Link to my 1st Post where i discussed about SBI.
https://share.gvine.app/yYujDrw15CLsLxC59
I have scaled in 70% in SBI. (Avg 635). Bank Nifty is struggling but this is the Risk Reward kind of trade for me.
I just took 1 trade in Small cap space last week GICRE with Average buy price of 360. I will make a detailed post after it gives me more than 50% return or if i book out.
In my next post i will bust a few myths/misconceptions related to trading and one of them might be holding you back from venturing into this field.
At the end of the post i have given 5 stock e.g. check them out as well.
Why i selected Inox wind for the post not every stock in my small-mid cap portfolio is up over 100%. I wanted to show yall that capturing such a move is totally possible. You need not to have in-depth knowledge of fundamentals like margins, M3 money, Nifty PE, unemployment rate etc or business understanding in depth. With all due respect there is a reason why 99% of economists don't make massive wealth out of the market. Having a knowledge of these things is 1 skill & generating wealth out of the market is a completely different skill. I am trying to master the 2nd one so if you are an average person like me,Read ahead.
It's not like I don't look at these fundamentals data points. You can have 1000 data points but you need just a few actionable ones. There is a thin line between analysis and analysis Paralysis. Most people get stuck in this paralysis. Sometimes i decide how much exposure i need to have depending on the dollar index sometimes depending on what crude oil is doing. But I don't over-complicate it too much. When to look at what data point we will get it with experience. I am still in the learning phase.
Growth lies in small mid cap space and capturing such moves at the right time through just fundamentals is a stretch. That's where technicals come in for me. I can capture such moves.
CHECK OUT THE COMMENT --
Now coming back to the stock .I had no idea that this stock would shoot up like this. Not at all. (I have high hopes with GICRE that it will shoot up). If we keep doing our hard work consistently luck comes into picture and rewards us from time to time.
I read this somewhere and it is so true in any skill base thing we try to master.
"The trick to mastering any skill is spending the initial years into learning how to learn. Get your mind into intricacies of it, work on mind muscle memory. Prepare your mind for the great business ahead.
Then you can extract pure knowledge at a speed and with an efficiency that is inhuman."
Most of my work is done during the stock selection process. When the market is struggling or correcting i rigorously go through a list of 750 stocks to see where the strength lies and which stock can be the leaders of the next cycle.
I have a very rigorous stock selection process, then i make my universe of 40,50 stock and go behind 10-12 of them. I want to show the stock selection process but in real time, in hindsight it will be of no use. Let the market correct then i will show yall.
First i picked up that stock at 245 (30%)when it came out of first base. RISK REWARD IS HEAVILY IN YOUR FAVOUR IF YOU PICK UP STOCK THAT IS JUST COMING OUT OF BASE. I was reluctant to build a position in a small mid space as the index according to me was overstretched back then. Then i checked the RUSSEL 2000 index (small cap index for the US )and it was on its way up So my approach was if it moves 8-10% in my favour, i will quickly scale in to 100%. I did that at 270 as marked in the chart.
Since then it has been a one way journey typically small-mid cap stock does move a lot of time like this, mostly they give a lot of pullback and shakeout. Weathering that out is not that hard i will show it in my GICRE eg.
This was one of those trades for me where i had to do nothing much.
NOW WHAT NEXT ?
It fell from 540 to 410. 25% . I did nothing, did not even book out 1 stock in fact i added again at 470 (25% of total quantity). For me stock has formed 2nd pivot or 2nd base as marked in the chart. Typically when a stock is in uptrend it forms 4-6 bases. Now its 2nd base, it will break out again and move higher. I will keep adding 25 30% after each base.
In the market STRONG BECOME STRONGEST. The things that have moved 100% have a higher chance of moving another 100% than the stock that has fallen 50%.
My goal is to always carry my trading position beyond 1 year if possible, that's when taxation comes down from 30% to 10%. I wont sell it until it gives me an exit .i.e. until it violates Low of any base. Now i will give enough time to stock to breathe. Even if it moves 0 % for the next 6 months. I will only exit if it violates the base.
Now i will also start looking into fundamentals and see if i can understand its business, if i can , i will try to convert it into an investment. THIS IS ONE WAY TO CAPTURE MULTIBAGGER.
If you have read until here and to show you that this is not 1 off eg. I will give you a list and you should check it on the chart, when they give entry.
It's never about a few lines on the chart but understanding market cycle, Risk reward, Stock selection, Linking it up with global data points etc. When you combine all of these" few lines on the chart" work wonders.
MAZDOCK - Sept 2022 400 (into 2nd base)
Anand rathi - July 2022 1000 (into 3rd base)
ACE - SEPT 2022 300 (into 3rd base)
HAL - APRIL 2022 900 (into 3rd base)
COAL INDIA - 260 SEPT 2023
I can give many examples. But i guess these 5 can drive the point home :)
Thanks for reading :)
Saving this for a detailed read later! Based on your journey, What resources would you recommend a beginner so as to be able to gradually skill up like you have?
Hi @ScarfaceX , For starters i would recommend a bunch of books. You will get a sound idea about the complete process and power of trading. But most of the learning will come through experience.
Keep reading my posts. I will get into the How part. Let the market correct, then i will show here how to do the complete process. Currently the market is a bit stretched so i cannot show it now risk reward is not there, 90% my positions were built in Oct November. The most you will learn is in real time. If you are interested in books lemme know i will share the list.
Please share the list of books. ,for a beginner tryin to understand stock , market. Trading etc
SBI has moved around 20% for me. I'll explain how I plan to manage this trade ahead.
You can read how and why I picked SBI here -
https://share.gvine.app/yYujDrw15CLsLxC59
I have created my Substack, & I will begin posting there next...
Below i have given links to my last few posts go through them to understand what i have done in the last 20 odd days.
I was mentioning it from the month of Feb that Banks, FMCG , Metal are the sector where Risk : Reward lies in the mar...
Here is the link - https://share.gvine.app/d85jqVYD85t9hqCSA
I made that post on a whim. I added this here just to let you know that i have SKIN IN THE GAME. I know the ***t i am talking about and i am not going to be just blabbering. ...
