What is the best strategy now?

dineshfernando

dineshfernando

Senior Manager - Equity Analytics

Posts : 573
Join date : 2011-02-05

What is the best strategy now? - Page 2 Invest10

First of all I must thank to CSE a lot because I made over 200% gain over the last 2 years. I have been trading over 6 years in total and seen many downs and ups of the market. 95% of my portfolio is of fundamental shares and undervalued shares.

At this present condition, I have been losing almost Rs. 200,000/= everyday. I am planning to quit temporarily and come back with 50% of portfolio when things are ok. My portfolio value is 8 digit figure and if I dispose it and put it in a fixed deposit I will earn more than my present salary.

My options are:
1) Dispose entire portfolio and deposit it in fixed deposit account
2) Dispose 50% and reinvest it in plantations (coconut)
3) Quit the job and spend more time on trading
4) Buy an appartment and rent
5) Do nothing and wait till the market recover

Also, I would like to know how many of you are doing trading as a job (full-time). I have more than 25 years to retire but I feel if I spend more time in the market I always can make more gains and reduce loses. I'm also fed up with my present job.

Friends, please advice me.

Fri Jun 24, 2011 1:51 pm by uditha9 · Fri Jun 24, 2011 1:51 pm by uditha9

sell some shares&buy some gold.i dont advice you to quit the job.

Fri Jun 24, 2011 2:41 pm by Aamiable · Fri Jun 24, 2011 2:41 pm by Aamiable

enslive wrote:In my opinion ,

best strategy is to keep holding, Don't be panic selling @ low , pump additional money to buy fundamentally strong shares at low level

Finally,, plane for the worse... hope for the best

Hope for the best !

Fri Jun 24, 2011 3:14 pm by ssb · Fri Jun 24, 2011 3:14 pm by ssb

fingers crossed and trust on god i lost 20% of my portfolio
Sad

among

Fri Jun 24, 2011 3:49 pm by sapumal · Fri Jun 24, 2011 3:49 pm by sapumal

sleep few months

Fri Jun 24, 2011 8:57 pm by rijayasooriya · Fri Jun 24, 2011 8:57 pm by rijayasooriya

Forget the market(not for ever) and try to find a satisfactory job

Sat Jun 25, 2011 6:27 am by ShareShares · Sat Jun 25, 2011 6:27 am by ShareShares

Now declining phase is almost over there was a problem of lack of funds, that phase seem to be over. Now onwards I keep an eye on a different set of shares where there are enough funds.

In the next half of the year, I look for stocks where there is institutional baying, foreign partipation is active technically proven to be sound .

From this base level real and sustainable growth is expected.

Tue Jul 12, 2011 6:24 am by Jonathon · Tue Jul 12, 2011 6:24 am by Jonathon

look for shares which are fundamentally strong and undervalued with this strategy you will not go wrong

Tue Jul 12, 2011 1:31 pm by maalinda · Tue Jul 12, 2011 1:31 pm by maalinda

If you have been in the market 6 years im sure you have seen worst before. So why panic ? If i were you what i ll do in this situation DO NOTHING AND WAIT TILL IT RECOVER.

same time buy small quantities at low prices and sell with small profit if can to book some profit That is what im doing from last 2 months.

QUIT JOB is stupidest thing to now. atleast you have an income cuz of that.

Good luck. We all have red PF... wait this is not forever... it will recover sooner or later.

Wed Jul 13, 2011 1:26 am by LateTackle · Wed Jul 13, 2011 1:26 am by LateTackle

Protect your gains sell and buy when market drops another 500 or 600 points, probably will happen between now and September

Thu Jul 14, 2011 2:25 pm by Investor99 · Thu Jul 14, 2011 2:25 pm by Investor99

First thing we got to understand is that this is not a market crash but an induced market correction. In my opinion this is a good time to buy shares if there is extra cash. There are a few fundamentally strong undervalued shares in certain growth industries in the market that would yield above average returns in the long term (2 to 3 years).

