General Trading Chat

and some encouraging news for the banks :D

Why is FD better than any other investment options?
4 min read . Updated: 02 Dec 2019, 10:40 AM ISTBrand Post
Despite availability of several low-risk financial instruments in the market, find out what makes FD a better choice than other investment options.
https://www.livemint.com/brand-post...-other-investment-options-11575261741706.html
FD is better investment because it almost zero risk earning. also u can make fd as collateral and earn second income through option selling. big guys are doing the same.
 
Yes, Andreas Clenow in few interviews later on have suggested to use monthly rebalances instead of weekly to reduce the cost for retail traders.

However I considered the weekly rebalance which is suggested in the book for only profit protection as I used NIFTY 500 as my universe and found that most of the stocks are very volatile and there is higher chance of giving back the profit, hence to avoid that I scan the universe weekly and based on price action of individual stocks in portfolio I have defined a rule to sell half the position even if the stocks are in the top ranks.

Also I use the top 10% rule mentioned in the book for dropping the stock. i.e if I have selected the top 20 ranked stocks from NIFTY 500, I will wait for it to drop below 10% of 500, i,e below 50 rank to be considered to drop. Even if it falls below 50 and the price action is strong I will not drop it maybe just reduce it by 50%. I drop the stocks only at the end of month if it has not recovered by then. What I have observed is that in weekly scan rarely any stock falls below the 50 rank in the 1st few weeks.

Also I did not rebalance the position size of the stocks weekly based on volatility. There are many creative ways in which we can run this strategy. Like I said if our universe is just growth stocks/largecap with long term view then we can reduce the rebalance frequency to monthly or even quarterly. The concept works fine as I have tested it and found to have an edge hence have shared it here in the forum if someone wants to explore it further.
Sir,

Couple of questions:

1. You are not doing position resizing at all?
2. When you sell 50% of share of particular stock, you use cash to buy another stock based on momentum ranking?
3. I am also doing same , but struggling with profit protection part. Any suggestions?
4. You mentioned earlier that Index filter is not helpful. Any other option you are using to identify when not to invest money in this strategy and remain in cash? .
 
Good action by SEBI in Karvy case

https://www.moneycontrol.com/news/b...ities-worth-rs-2000-crore-report-4691961.html

Big relief in Karvy case: After swift SEBI crackdown, 93% of investors get back pledged securities
The NSE and the BSE, on December 2, suspended Karvy's trading license with immediate effect.

Tarun Sharma@talktotarun


Over 83,000 clients, or more than 93 percent, out of 90,000 clients of Karvy Stock Broking have received securities worth Rs 2,013.77 crore, which the broker had wrongly pledged with lenders.
"As per the direction of SEBI and under supervision of NSE, securities have been transferred... to the demat accounts of respective clients," NSDL said in an unreleased note. Moneycontrol has seen a copy of the note.
Most of the remaining accounts are in dispute with Karvy Stock Broking, so they may get their money/securities after clearing dues with Karvy.

The action in the case follows a crackdown by SEBI in the case, which came to light after Karvy started defaulting on client payouts. It later emerged that the broker had illegally pledged clients' securities with lenders to raise money.

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), on December 2 suspended Karvy's trading license with immediate effect.

Moneycontrol was the first to break this story.

"This is one of the swiftest actions to restore investor securities to such a large number of genuine investors," a source close to the development told Moneycontrol.

"SEBI’s timely intervention averted another PMC Bank-like crisis or PACL-like default. Investors got back their securities before it was too late," another source said. "A bit more delay would have led the banks to invoke their pledge and appropriate the securities which Karvy had illegally pledged to banks for its personal loans."
 

siddhant4u

Well-Unknown Member
Maharashtra drama continues..

Fadnavis hurriedly sworn in as Maha CM to return Rs 40k cr to Centre: BJP’s Anant Hegde
However, Devendra Fadnavis has countered Hegde's remark and denied that he made such a decision
https://www.thenewsminute.com/artic...urn-rs-40k-cr-centre-bjp-s-anant-hegde-113301

I thought he was hurriedly sworn in to provide relief to Ajit Pawar :D
I guess Anant Hegde is Whatsapp University Student... :p these messages were circulating on whatsapp after fadanvis had to resign... lol..
 

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