Restrictions on Govt Servants

[copypasteaee]

There is no need of doing that. I thought there is no wrong in sharing a method which I have been following for years. There is no guarantee of replicating the success path following my guidance as I am already holding a sizable portfolio at much cheaper rates. My equity holding is a tiny fraction of my actual net worth. I am doing what is comfortable to me. People will have different comfort levels as per their net worth, risk appetite and goals. Its upto the members to devise their own investing plan.

I am not a SEBI registered advisor to advice and or guide people on equity/derivative products. I refrain from doing what is not allowed as per forum rules.

ok bro, thanks for your valuable suggestions in your earlier posts.

 

[comm4300]

If you can manage to buy ‘anytime after‘ a substantial correction, you will be very rich. Over time stocks make new highs, I don’t think it should be difficult to start.


Historically, markets have crashed by not more than 70%. This is our statistical edge.

First step is to wait until markets correct by 20% from its peak.
Once that happens, you start investing.

This we can do even with NSE stocks also.

For example, some of the stocks constituting Nifty 50 are down by about 50-60%. Isnot it right time to start a SIP.

When these stocks bounce, sell part of them and keep remaining in your portfolio for life. Its another way to build your long term portfolio systematically.

thank you for putting across this method. I've a few follow up questions:

• can you explain the profit taking part in detail?
• what about few stocks that have been in continuous downtrend for the past many years? ex. cairn, jindalstel or an rpower?
• and what about scenarios like that of satyam?

Would be great if you share your thoughts on dealing with such situations.
For now, i follow a similar strategy using NIFTYBEES. As, i fear that a "satyam" can happen to any stock.

Looking forward to more sharing and inputs on this method.

Thanks again.

 

[mtftrader]

So,
Sebi thinking Government employee as mutual fund manager, he can't short and lot of restriction .
Is this really true that government employee can't do trading ?

 

[suri112000]

thank you for putting across this method. I've a few follow up questions:

• can you explain the profit taking part in detail?
• what about few stocks that have been in continuous downtrend for the past many years? ex. cairn, jindalstel or an rpower?
• and what about scenarios like that of satyam?

Would be great if you share your thoughts on dealing with such situations.
For now, i follow a similar strategy using NIFTYBEES. As, i fear that a "satyam" can happen to any stock.

Looking forward to more sharing and inputs on this method.

Thanks again.

I appreciate your concern over protecting your capital in black swan events like Satyam.

Please go through this link http://www.traderji.com/day-trading/100184-reliable-approach-trading.html#post1116874

After going through it, let me know what did he do in case of black swan events, how did he book profits.

 

[comm4300]

I appreciate your concern over protecting your capital in black swan events like Satyam.

Please go through this link http://www.traderji.com/day-trading/100184-reliable-approach-trading.html#post1116874

After going through it, let me know what did he do in case of black swan events, how did he book profits.

thanks for the link.

The person mentioned has 80% of holdings that tanked and 20% were mutibaggers.

Yes, this probability is very much likely. Agreed.

Now, for the style:
your colleague invested from his savings. My confusion is - being a salaried class person - i can afford x amount per month. Do i target a single stock for SIP for say a period of time - 12 months. OR do i shortlist a bunch of them, say from nifty 50/elsewhere and distribute investable surplus each month (on the ones that've falled x%).

herein lies the confusion. target one stock...like carin: that's dropping each month. OR divide each month's amount into 10/15 stocks that've corrected.

 

[suri112000]

thanks for the link.

The person mentioned has 80% of holdings that tanked and 20% were mutibaggers.

Yes, this probability is very much likely. Agreed.

Now, for the style:
your colleague invested from his savings. My confusion is - being a salaried class person - i can afford x amount per month. Do i target a single stock for SIP for say a period of time - 12 months. OR do i shortlist a bunch of them, say from nifty 50/elsewhere and distribute investable surplus each month (on the ones that've falled x%).

herein lies the confusion. target one stock...like carin: that's dropping each month. OR divide each month's amount into 10/15 stocks that've corrected.

Select atleast 10 scrips. If your monthly saving is Rs.5000 which should get you atleast one each.

You can have 10 shares as follows :-

1. Rs.2,000 range share - 1 share (Should be a regular bonus issue company)
2. Rs.1000 range share - 1 share (should be a regular bonus issue company)
3. Rs.500 range share - `1 share
4. Rs.200 range shares (different scrips)- 7 shares

Once selected, its not a big deal how to average them on regular basis.

 

[comm4300]

Select atleast 10 scrips. If your monthly saving is Rs.5000 which should get you atleast one each.

You can have 10 shares as follows :-

1. Rs.2,000 range share - 1 share (Should be a regular bonus issue company)
2. Rs.1000 range share - 1 share (should be a regular bonus issue company)
3. Rs.500 range share - `1 share
4. Rs.200 range shares (different scrips)- 7 shares

Once selected, its not a big deal how to average them on regular basis.

thank you for the clear explanation.

 

[copypasteaee]

Select atleast 10 scrips. If your monthly saving is Rs.5000 which should get you atleast one each.

You can have 10 shares as follows :-

1. Rs.2,000 range share - 1 share (Should be a regular bonus issue company)
2. Rs.1000 range share - 1 share (should be a regular bonus issue company)
3. Rs.500 range share - `1 share
4. Rs.200 range shares (different scrips)- 7 shares

Once selected, its not a big deal how to average them on regular basis.

Good approach.........

 

[suri112000]

thank you for putting across this method. I've a few follow up questions:

• can you explain the profit taking part in detail?
• what about few stocks that have been in continuous downtrend for the past many years? ex. cairn, jindalstel or an rpower?
• and what about scenarios like that of satyam?

Would be great if you share your thoughts on dealing with such situations.
For now, i follow a similar strategy using NIFTYBEES. As, i fear that a "satyam" can happen to any stock.

Looking forward to more sharing and inputs on this method.

Thanks again.

Yesterday the net was slow, i could not see your charts. I try to give explanation of Cairn because it has not given any pull back rally to exit. A typical black swan event.

Recent peak was 380 and then it continued to fall. So, our first entry is at 304. (20% down from peak). So your investment in the scrip is Rs.304. Your next entry is at 228. Third entry is at 152. Here one important clue. Third entry point is 152 which is half of your initial investment. So, now you can buy 2 shares for same investment of Rs.304. (But in case of your second entry an amount of Rs.76 is still lying in the bank). If the scrip tanks by another 20% ie Rs.76 you will have funds to buy 5 shares. But it has not come there. Now it is hovering around Rs.160. But your average price is Rs.209. That is present price is just 23% in discount from average price.

All we want is a 100% rise from last averaged price ie from 152 to 304 in the years to come.

Now, simply challenge the scrip.... say to it. "Give me the return or tank to zero and vanish".

Guess what?

 

[comm4300]

Now, simply challenge the scrip.... say to it. "Give me the return or tank to zero and vanish".

Guess what?

love this quote and your attitude towards market. No wonder you are successful.

good job and thank you.:thumb: