[Ponmayilal]

Originally Posted by sabret00the

...... Anything specific your're looking out for Monday?

Nothing specific except that I expect the markets to remain volatile not only on Monday but throughout the week.

Good opportunity to buy on dips and sell on rise stocks one already possesses and does not want to add further, and accumulate good stocks in small lots on every dip. Whether one wants to stay invested in them or fire them out in the next rally will be his own choice.

I shall continue to execute or try to execute the strategy I employed last Friday in the same set of stocks during this volatile period.

[vsh]

@ponmayilal- yours is a mix of investment and trading. if it goes down-invest, moves up-fire it. market rule--KEEP THE WINNERS, EXIT THE LOSERS. so as you are new to it, please refer some good books and clearly separate investment from trading. they both need exactly opposite strategies. otherwise you will be left with loosers.

[jagan0677]

Originally Posted by vsh

@ponmayilal- yours is a mix of investment and trading. if it goes down-invest, moves up-fire it. market rule--KEEP THE WINNERS, EXIT THE LOSERS. so as you are new to it, please refer some good books and clearly separate investment from trading. they both need exactly opposite strategies. otherwise you will be left with loosers.

+1

@Ponmayilal:
If your strategy meets all your requirements/expectations, then it is the way forward. What you have said may not yield good results during an extended downturn of markets. I would assume that is somewhat similar to what vsh has mentioned.

This is what I think. If you have any reasons that you think this is the right strategy, please do share. We are willing to learn whenever possible, arent we?

Moving on,I hear talks about a completely revamped income tax policy and new rates possibly in FY11 / 12. If the new policy brings down tax rates(as is the news doing the rounds) - i think thats another potential booster shot to the markets.


Cheers

[Ponmayilal]

Originally Posted by vsh

.......please refer some good books and clearly separate investment from trading. they both need exactly opposite strategies. otherwise you will be left with loosers.

I shall be happy if you can indicate the titles and authors of the books you have in mind. I am already sitting on a networth of 40 lakhs which my benevolent father had bequeathed on me (he is the only male member in our family, had invested only 4 lakhs in the primary market a decade ago). I entered the stock market in Sep 2008 with a vengeance. For all practical purposes I am a trader - trading with ten lakhs out of the forty.

Originally Posted by jagan0677

..... If you have any reasons that you think this is the right strategy, please do share. We are willing to learn whenever possible, arent we?

Moving on,I hear talks about a completely revamped income tax policy and new rates possibly in FY11 / 12. If the new policy brings down tax rates(as is the news doing the rounds) - i think thats another potential booster shot to the markets.
Cheers

The only strategy I have adopted during this turbulent phase is to buy and accumulate on dips and fire them out on rallies. Atleast so far I have been fairly successful. I would hasten to add that it may not be universally applicable to all and am also aware that it may not work always or to the extent it had been so far.

I share below my November dealings. I am open to suggestions and any critical reviews from more experienced traders here.



Not in picture:

100 United Spirits accumulated during the period 15 Jan 09 to 17 Feb 09 (av. cost Rs.574) sold on 09 Nov 09 for Rs.1089; Shortterm Gain Rs.49.7K
50 Hero Honda bought for Rs.1500 on 03 Nov 09 and sold for Rs.1720 on 25 Nov 09: Short term Gain Rs.10.8k

Intraday Gain:Rs.12.2K (Unitech shares bought and sold on different days.)

Total ST Gain for Nov 09: Rs.72.7K

Total ST Gain 01 Apr 09 to 30 Nov 09: Rs.382.8K

1st instalment of Advance Tax paid: Rs.10.8K

2nd instalment due before 15 Dec 09.

The ICE (Rs.20K), reverse parking sensor (Rs.2.8K), MapmyIndia Vx 140 navigator (Rs.14K) - all for my Ritz - and Windows 7 Ultimate (Rs10.6K) for my new computer were all funded from these profits.

Turning to tax, the Govt. of India put on the public domain the Draft Direct Taxes Bill for discussion sometime in Aug/Sep 09. Budget Feb 2011 may find its implementation.

I had given a cursory reading then and the one thing that struck me is that it proposes to do away the long and short of gains. Any gain is a gain and will be taxed.

But fear not. The Govt. is already rethinking on many of the provisions on representations from various quarters and it remains to be seen whether one year holding of stocks will continue with its exemption. Even if not, my thinking is that atleast for shares bought prior to the passage of the new bill status-quo will be maintained.

You may view the draft code, discussion paper and comment by clicking on the Draft Direct Tax code link here .

Have a good December.

[vsh]

@ponmayilal-
you have done very well and you have got a good portfolio from your father.
as you might be knowing market fell heavily since jan 2008 to oct 2008. you have entered almost at the start of the present bull run. so market was bullish from last december to till date. so in bull market what you did is right- just buy and hold. interesting study would be- what would have been happened if you had held on to those stocks which you have fired all the way.

"one up on wall street" by peter lynch- a very good book on investing.

you said you are a trader. but your current setup does not fit that. you can say- you are an active investor. for trading- you have to have a timeframe, entry and exit strategies and moreover you have to define what is the risk per trade. most of trading study is based on charts. there are many books i have. but it would be of help only after you become familiar with charts. so if you want those ebooks, pls send a private message to me, with your email id.

[Ponmayilal]

Thanks for your valuable inputs. I shall go through the book you have mentioned.

Your analysis has been correct regarding the strategy one should adopt in a bull market. But this one as everyone sings, is one of a different kind. Can anyone predict now as to when exactly the bulls will gain ground? With the bubble that burst in Dubai, financial analysts now say that many more are likely to surface from asian and european countries during the course of 2010. News for bears to rejoice and bulls to run for cover.

