OK got it i will keep in mind
Posts tagged Value Pickr
How to go long with leverage? (04-12-2015)
Why shy away from calling a spade, a spade?
I have been doing futures trading based on fundamentals with moderate success so far and I cannot stress enough how important is a stop loss even when your style is similar to investing.
Be it investing or trading, capital protection should always be a priority.
How to go long with leverage? (04-12-2015)
Personally i find the option of taking a personal loan and investing in shares more practical. The repayment of the loan should not be dependent on the performance of the stocks bought from the loan. It should be comfortable service-able from other sources of income such salary. Therefore i would not have preferred loan against shares where the movement of share prices may bring in margin requirements.
I also think having an overdraft is a good way to leverage.here, only the interest is to be serviced. Since it is not a loan, principal repayment does not arise. even better – In case one has FDs he can keep it as security to take overdraft so that interest is lower. FDs remain as FD. Only interest difference between what you earn on the FD and what the overdraft carries needs to be paid. The overdraft can be partly or fully liquidated as and when one gets surplus funds. Or if required, from the FDs.
In gulf region where i am based interest rates are relatively low. I prefer to take a loan on my credit card for 6 months where i have to pay totally 2-3% extra over the loan amount in the form of charges/ intrest. My rationale is that over 6 months, if my investment is able to grow by 2-3% then i have broken even. I repay the loan in 6 months and am ready to take another if i feel the time is right. However i ensure that my leverage does not exceed 20% of my total PF value since that is my comfort threshold.
One drawback of taking a loan and front-ending the investment is that if your stocks fall during the loan tenor then you may not have as much surplus to invest because part of your income would already have been earmarked towards paying the principal. Here my 20% threshold helps because i retain some surplus saving every month from my salary to invest if stocks fall. In a total crash i would not be averse to pushing up my leverage to take advantage of the fall.
How to go long with leverage? (04-12-2015)
I think LAS is a better idea but one must be v careful in stock selection – key is to select a stock which grows at an “assured” 18% instead of a stock which “could” grow 30%.
How to go long with leverage? (04-12-2015)
We are not trading, we are investing, here we are trying to buy and hold and also finds tricks to use leverage as well.
@nikrod12 : Precisely. you have to calculate the amount of leverage is compensating for the tax and rollover cost. Most importantly it has a huge risk of wiping out your entire account incase it fall below your expected worst case drawdown.
REPCO home finance – another Gruh in the making? (04-12-2015)
well, Gujarat earthquake and other calamities didn’t break Gruh so don’t think one or two quarters of delayed payments can’t be handled by Repco. It is the general insurance guys who need to be worried about.
How to go long with leverage? (04-12-2015)
“Stop loss” is the key word in trading
Tree house education and accessories ltd. – Potential candidate for improvement in RoE (04-12-2015)
VP is not the platform where you should expect people to come and guide on what to buy and what to sell, it is not a recommendation site. It is a platform that is meant for collaborative equity research. Please desist from posting such requests.
Byke hospitality – Truly asset light? (04-12-2015)
If you check this link it is owned by byke hospitality http://www.tripdeal.co.in/home
If you CAN’T BOTHER to research/present a BALANCED view with decent RISK assessment, you have NO RIGHTS to start a thread on that business (04-12-2015)
Just want to add
Consider also the implications of free-format writing in our digital world where whatever you post here at VP is picked up by search engines, 5000-6000 emails go out every week, other sites like (fake) rakesh-jhunjhunwaala sites and others pick up the posts and advertise
So actually Admin (though harshly sometimes) is probably doing us all a favour by preventing free-format but potentially damaging posts from getting wider circulation (and archived forever for posterity) and protecting each of our individual digital reputation and audit trail. Think the implications of the manner of a “Transient Multibagger” post (like this one) floating all around that gets traced back to you.
We all are are responsible for our own individual digital reputation getting built up post, by post.
We all need to be very very careful of what we post, how we post, for our own sake – forget VP reputation if you like.