General Trading Chat

[Smart_trade]

ST Sir,

Though i have asked this question earlier in this forum, i'm asking again to understand how a seasoned professional like you would handle the case.

When you buy fundamentally strong equity for long term perspective at higher index levels (example bajaj finance at Rs.800 levels) and the index corrects very deeply till what price will you continue to hold it (in other words, what would be the stop loss) given that it is bought for long term perspective.

Thanks

Few scenarios here as under :

1) I buy the stock and the market goes into correction.Here I will keep my stops at 25%.

2) I buy the stock,it appreciates by 50,60 or more % and then the market corrects before I see the stock has run its potential then I keep stops at important pivot levels which is at my buy price + 50 % of accumulated gains.So basically 50 % gains belong to me and I can risk the remaining 50 %.But I am happy to re-enter a good growth stock if warranted.

3) Market has gone up very steeply and I get a Sequential or Combo sell signal,I will sell and look for a better entry points.

The above has helped me over the years in my long term investments....stoploss could be deep but we must have stops to protect our wealth.

Smart_trade

 

[Smart_trade]

We have a family friend who was a very senior executive in TCS and she has 4-5 Cr worth of TCS share received by her as ESOP .Last 3 years I have been telling her that TCS s a great company but it's growth is stagnating so get into HDFC,HDFC bank,,Bajaj Finance,Maruti motors where profits are growing.......she kept saying that let the TCS share come up then she will sell.....she has inertia in her actions.I too had tons of TCS and Infosys in my portfolio but I shifted to better growth companies.


See where is TCS in last 3 years and where are the other companies mentioned by me. The same point was mentioned by Aswath Damodaran in his interview 2 days ago. According to him we have some old companies which are great companies but they are like a 70 years old man......they have accumulate lots of fat,some ailments etc and he cannot grow like a 25 years old strong man.....

Just sharing few thoughts.....always look for growth in profitability ,that alone drives the stock prices.Growth of 10-12 % is not enough, we need growth of 25-30 % and more.

Smart_trade

 

[timepass]

Growth of 10-12 % is not enough, we need growth of 25-30 % and more.

For years, I have maintained that the cost of living increases by 12-15% per annum, with a level changer every 5-6 years (a level changer=double increment).

 

[timepass]

Is there something to worry about on employment front ?? Some days ago there was a news that Infy had reduced staff (8000 or 10000) in the past 1 year, now this news about HDFC Bank.

HDFC Bank eases out 4,581 staff in Q3, calls it ‘rationalisation’ exercise


Wonder if we will see more such reports. LT had reduced its workforce by 11% some time ago.

 

[travi]

Is there something to worry about on employment front ?? Some days ago there was a news that Infy had reduced staff (8000 or 10000) in the past 1 year, now this news about HDFC Bank.

HDFC Bank eases out 4,581 staff in Q3, calls it ‘rationalisation’ exercise


Wonder if we will see more such reports. LT had reduced its workforce by 11% some time ago.

The Intl Labour Org states that unemployment has increased in the last two years and the Emerging Markets are one of the worst hit.

http://www.ilo.org/global/research/global-reports/weso/2016/lang--en/index.htm

 

[travi]

Today SGX Nifty -30. Looks like weekend profit booking mood
No hurry to rush to 9K

 

[vivektrader]

Today SGX Nifty -30. Looks like weekend profit booking mood
No hurry to rush to 9K

It rallied yesterday, and that being an NSE holiday, nifty should open in green.

Vivek

 

[travi]

It rallied yesterday, and that being an NSE holiday, nifty should open in green.
Vivek

:thumb: NS still flat but BN has a good gap up.

 

[timepass]

:thumb: NS still flat but BN has a good gap up.

and BNF has open=low

 

[Vertigo_1985]

Look at BN feb 2 puts... even with gap up prices didnt down much as compared to calls.