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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Guideline For Investing @ CSE

Guideline For Investing @ CSE

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1Guideline For Investing @ CSE  Empty Guideline For Investing @ CSE Wed Mar 16, 2011 11:08 am

SL.Market

SL.Market
Vice President - Equity Analytics
Vice President - Equity Analytics
Those stratergies gathered by my self with trading at CSE... Strogly Believe If this follow You will not lose or will lose less...... these are the points... if i m wrong, i know there are lot of experts here to make me correct...
Happy Trading

1.Dont invest all the money you have...Amount should be decided by your self with other expenditure/responsabilities and your capacity... As a example if you decide to invest Rs.100,000 then don't just put all money to the market, I recommended 60% is best.

2.If you are a begginer, you shoud get advise from broker to which share on investing and don't expect the profit day after you investing.Read business articles and treads in the forums. read anouncement in the cse and chech how it affets to the relevant shares. if you cant understand the what is anouncement please get advise from others.

3.If the market is down treand, then the time to buy.. if it is up time to sell.... simply try to sell when others buy and try to buy when others sell. dont buy just seen that it is green... you have to atleast 3,4 month should see the behavior of the stock.Then you understand the level which shopuld buy and sell.

4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit andsometime you arerequired to try/play with some share with no lost...

5.Very mech caution required when playing with rights and before buy lot of studies required to do.Even in the closer date of allonment/provisions the right, before play with them past experiences with behaving those importants.. following date of allonment the rights of perticular share... There may be BIG DANGER if buy without calculating the real values..
I will update this further...



Last edited by SL.Market on Wed Mar 16, 2011 12:19 pm; edited 2 times in total (Reason for editing : addindg)

2Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 11:22 am

Milindaperera

Milindaperera
Senior Equity Analytic
Senior Equity Analytic
A must read for new comers. Tnx 4 adding.

3Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 11:27 am

milanka

milanka
Vice President - Equity Analytics
Vice President - Equity Analytics
Good for beginers ..+ for you for your time ..

http://forum.srilankaequity.com/u188

4Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 11:31 am

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

5Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 11:49 am

wikum100


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
thanks your points highly helpful

6Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 12:00 pm

SL.Market

SL.Market
Vice President - Equity Analytics
Vice President - Equity Analytics
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

7Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 1:15 pm

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

There is no point to buy a downward share...We should see some upward momentum with the share if we want to average....Anyway you have highlighted very important facts..... keep it up my friend.. Smile

8Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 1:29 pm

SL.Market

SL.Market
Vice President - Equity Analytics
Vice President - Equity Analytics
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

There is no point to buy a downward share...We should see some upward momentum with the share if we want to average....Anyway you have highlighted very important facts..... keep it up my friend.. Smile

Dear tk..
I will not motivate any one to buy downword treand shares..
But taking this example when people are in trouble when it is down.. as per u or my experience we know how to overcome.. but how to affect it to new comer?

9Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 1:45 pm

NightStalker


Senior Equity Analytic
Senior Equity Analytic
@SL.Market wrote:Those stratergies gathered by my self with trading at CSE... Strogly Believe If this follow You will not lose or will lose less...... these are the points... if i m wrong, i know there are lot of experts here to make me correct...
Happy Trading

1.Dont invest all the money you have...Amount should be decided by your self with other expenditure/responsabilities and your capacity... As a example if you decide to invest Rs.100,000 then don't just put all money to the market, I recommended 60% is best.

2.If you are a begginer, you shoud get advise from broker to which share on investing and don't expect the profit day after you investing.Read business articles and treads in the forums. read anouncement in the cse and chech how it affets to the relevant shares. if you cant understand the what is anouncement please get advise from others.

3.If the market is down treand, then the time to buy.. if it is up time to sell.... simply try to sell when others buy and try to buy when others sell. dont buy just seen that it is green... you have to atleast 3,4 month should see the behavior of the stock.Then you understand the level which shopuld buy and sell.

