What was your aha moment

General
21

Is it possible to do all of these for stocks for delivery trades, not intraday? I could think of some.

Can you do that?

22

Nah. Not at all. My universe is just nifty 100. So it’s fine. I don’t break my head. Some day or the other it will go up. Just like @ANKIT_T said if I trigger SL what’s the guarantee that the new stock I enter will outperform the one I exit?

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23

I know that there are many ways to skin the cat, there are many ways to make money in the market, we choose what suits us. But did you think about opportunity cost, or you can afford to lose opportunity cost?

Affordability varies from person to person but time value of money is real. We get stuck with an investment, it may not go down, but it wont go up either, so there is also the possibility of losing an opportunity being stuck.

I kind of had the same thinking, I had the same perspective, but I started to use stop loss, and now using GTT, SL hits and that particular trade is over, done and dusted.

I know each one’s situation is different, but just saying.

24

What’s the guarantee that after I exit the stock it won’t bounce back. And the one I enter won’t fall.
Let me tell you some of the socks I hold which when I entered nobody would have because technically it wasn’t a buy then.

  1. SBI from 160. Covid time. All were asking me to exit and move to something else.
  2. Tatamo at an avg of 110
  3. ITC 190

On the other hand I do have hdfc twins and hdfc life which are around 2 percent margin and my holding period is more than 2 years already. I do not know when it will move. But it will move some day for sure. Till then I will keep selling calls and make 2 percent per month.
One more if HUL. Buy price is 2300 and it’s been 2 years already. I am selling 2500 call from past 25 months. And so far the premium that I have accumulated comes to 40 percent of the stock value. So it doesn’t bother me even if it’s stuck at the same price for so long.

There are many more which were not moving for almost 3 years. And now there are all at 200 percent plus profit. And to cover my opportunity cost I keep selling higher level calls.

I entered nifty futures at 15600 when technically everybody was like nifty will fall to 14k and all. I exited all long at 17200. But we went to 18k. I feel we can’t time the market. Above 18k everybody was saying we are going towards all time high. And in 2 days we fall 500 points.
I might be wrong but for me this really works. I do have a very decent XIRR after 5 years in market.

Having said all the above I know I can still be wrong. But for now this works for me.

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25

I am not talking about investments, that is a completely different ball game.

I am talking about taking a trade for a smaller time frame, having no stop loss, and not selling it. And one must have good capital if some gets stuck in a trade, so there is that.

As one gains experience, one gets to judge better, taking trades with highest rate of probability given the choices. Not that the pick will definitely be a winner, but the chance of choosing a winner increases more with time, the odds increase.

I made a bit of money in different ways, and I know one has to know what works for oneself, no comment regarding this.

I guess if some newbie reads these posts in the future, he gets to know different perspectives, so I guess this helps :grin:

2 Likes
26

Ah. Then I am not the right person to comment. I am more of an investor though I trade in derivatives everyday. Because I use derivatives also more like an investment.

Yes. Because what I think now is totally different from what I used to think 5 years back. Huge difference.

27

You do all complex stuff to get 2% only?

28

That’s 30 percent per annum. What more should I ask for. I am doing it for 5 years now. Do you see the compounding here. ??

29

I mean I get 2 % in half hour.

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30

Wowww. That’s excellent. You can double your money every month. I take 2.5 years.

31

that’s why he will stay longer in game

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32

Not necessarily. She is talented enough to do it in less time. I respect that. Just that I can’t do it. She too will stay in the game for long.

33

initially I wanted to replace ambani now realised even piss off returns such as 2% monthly can be game changer

34

I am not rubbing against you. But you talk about complex stuffs and seem to work hard.

And yet end with 2%. I was expecting more like 20% with that kind of brain.

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35

2% with whole capital?

36

I feel 2 percent is only a lot. The returns you get over and above risk free rate is called risk premium.
Risk premium is the premium you get for taking additional risk. So if I am making 30 percent and FD rate is 7 percent I am making additional 23 percent. So am taking so much risk.

37

Yes, you are talking about holding large caps and trading in derivatives :+1:

38

ya, last month I got to know that he is CA, so maybe that’s why

39

I take it in the right spirit. For me 1 percent of my capital is a lot. If I can generate even 0.1 percent per day of my capital then it’s worth sitting in front of the screen for 6 hours.

40

There is nothing with CA and trading.

In fact, there is no degree which teaches you how to trade.

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