Last Updated : 19-May-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.
|Was liking price action so added a wee bit to existing position|
|09-Apr-2021||Add||Bajaj Consumer||Bought 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-2021||Add||Piramal Enterprises||Added 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-2021||Reduce||RPSG Ventures||An 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-2021||Entry||KEI Industries||Good 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-2021||Add||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-2021||Add||Sanghvi Movers||126 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-2021||Entry||Mastek Limited||Came 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-2021||Entry||Indus Tower||Came in some growth screener I was testing|
|23-Apr-2021||Reduce||Tv18 Broadcast||Had failed breakout. Overstayed welcome. Good results giving exit near break even. Taking it|
|26-Apr-2021||Add||Sanghvi Movers||Adding to position|
|29-Apr-2021||Reduce||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-2021||Reduce||RPSG Ventures||Losing patience. Other ideas looking more tempting so trying to create a bit of cash|
|30-Apr-2021||New Entry||Ashiana Housing||Been studying this for a long time. Today announcement of new project land acquisition. Took small entry|
|30-Apr-2021||Exit||Indus Tower||Discovered some errors in screener. No longer makes the cut. Exited trade|
|04-May-2021||Reduce||RPSG Ventures||Reduced 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-2021||Bajaj Consumer||Exit||Stop 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 Movers||Reduced 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-2021||Add||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-2021||Exit||Mastek||Ran up quite a bit quite. Had put a stop protecting 80% of open profits. Got taken out|
|18-May-2021||New Entry||Rain Industries||Recommended 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-2021||Reduce||Sanghvi Movers||Reduced position. Large moves looking like climax run. Nearing book value too and margin of safety in trade reducing|
|19-May-2021||Reduce||KEI Industries||Reduced position. Large moves looking like climax run. Cash flows also not very good. Think better opportunities exist.|
Current Holdings (Last Updated : 19-May-2021)
|7||Navneet Education Ltd|
|8||Ganesh Ecosphere Limited|
|10||RPSG Ventures Limited|
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.