Now, what would have happened if I had held those accumulated stocks? I will have the cake - perhaps - but not eat it.

When once a person keeps looking at the market daily or even frequently and keeps pumping in and pumping out, he is a trader. Once he sets out a target price to shoot out within months or even days of acquiring, he is a trader. And she too can be a he. ( even today I shot out 10 Pantaloon Retail at 25% gain within days and 45 IPCA Labs held for months at 200% gain while regaining part of Hero Honda and Sun Pharma)

What about the strategy when "steady-state conditions" prevail? Well, your terminology - time frame, entry and exit strategies and risk-per-trade - have really set my thought process rolling and thanks for being the catalyst. I think there is enough time to acquire and devise such a strategy. If not, I shall turn to be an investor. For now let me go and eat the cake. Thanks.

[carbine]

Originally Posted by vsh

@ponmayilal-

"one up on wall street" by peter lynch- a very good book on investing.

Hi,

That book is a very good one but that is for "value investing" and for finding stocks that might later turn out to be tenbagger or sorts.

It deals with looking out for stocks before it is discovered by the so called expert fund managers. Once they discover it the price will rocket up, and you end up making a cool nice profit. But the trick lies in picking the right stock. So far I have been able to hit the jackpot only once when I spotted Bharti (when it was at 34 and watched it shoot to around 900). Thats the kind of investment Peter lynch talks about.

Other books that may be of interest are "Beating the street"--Peter Lynch once again and "The intelligent investor"-Benjamin Graham (Buffet's fav).

[mjothi]

Any suggesstions on Great offshore offer from Bharati Shipyard. They offer 590rs per share and current price of share is 513. Even if you buy now and accept bharati offer you make money right?

Ok, question is not if we can buy now. It is if we can retain the stock or sell it to Bharati. i have some great offshore stocks bought at 580. Yes, 580rs, and now only 514rs.

I dont want to sell it off, but wanted to know the feedback if i want to retain it for say next 1 or 2 years.

[rauldsouza]

Originally Posted by carbine

That book is a very good one but that is for "value investing" and for finding stocks that might later turn out to be tenbagger or sorts.

It deals with looking out for stocks before it is discovered by the so called expert fund managers. Once they discover it the price will rocket up, and you end up making a cool nice profit. But the trick lies in picking the right stock. So far I have been able to hit the jackpot only once when I spotted Bharti (when it was at 34 and watched it shoot to around 900). Thats the kind of investment Peter lynch talks about.

Other books that may be of interest are "Beating the street"--Peter Lynch once again and "The intelligent investor"-Benjamin Graham (Buffet's fav).

I absolutely agree , One up on Wall Street and Intelligent Investor is one of the best books on value Investing. Even "The Dhando Investor" makes up for an interesting read.

I am right now selling some stocks so that I could buy my new car. (ANHC or Altis)

Though I could take a loan, However I dont believe in going beyond my means when buying something that will only depreciate with time.

[Alter_Ego]

I use both sharekhan and ICICIdirect.
ICICI direct has the best user interface but the brokerage is slightly on the higher side.I use sharekhan for equities investment whereas I do future and options trading via ICICIdirect.No one can beat their F&O section.
Too simple yet so user friendly.

[Alter_Ego]

Originally Posted by vsh

"one up on wall street" by peter lynch- a very good book on investing.

Hi vsh,

Can you please share the softcopy(pdf) in case you have it?

EDIT:Sorry MODs for the consecutive posts.Did it almost absentmindedly and forgot about the edit feature

[BaCkSeAtDrIVeR]

Originally Posted by mjothi

Ok, question is not if we can buy now. It is if we can retain the stock or sell it to Bharati. i have some great offshore stocks bought at 580. Yes, 580rs, and now only 514rs.

I dont want to sell it off, but wanted to know the feedback if i want to retain it for say next 1 or 2 years.

If the offer is from TheGodfather, you have no choice. :

Fortunately, this offer if rom Bharati, so you have the option of not selling your holding to them. ;-P

Such open offers happen as a legal requirement - as a part of takeovers and mergers regulations issued by the SEBI. IF you decide to keep the shares, you become a share holder of the new entity, if a merger happens.

[mnhegde]

Had purchased Bharti at 306 a few days back. Should I hold it (long) or sell it at the current market price??

[mjothi]

Originally Posted by Alter_Ego

I use both sharekhan and ICICIdirect.
ICICI direct has the best user interface but the brokerage is slightly on the higher side.I use sharekhan for equities investment whereas I do future and options trading via ICICIdirect.No one can beat their F&O section.
Too simple yet so user friendly.

Add Standard Chartered bank interface to that. lousy and I absolutely hate it.

ICICI is the best I have seen. Very user friendly. ofcourse it comes with a slight premium.

Originally Posted by BaCkSeAtDrIVeR

Fortunately, this offer if rom Bharati, so you have the option of not selling your holding to them. ;-P

Such open offers happen as a legal requirement - as a part of takeovers and mergers regulations issued by the SEBI. IF you decide to keep the shares, you become a share holder of the new entity, if a merger happens.

Thanks. But the entity is still going to be Great offshore and its just the amount of stake that's going to differ, right?

[rauldsouza]

Originally Posted by mnhegde

Had purchased Bharti at 306 a few days back. Should I hold it (long) or sell it at the current market price??

Bharti from now on sees a long term bet 2 me. 1 yr minimum. The stock is under serious pressure due to the competition and the current price war pressure. I would suggest stay on only if yr long term investor or else sell it off.