Stock Market Astrology Part II
( written on 28/09/2003 )
"The great fortunes on stock exchanges have been made not by those who knew what to buy and sell but by those who have mastered the art of buying and selling at the correct time and price "
In the Stock Market timing is all important
Portfolio Management Astrology
Astrology can be a diagnostic tool like Fundamental Analysis and Technical Analysis.
One should understand one's beneficial planets and invest in the industries ruled by those planets. If Jupiter is strong in your horoscope, you can invest in Pharma shares like Ranbaxy, Dr Reddy's, Aurobindo Pharma & Divi's Labs. . If Venus is strong, you can invest in Auto Industry shares like Maruti and Tata Motors. . If Mercury is strong, you can invest in Telecommunications like Bharti Tele, MTNL & Shyam Tele. . Saturn rules Steel and if you find Saturn powerful in your horoscope, you can invest in steel shares such as SAIL, Tisco, Jisco & Jindal Steel. Mars rules electricity and if Mars is powerful in your natal chart, you can invest in shares such as BSES , Tata Power & Alsthom Power. If Rahu is strong, IT shares like Infosys, HCL Info & Hughes Software. . Oil is ruled by Saturn and such shares as IOC, ONGC etc are good choices if your Saturn is powerful. PSU shares are ruled by the Sun and BP, HP etc can bring home the bacon if Sun be indeed strong in your horoscope.
While picking shares, one should avoid Chandrashtama and negative transits. Beneficial Jupiter can veto all other negative transits. The Transit of the North Node, Rahu is also very important. ( I only entered the market when my Jupiter transited the 2nd and Rahu the 10th and my Portfolio is showing profit ). Venus also ruled business and has a major say in stock market dynamics. One should consult not only a financial expert but also an astrologer as Luck can be a major factor in stock market speculation.
Knowledge - a Prerequisite
Knowledge of Stock Market dynamics is also a prerequisite. One should understand the Wave Theory - that the Stock Market fluctuates all the time, even within a day. If it is a Bull run, then the Market will rise but only as a Wave. If it is a Bear Phase, the Market will descend as a Wave. The Market reacted after touching an all time high of 4469 this time. It descended as a Wave to 4105 and then ascended to today' s level of 4382 ! If you can take advantage of the small booms and busts within the Bull Phase or the Bear Phase, Fortune will favour you !
The two emotions which rule are Greed & Fear. If you can control Greed and Fear, you have won ! If you can keep your equanimity when everybody seems to lose theirs, Fortune will grace you. If on the other hand, if you succumb to Greed and Fear, you will be part of the crowd. Being part of the crowd will get you nowhere; you can only make others rich !
Speculation - A dangerous temptation
You may be tempted to speculate. Avoid speculation. A speculator is he who takes big risks to gain profits. Be an intelligent investor ( an investor is he who takes only calculated risks ). If you gain because of speculation one day, the next day you will lose. "What you gain on the swings, you lose on the roundabouts", remarks Peter Lynch.
If you had entered TISCO at 130, by now your capital would have been doubled. Just imagine if the Sensex reaches 5500 or above. TISCO will be 500 ! So this calculated risk is what the intelligent investor should take. Not only TISCO but other good scrips will aid you in capital appreciation. Be a good contrarian investor, one who buys cheap and sells dear !
It is true that high returns have high risks associated with it. So we should not be too greedy and if we get decent profit, we should get out of that scrip. Paper profits are no good and booking profits is the most essential aspect of investment. If you dont sell your shares at the proper time ( known as the Contrarian's skill of selling high ), you cannot in reality make profits. Now the Market is dominated by the FIIs ( Foreign Institutional Investors ) whose habit is to book profit immediately. They will not wait , like Harshad Mehta, for ACC to become 10000!. So understand the nature of the market. Book profits every now and then. If you book profits, your money is freed for recycling. You can buy other scrips at declines. Since the market is ever fluctuating and never steady at the same Index, , you will get opportunity to buy at declines. A bust is an opportunity for buying. A boom is an opportunity for selling. Manage your risks !
Cash Flow and the Stock Market
The FIIs so far have invested more than $ 14 billion. This cash flow has enabled the Sensex to reach 4382. If they withdraw this cash, the market will come down. During boomtime, money chases stocks. Now it is money chasing stocks. You should beware about the Bear Phase. It will be shares chasing money, then ! So book profits every now and then and be on your toes !
Hart de Fow and Robert Svoboda in their book " Timing & Astrology" remarks that the best days which are auspicious are, in order, Thursday, Friday, Monday and Wednesday. If you plan long-term investments, you should select these days for picking up potential blue-chips.
This article is not based merely on theoretical principles. I have been dabbling in the Stock Market since 1987 and some scrips have given me good returns. Reliance ( my Venus is favourably posited in the 11th in Taurus ), Infosys ( my Rahu favourably posited in the 6th, in Sagittarius ) & Dhanalakshmi Bank ( my Jupiter is in the Ascendant in Cancer ) have given me good capital appreciation! Experience is the best teacher !