Monday, November 2, 2009

Blue Ocean of Stock Market

Author: Sri Ram
A company can create a blue ocean by catering to a different segment of customers or by catering to a different need of the existing segments. I was wondering if some one can suggest a blue ocean strategy to stock market.

The strategy as in is not directly applicable due to dissimilarity in structure of the market in general business and stock market. The number of players, the variety of players, the amount of volatility etc makes the stock market a different ball game. An individual investor sees a lot of money flowing in either of directions but seldom knows where to stand. So a blue ocean strategy for a stock market should be in a way which makes markets movement irrelevant to making profit.

While the debate always continues, weather to look for fundamentals or technicals in a share, all the debaters are ironically admitting the existence and significance of both. While the fundamentals change with the information available in markets , Technicals are based on the historic trends. Once again the poor investor can hardly make out the difference between the rumors and real information. So a small investor who can follow technicals ,..I feel can create a kind of blue ocean for himself in market.

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