Bussiness/Trading Plan review needed

sabharwal_RK

Well-Known Member
#1
Hi all,

I have created this business/trading plan for myself, kindly review and let me know whatever short comings you can see.....

Objective: To make short term (to mid term) capital gains by taking delivery trades in stock market

Capital: 1Lakh

Strategy: Take long only deliver trades in blue chips, current flavor of the market stocks, sectors in bull run, defensive plays like FMCG/Pharma and very limited exposure to small cap

Target stocks: close to 50 in number mostly large to large mid cap from a variety of sectors and this list will keep evolving

Aim: to make on an average 10% PM before taxes (I believing in aiming high)

Modus Operandi:

1. I have a list of 50 stocks which I will monitor actively to take trades based on PA

2. Patterns I am interested are Flag, snake, PB, keep MA support, Double/triple bottom and no BO

3. No Leverage

4. Every Sunday I will scan all the 50 charts and zero down to few which are looking good for entry and then note them in a note book (say 10)

5. Ask my broker to take exposure in those stocks as and when the desired levels arrive

6. No more then 10K worth of exposure in one stock

7. Actively monitor those stocks

8. Exit when target is achieved or if the stock looks too bullish then no target

9. Avoid SLs but will be taken for sure in small caps and flavor of the season stocks

10 , Be emotion less and gradually increase the capital


Thanks for reading and please do provide your feedback

Regards
Aapka apna
Sabharwal sahib....
 

Riskyman

Well-Known Member
#3
1. If you can make 10% a month consistently by taking delivery please let me know too and I will follow you.

2. Reviewing only on Sundays can miss out on some good trades. Reviews have to be constant. Maybe daily to see how quickly you can get in and out.

3. If you are buying something at support, there is no guarantee that supports will hold. You should be able to take a very small loss and get out if key supports break. So using a SL is a must. Or atleast you should know when to get out. Just take a look at chart of Apollo tyres. Stock tries to hold 220 levels for a long time and if someone thought of it as support, look what happened. Its not a one off case. You will see a lot of stocks breaking down from key support.

$. If your targets are hit then you should book some profits and hold on to the rest for higher levels. Its just prudent money management. Easier said than done though.

Rest looks fine :)
 

sabharwal_RK

Well-Known Member
#4
1. I knew this target of 10% is too steep and traders would raise this point; but its a max target or desirable as I said I would like to aim higher and just to add my capital is too small so such targets may be achievable on a small base.

2. I am working full time so I will review my lost of 50 stocks on sunday only while the pruned list of 10-15 would be watched daily.

3. Regarding SL this is big issue for me. i have observed that whenever I have sold be it to take profit or due to SL I have seen stocks have zoomed up invariably; so as of now I am mentally not in a framework of keeping SLs, not sure what to do there...Just to point at the Apollo example that trade is invalid because the stock is falling like knife from the top, if it had fallen gradually then I would have take a position at the said level and now if it forms a base at the next support of 160 I might get in...

Thanks for the review....
 

Riskyman

Well-Known Member
#6
1. I knew this target of 10% is too steep and traders would raise this point; but its a max target or desirable as I said I would like to aim higher and just to add my capital is too small so such targets may be achievable on a small base.

2. I am working full time so I will review my lost of 50 stocks on sunday only while the pruned list of 10-15 would be watched daily.

3. Regarding SL this is big issue for me. i have observed that whenever I have sold be it to take profit or due to SL I have seen stocks have zoomed up invariably; so as of now I am mentally not in a framework of keeping SLs, not sure what to do there...Just to point at the Apollo example that trade is invalid because the stock is falling like knife from the top, if it had fallen gradually then I would have take a position at the said level and now if it forms a base at the next support of 160 I might get in...

Thanks for the review....
In theory there is noting that stops you from making 10% a month. But it requires hard work and investment in terms of time.

Apollo held 220 since nov 2014. That made 220 a decent support. My point was that when support breaks you should be out quickly.
 

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