Thu Jul 14, 2011 4:05 pm by **Antonym** · Thu Jul 14, 2011 4:05 pm by **Antonym**

@dineshfernando: You are in an enviable financial situation and can now afford to start engaging in 'the pursuit of happiness'. What else are we living for?
My advice would be:
1. If your portfolio consists of fundamental & undervalued shares, don't sell them all... but try to restrict your equity percentage to 100 minus your age.
2. Fixed Deposits and renting out an apartment are very good ideas that will assure you a fixed income while preserving the principal. (I don't know much about coconut plantations, though.)
3. If you are fed up with your present job, quit and spend more time on what you like doing, i.e. trading! But keep your professional skills up to date, keep the saw sharp; If you've read 'The Monk Who Sold His Ferrari', you'd understand what I'm trying to say...
All the Best! Smile

Thu Jul 14, 2011 4:28 pm by **Monster** · Thu Jul 14, 2011 4:28 pm by **Monster**

Antonym wrote:
1. If your portfolio consists of fundamental & undervalued shares, don't sell them all... but try to restrict your equity percentage to 100 minus your age.

@Antonym, can you elaborate more in detail? Why we should restrict our equity percentage based on our age?

Thu Jul 14, 2011 4:45 pm by **Antonym** · Thu Jul 14, 2011 4:45 pm by **Antonym**

'100 minus your age' is an equity allocation rule of thumb (that I try to follow). The rationale is that equity shares, in general, give the best returns in the long term. However, good shares sometimes take many years to yield their full benefit - through capital appreciation and dividend yields.

At a younger age, more time is available; therefore a higher equity percentage is justified. This link explains it better...
http://www.boerse-frankfurt.de/EN/index.aspx?pageID=44&NewsID=298

Thu Jul 14, 2011 9:17 pm by Tiger · Thu Jul 14, 2011 9:17 pm by Tiger

Tiger wrote:If I were you I would dispose about 25-50% of PF even with some losses, after carefully selecting high P/E forwards. Keep this money in liquid form and keep until this down trend ends. I expect this to be end by beginning of Q4, until then those with high p/e's will seek its bottom (i.e. until Q3 results, those companies which cannot support these high p/e with actual results will sink).

Again enter the market if you wish. I believe 2012 to be exciting year.

This is my personal view please obtain professional advice before making your investment decisions.

Thu Jul 14, 2011 9:27 pm by ShareShares · Thu Jul 14, 2011 9:27 pm by ShareShares

Market turmoil is over, many expect a green smooth running stock market tomorrow onwards which would properly reflect corporate earnings. I personally prefer to enter CSE with few shares which are not dependent on credit. Hope to enter step by step little at a time with a diversified PF. Others may be having different ideas, I focus on medium term investments. Meanwhile I respect all kinds of different strategies. Each investor selects best strategy suitable for them according to his or her ability to invest and hold on to thier shares.

Fri Oct 28, 2011 2:02 am by Kumar · Fri Oct 28, 2011 2:02 am by Kumar

Buying shares now is good for long term investment.

Fri Oct 28, 2011 7:50 am by Soundchips · Fri Oct 28, 2011 7:50 am by Soundchips

What is the Exit strategy

Fri Oct 28, 2011 11:42 am by Kumar · Fri Oct 28, 2011 11:42 am by Kumar

Soundchips wrote:What is the Exit strategy

After making reasonable profit.
Fundamental shares will bounce back in their own pace.

Fri Oct 28, 2011 12:30 pm by rijayasooriya · Fri Oct 28, 2011 12:30 pm by rijayasooriya

Kumar wrote:

Soundchips wrote:What is the Exit strategy

After making reasonable profit.

