Jan 102012
 

Elliott Wave Analysis is a dynamic tool. We should not use it as a simple forecasting tool, rather as something which will guide our trading decisions. We should look at our charts, and make up our mind as to what is the most likely scenario. Then we sit and wait. If things don’t unfold as planned, we wait for more clues and take new decisions. EWP helps us at every stage. Take my comments on the NIFTY index yesterday. I pointed out a potential triangle formation. Just so that newbies don’t miss it, I added in clear words on the relevant chart that the formation could simply vanish tomorrow. We should never be surprised or disappointed if something like this happens. That is the very nature of the market, to take an unexpected turn! However, like a well trained dog, it usually comes back on track after the detour! In the meantime, we should not panic. Our goal is clear. To make money by taking low risks. While we wait for such a set up on the buy side, there are some interesting “Sell” candidates. I mentioned Larsen and Tubro a few days back. Today present you with Bajaj Auto. Bear in mind that these are short term plays.As always, you need to protect yourself with suitable stops. For example, Bajaj Auto could go as high as 1535, so you should also know where a good stop should be, and how you should build a short position. Trading is not the same as analysing charts. The winner is one who knows the art of money management. Even if you are not a master of ELliott Wave Analysis (to tell you the truth, no one is!), it doesn’t matter. Become a master of money management first. Simultaneously learn EWP. Good luck.

  13 Responses to “Bajaj Auto – Elliott Wave Analysis”

  1. Dear Ramkiji,

    Apart from your regular updates on various stocks, commodities, currencies we would be highly gratful if you can share your experiance & highlights on “Become a master of money management first” with do’es and dont’s.

    You Being a Treasurey Manager in banking sector I am sure you will be having lot of things to share on ‘Money Management’, will really improve our style of working & Managing Money in True Sence.

    Regards,
    Piyush Shah

    • Hi Piyush, the subject of money management is too vast to be covered in a blog post, I’m afraid

      • Hello Ramki,

        Your comments and postings are of immense value to us.

        This site is truly a treasure trove! Best part is, we can see EWP in action and learn from it.

        One more request, would you please suggest good books on money management?

        Thanks a million for the great site!

        I can only imagine the tremendous amount of effort that you are putting in.

        However, I am not sure you are monetizing it to the fullest extent. Following are the three quick things that you can do:

        1) Google Adwords
        2) Affliate programs – Add links to the books that you recommend for example, good books on money management.
        3) Limited banner ads

        May be you already considered and rejected them for a reason.. just wanted to add my two cents

        I am of the opinion that every one should be rewarded, monetarily, for their efforts. Appreciation in words is nice but not enough :)

        Regards,
        –Ram V

  2. Sir. your book is only available as an ebook or its hard copy is also available.

  3. Dear sir,

    I am residing in Muscat . How can i get a copy of your book. Please guide me.

    thanks

    • Hello Chamu, As Amazon’s Kindle books are not sold in your area, you will have to purchase the adobe digital editions format. Pl click on the image of the book on the right side and follow the guidance given there.

  4. Sir, Pl give your analysis on Hero Motors on the short term.
    Thanks and regards
    Dr Sanjay Pote

  5. This trade seems to be not working! in-spite of weak market bajaj is making higher high and higher low! what is your time line sir, once you say “short term plays”?

    • Hi Dina, first of all this is not a trade recommendation. Just call it a trade idea. Secondly, the trade is still developing. We are looking for the recovery to near 1500 so that we can have a low risk entry level. So the fact that it is edging up is actually indicative of the trade developing as hoped for! Finally, a short term trade means in this context we are looking to trade just wave 5 of the current cycle.

  6. Hi Ramki,
    Happy Sankranthi to you.
    And thanks for covering more and more BSE stocks.
    Satya

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