Lessons Learnt

2013-09-20T02:31:00.003-07:00

Lessons learnt today(20-Sep-2013) - RBI decision day.

1. You can sell in margin without buying.

2. After 2:30 market typically falls

3. On a green day(script that is green), market climbs from 1:45 to 2:15. On a red day, market starts falling from 1:15 onwards, I guess people are squaring off their positions.

4.Understand the market for the day before getting into it. Read what FII's /MF did the previous day before starting the day. Read the news too before starting the day.

5.You make less money, this is fine. But never lose money.

6. Never invest in a pivot day (a day when you don’t know if the market will go up or go down) like RBI policy day, FED policy day etc.

7. Never invest your entire amount today in a single stock just because yesterday you made smart gain out of it. Today it may fool you, so split your investment into 3 or 4 scrips today.

8. Never base your decision on the base of news/reports of what FED will do or RBI will do, actually nobody knows what they will do…

9. For intraday, you need lot of luck factor. It is better that people like me stick to the moderate expectation of 12% over 1 year in delivery.

(16-May-2014) - The election result day

10. Don't expose yourself to intraday for a portion more than what you can afford to be invested in. Even the best of the bet can still go wrong and you will be forced to sell in loss.

11. Intraday dont panic, take delivery of the stock if it is just not your day.

12. Intraday we tend to just focus on one stock as the movements have to be very finely watched unlike investment. Only preplanned intraday ( i.e. buy price, sell price predecided) for preplanned quantity should be tried for me.

(26-May-2014) - The day when my portfolio went from 10.5% positive (1.65 lacs) to 2% negative( minus 30K).

13. Anything can happen any moment. That moment just not panic. If not buy in the dip, just not sell in hurry. Also, unless you really make money over a period of say 3 years, you are really not sure if you really make money.

(30-May-2014) - Lost oppurtunity

14. Sell in incremental fashion and buy in incremental fashion. This way you wont miss the bus either ways. Just that the profit cut will be less but atleast you still make some money instead of just being a witness of good selling days and good buying days.

15. Never try intraday, it is better to resort to sell today and if tomorrow there is oppurtunity to re-enter at a level 3% less than today then re-enter. You can always buy back the shares if you really get a good price on the same day but dont plan for shorting and buying back as it will never happen as we want it to.

(12-Jun-2014) - Never enter a stock that is on circuit and that too circuit for days

16. Never enter a stock on circuit. Suzlon, I got the stock after it was on circuit for 5 days. Today I am stuck because it is on lower circuit and I am very sure it will go from 36.15 to 5 again. My whole principal and all the profits earned from all other stocks are now eroded because i am not even able to sell it. And by mistake you get stuck with such a stock get out of it asap, dont wait for it to go on upper circuits few time as a bounce back. At the end of the day it is only fundamentals that will take the stock forward.

17. Dont buy stock because Ramachandran advises. His stock advise never works for Sarada Sastri.
Example: Suzlon, Adani etc.....General suggestions are fine, but don't take his stock pics in particular. Amtek I though i got into it because of Nomura and fundamentals, I now fear that investment too. Each decision is your own it does not matter how u are influenced at the end of the day it is my money and therefore good/bad it is my call. No point blamming others later. You dont agree with it, you just dont do it, just dont take that advise.

18. Dont buy a stock unless there is fundamentals backing it for the raise in share price.

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Lessons Learnt