– Smallcap momentum portfolio

Smallcap momentum portfolio

Kunal,
First off, I’m flattered someone actually wants my advice on stocks! But full disclosure: I’m no stock-picking guru.

Here’s my take on long-term investing:

Long-term = quality earnings at a reasonable valuation. Hold for at least 5 years. Ignore short-term market movements, which may go down, up, or sideways for 1-2-3 years. Charts, technicals, momentum, and quant are out of the game here.

What I did (I got lucky with Value Picker. After picking stocks based on friends’ advice and making losses, I was about to quit):

I noticed markets favor certain sectors. I tried to jump on these trends (first renewable, then power, industrial, PSU, defense… what’s next? Not sure yet).
Sold anything that didn’t move in a week or month, even at a loss. No regrets.
Kept adding to positions that went up.

My theory: In a bull market, a stock should rise in the first week or month.

What i think i am doing by taking positions on small caps ? > its not investment – its momentum trading. In a slang its betting. in a most of names.some might have quality earning but in present state where valuation is simply tossed out.

After initial losses and trauma, I started reading 4 hours a day. Reading is key. If you’re a student or early in your career, focus on it while staying in the game and continuing to learn.

What i read – When the bull market ends, small caps can beaten badly(i mean very very badly upto -100% ? possible . I wish i dont have to experience it so i may also contemplate to quit most of positions at 1st sight of the storm at certain index leve). If detailed analysis isn’t your thing, consider momentum investing—buy strong names and sell based on ranking. Momentum is a simple math-based strategy.