General Trading Chat

[Smart_trade]

One more followup question, as we take profits in trading do you suggest to take profits from long term investments also? Like I bought long stocks with the intention to never sell otherwise in emergency situation. Is this plan right?

Yes,in long term investments also one has to take profits.Today's high growth stock may become a laggard after few years.But in long term investments our horizon is 3-5 years.Profits should be taken when stock's price goes higher than the price justified by fundamentals,profit growth is stagnating,or when we see signs of entire market topping out.Example is Reliance Ind.was a growth stock of yesteryears but last 5-6 years it is a wealth destroyer.

ST

 

[wisp]

A friend forwarded this to me this morning and it was my Aha moment..

How many excuses have we been giving ourselves for not backtesting properly??

 

[timepass]

Reliance Infra has a strange combination today. For futures, it's open = high = 544.8; for equity it is open = low = 538

 

[lemondew]

ST,

Having taken long at 8150 its a good 100 points up now. Lets look at the exit now. Would yesterdays close now become SL?

 

[phoenixbird]

Yes,in long term investments also one has to take profits.Today's high growth stock may become a laggard after few years.But in long term investments our horizon is 3-5 years.Profits should be taken when stock's price goes higher than the price justified by fundamentals,profit growth is stagnating,or when we see signs of entire market topping out.Example is Reliance Ind.was a growth stock of yesteryears but last 5-6 years it is a wealth destroyer.

ST

ST Sir,

Im a newbie, is there any method to determine stock price going higher than justified value by fundamentals.

Thanks

 

[Smart_trade]

ST Sir,

Im a newbie, is there any method to determine stock price going higher than justified value by fundamentals.

Thanks

This will need a long answer but when the valuation is too stretched ( this can be seen from fundamentals ) it is better to take profits .

ST

 

[Smart_trade]

ST,

Having taken long at 8150 its a good 100 points up now. Lets look at the exit now. Would yesterdays close now become SL?

In July contract I am looking at 8265-70 for partial profit taking and 8230-35 for full profit taking if the market dips to those levels.

Smart_trade

 

[lemondew]

Ok gr8 hope we can have a 300- 500 point move cycle and I hope you get time for your inputs throughtout the lifecycle of this trade. Post market hrs would be fine too. Thx

In July contract I am looking at 8265-70 for partial profit taking and 8230-35 for full profit taking if the market dips to those levels.

Smart_trade

 

[stockBond]

In July contract I am looking at 8265-70 for partial profit taking and 8230-35 for full profit taking if the market dips to those levels.

Smart_trade

Does UNITECH, JPASSOCIATE look like having bottomed out. If so what upside one can expect if one buys ?

 

[timepass]

Rcom : just out of ban period today, and look at the expiry day volumes !!