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Trading Psychology
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Message Icon Topic: This is what the PMS guys buy!!! Post Reply Post New Topic
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basant
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Quote basant Replybullet Posted: 23/Aug/2007 at 6:16pm
No, never this is dangerous though I do it with ICICI Bank as loan against shares exposure is quite less but if you go through with a broker on margin funding then they would make you churn because that is how they make money.
 
Unless you are very sure of something please do not do this. It normally cuts an investor into half!!!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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aloksahi1971
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Quote aloksahi1971 Replybullet Posted: 23/Aug/2007 at 6:21pm

Basant Sir, Kotakwala samne baitha hai asking me to close the PMS and purchase a account that will let me trade with this exposure. All sale /pur routed through Kolkata dealer.

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basant
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Quote basant Replybullet Posted: 23/Aug/2007 at 6:38pm
Trading a portfolio is only for an expert in that field who does not mind losing some part of his capital.If that  startegy suits you then only go for it.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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aloksahi1971
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Quote aloksahi1971 Replybullet Posted: 23/Aug/2007 at 6:52pm
No Sir, the people are saying that the cash generated from my PMS will be put in the account . All trades made at my discretion and above this an exposure will be given.
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BubbleVision
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Quote BubbleVision Replybullet Posted: 23/Aug/2007 at 7:15pm

Alok….I would recommend you going against this strategy if you are NOT a professional trader. For a part time trader, sooner rather than later, he is likely to lose all his money.

 

I met a professional trader a couple of days back, who had 7 consecutive losing trades in copper. Down 3% of his equity in each trade. However in 8th trade, he tripled his money. How many part time traders can trade for the 8th time using the same strategy after having 7* consecutive losses? If you can, then go for low leverage, large positions, small stops and don’t expose more than 2% of your equity on any trade.

 

Good Luck.

 

 

 

 

* I am hoping to repeat his strategy. My last four trades in zinc have all been stopped. I am waiting for the fifth signal.

You can't make money if you are unwilling to lose...It's like willing to breathe in but not willing to breathe out. -- ED SEYKOTA ....Read Disclaimer!
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aloksahi1971
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Quote aloksahi1971 Replybullet Posted: 23/Aug/2007 at 9:58pm
At first this is what I want done . But in case the margin in trade is allowed and instead of churning the porfolio  cannot a person use this to buy and hold stocks with 1 year time horizon.
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Quote basant Replybullet Posted: 23/Aug/2007 at 10:38pm
Then take a bank loan as overdraft against shares interest rates are lower. Also read this Buying shares on a loan - Pros and Cons! 
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Mr. V
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Quote Mr. V Replybullet Posted: 23/Aug/2007 at 11:58pm
Does ICICIDirect allow online pledging of shares or does one have to sign some physical forms ?
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