@RohitNarayanam I agree with you. When stock price runs very fast, there is a large gap between 30 week EMA and current price, sometimes more than 25% , as you have observed.
Earlier I used to think, that profit belongs to market and initial Investment is mine. So If my profit erodes by lets say 25% , I should not become uncomfortable, but if my purchase price erodes by 25% , I should become sad, BUT thats a wrong preception. Profit too belong to me very much. Everyday Market value of my Portfolio is my Everyday Purchase price .So I have to protect my profit just like I would protect my own investment.
So as You have said, if I wait for 30 week EMA , for sell trigger then I would be losing 25% of current value, which should not be tolerable. Some of my VP friends have suggested me, not to keep 30 week EMA as threshold, but to lower it, may be 30 days EMA breach should trigger selling of half of my position. I would very much like to request your opinion on this too. Sometimes my entry has been very late. Instead of VCP or nearby, i have bought very faar from 30 week EMA too. In that also ,i am currently under work-in-process selling mechanism. As far as Polycab and KEI together amounting to 32%, that was , as I mentioned earlier, due to twofold reasons : Due to transfer of funds from direct stocks to mutual funds portfolio and also they have doubled from my purchase price. As retail investors, we have this luxury of putting high amount in particular sectors or companies, which public fund managers dont have. We can exploit this in our favour. But we need to be on our toes, and first to sell, when tide turns.
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