Investing Journal – Don’t be a pig

Last Updated : 30-Apr-2021

Bulls make money, bears make money, pigs get slaughtered” – Old Wall Street Saying

From April-2018 till 31-Mar-2021, I have been exactly that – a pig, getting slaughtered in the stock markets.

So my goal for FY 2021-2022 is simple : Don’t be a pig.

And I am hoping, writing stuff down will help be get a little better at investing/trading which I consider to be the biggest, baddest and the most rewarding game ever created.

Trade Journal

DateActionStockComments
01-Apr-2021AddRPSG
Ventures
Was liking price action so added a wee bit to existing position
09-Apr-2021AddBajaj ConsumerBought Bajaj Consumer on breakout over recent high of 284.70 on decent volumes. Felt like an idiot buying 10% higher but buying breakouts on stocks I like, is a new skill I am trying to acquire. CANSLIM methodology of William O Neil basically.

Here is the book which describes the system:
How to make Money in Stocks by William O Neil
12-Apr-2021AddPiramal EnterprisesAdded about 10% to existing position as I have good conviction on the stock. It has multiple triggers in next few months both negative and positive which can come in any order. I am expecting a price of above 2000 in under a year. Bad news on DHFL, NPA rising could take the stock lower but volatility in this stock has always been very high.
13-Apr-2021ReduceRPSG VenturesAn indicator I follow from a paid subscription indicated a market downtrend. I have planned to cut exposure however little when the indicator goes south hence sold off RPSG Ventures as I felt it was giving a decent exit point
13-Apr-2021EntryKEI IndustriesGood growth company derailed by pandemic a little. Good support around 505 so bought a little today. Weekly MA (10-40) also giving a buy but will be confirmed on weekly close. Business wise cash generation seems a bit of an issue
19-Apr-2021Add KEI Industries Added a bit to position. My good till cancelled orders for buys at 489 and 479 got triggered. I have started putting these orders to avoid second guessing myself when price actually drops and waiting for still lower prices.
22-Apr-2021AddSanghvi Movers126 was the breakout point. So bought on retest around that as it went to 144 and retraced. My brain was screaming why did you not buy at 100 and why buying at 126.55 but I still pulled the trigger as I need to learn to buy on the way up
22-Apr-2021EntryMastek LimitedCame in annual growth screen, quarterly growth screen and near breakout. Cheat entry as breakout did not happen but something seems to be changing in company plus i was keen to increase exposure to IT
23-Apr-2021EntryIndus TowerCame in some growth screener I was testing
23-Apr-2021 ReduceTv18 BroadcastHad failed breakout. Overstayed welcome. Good results giving exit near break even. Taking it
26-Apr-2021AddSanghvi Movers Adding to position
29-Apr-2021Reduce Tv18 Broadcast Had failed breakout. Overstayed welcome. Good results giving exit near break even. Taking it
30-Apr-2021
Exit Tv18 Broadcast Had failed breakout. Overstayed welcome. Good results giving exit near break even. Taking it
30-Apr-2021ReduceRPSG VenturesLosing patience. Other ideas looking more tempting so trying to create a bit of cash
30-Apr-2021New EntryAshiana HousingBeen studying this for a long time. Today announcement of new project land acquisition. Took small entry
30-Apr-2021Exit Indus TowerDiscovered some errors in screener. No longer makes the cut. Exited trade

Current Holdings (Last Updated : 13-April-2021)

#Stock
1Hemisphere Properties
2Piramal Enterprises
3Raymond Ltd
5Take Solutions
6Ashiana Housing
7Navneet Education Ltd
8Ganesh Ecosphere Limited
9Sanghvi Movers
10RPSG Ventures Limited
11Bajaj Consumer
12KEI Industries

While my investing errors are far too many and too painful to recount, I will summarise them under a few headings:

Going on tilt – This is a common well known behavioural trait when you go a bit crazy trying to get back from a losing position. In my case it usually meant averaging losing positions like a maniac in the hope of a turn. Needless to say the turn did not come while I had the position was open. I have had two painful episodes of this in the last five months. One a short bet on the market after Trump lost hoping he would do something crazy and a BAnk Nifty Short early feb at 31000. Yes I know there is something called “stop loss” but nothing matters when you are on TILT.

According to Wikipedia, Tilt originated as a poker term for a state of mental or emotional confusion or frustration  in which a player adopts a less than optimal strategy, usually resulting in the player becoming over-aggressive. 

Betting too large – Sometimes one bets too large a position which clouds your thinking and messes with your decision making. I had an outsized position in NIIT in Feb 2020 at about 93 which I panic closed at about 83 after seeing it dip to 67.40 on 20-March-2020. For those who have not followed NIIT, it went up to 202. In hindsight, it was the position size that did me in, as I have held to some other stocks through the panic sell off and recovery because the position size was not large enough to create unmanageable stress.

Disclosure: Though I am pretty certain no one will be idiotic enough to buy or sell shares based on what is written on a blog, nevertheless this does not constitute financial advice or recommendations of any kind. This is just a personal account of my attempt to avoid getting slaughtered in the stock markets.

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