The 2% Ledger

[sridhga]

On 1st Nov. sold NovartisInd, BalrampurChin and bought Bata, AsianPaints, ALBK(Allahabad Bank), SMSLife and more of BankIndia. Now another risk is emerging. my exposure to PSU Banks is rising, while SEBI has given out a circular to listed banks on new NPA recognition rule. This is impacting one bank that I hold (IndianB)

https://www.business-standard.com/a...-day-after-sebi-directive-119110101483_1.html

The PSU bank upward march may have stopped after this circular.

In the progress report attached below, Bata purchases made are expected to continue. I expect Bata to fall further. So stoploss rules do not apply because, I postponed further purchase in anticipation of further fall.

 

[sridhga]

Exited IndianB and BankIndia at very less profit. Picked up HDFCLife, Uniply and more of Bata

 

[sridhga]

Friday was a red day. The following companies held so well on this day. They are likely to go up on Monday (11-11-19) too. This is my guess. I am scanning them for buying.

GAYATRI PROJECTS
HARRISSONS .MALAYALAM
STERLITE TECH
DHUNSERI VENTURES
KILPEST
MRF
EICHER
KIRI DYES
JUBILANT LIFE
KIRLOSKAR OIL
BOSCH
INOX LEISURE
DHANALAKSHMI BANK
CUPID

In the meantime, I exited SMS Life at 315 and entered RNAM at 329.14 and Astron at 39.

 

[sridhga]

I increased the transaction charges from 0.14% to 0.24% including for all the earlier transactions after I compared my Zerodha Account with my excel sheet.

Today, I charged one of my electricity bills (hereafter recurring every month) that I use as my office to this account. Also one extra data card I use while on the move is charged (quarterly payment) to this trading account. I put up an estimate of Rs. 100 for stationery that I used for my analysis and workings. All these expenses are shown in rows 50, 51, and 52 and are reducing the cumulative profit. Going forward, I may charge some laptop expenses like RAM upgrade, Windows 10 upgrade as well on this account.

I am not yet charging my services for analysis etc. I hope this account in the future would grow to be able to pay for that too.

On the transaction front, I sold Uniply for 39 and bought Cupid, Dhanlakshmi Bank and more of Astron. Progress report attached.

 

[sridhga]

Sold RNAM for 350.60 (4 shares) and HDFC Life for 586.65(16 shares).

Now acquired
1. Fredun 6 shares @ 249.35 (More additions planned)
2. Agrophos 45 shares @ 112.09
3. Lakshmivilas 30 shares @ 18.65(More additions planned)
4. Nitincast 15 shares @ 70.80 (May add more)

 

[sridhga]

Exited Bata 9 shares @1764
Added more Lakshmi Vilas
Added more Fredun
Added more BankBaroda
Entered MSTC
Entered Tanfacind

 

[sridhga]

Exited Astron @41.
Added more of Tanfacind
Newly Entered Coffeeday

 

[sridhga]

Exited Lakshmi Vilas at 19.95

Today's progress report is important. This thread was started on the 19th of last month. So, this is the first month's report.

So lets see what happened. We started with a capital of around Rs. 15,000. But this capital was increased during the month to Rs. 50,000. The profit for the month is Rs. 7610.94. In the first two weeks profits were made on large caps. But in the later half profits had come in from small caps.

But the first month results are encouraging. I may gradually increase the capital to this experiment.

 

[sridhga]

Someone has requested me after reading this thread to share on how I select stocks to trade and how much quantity I buy initially and how much I average etc.

What I replied, I shared in the paragraphs underlined below. If any seniors have suggestions or even if any seniors disagree with me, please feel free to share your opinions here. I do not take anything personally. I appreciate and admire people willing to debate on this subject, because that is how you can develop theoretical concepts and beliefs. That is what a forum is for.

"I am still experimenting. But what I can confidently share so far to help others is this. I would advise others to stick to large caps that are in general uptrend in bigger time frame. When they take a pause in uptrend invest in small quantities. Also if it falls further then add more to position. How much to invest and how much to average is a judgmental call you need to take. These large caps do not move a lot. So in less than two to three day holding period, 2 % target is fair. But sometimes the stop loss cannot be 2%. It has to be more. This is a judgement one has to take bearing in mind the amount that one can possibly lose.

Once in a while, in this approach one may be confronted with losses. For example the uptrend may stop or reverse. For example, Britannia is a large cap stock that matches these criteria. But as I was checking the data, I found that if one entered it in mid 2018, it had points from which it fell and had not recovered so far. So stop loss is important.

Again having a formula based stoploss may not be correct. I think one must have a stoploss when one's view of the direction changed and not based on some percentage. Since this may cause large losses, one must put in small amounts. So, this trading model is more of risk management than chasing the target. "

 

[sridhga]

Exited Bankbaroda @ 99.
Entered ICICIbank 9 shares @ 493.72 (More additions planned)
Entered Affle 1 share @ 1610.1 (More additions planned)