friend, how do you manage your money? are you buying and selling in 3 steps.. like 90-80-70 and selling at 80-90-100?
why don't you wait for the scrip to fall to 70 and buy 3 times than 90+80+70/3 = 80 average price, you could have saved 10 rs *3000 = 30000?
the Jan 22 2008 crash caused all stocks to fall to around 50% 100 rs has become 50 rs scrip.
example hugtel 62->33, nagarfert 85->35, etc.. did you buy more after the fall or did anything else? please share.
how much do you keep cash to "average" it? and how frequently you buy?
I appreciate your kind gesture of sharing your strategy with all.
Here's a few scrips:
1. ITC - range 185-210
2. HindUnilvr - range 189-220, 220-240
3. hydrbadind - range 150-165
4. rpl - range 155-180
5. dabur - range 95-103
Hi Rizwan,
In this strategy there are no targets. Nobody knows whether a scrip will touch x price or not, but for sure it will oscilliate between y and z and that is all we need.
I have been trading BOB and lately IFCI for this purpose. Yes the scrip is trading at almost half the peak price, but I was always geared up for that. I had hedged myself with puts after scrip started going below 90. I had bought puts of strike 80.
Now my trading range is till 45. The day it will break 45, I will stop buying and buy puts for 40. 2 things will happen, it will go below 45, puts will save my investment or it will go above 45, my game will start again. Buy 2 rupees low and sell 2 rupees higher.
Always remember, the scrip has to have good fundamentals to be traded in this category. Stay away from speculative scrips, like RPL, Chambal, Hugtel etc. Although IFCI also had a lot of speculative movement, but with time it's fundamentals have improved and risk of downlslide is limited.