Can only buying a crash be profitable?

Hey. I know this is random. But I was just curious to know if you have been generating such returns ? Because these are excellent numbers.

You know that better than me in anyway! Iā€™m not currently into swing department, so Iā€™m wrong here, but atleast 30% returns can be captured per annum.

If in one trade, returns are 2-3% than it may possible i thought, but yes i donā€™t know the reality, i should not say that :smiley:.

Yes. I am not saying itā€™s not possible. Am sure many generate such returns. Even 30 percent is very good return. Your money doubles in 3 years.

1 Like

I am having more than that returns on many trades, but I am equally losing such returns on many trades, losing trades. It is these losing trades you are not taking into account.

There are ways I think I can do to refine this, want to do them :person_fencing:

1 Like

Well, how much RR do you usually get in swing trading? I thought 1:3 is usual.

1:3 will be a dream for me :star_struck:

I am yet to build a strategy, so right now, I am looking at 1:1.5 RR. As I have created only a basic strategy now, SLs sometimes are hitting quickly, so I keep more than 1 risk, I am sure it will go down even further, and to compensate for such a loss, I will have to win 2 trades. So 1 risk.

And although occasionally return goes beyond 1.5, I am okay with 1.5, and I am of the hope that I could find many more such picks.

So 1:1.5 as of now is alright.

But I guess it is not just about R:R, it is about scaling up, is my strategy strong enough that I can dare to double my capital, triple my capital, this is the real question for me, and the answer as of now, no I cannot double :face_with_peeking_eye:

I am hitting boundaries with a tennis ball, can I hit boundaries with a real cricket ball? :cricket_bat_and_ball:

Really? I have calculated 60% returns as 1:4 average RR and that too with 7/10 winning streak! Looks like Iā€™m very far to reality :smiley:

What is the number of loosing trades per 10 trades you do in swing trading?

Whatever the numbers are, they are irrelevant unless they are what I can get, because it has been only a few months. So may be if I can make the strategy better little by little, then I can say something about them.

Looks like I should just give you my money instead of me doing, as you seem to think you can do it way better than me, you want to manage or be my partner? :grin:

Its varied everytime how much and how the market will crash + its not easy to analyze when market will recover. This becomes a barrier to when you will invest. Maybe invest 1/3rd money whenever you feel like, so you wonā€™t regret that I didnā€™t invest.

You will have to wait for many years, for such opportunity. Which makes your return from this investment strategy is not fixed, I would say donā€™t depend on this strategy alone. It could work Iā€™m not saying it cannot.

If you want better strategy you can always learn, there are many available in public platforms freely.

You donā€™t need to study it. Just spend some more time, market will teach you automatically.

Trend is your friend. Do not stack up stocks that are not showing any strength to stay afloat. Instead, buy into stocks that are trying to move up.

1 Like

I have not traded into swing segment, so you better know that if Iā€™m your partner, i will go down accompanying you :smiley:. You are in that field from long time, Iā€™m in field of intraday, however i also want to slowly establish myself into swing trading, so right now, whatever number Iā€™m saying on swing is just numbers, they are not backed by real trading.

Maybe 1:2 RR is good with your strategy, in my strategy, i give whole importance to RR, if i not get good RR, then i donā€™t trade even if i can earn some. Actually, i donā€™t care about accuracy, i know when correction starts and when ends, so i know where trend start and where it can end. So i manage to enter in starting of trend, in between i donā€™t trade.

Thatā€™s also the situation with me, i cannot say right now anything, letā€™s see what happens in a year. I think one year is good number to get the actual numbers :smiley:

Who knows, may be you can get it better than me, I will not deny that. How about taking a couple of trades, very small ones?

There are high margin businesses, then there are low margin high sales businesses, both make profits. So I am looking at applying this to my trading.

Suits beginners, that is a good start, good advice.

Yes. When I read the users, initial query, I thought the user was a newbie, but later chat reveal the user is well aware of the market and hence I deleted my views.

No, I donā€™t think she is doing what you have suggested, a step by step, methodical, standard learning and practice of investing in stocks. So it is a good advice.

I wish I knew this when I started.

Buying any stock in a crash is not profitable. You have to have a system to make money in the market. If you are investing in individual stocks then the market levels do not matter assuming you buy based on a bottom-up approach. As investors, we should be comfortable with the portfolio in red (even with a 50% loss). The profits from some stocks should more than compensate for 50% losses.

If we jump in and out of markets there is no use. They are studies in the US
" 78% of the stock marketā€™s best days occur during a bear market or during the first two months of a bull market. If you missed the marketā€™s 10 best days over the past 30 years, your returns would have been cut in half. And missing the best 30 days would have reduced your returns by an astonishing 83%."

Try searching ā€œif you miss the best days in the marketā€

2 Likes

Yes i had also read this somewhere ,but i should keep this in mind going forward.

Buying on crash always may not be profitable ,because individual stocks will have their own reason to crash , be it management issue, or may be profitability , but if you buy ETFs like Nifty Bees during market crash is always profitable , since these ETFs are based on index , in an index some stocks may not perform , some other do good performance , if you look at older data , always Index bounce back after market crash& so the ETFs compare to individual stock , For example Suzlon , was at one point of time , was an Index stock