Newbie seeks some advice regarding buying Stocks

[micks80]

Hi Friends,
This is the first time I have decided to invest some money in stocks/trades (please don't say it's not the right time ). I am no expert but just tried to do some homework and prepared a list of companies that i am thinking to invest in .. I would really appreciate if you experts can review it and throw some feedback...

Company Code: INOXLEISUR
Company Name: INOX Leisure Limited
Amount to invest: Rs 10K

Company Code: ASIANELEC
Company Name: Asian Electronics Ltd
Amount: Rs 10K

Company Code: IFCI
Company Name: IFCI Limited
Amount: Rs 10K

Company Code: Suzlon
Company Name: Suzlon Energy Limited
Amount: Rs 10K

Company Code: GVKPIL
Company Name: GVK Power & Infrastructure Limited
Amount: Rs 10K

Company Code: UNITECH
Company Name: Unitech Ltd
Amount: Rs 10K

I am looking to hold them for a period of 3-5 months and hope the markets to become stable and then I might sell them incase they give back good returns...


Thanks in advance everyone ...

 

[AW10]

I don't know the selection criteria you have used to pickup these stocks, but they all had been darling of last bull run. And most of them are down more then 75%. With my experience, the darling of bull run, gets beaten down in following bear market and then they underperform in next bull run. Each bull run has different leader. In my view, these stocks have little downside risk from here.. but their upside potential is also limited. Many retail investors are still holding these stock in their portfolio and they will keep selling with every rise.

I would better put my money on the stocks from outperforming sectors. Currently, FMCG, Healthcare, Banking and IT. Secoters like FMCG, Healthcare outperform during Bear market whereas Banking leads the pack during recovery.
(e.g - sunpharma is going up even in this bear mkt Jan price of 1000 to 1300 now)

Your strategy of putting equal money on multiple scrips is good but please relook at stock selection.

Happy Investing.

 

[micks80]

Thanks AW10,
Appreciate your time and nice informative message. I am not taking into account the "bear market" too much as I am taking this as a short-term invesment and I would probably wait till the markets get stable. I have revised my list as per your suggestions and would appreciate any feedback...here's the new list:

Company Code: ICICIBank
Company Name: ICICI Bank Ltd
Amount: 308(cost per share)x40(quantity) = Rs12320 

Company Code: RNRL
Company Name: Reliance Natural Resources Limited
Amount: 42x200 = Rs8,400 

Company Code: UNITECH
Company Name: Unitech Ltd
Amount: 31x200 = Rs6200

Company Code: NMDC
Company Name: NMDC Ltd
Amount: 150x40 = 6000

Company Code: VIDEOIND
Company Name: Videocon Industries
Amount: 115x50 = Rs5750

Company Code: GMRINFRA
Company Name: GMR Infrastructure Limited
Amount: 55x100 = Rs5500 

Company Code: Suzlon
Company Name: Suzlon Energy Limited
Amount: 47x100 = Rs4700

Company Code: GVKPIL
Company Name: GVK Power & Infrastructure Limited
Amount: 12x300 = Rs3600

Company Code: ASIANELEC
Company Name: Asian Electronics Ltd
Amount: 23x100 = Rs2300

Total Investment = Rs50,000 (aprox.)

Thanks Again and Happy Deepawali to everyone !!!

 

[AW10]

For short term trading, stock picking is even more important. Effect of Sloppy entry /picks can be mitigated by time in long term but it has to be as precise as possible for short term. In my view, your strategy of stock selection has some or part of component toward the stocks that has fallen most or hitting 52 weeks low. I don't know if that will work or not (atleast that is not my style). These stocks might see good bounce but I doubt that bounce will list for long time because there are many retail portfolio holding these stocks and they all are waiting to get rid of 90% loss on Suzlon, Unitech etc.
I would prefer to align myself with the big institutional money and try to identify the stocks they would be buying. My approach is - Identify strong sectors outperforming NIFTY and then in those sectors, identify the stocks that are outperforming the sector .

My fundamental belief is - object in motion remains in motion until there is any counter force working against the motion. That means, if something is trending then it will continue to trend. When it has changed the direction, charts will give me the message.
Many of outperforming stocks have corrected in panic selling of last 2 days, like Cipla/Sun/ Nestle/HUL etc and they offer better entry point now. I know they belong to the sector which nobody wants to look at..but fact is they are outperforming the market.

That doesn't mean that my approach is the best. This is something that suits me. But there are people who will have other approach and make money. We need to pickup the appoach that suits our personality. Maybe someone else will join this thread and post different views.

Hope that helps.

Happy Trading.

 

[hmp]

hi friends,
this is the first time i have decided to invest some money in stocks/trades (please don't say it's not the right time ). I am no expert but just tried to do some homework and prepared a list of companies that i am thinking to invest in .. I would really appreciate if you experts can review it and throw some feedback...

company code: Inoxleisur
company name: Inox leisure limited
amount to invest: Rs 10k

company code: Asianelec
company name: Asian electronics ltd
amount: Rs 10k

company code: Ifci
company name: Ifci limited
amount: Rs 10k

company code: Suzlon
company name: Suzlon energy limited
amount: Rs 10k

company code: Gvkpil
company name: Gvk power & infrastructure limited
amount: Rs 10k

company code: Unitech
company name: Unitech ltd
amount: Rs 10k

i am looking to hold them for a period of 3-5 months and hope the markets to become stable and then i might sell them incase they give back good returns...


Thanks in advance everyone ...

friend
if u want to put ur money then invest just 10% of ur capital that too in a index based momentum stocks. Dont forget to apply stop and also trailing stops if by chance market moves up. Adopt ur mind to take loss quickly & proffit run. All the best.

 

[WOD]

I used to have investement mindset like hmp.......but now thoughts expressed by AW10 are more appealing to me....

Honestely....in long term anyone would be making huge returns following AW10 investing style.....thanks buddy for posting your style....

But as far as hmp's style is concerned, I am more scepticle.....This style, I am doubt would be useful in short term???