4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit andsometime you arerequired to try/play with some share with no lost...

5.Very mech caution required when playing with rights and before buy lot of studies required to do.Even in the closer date of allonment/provisions the right, before play with them past experiences with behaving those importants.. following date of allonment the rights of perticular share... There may be BIG DANGER if buy without calculating the real values..
I will update this further...

Dude point 2 ask from brokers is not very recommended. they usually tend to promote shares there big fish bought and are stuck.

Point 3 is a very valid point. Point 4 depends on the share. If it is a lost cause better get out rather than average. Also I think you should point out that people should buy shares in a company if they are investing for the long term to look at past performance and the director board.

Ex: Disti this share should be trading at least 30-40% more fundamentally (maybe even more) But after Harry got Billions he just gave a 50 cent dividend. So I guess you need to factor in how management treats the common shareholder before buying shares or rights of the company.

10Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 1:50 pm

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

There is no point to buy a downward share...We should see some upward momentum with the share if we want to average....Anyway you have highlighted very important facts..... keep it up my friend.. Smile

Dear tk..
I will not motivate any one to buy downword treand shares..
But taking this example when people are in trouble when it is down.. as per u or my experience we know how to overcome.. but how to affect it to new comer?
I didn't say that u r motivating ppl to buy downward trend shares , did I ?
I m telling that averaging is a good option , but we have to identify its trends.....

11Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 1:54 pm

SL.Market

SL.Market
Vice President - Equity Analytics
Vice President - Equity Analytics
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

There is no point to buy a downward share...We should see some upward momentum with the share if we want to average....Anyway you have highlighted very important facts..... keep it up my friend.. Smile

Dear tk..
I will not motivate any one to buy downword treand shares..
But taking this example when people are in trouble when it is down.. as per u or my experience we know how to overcome.. but how to affect it to new comer?
I didn't say that u r motivating ppl to buy downward trend shares , did I ?
I m telling that averaging is a good option , but we have to identify its trends.....

okay.. I made a mistake.... thanking you for sharing the your valueble ideas...

12Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 2:00 pm

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
@tkc wrote:
@SL.Market wrote:
4.If the stck trading below the price you bought.. as example you bought stock 200 ABC at Rs.35 but now trading price is 30-31, you have to buy again at this level about 100 shares.(where 10%-15% below the original bought).If you see the share now being up you can sell some with the profit.if it is further down you may require to again buy 30%-40% below the original... these are the thing you have to done your own way and calculating ultimately you made profit or being safe.. because we cant expect profit from all the invesrtment and try to make profit and try to play with some share with no lost...

I will update this further...

You are talking about averaging....But before averaging we should see upward trend of that particular share....If it is in a downward trend it is not a good idea to average....

1st...what a point of buying downward trend share..?

But even in the downward there may be up mean time as we see today market.....

There is no point to buy a downward share...We should see some upward momentum with the share if we want to average....Anyway you have highlighted very important facts..... keep it up my friend.. Smile

Dear tk..
I will not motivate any one to buy downword treand shares..
But taking this example when people are in trouble when it is down.. as per u or my experience we know how to overcome.. but how to affect it to new comer?
I didn't say that u r motivating ppl to buy downward trend shares , did I ?
I m telling that averaging is a good option , but we have to identify its trends.....

okay.. I made a mistake.... thanking you for sharing the your valueble ideas...
cheers!! buddy Smile

13Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 6:00 pm

Fresher


Moderator
Moderator
good stuff.
buy when others sell and sell when others buy - heard it somewhere before Wink
anyhow this contradicts when you say average in an uptrend - means when others buy?

some more points I would add to this,
* Always know what you are buying -N,X,R, or W
* Know what business the company is into (one day a friend of mine to a question I asked said TAFL was into Tea business)
* Diversify your investment
* Do not trade on credit (not even someone else's money)
* Know the past values of a share price - to avoid buying at it's peak
* The most important one - be prepared to good bye to part of your money

14Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 6:58 pm

chamith

chamith
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
there are 2 strategies we can choose from;

1. Averaging
If the share price go down than the price you brought, then you can buy at lower and average your cost. But IF the trend is a constant downward trend then no point of buying now even if it looks cheaper to the price you firstly brought. But if you firmly believe this downward is just a temporary fluctuation then you can take the opportunity and average your cost.

