Keep shuffling your portfolio according to market and economy conditions,
Stay attune with value investing principles,
Bet on multi-baggers carefully as there are not many of them neither you have unlimited capital for them,
Take benefit of present intermediate trend (flavor of the season) while sitting tight with core investing principles such as value investing, timely booking profits in such intermediate trend investment
Adding into longer term stocks on declines
Largely staying clear of IPOs
Look out for good mutual fund schemes for investing in international equities, international real estate, commodities stocks, and commodities themselves.
Bear Markets don’t long last in general, but can do so in particular (sector/stock specific)
Mid-caps are better than small caps, and many large caps in growing economy such as India are in fact still Midcaps.
Being Contrarian investors ‘pains’ heavily in the short-medium term, but ‘pays’ heavily in the long-run.
Do not take long-term investment picks based on technical analysis (Those who see charts to give recommendations). Meaning don’t take investment advice from technical analysts, take trading advice from them.
Thrust on elements of ‘Behavioral Finance’ (the psychological aspects of individual participant and crowd in markets) while understating markets and movements.
Our Trading Philosophy
We believe trading is not a job but is a business.
Trading has 4 components namely, 1. The system/strategy of trading 2. The psychology aspects 3. The risk & trade management aspects 4.The accuracy of the trades
Traders should aim at sharpening their expertise in all the four above and also take help of experts whenever and wherever necessary.
Cut your losses short and let the profits rise.
Identify the long-term trend first, then the medium term trend then shorter term and then intraday trend.
We believe in taking short-selling opportunity just as we take long-buying opportunity.
Never fight the trend. Sharpen your expertise to identify the 4 trend as mentioned above.
Always have a trading plan. Never trade on random tips and hunches without trading plan.
Never trade without a Stoploss.
Take profits in range bound, choppy and uncertain markets.
Let your profits growing. Add to your winning trades.
Trade on rumors and exit on news. But be careful while following this strategy.
Never discuss your trading positions with others.
Control your emotions. You cannot control the markets but definitely control your emotions.
Never try to become a ‘perfectionist’ or ‘the best’. Try to become ‘better than others’ and ‘above average’.
Follow your system. Let the system prove it right or wrong before changing it.
Never ever overtrade.
If you are starting new or re-starting then try with paper trading first.
Don’t think of earning a regular, proportioned and steady salary/income. Because trading is not a job but business.
Learn both ‘buy-n-trade’ and ‘short-n-trade’. But try more ‘buy-n-trade’ in bull market and more ‘sell-n-trade’ in bear market.
Don’t be greedy. Remain reasonable. Don’t try to make killing every week. You can expect it only once in months.
Take a break after continual periods of constant success or constant failure.
Don’t put your all eggs in one basket unless you are an experienced trader and afford to lose big sum. Diversify your trading into stocks, asset classes, sectors, themes and technical set ups.