Sector Rotation
- Thread starter oxusmorouz
- Start date
It's precisely because retailers cannot afford to diversify much that they need to be more rigorous in their stock selection. Sectoral analysis can be an additional tool (and not the ONLY tool) in this process. (Once you narrow down to a few sectors your 'list of stocks' actually reduce to a 'lesser number' - so i don't see how this method increases the workload)
Where's the big harm in retailers adopting some of the best practices of Fund managers (at least to the extent possible with our tools & information access)? And it's not that big Fund Managers have all the advantages. Nimble traders can outperform Funds through quick churning of their small portfolios. Sectoral rotation can be part of a structured method of achieving this.
Why can't the trading goal extend beyond successful trades to greater ROCE (even for retailers)? (Moreover, outperformance on ones winning trades would act as an insurance for the inevitable losses that will happen from time to time)
IMHO, there's more to a robust trading methodology than just Buy-Sell signals. First & foremost (& like all things durable) it needs to have a strong foundation, a solid framework. And (like most other functional 'systems' including economic systems, businesses) there's a Macro & Micro aspect to it. Sectoral Analysis can be used to to fortify the macro framework.
Taking a couple of 'live' examples from this board as illustration:-
Sectoral Analysis can be incorporated in the SMART system, either as a primary component of the stock selection process or as a secondary filter (This would be an addition at the macro level; the micro aspects of the system - entry, exit, trade mgmt etc.- can remain unchanged)
Likewise, a pattern that Asishda has been pointing to of late, in various threads - essentially a Climax bar/Churn bar pair - can be a valuable* addition at the micro level (trading insight & tactics).
Finally, forget my views They're inconsequential; but surely the views of a highly experienced trader (Page1, post #5 of this thread) deserves some attention.
-----
* (And i better be careful what i call 'valuable' in public. CV may well come up with a Data Mining & Analysis report dismissing as 'nonsense' my gullible beliefs based only on random observations, circumstantial evidence & a statistically insignificant dataset
)
Where's the big harm in retailers adopting some of the best practices of Fund managers (at least to the extent possible with our tools & information access)? And it's not that big Fund Managers have all the advantages. Nimble traders can outperform Funds through quick churning of their small portfolios. Sectoral rotation can be part of a structured method of achieving this.
Why can't the trading goal extend beyond successful trades to greater ROCE (even for retailers)? (Moreover, outperformance on ones winning trades would act as an insurance for the inevitable losses that will happen from time to time)
IMHO, there's more to a robust trading methodology than just Buy-Sell signals. First & foremost (& like all things durable) it needs to have a strong foundation, a solid framework. And (like most other functional 'systems' including economic systems, businesses) there's a Macro & Micro aspect to it. Sectoral Analysis can be used to to fortify the macro framework.
Taking a couple of 'live' examples from this board as illustration:-
Sectoral Analysis can be incorporated in the SMART system, either as a primary component of the stock selection process or as a secondary filter (This would be an addition at the macro level; the micro aspects of the system - entry, exit, trade mgmt etc.- can remain unchanged)
Likewise, a pattern that Asishda has been pointing to of late, in various threads - essentially a Climax bar/Churn bar pair - can be a valuable* addition at the micro level (trading insight & tactics).
Finally, forget my views They're inconsequential; but surely the views of a highly experienced trader (Page1, post #5 of this thread) deserves some attention.
-----
* (And i better be careful what i call 'valuable' in public. CV may well come up with a Data Mining & Analysis report dismissing as 'nonsense' my gullible beliefs based only on random observations, circumstantial evidence & a statistically insignificant dataset
)
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Asishda, Saint keeps stressing the need for keeping the 'I' out of ones trading. I think we need to extend this further - to keep the 'I' out of our methods, practices, beliefs as well. To remain as objective as our wits permit.
Unfortunately, for some people harbouring animosity, settling scores and the all-important ego seems to assume highest priority.
Anyway, let's not waste any more time in useless arguments.
Regards,
Kalyan.
Unfortunately, for some people harbouring animosity, settling scores and the all-important ego seems to assume highest priority.
Anyway, let's not waste any more time in useless arguments.
Regards,
Kalyan.
So bashing strted again....... i think it is good if we ignore the existance of Mr.Dev .... and concentrate on the topic...( jst like in the Movie "the Beautiful Mind")... this will save our energy and we not get deviated and nor we require to strt something like "My Anguish".
My Humble appeal to Mr. Dev.... plz if u can't add anything on this topic then plz 4 god sake ... KEEP MUM..
chintan
My Humble appeal to Mr. Dev.... plz if u can't add anything on this topic then plz 4 god sake ... KEEP MUM..
chintan
I guessed you would bring up something insanely random such as this.
1) Can you not understand the difference between a "sure shot strategy that yields 100% return" and "data"?
2) There is no assumption in this. I have never claimed this would work or not work. If you are educated enough, you will roll back to the first page and read the disclaimer before ranting. It is open to "valid" arguments questioning its applicability. Don't be a xxxxx and tell me "This is useless for day traders" is a valid argument.
3) Go back, read my posts (as a matter of fact, read any of the logical post in your threads) and tell me "what's wrong with them"?
4) My replies were to random crap strategies (you never ever backed it up with data)which never worked or ever will work. I provide no strategy, I provide no analysis and I provide no way to riches. In fact, I've not even suggested how this data can be used.
Nothing more from my side. I'll allow the forum members to laugh at this for a while.
1) Can you not understand the difference between a "sure shot strategy that yields 100% return" and "data"?
2) There is no assumption in this. I have never claimed this would work or not work. If you are educated enough, you will roll back to the first page and read the disclaimer before ranting. It is open to "valid" arguments questioning its applicability. Don't be a xxxxx and tell me "This is useless for day traders" is a valid argument.
3) Go back, read my posts (as a matter of fact, read any of the logical post in your threads) and tell me "what's wrong with them"?
4) My replies were to random crap strategies (you never ever backed it up with data)which never worked or ever will work. I provide no strategy, I provide no analysis and I provide no way to riches. In fact, I've not even suggested how this data can be used.
Nothing more from my side. I'll allow the forum members to laugh at this for a while.
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