Where is my mistake?

[oxusmorouz]

Hi all,

I have a related query.

suppose I buy a stock at 100 with target of 110 and SL of 97 (with an approx risk reward ratio of 3:1).

Now,

1. If the stock hits 110 which also happens to be its life time high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

2. If the stock hits 110 which also happens to be its multi-month or 52-week high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

I had a recent experience. on 8th June, I identified AARTIIND to be hitting 28 in next few days. It reached 48.75 on 21st June. Selling on 28 wud have been just 12% profit and around 48, well thts massive 90% +.

Advice required.

Thanks,
Sanjoy

Why not simply backtest it using a computer application?

 

[rajesh.sadhanala]

Hi all,

I have a related query.

suppose I buy a stock at 100 with target of 110 and SL of 97 (with an approx risk reward ratio of 3:1).

Now,

1. If the stock hits 110 which also happens to be its life time high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

2. If the stock hits 110 which also happens to be its multi-month or 52-week high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

I had a recent experience. on 8th June, I identified AARTIIND to be hitting 28 in next few days. It reached 48.75 on 21st June. Selling on 28 wud have been just 12% profit and around 48, well thts massive 90% +.

Advice required.

Thanks,
Sanjoy

It really depends on ur style of trading. Whether you prepare for an exit if you have predefined return of Investment or ur approach is ladder style (buy at every pullback till ur trailing SL is hit). Its better to follow ur own style.

I didn't understood ur identifying of AARTIIND in 28 point.

 

[srisara]

it depends on the stock , on many occasions in the past satyam has given a volume led price breakout but starts to fall again after such breakout . There are people (including myself) who buy during such breakouts only to sell the stock after the stop loss was triggered . Hence it is always better to trade in stocks like Rcom which always reacts to technical triggers .
Yesterday was funny , i knew the inflation numbers will be good and hence started trading in banking stocks . As expected the inflation numbers came out lower than expected but the banking stocks didnt rally and instead started falling . The same applies to IT stocks which didnt rally yesterday inspite of rupee depreciation .
However its good to trade in a few stocks we know and build systems around it . It should also be noted that only days like these help us in learning more and come up with a better strategy the next time we handle a similar situation.

My GOD, change of 10 paise here and there you call depreciation? Where is 46 levels and where is 40.8 levels?

IT stocks will be in extended downturn unless Rupee climbs back to atleast 43-44 levels (which is considered a fair value for IT Companies).

All IT stocks look very rosy now to buy. But, it's not advisable till the $ Vs Re. things gets settled down.

Its better to buy 3 times the quantity then instead of buying now in small quantities.

Satya

 

[srisara]

Thks Swagat,

I am not regretting....

I just want to know the reason of my mistake,

I want to know when one should exit from one stock,

Everybody fears that he may lose that profit earned..not willing to hold his profit to the markets.

But think the other way,
If his profit is expanding then why he should sell?

Target is different..yes I agree with uasish once trgt is achieved, one must look at the other opportunities but, if there is uptrend in one stock then what..?

How to know that??

I hope u understand...

Ron,

no one can match or time markets, one should not expect to buy in lows and sell at peaks.

my recent sell out was PetroNet. It touched my price range of 57 and i sold it. It troubled me by going all the way to 59, but went down to as low as 52 again and now bounced back to 55.

Study the charts, Support & Resistance Levels, coupled with 3-4 indicators ( of your liking, choice and variety (all 4 should not be of same derivative- like all 4 should not be oscillators).

Satya

 

[sanjoy_roy]

Hi Satya,

What target to look for in a stock that has hit its life time high or muti-month high?

Thanks,
Sanjoy

 

[srisara]

Hi Satya,

What target to look for in a stock that has hit its life time high or muti-month high?

Thanks,
Sanjoy

Sanjay,

well, this is still a mystery for me. I basically trade on S&R patters, so i need a goo chart to trade.

Next, It all really depends on the NEWS (FA). For example, UNITECH was consistently hitting HH's and what target one cud give? It had to correct for the only reason of Inflation and slowing of Real Estate Sector.

