SH's portfolio - active investing

[Tradewithhunter]

This thread is dedicated to active investing in equity cash segment and creating long term wealth.

Its called active investing as it is not buy and hold portfolio. There will be entries and exits based on market swings.

When the broader markets enter bear markets and buying opportunities dry up, the strategy may involve short selling as well.

Risk Management Rules:

1. Do not invest more than 10% of capital in any stock (minimum 10 stocks in portfolio). For example if capital is 5 lakhs, no stock will be bought for more than 50,000

2. The position size will be according to the risk per trade i.e not more than 2% risk per trade (i.e if capital is 5 lakh, risk per trade maximum can be 10,000)

Cheers
SH

 

[Tradewithhunter]

Stocks ripe for buying on 17th Nov 2014 at open price

1. GESHIP : LTP 398.60, stop loss a close below 385
2. SAIL : LTP 86.30, stop loss a close below 78.50
3. INFRATEL : LTP 298.95, stop loss a close below 274
4. ROLTA : LTP 113.80, stop loss a close below 106.50
5. BATAINDIA : LTP 1313, stop loss a close below 1213
6. UPL : LTP 361, stop loss a close below 326
7. KWALITY : LTP 47.30, stop loss a close below 45.25

Position size per stock based on how bug the stop loss is to ensure not more than 2% is at stake at any time per stock.

Cheers
SH

 

[Tradewithhunter]

One more stock ripe for buying at open price on 17th Nov

1. M&M : LTP 1255.85, stop loss a close below 1209

Cheers
SH

 

[timepass]

So all BUY calls at this stage ?? And will the portfolio be 100% invested or would you also recommend holding back some for opportunistic trade ?

 

[DSM]

Interesting thread SH. Thanks. Appreciate clearing the following doubts :

1. Stocks are picked basis? (If it is a personal strategy, will understand that it cannot be disclosed, but if not,) it would help the trader to know more clearly the rationale for the trade - How are active swing points determined.? What TF is used.? Any additional filters used? Can a few examples be posted basis charts. (If this is understood, other members could also scan their watch list and post probable entries based on the same criteria) Can the same strategy be used for Nifty/BankNifty?

2. You state 2% risk (of capital) per trade. i.e 10K. But what if, based on news a stock opens -10K and goes down further in extreme case (Satyam for eg) (not sure rule of circuit limits, but guess the stock is suspended from trading for a few hours only) would you still recommend to wait for close EOD. (This ofcourse is a rare black swan event, but what would your thoughts be on this) Also, it is possible in case a fall is news based, the stock can drop 9K till close. But again open gap down the next day. Any thoughts how this can be handled.

Thanks for your time.

This thread is dedicated to active investing in equity cash segment and creating long term wealth.

Risk Management Rules:

The position size will be according to the risk per trade i.e not more than 2% risk per trade (i.e if capital is 5 lakh, risk per trade maximum can be 10,000)

Cheers
SH

1. GESHIP : LTP 398.60, stop loss a close below 385

 

[Tradewithhunter]

So all BUY calls at this stage ?? And will the portfolio be 100% invested or would you also recommend holding back some for opportunistic trade ?

Timepass,

portfolio will be 80% to 90% invested ...

Cheers
SH

 

[Tradewithhunter]

Another stock trading near its support zone which can be bought...

SEAMECLTD trading at 122.20 today, stop loss can be a close below 121

Cheers
SH

 

[Tradewithhunter]

Interesting thread SH. Thanks. Appreciate clearing the following doubts :

1. Stocks are picked basis? (If it is a personal strategy, will understand that it cannot be disclosed, but if not,) it would help the trader to know more clearly the rationale for the trade - How are active swing points determined.? What TF is used.? Any additional filters used? Can a few examples be posted basis charts. (If this is understood, other members could also scan their watch list and post probable entries based on the same criteria) Can the same strategy be used for Nifty/BankNifty?

