Investing Journal – Don’t be a pig

Last Updated : 23-Julay-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

Current Holdings (Last Updated : 23-Jul-2021)

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
04-May-2021ReduceRPSG VenturesReduced position in 379-389 range. Several sharp retracements from these levels in past so thought better to take some money off the table
06-May-2021Bajaj ConsumerExitStop loss of 7% hit. Looked okay but stuck to discipline of taking loss as decided and not shifting goalposts mid way (a very slippery slope indeed)
10-May-2021 Reduce RPSG Ventures Reduced position at 399. Several sharp retracements from these levels in past so thought better to take some money off the table
10-May-2021 Reduce Sanghvi MoversReduced position. Pure need to book some green. Nothing indicated weakness. Maybe infleunced by old painful loss in same stock 3-4 years back.
11-May-2021Add RPSG Ventures New ground for me. Added after recent exit at lower price. Great price action on heavy volume. new 52 wk high hit. Try for buy high sell higher here. Stop loss already placed in the system
14-MAy-2021ExitMastekRan up quite a bit quite. Had put a stop protecting 80% of open profits. Got taken out
18-May-2021New EntryRain IndustriesRecommended by a service I follow and was suggested earlier by a friend who is very astute investor too a few days back. Two signals so took the plunge
19-May-2021Reduce Sanghvi Movers Reduced position. Large moves looking like climax run. Nearing book value too and margin of safety in trade reducing
19-May-2021 ReduceKEI IndustriesReduced position. Large moves looking like climax run. Cash flows also not very good. Think better opportunities exist.
20-May-2021New EntryAcrysilAshish Kacholia pick. Also in my growth screeener
24-May-2021ExitAcrysilToo fast a move. Exited. Probably too early.
27-May-2021Add Sanghvi Movers Looks like a breakout on charts so added even though I just reduced a few days back
27-May-2021 New EntryRubfila InternationalCame in growth screener. Looks good. Niche biz, growing steadily. Capacity Expansion
01-Jun-2021Add Rubfila InternationalCame in growth screener. Looks good. Niche biz, growing steadily. Capacity Expansion
04-Jun-2021 ReducePELAgain selling too early I think but position size getting uncomfortable, hence the reduce
04-Jun-2021 Reduce Sanghvi MoversFearing a sharp drop, irrationally. Old wounds of losing a lot in this so desperate to end in green on this one
08-Jun-2021New EntryHILMarketSmith Recco. In our screens too
08-Jun-2021 ReduceRPSG VenturesLooks a good run. Taking money off the table. Sinks like an anchor when it does so not waiting for that. Again might be too early
08-Jun-2021 Reduce RaymondPre planned exit at 20% profit
08-Jun-2021 Reduce Sanghvi Movers Fearing a sharp drop, irrationally. Old wounds of losing a lot in this so desperate to end in green on this one
08-Jun-2021 Reduce PEL Again selling too early I think but position size getting uncomfortable, hence the reduce
09-Jun-2021 Add Rubfila International Came in growth screener. Looks good. Niche biz, growing steadily. Capacity Expansion
09-Jun-2021 Reduce RPSG Ventures Looks a good run. Taking money off the table. Sinks like an anchor when it does so not waiting for that. Again might be too early
10-Jun-2021 Reduce RPSG Ventures Looks a good run. Taking money off the table. Sinks like an anchor when it does so not waiting for that. Again might be too early
11-Jun-2021 Reduce RPSG Ventures Looks a good run. Taking money off the table. Sinks like an anchor when it does so not waiting for that. Again might be too early
11-Jun-2021 ExitHILRead Concall Transcript. Growth out look not too rosy. Too many moving parts in biz. Called it a day
11-Jun-2021 Add Rubfila International Came in growth screener. Looks good. Niche biz, growing steadily. Capacity Expansion
14-Jun-2021 ExitSanghvi MoversFearing a sharp drop, irrationally. Old wounds of losing a lot in this so desperate to end in green on this one
15-Jun-2021ExitNavneet EducationOriginal thesis broken. Was hanging on hope. Buyback giving me chance to exit with minor injury
15-Jun-2021 AddAshiana HousingLiking price action so adding a little
17-Jun-2021New EntryAgarwal IndustrialCame in screener, low PE. Taking a punt
18-Jun-2021ExitRPSG VenturesSharp drop from 575. Probably to shake out scaredy cats like me and they succeeded. I am out of this one
21-Jun-2021New EntryExcel IndustriesCame in screener. Looks good. Checks boxes though very volatile. Let us see how it goes
22-Jun-2021Add Excel Industries Came in screener. Looks good. Checks boxes though very volatile. Let us see how it goes
22-Jun-2021ReduceRaymond Pre planned exit at 20% profit
23-Jun-2021ReducePEL Again selling too early I think but position size getting uncomfortable, hence the reduce
23-Jun-2021 Add Excel Industries Came in screener. Looks good. Checks boxes though very volatile. Let us see how it goes
24-Jun-2021 Add Excel Industries Came in screener. Looks good. Checks boxes though very volatile. Let us see how it goes
30-Jun-2021New EntryZensar TechnologiesCame in some random screener I was testing and same day recommended by somone on CNBC. Took it as a sign and took entry
05-Jul-2021ReduceAgarwal IndustrialToo volatile for my liking. Booking profit to avoid pop corn trade
07-Jul-2021New EntryKirloskar FerrousMarketSmith reccomendation. Ferrous metals so took it as was looking for a play in that space
08-Jul-2021Reduce Agarwal Industrial Too volatile for my liking. Booking profit to avoid pop corn trade
12-Jul-2021Exit Agarwal Industrial Too volatile for my liking. Booking profit to avoid pop corn trade
23-Jul-2021New EntryManapurramCame in screener of Steady Compounders. Breakout above 194.80. Text book entry at 194.90 albeit on correction as I forgot to put the order earlier
#Stock
1Hemisphere Properties
2Piramal Enterprises
3Raymond Ltd
5Take Solutions
6Ashiana Housing
7Rubfila International
8Ganesh Ecosphere Limited
9Zensar Technologies
10Kirloskar Ferrous
11Rain Industries
12Excel Industries
13

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.

Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s