Foreigners Net buyers

SmartTrader · 1 Foreigners Net buyers Wed Oct 12, 2011 4:33 pm

SmartTrader

Stock Analytic

Posts : 15
Equity Stars : 4622
Reputation : 0
Join date : 2011-10-04

foreigners are the net buyers today with 425 Million ( total buy = 450 Mill, total Sell = 25 Mill)
therefore, bourse will bounce back soon.our poor guys are selling for them to buy....OMG Rolling Eyes

hold shares for some time untill it bounce back to gain profit rather being at losers edge.
3 rules to remember.
1. Never sell at loss
2. Never buy at peak.
3. Never forget rule No 1

godswen · 2 Re: Foreigners Net buyers Wed Oct 12, 2011 4:35 pm

godswen

Senior Manager - Equity Analytics

Posts : 469
Equity Stars : 5509
Reputation : 65
Join date : 2011-02-02

SmartTrader wrote:foreigners are the net buyers today with 425 Million ( total buy = 450 Mill, total Sell = 25 Mill)
therefore, bourse will bounce back soon.our poor guys are selling for them to buy....OMG
hold shares for some time untill it bounce back to gain profit rather being at losers edge.
3 rules to remember.
1. Never sell at loss
2. Never buy at peak.
3. Never forget rule No 1

What about rule 2? Is it okay to forget rule 2? Rolling Eyes

Leo · 3 Re: Foreigners Net buyers Wed Oct 12, 2011 4:55 pm

Leo

Manager - Equity Analytics

Posts : 296
Equity Stars : 4997
Reputation : 15
Join date : 2011-09-22

Hi Hi/ It seems rule 2 is optional. Forgeting is ok.

The actual rule should be,
1. when prices are dropping, sell. Even though you make a loss sell.
2. When Further dropped , buy again at a much lower price.

Universalgoal · 4 Re: Foreigners Net buyers Wed Oct 12, 2011 4:59 pm

Universalgoal

Assistant Vice President - Equity Analytics

Posts : 859
Equity Stars : 6656
Reputation : 38
Join date : 2011-09-15
Age : 42
Location : Universe

but some of the strong shares has endless bottom (ex. HHL, BALA, RCL)

Leo · 5 Re: Foreigners Net buyers Wed Oct 12, 2011 5:06 pm

Leo

Manager - Equity Analytics

Posts : 296
Equity Stars : 4997
Reputation : 15
Join date : 2011-09-22

Universalgoal wrote:but some of the strong shares has endless bottom (ex. HHL, BALA, RCL)

If its an endless bottom, no point in holding. Dont just tie up money when its dropping.
Do some trading with some other share , then purchase back later when the drop is over. when hanging on to a droping share, when some others are doing ok, the loss is massive, considering the loss of next best alternative forgone. I know, the hard point is identifying the end of the drop, the turning point.

For that, Study the Share movements deeply, considering all internal & external factors. Identify the share movements. Get some expert advice.

Antonym · 6 Re: Foreigners Net buyers Wed Oct 12, 2011 5:28 pm

Antonym

Vice President - Equity Analytics

Posts : 1090
Equity Stars : 7442
Reputation : 275
Join date : 2011-02-09

A Quick Comparison based on today's closing prices:

India expected to grow @ 8.2% per annum
Market P/E Ratio = 18.5
Price/Book Value = 3.4
Dividend Yield = 1.5%

Sri Lanka expected to grow @ 8% per annum
Market P/E Ratio = 17.0
Price/Book Value = 2.1
Dividend Yield = 1.6%

(Sources: BSE & CSE websites; ADB forecasts of growth)

dhanurrox · 7 Re: Foreigners Net buyers Wed Oct 12, 2011 5:35 pm

dhanurrox

Vice President - Equity Analytics

Posts : 1158
Equity Stars : 7039
Reputation : 65
Join date : 2011-08-28

Leo wrote:

Universalgoal wrote:but some of the strong shares has endless bottom (ex. HHL, BALA, RCL)

If its an endless bottom, no point in holding. Dont just tie up money when its dropping.
Do some trading with some other share , then purchase back later when the drop is over. when hanging on to a droping share, when some others are doing ok, the loss is massive, considering the loss of next best alternative forgone. I know, the hard point is identifying the end of the drop, the turning point.

