Can anyone Please Help

#1
Hi,

I am relatively a new trader in terms of amount invested and trade conducted. I started trading by buying Reliance Industries, Educomp, Jindal Steel and Power, JP Associates. That was back in February 2010. Amount invested was around Rs. 380000 something. Seeing the price level (nearly half or less than half) at which those stocks at that point of time, I thought my invest was going to double in one years time. I learned one hard lesson, book one's profit before they fade away. Thus my profit of Rs.50000 immediately after two months of investing is now turned into a loss of Rs.45000 for so many months now.

I am asking any of you experienced traders and investors, what shall I do?

Reliance is in small profit...5-6 %
Jindal Steel and Power is in profit...9%
Educomp lost half its value
JP Associates in loss...20%

I also bought a penny stock Radhe Developers. some 11000 @Rs.3.60 each. now worth only Rs.10000. (Buy Price around Rs.40000)

I came to know about the concept of Penny Stocks only later. Now I regret it. Stock is currently valued at Rs.0.97 -1.01 range. When I bought that stock, 52 week high was Rs.80.


Whether to sell the Reliance, Jindal Steel and Power and buy a new stock.
and wait for Educomp and JP Associates to
recover its loss


I am told all those stocks are very good stocks in the long run. Can they ever reach their all time highs...? At least in 5-10 years time..? That was my motivation to buy.



Thanks.
 
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MurAtt

Well-Known Member
#2
Whether to sell the Reliance, Jindal Steel and Power and buy a new stock.
and wait for Educomp and JP Associates to recover its loss
That is where most of the newbies err.

It should be cut your losses and let your profits ride .. not the other way round

:)
 

MurAtt

Well-Known Member
#3
At least in 5-10 years time
Would advise you to wait it out ...

wrt your penny stock .. selll it and invest half in Sesa Goa for short/medium term and half in Magma Fincorp (around 70 levels) for a target of 80-ish.

Keep rotating this money once you are out of these scrips into different scrips and recover your losses ... (sound easy but take it from me .. is not :))

The RIL & JSW u can keep .. i am sure these two will reward you handsomely in the next 2/3 years.

:)
 

sanjosedesi

Well-Known Member
#4
]Reliance is in small profit...5-6 %
I will not advise you what to do, but reliance announced results after the close of market yesterday. The numbers are highest ever (I have seen only the headlines) but the noise is overwhelming negative.

The way markets turn, the noise leads to a movement in one direction. Then reality sets in and it moves the other direction. I would expect a lot of volatility on Monday - Tuesday. If you have any chart reading skills, use them to gain an advantage of 5-6% over this week. If you do not have those skills, stay put.
[ADD] Reliance has recently not been volatile. The moves up and down have lagged Nifty. But if there is one week it will be volatile, it is NOW.
 
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#5
I AM ALSO NEWBEE STARTED IN DEC 2010,
EARNED SOMETHING LOST SOMETHING.I AM LOOKING FOR SHORT TRADE IF LOSS I WAIT FOR 1 WEEK THEN BOOK MY LOSSES AND MOVE SOME OTHER STOCK WHICH IS IN NIFTY VOLATILE TRADE AND TRY TO COVER LOSSES.
MY CAPITAL IS 2 LAC.IF MY LOSSES R MORE I SELL EVRYTHING AND BUY AND SELL 2x10 MARGIN AT STRICT STOP LOSS OF 5%
ATLEAST I AM NOT LOSS IN AVG.;)
 
#6
Use rules like:
1) Decide that stop loss for your positional trade is no more than 2% per trade and that you will not risk more than 10% loss of your entire capital accross all trades in a period ... say a week or a fortnight. Should that situation occur, please exit the market and research your positioning and take new positions for a smaller fraction of your investible capital.
2) Try balancing unexpected losses by exiting and covering them with profits from profitable trades.
3) Research or at least be clear for the basis for investing in any stock. Such as reputation of company/promoters/its market and growth prospects. And if there is a failure, reflect and note what went wrong and use that as input for the next trade.
4) Avoid paisa stocks and unknown names if you are a serious investor. If you do consider such stocks, do that with profits from your trades as the risk percentage should be assumed to be 100%. Which means possibility of losing entire capital. And with the attendant upside. Its like gambling!
 

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