As I said, in bull market, more than 200-300 stocks will be in stage 2…To reduce this number , many other criteria can be applied. Like you can include stocks only from growing sectors. There might be some stocks from down sectors which have come on your radar, you can ignore them. Then you can apply some fundamnetal filters also…like earnings growth, sales growth, debt, Promoter holding etc…But all this after you are sure of Stage 2 and chart is good.
See, in this strategy , you are supposed to be nimble…so even if you enter in high valuations stocks, still this is not buy and forget strategy…so.if that stock start going down your 30 week EMA, you will promptly sell it, so major losses will never be there even if you enter into high valuation stocks. And our quantity is low, so no problem of selling such low quantity, even if selling pressure is there.
Posts tagged Value Pickr
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
Frequency of checking portfolio stocks can be weekly as anyways I will be using weekly chart and my exit criteria is weekly EMA, so no need to check chart everyday.
Once you have selected your 15-20 stocks, then you should stop watching relative strength for investing purpose, but just for curiosity purpose. Because relative strength will be throwing different stocks each day but we dont have to be interested in it. Our 15 stocks , if they are continuing in stage 2 and not going down, there is no need to find stocks each day…
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
List of stocks from trendlyne by relative strength is system driven…But once list is made, after that manually we have to apply stage analysis.
Earlier my buying and selling rules were arbitrary and I used to enter just by looking at Stage 2…But during bull market you will find , may be 200-300 stocks out of nifty 500 in stage 2 and obviously , you cant invest in 200 stocks, So we have to screen them to bring that number down to 15-20 maximum. For that what I have started doing is , since I have decided to sell the stocks whenever it breaches 30 week EMA, that same logic I will apply while entering…in the sense, I will try to enter as near possible as 30 week EMA. If you recall, in stage investing,one rule was, entry should not be late. So if current price is lets say at 25% above its 30 week EMA and suppose I enter at current price, then I will be selling that only when it breaches 30 week EMA, means 25% below my purchase price…That would destroy my capital by 25%…Hence better to invest when current price is closer to 30 week EMA, may be within 5-10% . so maximum loss I would be incurring is 10% when 30 week EMA gets breached. But also there are some exceptions. Some good stocks always maintain 20-25% Gap with its 30 week EMA even during short term consolidation…In that case you can keep the entry flexible…
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
Does it remain manual and subjective, checking 1 name at a time? At what frequency do you recheck the same name? Also, how do you weigh valuation in the overall decision making?
Shareholding pattern (26-04-2024)
Many hypothetical reasons may arise, DII and FII investment, both have their pros and cons.
Share your script list then we could help or learn you with.
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
Yes…Screening by relative strength and then stage analysis
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
So you screen through RS and then apply stage 2. Right ?
Shareholding pattern (26-04-2024)
Very difficult to comment based on your supplied info. There could be many factors for an increase or decrease in FII / DII holdings. Ultimately they are also investors like you and me for the same reason (to make money).
Try to post your…so called fundamentally strong growth stocks so that people can comment on it.
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
Yes…I am also of the same opinion …Now this is no more passive…its quite active one.
Changed the Title.
Mudit’s Portfolio (Stage Analysis + Relative Strength) (26-04-2024)
@Mudit.Kushalvardhan i have been following you since beginning and I was surprised by transformation.should you think of changing thread tagline (passively active? As you mentioned ultimately it’s the price difference of trades that matters to make money .And I am also eager to read book on stage analysis and to be prepared atleast for next bull market.
All I want to tell is please check the effect of recency bias and availability bias, authority bias …good luck…keep updating us.