Lessons Learned

manafa · #1 25th January 2008, 09:24 PM

Friends,

Just wanted to get your views on lessons learned from the brutal crash of Jan 08.

Here's what I learned

1. Take profits off the tables regularly
2. Keep at least 30% of cash in hand
3. Set your goals for entry and exit and stay very disciplined and true to your entry and exit goals.
4. Avoid buying at or close to 52 week high
5. Always use stop loss
6. Patience, discipline and a mid to long term view of the market.
7. Stay invested and not give up hope. Remember India is a growth story.
8. Dont fall in love with your scripps - reserve it for the ones you truly love
9. Analysts and brokers are as wrong as you are. Rely on your own self and draw conclusions from what your gut/expereience tells you

Kindly add your list/bullet points for the benefit of community - just writing down your thoughts helps to solidify the lessons in ones own mind too.

Happy Trading

uasish · #2 25th January 2008, 11:04 PM

manafa,

It is nice to learn from an event so as to be ready for any such event in the future.
Only a slight disagreement on point no 4, where you want to avoid Buying stocks near 52 weeks High. Any stock breaking a resistance point with gutso reflects momentum,it is always better to be along with the flow,this is my personal subjective understanding.

Asish

nagakiran · #3 25th January 2008, 11:16 PM

Point 4 may not hold always true.
Most stocks in uptrend trade close to 52 week high during their whole rally.

manafa · #4 25th January 2008, 11:21 PM

excellent points gentlemen - well taken. I guess the point is not only to correct each others lessons but also to share your own lessons learned.

Happy Trading

uasish · #5 25th January 2008, 11:32 PM

Quote:

Originally Posted by nagakiran

Point 4 may not hold always true.
Most stocks in uptrend trade close to 52 week high during their whole rally.

If that be so then let us board it after it crosses that point with gutso & closes comfortably.

mail2kamaal · #6 26th January 2008, 12:42 AM

Quote:

Originally Posted by manafa

Friends,

Just wanted to get your views on lessons learned from the brutal crash of Jan 08.

Here's what I learned

1. Take profits off the tables regularly
2. Keep at least 30% of cash in hand
3. Set your goals for entry and exit and stay very disciplined and true to your entry and exit goals.
4. Avoid buying at or close to 52 week high
5. Always use stop loss
6. Patience, discipline and a mid to long term view of the market.
7. Stay invested and not give up hope. Remember India is a growth story.
8. Dont fall in love with your scripps - reserve it for the ones you truly love
9. Analysts and brokers are as wrong as you are. Rely on your own self and draw conclusions from what your gut/expereience tells you

Kindly add your list/bullet points for the benefit of community - just writing down your thoughts helps to solidify the lessons in ones own mind too.

Happy Trading

I m disargree on point no. 4

gvgs98 · #7 26th January 2008, 07:03 AM

Coming up with a list of things is strategically puts you in advantage. Good thinking.

I am in accord with nagakiran about point 4, for better understanding please study 5 minute trading at invetopedia wesite.

Cheers
VG

nitinku5021a · #8 26th January 2008, 12:24 PM

well I dont actually disagree with Point no. 4

The problem is ...stocks see major resistance at thr 52 week high points and I think of ..

Ashish da take the advantage when the stock breaks that level and due to our unexp. hands ...we end up buying it just below the 52 week high or @ 52 week high from where many stocks again retrace it back before moving further up.

What i feel is ..we need to see the volume level at that point...if the volume is good enough that means we can go long with the momentum.

correct me if i m wrong.

Thanks
Nitin

yatishjain · #9 27th January 2008, 09:19 PM

Resistance point is correct it better to be safe than sorry