Workmen's Long only trading in Equities

suri112000

Well-Known Member
#71
Monthly Rs.6000 SIP in following stocks for next 3 years.

PTC India
Guj Inds. Power
GMDC
KPIT Tech
Redington India
SBI - ETF Nifty 50
 

suri112000

Well-Known Member
#72
This method is related to Nifty 50 stocks only. Rs.10 lakhs is divided into Rs.1 lakh each. That is to say we have 10 parts of capital of Re 1 lakh each. We are risking only Rs.2000 on each trade. Usually we book losses when stock trades below 10% of buy price on monthly closing. Hence, we risk only 2% of total capital ie Rs.20000 on Rs.10 lakh capital. The method dictates a technique to accumulate the stocks almost for free.

When a buy signal is given we try to accumulate the stock at or near the suggested price. When a suggested buy price is given, we automatically fix 10% stop loss on monthly closing prices. We exit the stop loss hit stock mercilessly. As the method unfolds in future months, I exit the stocks when I have profits. Profit booking is almost discretionary with a technique inbuilt.

On scanning Nifty 50 stocks the following stocks have given buy signal.

Auro Pharma - 687.95
Bajaj Finance - 1727
Bharti Infratel - 378.75
Coal India = 262.95
HPCL - 418.60
Indiabulls Housing Finance = 1196.6
IOC - 388.55
NTPC = 177
Power Grid = 200.35
Reliance Inds = 921.05

Here is an example to explain how much qty to buy.
Auro pharma - 687.95
10% stop loss is 619.55
So, the risk on one scrip is 68.4
As said, we are risking only Rs.2000 on one scrip.
When we divide Rs.2000 by 68.4 we get 29.
So, we invest for 29 shares ie Rs.19950.55
 
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suri112000

Well-Known Member
#73
I have invested Rs.50000 in each of above shares at the prices shown. The stop loss is same as 10% below the invested price on monthly closing basis. Risking 10% of capital ie Rs.50K on total portfolio.
Let us monitor this portfolio leisurely how it fares. In case of profit booking or loss booking everything will be discussed in detail so that mates donot have any confusion in executing the trades.

 

suri112000

Well-Known Member
#74
Now, the time has arrived to grab some free shares friends.
Coal India - Selling entire position except 22 shares which are free out of profit made.
Keeping the remaining positions as they are.
 
#75
I have invested Rs.50000 in each of above shares at the prices shown. The stop loss is same as 10% below the invested price on monthly closing basis. Risking 10% of capital ie Rs.50K on total portfolio.
Let us monitor this portfolio leisurely how it fares. In case of profit booking or loss booking everything will be discussed in detail so that mates donot have any confusion in executing the trades.
Hope I have understood correctly by e.g.
Auro Pharma - 687 buy price..
Monthly low - 596
Close on last date of month - 621.

So in above case, the stoploss is technically hit, but we do not close the position as the monthly closing is above our Stoploss price.
Please clarify.


Regards.
 

suri112000

Well-Known Member
#76
Hope I have understood correctly by e.g.
Auro Pharma - 687 buy price..
Monthly low - 596
Close on last date of month - 621.

So in above case, the stoploss is technically hit, but we do not close the position as the monthly closing is above our Stoploss price.
Please clarify.


Regards.
You got it right.
 

suri112000

Well-Known Member
#77
It is just for my record. Donot take trouble to jump into by seeing this. Let me device complete plan until then have patience.




Our brilliant stock list :-

1. Torrent Pharma

In due course of time, this list will swell.
Hi,
How many of you caught Rain Industries, Sintex which are multibaggers now.
Tree House is a laggard. Tiny fraction.
 

suri112000

Well-Known Member
#78
This is full portfolio costing us around Rs.11000 ie around 5% of our total funds. We are left with 95% of funds which are in cash or equivalents. Please do some maths and generate some interest on those funds keeping security and liquidity in mind.

Let us now be patient and fully relaxed.

We will keep an eye on NSE pe ratio and wait for good opportunities to deploy more funds.

How many of you are holding these shares now.....
 

suri112000

Well-Known Member
#79
Hi,

One month passed after building up our initial portfolio. Its time to review our portfolio.

Nifty is down 2.31% during this period where as our portfolio is down just by 1.08%. Our portfolio is beating the nifty in performance.

We will also see what actions we are going to take in case of loss making scrips.



Mindtree and Tech Mahintra are two scrips which are dragging down our portfolio significantly.

Let us analyse them and plan next course of action.



Some of you asked me how do you average the trade.
Here it is
 

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