans & Changing strategies during market hours
If you find yourself changing your strategy during the day while the markets are still open, be mindful of the fact that you are likely to be subject to emotional reactions of fear and greed. With rare exception, the most prudent thing to do is to plan your trading strategy before the market opens and then strictly stick to it during trading hours.
9. Not knowing how to get out of a losing trade
It’s amazing that most of the traders don't have any clear escape plan for getting out of a bad trade. Once again they hope, pray wish and rationalize their position. It must be kept in mind that market does not care what you think. It does what it does and when you are wrong you are wrong! The easiest way to keep a bad trade from going really bad is to determine before you get in, where you will get out.
10. Falling in love with a stock (Just Flirt)
Many traders get fascinated by just a stock or two and look for opportunities to trade in those stocks only ignoring the other profitable trading opportunities. It is because they have simply fallen in love with a stock to trade with. Such tendencies can be suicidal as for as trading is concerned. It may cost any one dearly.
Source: http://www.stocklinedirect.com
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