Sunday, August 8, 2010

Investing is different

gourv says: "Todays blog of u seems like that of a fundamentalist.words like investment value creating confusion in my mind"

My Notes:

My post dayed 25 March 2009 says this:

How I approach the investment cycle.



1. Identify a stock I want to own if price was much lower (fair price)

2. Wait for a dip, as deep as possible. Sometimes I wait for many years.


3. Buy half of the planned quantity.


4. Wait patiently. if the stock falls and becomes half, i will buy the balance quantity provided nothing else has changed.


5. Stock selection: good managements, share price falls due to business cycles and not due to 'news'.

Added today:
Investing is different from trading. Stock selection is an important part of investing in stocks, therefore I was explaining why and how I opt for small/mid caps.
Given two long term charts, both making bases and breaking out, how do you choose between them for investment? An easy answer will be to go for both, then cut the on that underperforms. But, that may actually cut off the sleeper, a stock that suddenly wakes up and runs. Trading is our business, we do this for an income, but investing mean the parking of whatever capital we have for safety and appreciation.

6 comments:

gourv said...

Hello sir,

Thanks for ur explanation.Waiting for
live and simulation trading .

Regards
Gourav

men said...

Dear Mr. Sudarshan, would you still prefer small/mid caps for trading even when some large caps MAY BE a little more expensive? I am asking this as I trade mainly in large caps. Thank you.

LIC Agent Noida said...

Sir, Its seems you started reading Robert Kiyoski and Mike maloney ?

NITIN DAMLE said...

Dear Sir,
Pl. comment on Reliance. I think it had never happened that charts of Nifty & RIL are in opposite direction.Reliance is considered as heavy weight on Nifty but Nifty is making new high & RIL is below 200EDMA & looks it will go down further.
Your comments on RIL please.
Nitin Damle

gourv said...

Hello SIR,
Gourav here
IF you were to start your trading career once again from the beginning what are the 5 things that you would like to do which you did not do that time or which you followed but would like to improve upon.

Regards
Gourav

rajv malik said...

namaskar sukhani ji,

what are your views on gold now ? how best one can profit from the gold etf route ?

what other etf's would you recommend to a common trader/investor ?

can one make money by active trading in etf ?

warm regards
rajiv malik