Very very intelligent Wink

Fri Oct 28, 2011 7:44 pm by Tiger · Fri Oct 28, 2011 7:44 pm by Tiger

Tiger wrote:

Tiger wrote:If I were you I would dispose about 25-50% of PF even with some losses, after carefully selecting high P/E forwards. Keep this money in liquid form and keep until this down trend ends. I expect this to be end by beginning of Q4, until then those with high p/e's will seek its bottom (i.e. until Q3 results, those companies which cannot support these high p/e with actual results will sink).

Again enter the market if you wish. I believe 2012 to be exciting year.

This is my personal view please obtain professional advice before making your investment decisions.

I have nothing to say other than repeat what I said many times before. If you had correctly followed the market this year you would have been able to double your wealth in 2011; in terms of the number of shares you had in the same companies. Still I have one thing to say, you should be entering into oversold market and not wise verse.

Tue Nov 15, 2011 1:54 am by shaankh · Tue Nov 15, 2011 1:54 am by shaankh

Do your own business. When market is blooming come again.

Tue Nov 15, 2011 8:59 am by Soundchips · Tue Nov 15, 2011 8:59 am by Soundchips

rijayasooriya wrote:

Kumar wrote:

Soundchips wrote:What is the Exit strategy

After making reasonable profit.

Very very intelligent

when there continuous.. negative sentiments imposed on investors what other options are left...

Tue Nov 15, 2011 8:59 am by arrowms · Tue Nov 15, 2011 8:59 am by arrowms

dineshfernando wrote:
Also, I would like to know how many of you are doing trading as a job (full-time). I have more than 25 years to retire but I feel if I spend more time in the market I always can make more gains and reduce loses. I'm also fed up with my present job.

Friends, please advice me.

25years to go!!!! I think U have to get experience lot in life. Better to start full time work in the market at the age of 45. 'cos u have energy to work @ office and manage stock trading now.

Tue Nov 15, 2011 9:13 am by bePositive · Tue Nov 15, 2011 9:13 am by bePositive

great damage done to CSE by passing an unwarranted under performing business acquisition law, which would make it worse for CSE.

Tue Nov 15, 2011 12:54 pm by Aamiable · Tue Nov 15, 2011 12:54 pm by Aamiable

however, consequences and stock market response seem to be very inappropriate.

Tue Nov 15, 2011 1:11 pm by yellow knife · Tue Nov 15, 2011 1:11 pm by yellow knife

There is no one unique strategy..We all develop our own strategies..

Fixed Deposit is still not the solution as return is less..Giving up job and do fulltime trading has no value at alll....to do business is really good..it need more courage than paper trading...continue collecting stocks....

Tue Nov 15, 2011 6:55 pm by indika11 · Tue Nov 15, 2011 6:55 pm by indika11

WHAT WILL BE THE BEST STRATEGY AT THIS MOMENT TO -SELL -HOLD-BUY OR AVARAGE.I WOLD PREFER TO HOLD AND AVARAGE (IF CAN AFFORD) Question

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Last edited by tkc on Wed Nov 16, 2011 6:45 am; edited 1 time in total (Reason for editing : removing capital letters in the topic)

Tue Nov 15, 2011 8:45 pm by rijayasooriya · Tue Nov 15, 2011 8:45 pm by rijayasooriya

SELL:- Craps if u can exit even with a marginal loss.
HOLD:-Fundamentally sounds shares.
BUY:- Fundamentally sounds undervalued(or fairlyvalued) shares.
AVERAGE:-Mmmmm.....bit tricky bussiness as bottom seems to be 'bottomless.' Wink

Tue Nov 15, 2011 10:02 pm by Aamiable · Tue Nov 15, 2011 10:02 pm by Aamiable

I have fundamentally sound stocks... they are also bottom less...

Wed Nov 16, 2011 8:22 am by **tkc** · Wed Nov 16, 2011 8:22 am by **tkc**

If you have no confidence about cse it is better to do "short trades". But still I m collecting fundamentals. But I m also losing my confidence level little bit now. Smile