2. You state 2% risk (of capital) per trade. i.e 10K. But what if, based on news a stock opens -10K and goes down further in extreme case (Satyam for eg) (not sure rule of circuit limits, but guess the stock is suspended from trading for a few hours only) would you still recommend to wait for close EOD. (This ofcourse is a rare black swan event, but what would your thoughts be on this) Also, it is possible in case a fall is news based, the stock can drop 9K till close. But again open gap down the next day. Any thoughts how this can be handled.

Thanks for your time.



1. GESHIP : LTP 398.60, stop loss a close below 385

Hi,

1. These stocks are selected based on swing strategies where stocks (that are in uptrend) have pulled back after a rally (based on weekly and daily charts) and now are bouncing back (based on daily and hourly charts) which provides us a good entry point to enter the swing with small SL. Traders can view the charts themselves on any free charting platform (google finance for example) and analyse the pattern on their own.


2. Sometimes price falls below support zone and recover intraday to shake out intraday traders/weak traders. a close below the support is more reliable indicator of a failed rally for a swing/positional trader.

As far as black swan events go, the max 2% SL rule should save the traders from a big loss i.e if the price falls so much that the position's loss hits 2% redline, traders can square off immediately.

For example, lets use GESHIP bought at 398.60 (Max 125 shares total investment 49825) (10% rule of total capital 5 lakhs per trade)

Now the SL is close below 385 (14 point SL)

However as per 2% rule which allows Rs 10000 max loss on this trade, the price will have to fall to 318.60 (80 point loss) to generate 2% loss. So in a rare black swan event if price does fall from 398.60 to 318.60 intraday (thats a 20% fall intraday) ...traders can exit the trade immediately without waiting for close.

Cheers
SH

 

[DSM]

Well explained. Thank you.

Hi,

1. These stocks are selected based on swing strategies where stocks (that are in uptrend) have pulled back after a rally (based on weekly and daily charts) and now are bouncing back (based on daily and hourly charts) which provides us a good entry point to enter the swing with small SL. Traders can view the charts themselves on any free charting platform (google finance for example) and analyse the pattern on their own.


2. Sometimes price falls below support zone and recover intraday to shake out intraday traders/weak traders. a close below the support is more reliable indicator of a failed rally for a swing/positional trader.

As far as black swan events go, the max 2% SL rule should save the traders from a big loss i.e if the price falls so much that the position's loss hits 2% redline, traders can square off immediately.

For example, lets use GESHIP bought at 398.60 (Max 125 shares total investment 49825) (10% rule of total capital 5 lakhs per trade)

Now the SL is close below 385 (14 point SL)

However as per 2% rule which allows Rs 10000 max loss on this trade, the price will have to fall to 318.60 (80 point loss) to generate 2% loss. So in a rare black swan event if price does fall from 398.60 to 318.60 intraday (thats a 20% fall intraday) ...traders can exit the trade immediately without waiting for close.

Cheers
SH

 

[Tradewithhunter]

Stocks ripe for buying on 17th Nov 2014 at open price

1. GESHIP : LTP 398.60, stop loss a close below 385
2. SAIL : LTP 86.30, stop loss a close below 78.50
3. INFRATEL : LTP 298.95, stop loss a close below 274
4. ROLTA : LTP 113.80, stop loss a close below 106.50
5. BATAINDIA : LTP 1313, stop loss a close below 1213
6. UPL : LTP 361, stop loss a close below 326
7. KWALITY : LTP 47.30, stop loss a close below 45.25

Position size per stock based on how bug the stop loss is to ensure not more than 2% is at stake at any time per stock.

Cheers
SH

5 of the 8 stocks have closed with gains today with Bata, Kwality and Rolta gaining handsomely.

3 stocks closed in red today.

SEAMECLTD broke the support zone eventually and closed at 119.80 hence exited. Small loss booked. This stock's overall trend is still up and I will be watching this stock for another buy signal in future. Such stocks rise 25% to 50% within 1 to 3 months so worth keeping a track of them.

Cheers
SH