2. Stop-loss
This is a very good strategy used by all professional traders. when you buy a share at a certain price, you can set how much of a risk you going to bear. (say 6% loss). this is the loss that you can afford to loose. In anytime the loss come down to the price that trigger your stop loss level then you sell it at a loss. Later we you see a upward trend you can buy again.


2nd strategy is so difficult to us as individuals since we dont like to sell when there is a small loss thinking the price will bounce up again even if we have no facts. Therefore we normally select the 1st strategy blindly.
IF YOU MASTER THESE 2 STRATEGIES THEN YOU ARE AHEAD MY FRIEND,,,,

15Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 7:47 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
@chamith wrote:there are 2 strategies we can choose from;

1. Averaging
If the share price go down than the price you brought, then you can buy at lower and average your cost. But IF the trend is a constant downward trend then no point of buying now even if it looks cheaper to the price you firstly brought. But if you firmly believe this downward is just a temporary fluctuation then you can take the opportunity and average your cost.

2. Stop-loss
This is a very good strategy used by all professional traders. when you buy a share at a certain price, you can set how much of a risk you going to bear. (say 6% loss). this is the loss that you can afford to loose. In anytime the loss come down to the price that trigger your stop loss level then you sell it at a loss. Later we you see a upward trend you can buy again.


2nd strategy is so difficult to us as individuals since we dont like to sell when there is a small loss thinking the price will bounce up again even if we have no facts. Therefore we normally select the 1st strategy blindly.
IF YOU MASTER THESE 2 STRATEGIES THEN YOU ARE AHEAD MY FRIEND,,,,

Now this makes sense in avging.. U buys lower hoping market wud go up, ALas! its going down.. so now what u can do is either sell at a loss or buy more and avg.. then again it goes down.. now what to do? loss is becoming high too..
Look at stock charts before u enter.. its not necessarily a share goes up just becuz its in oversold region.. on the contrary, its not going down just becuz its overbought..
But at some point thr shud be a turn... but its very diffcuilt to find...

my theory sia bit different in avg.. but this is mostly well suited for many ppl Twisted Evil

Keeping a stop loss for entire portfolio value is also a valuable adjustment and its kind of investment decision u make towards safeguarding ur earnings.. so yes.. go for it.. keep a line drawn specifically for this and adjust ur portfolio accordingly..

16Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Mar 16, 2011 9:55 pm

jaya


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
Add this point too

Keep records, of holdings, eg. if ZZL stock moving quickly then don’t chase it, think who is having it in their portfolio and buy it that will be the next runner (Eg. YYY Company having 10% of ZZL so it will be the next move)

I had many opportunities like that.

17Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Thu Mar 17, 2011 8:51 am

tkc

tkc
Assistant Vice President - Equity Analytics
Assistant Vice President - Equity Analytics
@SL.Market here is + rep. from me also...... cheers

18Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Apr 06, 2011 8:48 am

SL.Market

SL.Market
Vice President - Equity Analytics
Vice President - Equity Analytics
@tkc wrote:@SL.Market here is + rep. from me also...... cheers

thanks..

I m minus now....

19Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed Apr 06, 2011 6:12 pm

mark

mark
Expert
Expert
@SL.Market wrote:
@tkc wrote:@SL.Market here is + rep. from me also...... cheers

thanks..

I m minus now....

cheers cheers cheers cheers cheers cheers

20Guideline For Investing @ CSE  Empty Re: Guideline For Investing @ CSE Wed May 04, 2011 8:54 am

sasl

sasl
Equity Analytic
Equity Analytic
Buying downwarding shares is like catching knife falling from the sky.

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