Dear fiends, ed to stay active on this forum as you guys are really smarter and we can add little knowledge from everybody.
I was ardent fan of fundamental analysis and things like support.resistance, pivot and candlestick was quite disdaining word for me. I passed my CFA-Level- 2 FROM usa and thought i will do somethings miraculous in this market and show the people around me that i have arrived. But, only success to my credit in the last three years I have not made money but have not lost either.
I have studied many books on value investing but turned in to short-term trader who cannot hold patience for a day to carry the position. I have realized importance of technical analysis and understand them as barometer of market participants and thermoter of sentiment and all the trough, valley and ups/downs are really footprints of millions of investors greed, passion, fear and hope. So, guys I have succumbed to the temptation of TA and come in the forum of Gurus like SAINT.
I am trying to develop profitable strategy in PAIR TRADING. same stocks in the sectors are generally mean reverting. This nature can generate profitable opportunity often. I am attaching an excel sheet and hope to get your comments. Here is the brief:
P/E P/BV
15.41 2.02 ICICI
23.67 4.67 HDFC BANK
Conclusion= HDFC BANK is overvalued as compared to ICICI BANK
Mean of ICICI/HDFC = 1.74
CURRENT 1.69
STRATEGY 1 st March,2013
LONG ICICI 1060 1125 16250
SHORT HDFC BANK 624.9 644 9500
Today + 6750 Exited
I was ardent fan of fundamental analysis and things like support.resistance, pivot and candlestick was quite disdaining word for me. I passed my CFA-Level- 2 FROM usa and thought i will do somethings miraculous in this market and show the people around me that i have arrived. But, only success to my credit in the last three years I have not made money but have not lost either.
I have studied many books on value investing but turned in to short-term trader who cannot hold patience for a day to carry the position. I have realized importance of technical analysis and understand them as barometer of market participants and thermoter of sentiment and all the trough, valley and ups/downs are really footprints of millions of investors greed, passion, fear and hope. So, guys I have succumbed to the temptation of TA and come in the forum of Gurus like SAINT.
I am trying to develop profitable strategy in PAIR TRADING. same stocks in the sectors are generally mean reverting. This nature can generate profitable opportunity often. I am attaching an excel sheet and hope to get your comments. Here is the brief:
P/E P/BV
15.41 2.02 ICICI
23.67 4.67 HDFC BANK
Conclusion= HDFC BANK is overvalued as compared to ICICI BANK
Mean of ICICI/HDFC = 1.74
CURRENT 1.69
STRATEGY 1 st March,2013
LONG ICICI 1060 1125 16250
SHORT HDFC BANK 624.9 644 9500
Today + 6750 Exited