Need advice on my investment summary

W

wallstreet1

Member
#1
#1
Hello, my 1st month of trading is over & I made profits when I entered the market but now almost all stocks that I have are stuck at a loss. I am a short term trader & not a long time investor. My total portfolio is for Rs 1.5 lakhs.The prices below are inclusive of brokerage of 0.25-0.5%(My brokerage was 0.5% before, now its 0.25%) & regular taxes.

Reliance group-
RPower [email protected], current price- 169.50
RNRL [email protected], current price- 64.85
Rcomm [email protected] (Just bought Rcomm today), current price- 193.75

Other-
Bergerpaint [email protected], current price-74.5
JSWsteel 10@1064, current price-1048.9

Minor loss-
everready [email protected], current price-65.40
gtlinfra [email protected], current price-47.65

Break even-
JINDSTL [email protected], current price-621.10

I can see that I have made huge blunders with RComm, RNRL & Rpower. I had made a big mistake of buying RPower at 177.70, I had seen the tip in the ET. RNRL also I had bought very expensive just before the AGM on 18th june this month as I had expectd it to increase after the meeting but the opposite happened. Rpower I had just bought today & after that the market crashed.

I would appreciate any advice given.
 
A

aijaz159

Active Member
#2
#2
Hi Frend
Congratulaltions on your first trade, your profits and regret your losses.
you are not in a sweet shop, you need to be prepared for worst, work hard for profits, dont be greedy, prepare your plan and execute, dont think market will swing as per your mood or thinking, its opposite. I suggest the following
1. Book loss and get out 2. Buy more when its low and average it
3. hold for sometime till the market rebounds to get your cost+5% & sell.

You must have read the disclaimair, dont regret.

Best of luck
Aijaz
 
D

d_s_ramesh

Well-Known Member
#3
#3
Your position in BERGERTPAINT is good as the stock is in uptrend, still you have bought it at a higher price.

JINDSTL, JSWSTEEL both belong to the Basic Materials Sector which is in a tight bear grip at present. Daily charts show some bullish divergences, but broad market sentiment is weak. This sector is going to be the hardest hit one even today and Metals Industry groups will drag it down badly.

RCOM, was not at all a buy at 201. Daily buy was way below at 159 and weekly buy was at 179. Those this stock is in an uptrend, it is due for some correction now. Waiting a little longer could have got you this stock at a lesser price. I don't suggest averaging on any loser.

The same with RPOWER, Weekly chart is not in trend, so there is possibility of a snap back to range lows. As the UTILITIES sector is showing resilience to the prevailing sown trend in the market, this stock has the chance to open out into a bullish trend, it is a wait & watch candidate for now.

RNRL is a news play,There are a lot of ?????? in this stock.

EVEREADY is in a non-trend on the weekly while it was a buy in the daily at 58.75. This stock is trending on the daily, can hold on but have to withstand retracements. If your stop policy allows such high leeway, hold on to the stocks that are promising. But make sure you exit without second guessing once the stop is hit.

GTLINFRA, this stock has just opened out into a bullish trend on the daily, but it is overvalued at 48 levels. At todays chart this stock has value at 41-43 levels.

Almost all the stocks have been bought at highest levels. This is the typical pattern of any new investor or a trader to be. But, do you find some order here? There is a lot of inputs you have which runs into volumes of lessons these trades are teaching, about how the markets can be traded.

Give a close look, observe all the lessons, work out a plan of how you can go about it in the future. If you do not repeat this pattern again, you have learnt and have started on your journey as a successful investor or a trader. If you repeat, it becomes a mistake and you need to take responsibility for it.

A mistake is a mistake only if it is done for the second time. For the first time it is a learning.
 
E

Engineer

Member
#4
#4
SHRI d_s_ramesh,

WHAT IS THE BEST WAY TO PUT STOP LOSS WHEN MORE THEN 20 SCRIPTS ARE IN PORTFOLIO ?

Stop Loss gets eredicated when the market closes for the day and we have to put stop loss again next day. This does not prevent the loss which can occur due to market opening with a down gap. How to prevent that ?

Is there a way to put a permanent stop loss so that we dont have to apply it daily ?

Thanks n regards.
 
D

d_s_ramesh

Well-Known Member
#5
#5
GTC, (GOOD TILL CANCELLED) stop loss order placement is not allowed here in India, while it is available in the US markets. I am not aware of it in the other markets.

This gap opening of our markets are a hindrance on the stop loss management, but have to be with it. If you want to keep away from whipsaws due to market noise, you need to work out a stop loss methodology using some optimization so that you are safe from noise on many occasions. Total eradication of gap opening hits is impossible.

