Stop Loss Management > Help Needed

#1
Dear seniors and experts, please help in managing portfolio under following circumstances(i m in a learning stage and very new in this market):

1. total amount of investment 10 lacs ( pl show the subdivision of money as per good portfolio management, such as how many stocks, how much in cash etc).

2. when to quit from a stock when the stock is in downtrend mood and incurring loss.

3. how to recover loss from the portfolio management.

May b these will b very novice question but nothing doing. i want to learn and implement in my future trading.

Thanks in advance.
 
#2
...
(i m in a learning stage and very new in this market):
1. total amount of investment 10 lacs ( pl show the subdivision of money as per good portfolio management, such as how many stocks, how much in cash etc).

2. when to quit from a stock when the stock is in downtrend mood and incurring loss.

3. how to recover loss from the portfolio management.

May b these will b very novice question but nothing doing. i want to learn and implement in my future trading.

Thanks in advance.
1. > No idea. I don't 'invest' and don't make portfolios. I only trade.

2.> How much Loss can you withstand without losing your night's sleep?
Some people can easily digest Rs. 80,000/- loss in a month and they won't blink their eye because they know very well that at the end of year, they will walking to bank with net profit of Rs. 80'00'000/- and they have done this several times for last 7/8 years.

Personally for me, I can easily digest a loss of Rs. 10/15k in a given month - no issue for me.

3.> Your future profits from other candidates in the portfolio recovers this loss. Bottom line - you have to make Profits.

My 2 paise:

Drill this in your head:

Hedge your investment - protect your and other people's money.
Implement something called Married Put
 
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ashwani chadha

Well-Known Member
#3
dear seniors and experts, please help in managing portfolio under following circumstances(i m in a learning stage and very new in this market):

1. Total amount of investment 10 lacs ( pl show the subdivision of money as per good portfolio management, such as how many stocks, how much in cash etc).

2. When to quit from a stock when the stock is in downtrend mood and incurring loss.

3. How to recover loss from the portfolio management.

May b these will b very novice question but nothing doing. I want to learn and implement in my future trading.

Thanks in advance.
rule ONE--keeping 10% of this amount for trading ,which comes one lakh,invest rest nine lakh in mutual funds
out of nine eight lakh should be in large cap mutual funds,not in mid cap or small cap
rule two-- invest that rest 9 lakh at least in 18 installment of 50000/- on monthly basis-in next 18 months not at once in same month
rule three--if your total saving is 10 lAkh,then keep 5 lakh in bank fixed deposit and invest 4.5 in mutual fund and balance 50000 in trading
 

ashwani chadha

Well-Known Member
#4
rule one--keeping 10% of this amount for trading ,which comes one lakh,invest rest nine lakh in mutual funds
out of nine eight lakh should be in large cap mutual funds,not in mid cap or small cap
rule two-- invest that rest 9 lakh at least in 18 installment of 50000/- on monthly basis-in next 18 months not at once in same month
rule three--if your total saving is 10 lakh,then keep 5 lakh in bank fixed deposit and invest 4.5 in mutual fund and balance 50000 in trading
in this system of investing in mutual fund you don't require any stop loss management,if your time is more then five year
 

ashwani chadha

Well-Known Member
#5
in this system of investing in mutual fund you don't require any stop loss management,if your time is more then five year
but if you don't invest after 18 month,regularly 50000/- a month,then your stop loss wiil be
what ever highest nav mf made ,if it goes below 20 % of that you will cash all your investment at once
 
#7
rule ONE--keeping 10% of this amount for trading ,which comes one lakh,invest rest nine lakh in mutual funds
out of nine eight lakh should be in large cap mutual funds,not in mid cap or small cap
rule two-- invest that rest 9 lakh at least in 18 installment of 50000/- on monthly basis-in next 18 months not at once in same month
rule three--if your total saving is 10 lAkh,then keep 5 lakh in bank fixed deposit and invest 4.5 in mutual fund and balance 50000 in trading
rule one about investing in mutual funds is bad advice. investing in Mutual fund is no different than positional trading. you must know how markets move and how interest rate affect the bonds and currencies.

Do not invest in mutual fund if you don't know how markets move.

Best thing as a beginner. Keep all that money in FD's. Learn to trade and invest for at least 1 year , demo and then may be utilize some of the money for trading and investing once you are confident and have sufficient knowledge.

Good luck.
 

sanjosedesi

Well-Known Member
#8
rule one about investing in mutual funds is bad advice. investing in Mutual fund is no different than positional trading. you must know how markets move and how interest rate affect the bonds and currencies.

Do not invest in mutual fund if you don't know how markets move.
Hi TD, it depends on the perspective. If 'one' is willing to look long term (let's say 5 years), have basic faith in economy / GDP growth, does not have the time to watch and time the market, does not have time to research individual stocks ... and even if some of these aspects are true, mutual funds provide a good value for money. The point is that you do not need to know how the markets move because over 5 or 10 years (even 3) you expect GDP and companies to be doing better than today.

With that mindset, the problem changes to evaluating the mutual funds. Not all funds are the same ... some are market funds, some are aggressive funds, some are safer funds (balanced or whatever), and the performance can vary from fund house to fund house and from fund manager to fund manager. So if you are investing in mutual funds, of course you might have some sense of timing, but even if you do not ... finding the best funds will take care of some loss from bad timing.

I also contend that if you can spare 2 hours per day dedicated to learning about the markets (financial news, stocks, research, annual reports) ... then after a year of such learning and continuing to spend 2 hours per day, a person can go for direct investment in individual stocks on a positional basis. Anything less than that ... don't even try it.
 

sanjosedesi

Well-Known Member
#9
Mutual funds are better options to trading still no garintee of making money
I invest in birla now in loss. i recommend put money in some cheap stocks like 10-30 rupee stocks, and wait for 5-10 years .they will become more if comp busines grow.
10-30 rupee stocks are no guarantee to richness. Look for companies with good past, good management and this one is hard to call ... good future prospects.
 

iyerboi

Active Member
#10
Mutual funds are better options to trading still no garintee of making money
I invest in birla now in loss. i recommend put money in some cheap stocks like 10-30 rupee stocks, and wait for 5-10 years .they will become more if comp busines grow.
Personally, im not a big fan of mutual funds. im invested in max 4 stocks at a time yet find it diff to manage. hence, find it pretty difficult to digest that these experts would do any better. Infact imho, most of them perform well due to the cyclical nature of markets, claiming great performance in an anyway bullish phase :)