Okay lets see what is working so far. Sticking to cash segment appears to be less lucrative at the first instance, but over a period it is reasonably profitable. It is also more forgiving in case we made any mistakes. It also lets us take staggered entries and helps in trade management.
But I do not think it interests most traders since leverage is not there.
If this experiment goes well for some time, I may stop all other trading and just focus on this model. I realised that leverage is like steroids and is a double edged sword. I was a heavy coffee drinker several years ago. Once I was carrying to work XL sized coffee from Dunkin Donuts store. My colleague asked me as to why I was drinking coffee of that measure. I told him that its because the store does not sell 2X. Today, that answer sounds stupid to me.
But I suddenly gave up coffee since, I took a deeksha in Saraswati Temple in Basar Village near Hyderabad.
Giving up leverage in trades is similarly relieving. If I am confident that this model succeeds, I will move more capital into this. But here, I need to look at more charts, more daily data and handle more trades.
Alexander Elder in his book "Come into my trading room" states that you can get bitten off by a big shark or you can get eaten up live by a bunch of piranhas in trading. (You can get hit by a large loss or you can get eaten by several small losses)
In this trading model, sharks got eliminated, but need to guard against piranhas. That consumes more time for more research and more data collection. Sometimes, I am exiting with very less profit. All this takes lot of time to study and implement.
So far we are doing good.
Today I exited Polycab with very less profit. and added more of GICRe, Ibulhsgfin and Yesbank.
I hope I will get an opportunity to exit in Berger paints tomorrow. I already placed a GTT order for a target of 509. My multi step acquisition cost is 492.1. This share belongs to the category of shining stars, that I described in Post#30. With such shares, one can be at peace and carry less stress for overnight. I am also looking at Timken India for entry. But today the share has gone up and I have not touched it. I am waiting for a dip. It is another shining star category trade.
Before, I started this trading style, I requested
@Smart_trade for some shares that would help me trade in cash segment. He did advise me to look into Bajaj Finance, Asian Paints etc. Coincidentally, later I realised that those shares fit into the shining star criteria that I had given here in post# 30. I am thankful to him for that advise which helped me to take this journey in this direction.
