Whose strategy is the best to stay invested in the stock market.Pour your thoughts

opfdo

opfdo

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Case A: Mr.X is infusing a capital of Rs.1000/- and buying some portfolio of stocks.He is very conservative in his approach.His mindset is to hold the shares for a long term.He is diversifying his portfolio.Though some of his shares are giving negative returns he still stays with them.He is also trading some positive stocks.He is neither buying any more shares nor selling the profit showing shares.

Case B:Mr.Y is also investing the same capital of Rs.1000/- in the share market.His strategy is a bit different.He sells the shares after a period of time though it is trading negative.He used to change his portfolio quite often.He has traded some positive and negative returns.

Whose strategy is the best to stay invested in the stock market.Pour your thoughts

This is a caption of http://www.managementparadise.com/forums/stock-markets-tips-gyan/13105-case-study-whose-strategy-best-stock-market.html

Kumar

Kumar

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Case A seems to be OK.
But Case B you can find in CSE a lot.
BTW you can see 100+ viewers,but no one got a guts to answer your thread.
This is the common factor in this forum, only looking for gossips.

opfdo

opfdo

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Kumar wrote:Case A seems to be OK.
But Case B you can find in CSE a lot.
BTW you can see 100+ viewers,but no one got a guts to answer your thread.
This is the common factor in this forum, only looking for gossips.

yes kumar, i know it. most are looking for gossips

sriranga

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osmand wrote:

Kumar wrote:Case A seems to be OK.
But Case B you can find in CSE a lot.
BTW you can see 100+ viewers,but no one got a guts to answer your thread.
This is the common factor in this forum, only looking for gossips.

yes kumar, i know it. most are looking for gossips

Good to see a case study.
As kumar said I'm sticking to his way case A. (may be I'm wrong)

smallville

smallville

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There are pros and cons on both strategies..

A - longer the time u invest, more merrier.. but ur exposed to short term price fluctuations and there'll be oppertunities to earn money which u lose..
on the other hand u have peace of mind, u dont bother abt fluctuations, u only check the value in 3-5 years time ot more.. At that time, the share could be subject to rights, sub division, bonuses, etc.. which could come to u and u might consider applying for.. The initial investment may uplift to a 2-4 bagger easily.. U also have to keep a track of their financials, latest development to keep a breast on their progression, if not u can move out..

B - Seems like a swing trader, it can be a high risk high gain strategy.. U dont bother of financial strength, what comes next.. u just check the price fluctuations and benefit from it.. quite a good strategy provided that u keep a track of the movement of prices daily.. However sometimes this can lead to lot of trouble in a false rally. Since the aim is short-term it may lead to losses if not planned stop losses correctly. However a long term merits are higher in most practicle cases Wink

I personally like something in between.. I keep my investments long term but I moderately look at price fluctuations to benefit from it.. I may buy the share back in the event of fall if the company continues to show qtr-qtr, yoy growth.. There are some cyclical nature companies and sometimes companies may not live up to our expectations, then I check what went wrong before buying it back Wink

Kithsiri

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I would prefer 70% to 30% mix of A & B to keep me thinking, guessing and taking risks but not in the same proportions.

UKboy

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Interesting post Osmand. Thanks

My personal idea.

In a market like in Sri Lanka you need to revise your strategy time to time and then adapt to the new momentum of the market.
2002- 2005 I did 50:50 tradings and investings
2006-2009 I did 70:30 tradings and investings. Believe me. Surviving in that time was much harder than now. If you lucky you could get more than 10% out of a trading.
2009-2011 I did 90% investings.
2011 sold almost all the fundamentally sounds shares and did some tradings with Junks.
2012 I'm planning to go for 50:50 again. Its started but in very small scale. Most of my money is still out of the market. As I said long before I'll wait till end Feb before go for larger scale.

Being a survivor is the most important factor you should know in a market like CSE.

CSE.SAS

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I also want to go in the middle.

Trillionaire

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smallville wrote:There are pros and cons on both strategies..

A - longer the time u invest, more merrier.. but ur exposed to short term price fluctuations and there'll be oppertunities to earn money which u lose..
on the other hand u have peace of mind, u dont bother abt fluctuations, u only check the value in 3-5 years time ot more.. At that time, the share could be subject to rights, sub division, bonuses, etc.. which could come to u and u might consider applying for.. The initial investment may uplift to a 2-4 bagger easily.. U also have to keep a track of their financials, latest development to keep a breast on their progression, if not u can move out..

B - Seems like a swing trader, it can be a high risk high gain strategy.. U dont bother of financial strength, what comes next.. u just check the price fluctuations and benefit from it.. quite a good strategy provided that u keep a track of the movement of prices daily.. However sometimes this can lead to lot of trouble in a false rally. Since the aim is short-term it may lead to losses if not planned stop losses correctly. However a long term merits are higher in most practicle cases

I personally like something in between.. I keep my investments long term but I moderately look at price fluctuations to benefit from it.. I may buy the share back in the event of fall if the company continues to show qtr-qtr, yoy growth.. There are some cyclical nature companies and sometimes companies may not live up to our expectations, then I check what went wrong before buying it back

UKboy wrote:In a market like in Sri Lanka you need to revise your strategy time to time and then adapt to the new momentum of the market.
2002- 2005 I did 50:50 tradings and investings
2006-2009 I did 70:30 tradings and investings. Believe me. Surviving in that time was much harder than now. If you lucky you could get more than 10% out of a trading.
2009-2011 I did 90% investings.
2011 sold almost all the fundamentally sounds shares and did some tradings with Junks.
2012 I'm planning to go for 50:50 again. Its started but in very small scale. Most of my money is still out of the market. As I said long before I'll wait till end Feb before go for larger scale.

Very interesting!! Thanks for your views!! Smile

manula

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I was in CAT A till last August and after that moved to CAT B and same time still holding CAT A fundmental shares. What ever i gain from CAT B these days used to buy again more fundmental shares.

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Whose strategy is the best to stay invested in the stock market.Pour your thoughts

1 Whose strategy is the best to stay invested in the stock market.Pour your thoughts Sat Jan 07, 2012 2:21 pm

opfdo

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Kumar

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