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Posts Tagged ‘Rajesh Exports Stock’

What happens when trading bets go wrong?

Monday, September 17, 2007 17 comments

I have been talking about many stock ideas that have been climbing up for past couple of weeks. Some of have gone up 20% and some 50%- from Titan to Rajesh Exports and Bartronics to Kirloskar!

Today I am taking a “stock idea’ which went really bad. The stock in question is “Deccan Chronicle”. The stock actually fell by 20% last week! So what did I do?

I had to sell the stock at a loss when it broke the 215 support levels. My entry was around 235 levels, so I had to take a 10% loss on my investment. At the same time, as the stock only formed around 3% of the portfolio, the actual loss on the portfolio level was just 0.3% (Didn’t I tell you that risk management is the key to success?)

This is what “investing is all about”. It is not about ” being right” but realizing when you are wrong! Imagine if I hadn’t gotten out of this position thinking that “this too shall rebound’ like many other stocks, how’d I be feeling today? I might have lost my peace of mind and it might have affected my ability to pick the next winners.

Trading is difficult because people find it impossible to “accept a loss”.If you go deeply it is all about accepting the fact that “you were wrong”.Now I have not seen many people who take it easy when someone tells them that they are wrong!They try their best to ‘defend” their opinions and actions.
Wins and losses are part of investment game. So every moment you have to deal with the possibility of “being wrong”. If you can’t deal with it, you end up hanging on to your losing positions till the time they become extremely painful!

Think over this and you might get “insights” into your trading patterns.

Stock Watch- Rajesh Exports, RPL,Crompton Greaves,Titan

Sunday, September 2, 2007 3 comments

Some of our old recommendations are again going up after correction. This is the the beauty of strong stocks-every time there is a bounce in the markets, these stocks bounce back with real vengeance!

  • Rajesh Exports -The stock was recommended sometime back in the mid cap ideas when the price was around 545 levels.The stock is now trading close to its all time high of 592 and as soon as it crosses 590-595 levels, there is a bright chance of this stock taking a shot at 650+ levels.I feel that this stock might outperform the market in the medium to long term.In short term, the stock is a bit too volatile.
  • Crompton Greaves-Again an old recommendation which is scaling new highs. The stock has the potential to go even higher and there is a possibility of this stock reaching around 340-350 in a short period of time.
  • Reliance Petroleum– The stock has made a good base around 105 levels and remains in an uptrend. The stock was one of the stocks on the shopping list during correction.The stock is looking set to make a dash at 120 levels-an all time high for the stock. The stock has the potential to reach 125-130 levels in short to medium term.
  • Titan-Though the stock is very volatile(high beta stock) but it is one of the stocks which are in long term uptrend.The stock has found mention on my blog many times.I always recommend people to add this stock to their portfolios when it corrects sharply.This time I had recommended my clients to add Titan around 1040 levels.The stock is back to 1240 levels and there is a high probability that the stock takes a shot at 1350 levels and goes on to test 1500 levels.

There are many such old ideas which are gearing up to scale new highs. Do not run around looking for new ideas just for the sake of having something new.More than often “old is gold”.