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Analysis

My crazy partner is Mr. Market!We are used to the fact that the world's most prominent investors are known for their outstanding deals, returns and stability of results over a long time horizon. Yes, all this is certainly a sign of excellence, but no investor has gained his popularity through books. The books he wrote. This man created his writings back in the 1930s and 1940s, but they still inspire anyone who has taken the path of smart stock investing. You've probably guessed by now who we're talking about. It's the humble author of The Intelligent Investor and Warren Buffett's teacher, Benjamin Graham. It's amazing that after many years, this book is still considered the bible of investing on the basis of fundamental analysis - Graham wrote such a thorough description of how a person investing in stocks should think. His insight into the market can be useful to anyone who is exposed to this chaotic environment. To understand Graham's philosophy, imagine that the market is your business partner "Mr. Market." Every day he stops by your office to visit and offer you a deal on your mutual company stock. Sometimes he wants to buy your stock, sometimes he wants to sell his own. And each time he offers a price at random, relying only on his gut. When he panics and is afraid of everything, he wants to get rid of his shares. When he feels euphoric and blind faith in the future, he wants to buy your share. That's the kind of crazy partner you have. Why is he acting this way? According to Graham, this is the behavior of all investors who don't understand the real value of what they own. They jump from side to side and do it with the regularity of a "maniac" every day. The task of the prudent investor is to understand the fundamental value of your business and just wait for another visit from the crazy Mr. Market. If he panics and offers to buy his stock at an extremely low price - take it and wish him luck. If he begs to sell him the stock and calls an unusually generous price - sell it and wish him luck. Of course, after a while, it may turn out that Mr. Market was not bad at all and made a very profitable deal with you. But the fact is that on the long horizon of time his luck will be washed away by a series of stupid things he will inevitably do. As for you, rest assured that tomorrow you will meet another Mister. So, as Graham has taught us, is teaching us, and will continue to teach us - you just have to be ready for it. Understanding the fundamental value of the company, this meeting will bring you nothing but pleasure!
TVC:DJIEducation
by Be_Capy
1
Gold: Analysis✔Gold was holding 50200 since mid of May. It held this level at three occasions (see chart) but finally broke it in the mid of September. ✔So, a lot of traders who bought at 50200 support, with stop loss underneath this level, were shaken out in this breakdown. Most would have reversed their positions to short. Gold revisited 50200 in a retest attempt and this normally attracts pullback traders to go short. So many short positions are supposedly added till the end of September, with stop loss just above 50200. ✔But as Gold managed to sustain above 50200 again, most stop loss orders got triggered leading to short covering. Everyone who was shorting below this level, had to buy in order to close their positions. Also fresh buyers would look to catch this opportunity. This huge flux of buy orders lead to a sharp rally. ✔Presently it is near 52000 round number which has acted as an important level in the past too. Also there is trendline resistance, joining April and August highs at around 52100. ✔So two things can happen around above resistance levels. Either buyers would absorb supply at resistance and push Gold to next resistance 52750-52800 in the short term or profit taking/sellers would push it back to 51000 or 50200. Only further price action would throw more light upon this. Thanks for reading. Do not forget to like for more such ideas in future.
MCX:GOLD1!
by Bravetotrade
3