Dear Seniors....Please let me know where i went wrong....

[pkjha30]

Dear seniors and all investors & traders,

My experience with the market is as follows.....

Last year when markets crashed during August, i picked 2 stocks.....
When Nifty crashed to 200 dma, i picked
RELIANCE @ 1740......Near to its 100 dma....
R.COM @ 496........Almost near its 200 dma.....

When i picked these stocks, my view was to keep it for atleast 2-3 years minimum.....I was so very happy that i picked these stocks at almost near its bottom....I was so very confident that no matter what happens RELIANCE will always respect its support and resistances.... BUT...

Today , after 5 months , i saw RCOM at my price of 496.....And RELIANCE, well it made a low of 2100+.....

Now , i want to know where i went wrong......
1. Did i pick the wrong stocks????...
2. My view was of long term.....Did i make a mistake of keeping a long term view and going to sleep???...

Please do let me know your views.....

(After today's crash, i think that even ""LONG TERM INVESTORS" should take profits or atleast TRIM their portfolio from time to time)

Please comment

Regards,
Aparna

Hi

The Answer is a BIG NO

You are quite right on buying these stocks at mentioned prices

You are still in profit.

After this crash these will be some of the stock which would help in sensex upward movement.

Long term is not six month. My portfolio contain stock bought more than two or three years back with one major crash and many minor crashes. Except one all are in sound sound health..


The mistake, if at all you call it on insisting a mistake is not to keep your target price for each leg of uptrend and booking profit. I call it stop Profit Price. For short term Stop Loss concept is good.

moreover when one is a long term investor one does not look for short selling but holding till your timeframe or price is achieved, whichever is earlier.If market drifts down from PP get out if it is more than 10%.

stoploss would protect them also from possible loss or erosion of profit or capital. One can always keep -10% of CMP as stoploss and must get out as you can still get in later if you love your stocks.

Portfolio management does not say you marry your stocks. As and when you reach your target or stop loss , must exit.Re-enter at lower price on breakout with higher vol..

Sectoral rotation is also important that would protect your capital from wild fluctuations as all sectors don't react in similar fashion except during crash. But post crash ,still their behaviour would differ.

When market comes in overbought position or many technical signals would indicate built up of negative factors then you should think of selling off say 30-50% of portfolio and be in cash . Then if market moves up you can always reinvest in stocks showing after a crash. As Harmads say as a long term investors one should see these as opportunity to invest in sound companies.

Had you sold and waited for this opportunity , which came twice to you, your holdings would have increased.

So moral of the lesson is to keep your Portfolio as a live entity struggling always for betterment and avoiding weakness/disease. Mutate grow strengthen, increase conserve.


Personally I think they have huge potential.

Pankaj

 

[romanov]

Hi

The Answer is a BIG NO

You are quite right on buying these stocks at mentioned prices

You are still in profit.

After this crash these will be some of the stock which would help in sensex upward movement.

Long term is not six month. My portfolio contain stock bought more than two or three years back with one major crash and many minor crashes. Except one all are in sound sound health..


The mistake, if at all you call it on insisting a mistake is not to keep your target price for each leg of uptrend and booking profit. I call it stop Profit Price. For short term Stop Loss concept is good.

moreover when one is a long term investor one does not look for short selling but holding till your timeframe or price is achieved, whichever is earlier.If market drifts down from PP get out if it is more than 10%.

stoploss would protect them also from possible loss or erosion of profit or capital. One can always keep -10% of CMP as stoploss and must get out as you can still get in later if you love your stocks.

Portfolio management does not say you marry your stocks. As and when you reach your target or stop loss , must exit.Re-enter at lower price on breakout with higher vol..

Sectoral rotation is also important that would protect your capital from wild fluctuations as all sectors don't react in similar fashion except during crash. But post crash ,still their behaviour would differ.

When market comes in overbought position or many technical signals would indicate built up of negative factors then you should think of selling off say 30-50% of portfolio and be in cash . Then if market moves up you can always reinvest in stocks showing after a crash. As Harmads say as a long term investors one should see these as opportunity to invest in sound companies.

Had you sold and waited for this opportunity , which came twice to you, your holdings would have increased.

So moral of the lesson is to keep your Portfolio as a live entity struggling always for betterment and avoiding weakness/disease. Mutate grow strengthen, increase conserve.


Personally I think they have huge potential.

Pankaj

Very well said Pankaj..."Portfolio as a live entity struggling always for betterment and avoiding weakness/disease. Mutate grow strengthen, increase conserve. "...This is the weakness which operators have started to exploit from past two years...they know that real Indian investor is lazy..Once invested they do not bother do participate actively in the Market..in your portfolio you should always set realistic Buy and Sell price of stocks you own..Irrespective of where Stocks is going you should stick to it...