For that, Study the Share movements deeply, considering all internal & external factors. Identify the share movements. Get some expert advice.

good point Leo, i sold tafl,gran,ubc,sfin for loss and covered them easily, If I kept holding them I could be in a huge loss now

Rapaport · 8 Re: Foreigners Net buyers Wed Oct 12, 2011 5:35 pm

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Equity Stars : 5726
Reputation : 55
Join date : 2011-02-01

Sporadic foreign inflow can happen. The point to note is that there is no foreign participation throughout the market but only focused on JKH which can dry out.

If foreign participation occurs in many counters then that can be a positive sign. Days ahead will tell us. One problem CSE faces is liquidity and thus foreigners may prefer India over SL.

http://forum.srilankaequity.com/t11259-positive-equity-foreign-inflows-by-year-end?highlight=equity+froeign

salt · 9 Re: Foreigners Net buyers Wed Oct 12, 2011 5:43 pm

salt

Vice President - Equity Analytics

Posts : 1345
Equity Stars : 7808
Reputation : 90
Join date : 2011-01-31

SmartTrader wrote:foreigners are the net buyers today with 425 Million ( total buy = 450 Mill, total Sell = 25 Mill)
therefore, bourse will bounce back soon.our poor guys are selling for them to buy....OMG
hold shares for some time untill it bounce back to gain profit rather being at losers edge.
3 rules to remember.
1. Never sell at loss
2. Never buy at peak.
3. Never forget rule No 1

This is a nice " gon part". If anybody knows the peak, will he buy? Nobody knows what is peak or what is trough ?

salt · 10 Re: Foreigners Net buyers Wed Oct 12, 2011 5:48 pm

salt

Vice President - Equity Analytics

Posts : 1345
Equity Stars : 7808
Reputation : 90
Join date : 2011-01-31

Antonym wrote:A Quick Comparison based on today's closing prices:

India expected to grow @ 8.2% per annum
Market P/E Ratio = 18.5
Price/Book Value = 3.4
Dividend Yield = 1.5%

Sri Lanka expected to grow @ 8% per annum
Market P/E Ratio = 17.0
Price/Book Value = 2.1
Dividend Yield = 1.6%

(Sources: BSE & CSE websites; ADB forecasts of growth)

Indian market can not control by a few goons
India market PE is less than what you have mentioned ( look at Bloomberg figures ) and much lower ,its forward PE
Their corporate governance is much better than ours ( at least in big companies)and institutional investor participation is much better
India is much systematically driven and having growth rate around 8% for over a decade

NewInvestor · 11 Re: Foreigners Net buyers Thu Oct 13, 2011 8:47 am

NewInvestor

Manager - Equity Analytics

Posts : 138
Equity Stars : 4779
Reputation : 0
Join date : 2011-09-07

salt wrote:

SmartTrader wrote:foreigners are the net buyers today with 425 Million ( total buy = 450 Mill, total Sell = 25 Mill)
therefore, bourse will bounce back soon.our poor guys are selling for them to buy....OMG
hold shares for some time untill it bounce back to gain profit rather being at losers edge.
3 rules to remember.
1. Never sell at loss
2. Never buy at peak.
3. Never forget rule No 1

This is a nice " gon part". If anybody knows the peak, will he buy? Nobody knows what is peak or what is trough ?

Warren Buffett said:
Rule No. 1 Never Lose Money
Rule No. 2 Never Forget Rule #1

Meka modify karanna gihin podi case ekak wela wage lol!

NewInvestor · 12 Re: Foreigners Net buyers Thu Oct 13, 2011 8:51 am

NewInvestor

Manager - Equity Analytics

Posts : 138
Equity Stars : 4779
Reputation : 0
Join date : 2011-09-07

Leo wrote:Hi Hi/ It seems rule 2 is optional. Forgeting is ok.

The actual rule should be,
1. when prices are dropping, sell. Even though you make a loss sell.
2. When Further dropped , buy again at a much lower price.

you are referring to stop loss strategy at 1, isn't it?