1 LAKH Profit in Portfolio !!!

Re: 1 LAKH Profit in Portfoilo !!!

Agilent said:
jntrade
I am confused ... surely you mean reaction , and not rally.
On these threads there is no scope to go wrong with the jargon , else your query gets misinterpreted.

PL clarify
AGILENT
Ok Agilent,
I just thought about 2000-2002 period in the market.I dont know it is reaction or rally(Sorry for that:(!.I just want to know what will we do in that kind of market to get profit.
Thanks
 
Re: 1 LAKH Profit in Portfoilo !!!

jntrade said:
Ok Agilent,
I just thought about 2000-2002 period in the market.I dont know it is reaction or rally(Sorry for that:(!.I just want to know what will we do in that kind of market to get profit.
Thanks

jbtrade
Thats a good question.

Listen , 2000-2002 was neither a rally, nor a reaction. It was a bear market.

In my terminology :

A rally is a short term (a few days to a few months) UP move in a falling market
A reaction is a short term DOWN move in a rising market

Your question is : how to make money in a bear market.. am I right ? If yes, then I would say by getting into medium/long term short positions, say through index options. That doesn't mean you cannot be long anytime during a bear market ... you certainly can , when there are intermediate rallies during such a bear market (however u need to be a Bejan Daruwalla, or GOD, to be able to predict such trends)

Hope you know how to go short. ( If not, I would suggest you stay away till u have learnt how to make money being long...)

Happy trading
AGILENT:cool:
 
Re: 1 LAKH Profit in Portfoilo !!!

Agilent said:
jbtrade
Thats a good question.

Listen , 2000-2002 was neither a rally, nor a reaction. It was a bear market.

In my terminology :

A rally is a short term (a few days to a few months) UP move in a falling market
A reaction is a short term DOWN move in a rising market

Your question is : how to make money in a bear market.. am I right ? If yes, then I would say by getting into medium/long term short positions, say through index options. That doesn't mean you cannot be long anytime during a bear market ... you certainly can , when there are intermediate rallies during such a bear market (however u need to be a Bejan Daruwalla, or GOD, to be able to predict such trends)

Hope you know how to go short. ( If not, I would suggest you stay away till u have learnt how to make money being long...)
.
Yar Agilent,
thanks for your guidence.(I shorted index twise some days befor (bought put) and made some loss:( o.k that's another story,still holding a put:cool: )
Sorry again if you got any difficulty in understanding my language eventhough you got it right through your matrix branded sunglasses:cool: !
Mean while nifty going up and more cheers to NK's portfolio:D
thanks and regards
 
Re: 1 LAKH Profit in Portfoilo !!!

nkpanjiyar said:
Secondly, lets say that I invested 1 lakh in various companies (say 5/6). And today the invested amount become 1,30,000. Now in the correction if it comes to level of say 1,07,000 (down 23000 by about 17.7% of 1.3 lakh), I will sell everything and get out preserving my capital. I know there will be lot of criticism of this amateur approach but I wont mind. I am happy with my simple rule. I reiterate i am a very conservative investor and not a professional trader or alike.

Hope I had answered your query.

cheers,
nkpanjiyar

NKP (.. where have u been , my friend ... long time no see ?)

I was going thru yr earlier post (see above) and noticed some contradiction in what u said earlier about accumulating on 5 % dips

In your example above (1 lakh going to 1.3 lakh etc) won't u make some capital loss if u sell at 1.07, because your total cost will not be 1.0 lakh but much more (remember you will accumulate/average on 5 % dips)

Eager to know

AGILENT:cool:
 
Re: 1 LAKH Profit in Portfoilo !!!

Agilent said:
NKP (.. where have u been , my friend ... long time no see ?)

I was going thru yr earlier post (see above) and noticed some contradiction in what u said earlier about accumulating on 5 % dips

In your example above (1 lakh going to 1.3 lakh etc) won't u make some capital loss if u sell at 1.07, because your total cost will not be 1.0 lakh but much more (remember you will accumulate/average on 5 % dips)

Eager to know

AGILENT:cool:
Agilent, my friend, these days too hectic work. Not finding time. Thanks.

