The death of long-only
- Thread starter tejasvi.mohanram
- Start date
Holy bull!
Tejasvi, I agree. Anyone with an unhedged portfolio could get buried this year. Even defensive strategies healthcare, agro and power could be dangerous as they will also get hammered if one fund with decent position exits. Hedge your portfolio and target on beating the index. However, I am not sure if options are a good way of hedging as vol is too high and we only get max 3m expiry.
Tejasvi, I agree. Anyone with an unhedged portfolio could get buried this year. Even defensive strategies healthcare, agro and power could be dangerous as they will also get hammered if one fund with decent position exits. Hedge your portfolio and target on beating the index. However, I am not sure if options are a good way of hedging as vol is too high and we only get max 3m expiry.
in my view, we should NOT adopt buy and forget approach now. we do NOT the bottom yet. until we see 3 or 4 more quarters and visibility of growth, then only we should start buying good stocks. till then buy at lows and sell on every rise like the one we had till last week. keep doing this. no need to expose to FnO for hedging. you could lose faster than your portfolio.
everyday buy N number of nifty bees at 10:00 AM exactly where N is your daily capacity. if you see 10% profit on averaged cost, then sell and wait for next cycle
buying puts or shorting futures is not the answer as you may lose more. markets turn the direction very fast, then you dont know what to squaer off , your hedged positions or portfolio stocks
identify fundamentally good stocks and keep picking them on declines. keep the cash in term deposits and be ready to break them when opportunity arises
pl do NOT invest in mf in SIP mode now. its like catching a falling knife. put that money in bank and buy lumpsum (small lots) on every decline. let us say when nifty goes to 2500, buy 10% and every 50 points down buy another 10%.
after elections we will see some clarity. wait till then.
until then do trading,
everyday buy N number of nifty bees at 10:00 AM exactly where N is your daily capacity. if you see 10% profit on averaged cost, then sell and wait for next cycle
buying puts or shorting futures is not the answer as you may lose more. markets turn the direction very fast, then you dont know what to squaer off , your hedged positions or portfolio stocks
identify fundamentally good stocks and keep picking them on declines. keep the cash in term deposits and be ready to break them when opportunity arises
pl do NOT invest in mf in SIP mode now. its like catching a falling knife. put that money in bank and buy lumpsum (small lots) on every decline. let us say when nifty goes to 2500, buy 10% and every 50 points down buy another 10%.
after elections we will see some clarity. wait till then.
until then do trading,
N
Can't say if all long-only traders have been wiped out, but this is certainly The RISE Of The Day Trader.
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