Even for Sell and don't let greed or apathy ovetake you.

Your mistake is two fold,let us know what it was,so that we all can benifit:

1) You had never set any Sell indicator in you Portfolio.,,Do your own analysis..listen to others..set a realistic Target.Even if your Stocks keeps going up..sell when you surpass your Trgt..Only applicable to Investors
2) You invested and were not actively involved for sometime..which is understandable.

 

[aparnasmurthy]

Dear Pankaj, romanov....

Thanks for your wonderful advice....Thanks a lot....
I had gone to sleep after buying these stocks....I have realised its not time, its the price that i should keep watching and keep my portfolio "ALIVE"...

Thank you so very much....

Regards
Aparna

 

[vishnuindian]

why the FII's are selling like this.,..
if us in recession, then obviously indian Mrkt is safe to them na..
Inspite of that why the FII is selling like this.,.. !!!
i couls not understand any thing..

a stock named Rajesh exports which anounced bonus in feb.. fell down from 900 to 700 level.. Why shuld fii sell if it is going to give bonous to them./..?

any help//

 

[shrinivas]

Dear seniors and all investors & traders,

My experience with the market is as follows.....

even ""LONG TERM INVESTORS" should take profits or atleast TRIM their portfolio from time to time)

Please comment

Regards,
Aparna

Dear sir,

With all due respect, the answer would be "no"..you did not commit any mistake in buying these stocks..The only mistake you did was "not putting a required stop loss"...Never fall in love with your stocks..they may make or kill you...And a long term investor should never be worried of such ups and downs in market..you have picked up wonderful stock..reliance has changed fate of thousands of Indians,and beyond doubt,is one of my personal favourites..If you see current market situation,most of people are crying for the huge loss they have minted...you sit very safe now..Still, a smarter move would have been to put a s/l 10% below the price..exit....re-enter at lower levels...anyways,most of the people commit this mistake and learn by experience..i'm also such a learner(rather a victim of such situation earlier)...

hope you get this...

all the best..

ganeshhity

 

[shrinivas]

Very well said Pankaj..."Portfolio as a live entity struggling always for betterment and avoiding weakness/disease. Mutate :

1) You had never set any Sell indicator in you Portfolio.,,Do your own analysis..listen to others..set a realistic Target.Even if your Stocks keeps going up..sell when you surpass your Trgt..Only applicable to Investors
.

Hmmmm...I would still keep them, even if they surpass my expectation till it (stock)shows an upward movement...would exit only if there is some very negative move in fundamentals/charts.

 

[judemit]

Hmmmm...I would still keep them, even if they surpass my expectation till it (stock)shows an upward movement...would exit only if there is some very negative move in fundamentals/charts.

How do you determine if there is something negative on the charts?


I am holding LnT since last 15 months (will be holding for another few years as long as they post good results) and still holding, nothing much changed in the fundamentals and the orders are pouing in everyday. Did not sell it when it went to 4600/- and now at 3600/- My avg buy price much lower than the CMP. In this situation how one can determine which price is high/good and sell a part and buy back later?

If i am not wrong, if a company keeps maintaining YoY growth(higher sales, higher order book, higher profit) one can assume that the fundamentals are intact (ofcourse if the govt dosent throw a spanner in between).

 

[uasish]

Dear seniors and all investors & traders,

My experience with the market is as follows.....

Last year when markets crashed during August, i picked 2 stocks.....
When Nifty crashed to 200 dma, i picked
RELIANCE @ 1740......Near to its 100 dma....
R.COM @ 496........Almost near its 200 dma.....

When i picked these stocks, my view was to keep it for atleast 2-3 years minimum.....I was so very happy that i picked these stocks at almost near its bottom....I was so very confident that no matter what happens RELIANCE will always respect its support and resistances.... BUT...

Today , after 5 months , i saw RCOM at my price of 496.....And RELIANCE, well it made a low of 2100+.....

Now , i want to know where i went wrong......
1. Did i pick the wrong stocks????...
2. My view was of long term.....Did i make a mistake of keeping a long term view and going to sleep???...

Please do let me know your views.....

(After today's crash, i think that even ""LONG TERM INVESTORS" should take profits or atleast TRIM their portfolio from time to time)

Please comment

Regards,
Aparna

Aparna,

Plz go through this link := http://www.traderji.com/149826-post7.html

This approach may have many short comings.

Asish