I tried being clear as much as possible avoiding any contradictions in my post. Can you plz re-read it once again carefully. I hope, had already given answers to your query which you had asked now. Plz go thru my earlier posts. For your reference:

http://www.traderji.com/24539-post62.html
http://www.traderji.com/36508-post90.html
http://www.traderji.com/36510-post91.html

In case of doubt still persists, plz mail me at: nkpanjiyar at yahoo dot com for quick answers.

Agilent, plz see the two things differently a) Individual Stock Selection and Pick/ accumulate b) Overall portfolio depression. Also portfolio cost includes (capital invested + brokerage + taxes, charges) which is equal to 1 lakh in the said example. This is what I meant. Is my post is so ambiguous?

Lastly, thanks for taking interests in my post.

cheers,
nkpanjiyar
 
Re: 1 LAKH Profit in Portfoilo !!!

Agilent said:
jbtrade
Thats a good question.

Listen , 2000-2002 was neither a rally, nor a reaction. It was a bear market.

In my terminology :

A rally is a short term (a few days to a few months) UP move in a falling market
A reaction is a short term DOWN move in a rising market

Your question is : how to make money in a bear market.. am I right ? If yes, then I would say by getting into medium/long term short positions, say through index options. That doesn't mean you cannot be long anytime during a bear market ... you certainly can , when there are intermediate rallies during such a bear market (however u need to be a Bejan Daruwalla, or GOD, to be able to predict such trends)

Hope you know how to go short. ( If not, I would suggest you stay away till u have learnt how to make money being long...)

Happy trading
AGILENT:cool:


Came across this (Posted 16 March) while going thru' old posts.

May be of some use to those who are unfamiliar with bear phases

Good luck !

AGILENT

PS Will add : one can also short intraday, but that requires more skill and luck I think (than shorting for the medium term). Also ... long term options are still not available in India, but will surely come some day
 
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Re: 1 LAKH Profit in Portfoilo !!!

Ref:Sri.N.K.Panjiyar's Post no.106 dt.24th March 2006

I have gone through the above post and the earlier ones.The strategy is novel and appears worth a fair trial.
May I request an elaboration?
1.Why 18% as fall? Can this % be changed?
2.My understanding is that 18% fall applies to portfolio.Am I correct?
3.Any action if a share falls more than 18% (not the portfolio)? Is accumulation of the share to continue?
4.Is profit to be booked under a share at any time keeping the rest of the portfolio intact?
Please clarify.

madhava36
 
Re: 1 LAKH Profit in Portfoilo !!!

madhava36 said:
Ref:Sri.N.K.Panjiyar's Post no.106 dt.24th March 2006

I have gone through the above post and the earlier ones.The strategy is novel and appears worth a fair trial.
May I request an elaboration?
1.Why 18% as fall? Can this % be changed?
2.My understanding is that 18% fall applies to portfolio.Am I correct?
3.Any action if a share falls more than 18% (not the portfolio)? Is accumulation of the share to continue?
4.Is profit to be booked under a share at any time keeping the rest of the portfolio intact?
Please clarify.

madhava36
From what I understood earlier, it applies to individual stocks.

The strategy certainly is novel , but can backfire during periods of sustained downturns (like what we have been seeing), where most stocks have slumped more than 18 % from their April peaks.

But of course, the right person to explain is NKPanjiyar himself (I could be wrong in my above presumption ... is that so NKP ?)

AGILENT
 
Re: 1 LAKH Profit in Portfoilo !!!

I feel "The ability to take fastest decision in quickest possible time is key" anywhere be it life, market or job.

Dear madhava36, I am not a hardcore stock market professional. I tend to change my strategy based on my own understading. Between 12 may 06 to 19 may 06, I exited all my postion (except NTPC) when sensex was around 11000-12000 and my profit was close to 2.5 lakh. Many of the stocks fallen beyond expectations and repair. Reading helps. Instinct ask me get out with profit. On contrary the mock portfolio (same as original portfolio) maintained in yahoo, I found that every fall in 1000 point of sensex had eaten close to 35k profit of my portfolio. Thank god, i exited. Prefer sitting in cash rather than hoping and praying. I would say I am a still learner and advice that do not search for bullet proof strategy. There is none !!! Read a lot about market and economy. It surely helps.

cheers,
nkpanjiyar
 

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