I think till the histeria wanes down the party will continue, aslo P/E and EPS ratios could help a bit.

But I am not that proficient in this. As always, still a kid in Stock Market

Satya

 

[rajaram.dilipkumar]

My GOD, change of 10 paise here and there you call depreciation? Where is 46 levels and where is 40.8 levels?

IT stocks will be in extended downturn unless Rupee climbs back to atleast 43-44 levels (which is considered a fair value for IT Companies).

All IT stocks look very rosy now to buy. But, it's not advisable till the $ Vs Re. things gets settled down.

Its better to buy 3 times the quantity then instead of buying now in small quantities.

Satya

Dear Satya,

I have done enough research on Rs Vs $ ( refer my Times of india article which came a lead story on may 15th 2007 . You can get the excerpts of my article on http://www.timesyourmoney.com/fullArticle.aspx?artID=Lead Story&issue=may_15_2007 )
RBI will support rupee when it touches the 40.50 mark against dollar and one can expect further support from RBI given that inflation levels are coming down . This will ensure IT stocks are not in an extended downturn as you have stated .Again you cant expect rupee to be back to optimistic levels of 43-44 atleast this year given the huge capital inflows. The rupee this year will be fairly rangebound between 40-42 levels . Given this scenario it will be ideal to buy IT stocks at 40-40.5 and sell them at around 42 levels . Your entire call is based on hope and not on system , research , logic or ground reality . I think its time you rework your trading strategy.
Iam writing in this forum only for the benefit of every investor and not to fight anyones ego.

 

[uasish]

Hi all,

I have a related query.

suppose I buy a stock at 100 with target of 110 and SL of 97 (with an approx risk reward ratio of 3:1).

Now,

1. If the stock hits 110 which also happens to be its life time high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

2. If the stock hits 110 which also happens to be its multi-month or 52-week high, do I sell all of my shares wherein technicals say there is a scope of an upside left or do I sell a portion of my holdings?

I had a recent experience. on 8th June, I identified AARTIIND to be hitting 28 in next few days. It reached 48.75 on 21st June. Selling on 28 wud have been just 12% profit and around 48, well thts massive 90% +.

Advice required.

Thanks,
Sanjoy

Point No 2 := I Sell 33% - 50% at Tgt ,if the Intraday Chart is favourable at that price on that day,then increase the SL to cost + brokerage & enjoy the ride stress free.Like this few times in a yr,God willing normally there is a profit + Free shares (to be transfered to son's Demat).
Here the logical question would be Risk 1 & Reward is also 1 (if you sell 50% with a min 1 : 2 r/r),so basic premises gets lost ,but my mental satisfaction is ,in this process i buy "Stress Free" + a probability to earn more & assured NO LOSS.

 

[srisara]

Dear Satya,

I have done enough research on Rs Vs $ ( refer my Times of india article which came a lead story on may 15th 2007 . You can get the excerpts of my article on http://www.timesyourmoney.com/fullArticle.aspx?artID=Lead Story&issue=may_15_2007 )
RBI will support rupee when it touches the 40.50 mark against dollar and one can expect further support from RBI given that inflation levels are coming down . This will ensure IT stocks are not in an extended downturn as you have stated .Again you cant expect rupee to be back to optimistic levels of 43-44 atleast this year given the huge capital inflows. The rupee this year will be fairly rangebound between 40-42 levels . Given this scenario it will be ideal to buy IT stocks at 40-40.5 and sell them at around 42 levels . Your entire call is based on hope and not on system , research , logic or ground reality . I think its time you rework your trading strategy.
Iam writing in this forum only for the benefit of every investor and not to fight anyones ego.

I believe my words were taken in different way. I was suggesting the Gentlemen, who felt that a 10 paise rise is good for IT stock to move up.

May be you please suggest a bottom out for $ Vs Re, then one can think of buying. The fall is always faster than the climb. Mere panic of rupee touching 39 levels for a brief period is enough to start another sell off.

One can always wait for the Global Ques to be better off to enter the IT stocks again, even if your entry is on higher side, the returns will be good and safe.

Satya