The GTC orders too will not be able to safe gaurd gaps unless it is a stop market order which will again expose you to greater losses in illiquid counters. While in the futures markets on the US exchanges it is of much use because those markets almost trade round the clock.

There are talk going on to put our Index futures too on the round the globe trading methodology. How long it would take for its implementation is anybodies guess.

It is not adviced to hold portfolios of more than 6 open trades, at least in the daily timeframe. Six position exposure will keep you off from all these market intricacies. If you want to hold more stocks in your portfolio shift some to a higher timeframe like weekly or monthly, which will allow them leverage in monitoring on a daily basis.

While having only upto 6 positions in the daily timeframe and the rest in the weekly. By far this is the best method to both trade and investments to maintain a portfolio.
 
Last edited:
W

wallstreet1

Member
#6
#6
d_s_ramesh said:
Your position in BERGERTPAINT is good as the stock is in uptrend, still you have bought it at a higher price.

JINDSTL, JSWSTEEL both belong to the Basic Materials Sector which is in a tight bear grip at present. Daily charts show some bullish divergences, but broad market sentiment is weak. This sector is going to be the hardest hit one even today and Metals Industry groups will drag it down badly.

RCOM, was not at all a buy at 201. Daily buy was way below at 159 and weekly buy was at 179. Those this stock is in an uptrend, it is due for some correction now. Waiting a little longer could have got you this stock at a lesser price. I don't suggest averaging on any loser.

The same with RPOWER, Weekly chart is not in trend, so there is possibility of a snap back to range lows. As the UTILITIES sector is showing resilience to the prevailing sown trend in the market, this stock has the chance to open out into a bullish trend, it is a wait & watch candidate for now.

RNRL is a news play,There are a lot of ?????? in this stock.

EVEREADY is in a non-trend on the weekly while it was a buy in the daily at 58.75. This stock is trending on the daily, can hold on but have to withstand retracements. If your stop policy allows such high leeway, hold on to the stocks that are promising. But make sure you exit without second guessing once the stop is hit.

GTLINFRA, this stock has just opened out into a bullish trend on the daily, but it is overvalued at 48 levels. At todays chart this stock has value at 41-43 levels.

Almost all the stocks have been bought at highest levels. This is the typical pattern of any new investor or a trader to be. But, do you find some order here? There is a lot of inputs you have which runs into volumes of lessons these trades are teaching, about how the markets can be traded.

Give a close look, observe all the lessons, work out a plan of how you can go about it in the future. If you do not repeat this pattern again, you have learnt and have started on your journey as a successful investor or a trader. If you repeat, it becomes a mistake and you need to take responsibility for it.

A mistake is a mistake only if it is done for the second time. For the first time it is a learning.
Click to expand...
Thankyou for the insights, Ramesh.
 
E

Engineer

Member
#7
#7
d_s_ramesh said:


It is not adviced to hold portfolios of more than 6 open trades, at least in the daily timeframe. Six position exposure will keep you off from all these market intricacies. If you want to hold more stocks in your portfolio shift some to a higher timeframe like weekly or monthly, which will allow them leverage in monitoring on a daily basis.

While having only upto 6 positions in the daily timeframe and the rest in the weekly. By far this is the best method to both trade and investments to maintain a portfolio.
Click to expand...


Thanks a lot for your knowledgable advice Sir. However I will like some more elaboration on the quoted portion.
Generally I buy shares on a long time basis. But I want to protect the value of my investment and profit.

Sometime back Mindtree went above 700. Now its around 550. I couldnt protect my gains properly.
Similarly now Vakrangee. Now its 210. How I should put the trailing stop loss so that my gains remain safe and I can wait for the further appreciation which I expect in these scripts.

Regards and thanks again for ur kind advice.
 
D

d_s_ramesh

Well-Known Member
#8
#8
Mindtree was a buy in the long term at 259.50 and got out of the bullish trend at 612.50 giving a 136% gain for a 8 month holding period.

VAKRANGEE is in buy from 72.50 still holding to the long trade. As per todays chart, it has yet a long way to go. Todays' trailing stop is 137.90, remember these are long term calculations on the weekly charts.

In comparison to the ruling price of 210, the stop is way too far. Whereas that is the noise level we give for the stock to play it out. In case it takes out this stop too, then something is seriously wrong and we do not have any right to hold our long position beyond that level.

As the stock has the potential to go a long way from here, by the time the actual weakness sets in the trailing stop would be close enough to the price. That is where you should not let your emotions play on the ownership of the stock. We are here to make money, just let go at the right time and reward yourself richly.

I believe Mr. Engineer becomes a wealthy Engineer. Thanks a lot for providing me this wonderful opportunity to reflect on my views.
 
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