Shifting Profits
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Trading Psychology
Forum Discription: Discuss the psychological aspects of trading such as fear, greed and discipline. Why stocks are bought like perfumes and not groceries.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1459
Printed Date: 07/May/2025 at 4:36pm
Topic: Shifting Profits
Posted By: aloksahi1971
Subject: Shifting Profits
Date Posted: 17/Dec/2007 at 12:08pm
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I am intrigued by the fact that the best minds suffer losses.The markets have a mind of their own and slaves of earnings but still there times of extreme exeuberence and manic depresions . The market is not always fair to the stocks.
TED has taught us to be patient long termn investors in a concentrated portfolio that relies more on fundamentals rather than market wispers.But then some times some of the stocks we target may rise above the price that is the within our margin of safety.And short term profits may be generated from special circumstances.E.G IPO .
By appling to IPOs some profits can be generated.I ahve been aloted 60 MUDRA shares at IPO and now it is giving a 200% profit but it is not on my radar for long term same with Kolte Patil.
The stratery I want to discuss is that why not book profits in these counters ,take out the investment and deploy profits in Debt funds this will help to give stability and also provide Psychological support on any ocasion.
Your Views elicited.....
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Replies:
Posted By: basant
Date Posted: 17/Dec/2007 at 12:30pm
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Buy sell decisions should be initiated on fundamentals and not on how muc we have made and lost. ------------- '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 |
Posted By: smartcat
Date Posted: 17/Dec/2007 at 12:38pm
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If your intention of investing in the stock market is to increase the debt fund kitty slowly, then booking profits might be a good idea.
But if your intention is to put the money back into equities from debt fund later when sensex falls down to 8000 points, only then booking profits is a bad idea.
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Posted By: aloksahi1971
Date Posted: 17/Dec/2007 at 4:24pm
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Basanjee, I agree on the fundamentals for this any one visiting the TED site must be having a core portfolio to which He or She will add the shares as and when the conditions are right.But the market presents to us some opportunities akin to grabing the lowest fruit on the tree.These profits can be chanelled some where...
Smarcatjee,Waitng for the mkt to correct is not so bad.A lot of people may be regreting not booking profits in Feb 2000 or Mar 1992.Debt kitty increment will help take the presure off the mind in Bear mkts and may even help to raise cash to buy low valued stocks because at that time the core portfolio will require increment and not depletion.
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Posted By: smartcat
Date Posted: 17/Dec/2007 at 4:32pm
This I agree.
But rather than booking profits, it is better not to invest any more fresh money in equities instead. You can increase your debt fund kitty with your salary/business income.
But if you are retired, what you suggested seems to be a good idea.
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Posted By: aloksahi1971
Date Posted: 17/Dec/2007 at 5:11pm
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It is not that not putting fresh funds in equity is helping take money off the table.What I am looking to do is find the fine balance between various asset classes.This indeed will be dictated by an individuals comfort level with the ammount of risk involved.But risk must have rewards,these rewards have to be enjoyed.Rewards can only be injoyed(not blowing up the money) but changing the asset class and using these allied assets to support the equity purchasing !!! like leveraging.
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Posted By: hit2710
Date Posted: 28/Dec/2009 at 6:45pm
Smart Cat, first of all 
You seem to have predicted exact levels of 8000 way back in Dec 07 after which all hell broke loose.  ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: basant
Date Posted: 28/Dec/2009 at 8:15pm
Wow! I think Hit ji deserves as much credit for identifying this pots as Smartcat for making it. No wonder the cat is upset that no one takes him http://www.theequitydesk.com/forum/forum_posts.asp?TID=1578&KW=seriously&PID=123223#123223 - seriously these days! ------------- '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 |
Posted By: smartcat
Date Posted: 28/Dec/2009 at 11:58am
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Oddly, now I have made a plan to shift profits (after my portfolio reaches a particular value, roughly at around 21000 Sensex levels) into debt fund, like Aloksahi originally suggested.
Since you all are blowing air into my balloon, my ego & confidence is growing bigger. According to my CatVision - I think the Sensex will go to 21000, come back to 15000 and go up all the way to 40000.
If the above really happens, you'll see me on CNBC next to greats like Sudarshan Chakra, Big Ears and the Karvy Taklaa guy.
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Posted By: chimak10
Date Posted: 29/Dec/2009 at 12:02pm
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BUT AS THE MARKET IS JUST STALLING YOU HAVE STOOPED INTRODUCING NEW STOCKS!!!!!!
WHAT HAPPENED TO THE NEW STOCK INTROUDCTION |
Posted By: hit2710
Date Posted: 29/Dec/2009 at 12:06pm
Till that time, you take care of your whiskers and keep growing them ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: smartcat
Date Posted: 29/Dec/2009 at 12:10pm
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Since I own 100 stocks, now I just let hit bhai discover stocks and start a thread - I will pitch in with my "I own this one too"
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Posted By: hit2710
Date Posted: 29/Dec/2009 at 12:28pm
You can start by discussing the lesser known stocks in your portfolio and the rationale behind it. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: aloksahi1971
Date Posted: 29/Dec/2009 at 10:50am
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When I started this disc. I had no inkling about what was to happen..... But then I too made the cardinal mistake of waiting for a pre Budget rally. also I had promised to have an exposure of X to the stock market but the speed at which X was improved apon From November 2007 to January 2008 left me feeling like an idiot. I continued my stratergy till 15 December after that I was too frustrated at the rising market.
My cardinal mistake was to invest in Reliance power as a HNI with borrowed money to flip.I havnt yet learnt and did the same with NHPC. So this market noise and a smart maketing ploy by KOT... along with readings of the Gmkt lulled me into beliving that there was a free lunch but alas.
This time I think from the fund flows and tecnicals the time for arapid exit from the market will be in the fag end of Jan2010 or Feb 2010 when with each exuberent rise in the market will have the retail money in. ------------- Born To Golf forced to work. |