quick tip:
Valuation rather than Price. (expected trends)
avoid consolidation of price (by technical indicators* not an advise)
Mistakes
Cutting the flowers and watering the weeds by peterlynch
I stayed long term in Downward averaging once it break out i sold beginning at they stocks went to 100% in a year. i sold at 20% profit.
Buy when price goes up and sell when it price goes down – Rakesh Jhunjhunwala (to pickup the momentum) every breakout starts with small.
When another stock is available at lower valuations – Warren buffet
Warren Buffet once said: “If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.”
Common reasons
- Rebalancing.
- want to exit stock market because never understands people psychology & macro economy risks.
- Earnings growth decline in the company (sector reasons or industry disruption)
- When we don’t have idea about company Business.
- No patience to wait.
- No Protect capital. Stop loss method (30% or 20%).
- No goal is presented with the stock you holding.
- Invested time bigger than stock portfolio holding.
- after reaching the finical goals.
- After reaching the target price
- without knowing turning into trader from investor
Selling Mistakes
Pranjal kamra thoughts on exit stock
Importance of Profit Booking
mistakes
ignore diversification
ignore valuations
forgot to reset benchmarks
strategies: buy & hold index OR in& Out trading
preserve capital, reduce risks, helps to gains
All Or nothing
just like Poker game..
don’t sell all equity when all time high
stick to minimum equity level
trimming portfolio to 50% to 70%
sector allocation
2. Valuation not Profit percentage
investment 2x then sell 1x to get 1x free shares ..
>> titan 1600x 21 years suitable for short term rather than long term
Valuation for long term (sales growth, eps estimate, technical indicators)
Appollo bought at dec 2022 at 312 inr nov 23 415 33% Profit
but valuation PE Bought 28.1 selling at 16.6PE
3 conviction
Sell your Low conviction bets ahead of high conviction ones
Low conviction bet: Not Much effort on understanding business,
share price appreciation by bull market
stocks acquired by tips not credible sources.
High conviction: full efforts on research
4. clean up the mess
USE all time High & Higher PE to get rid of Stocks weaker and loss making stocks
20% stocks gains 80% profit in in portfolio 20:80 rule
5. Sell in Smaller Chunks
SWP Mutual funds
15L 2.5 Lakh each month in 6 months.
6. Reemployment Plan
rebalance portfolio
use money pay debt
Park money arbitrage or
reinvestment in undervalued
rebalancing to helps to move overvalued assents under valued stocks.
IBD founder’s rule
Technical analysis
Failed breakout or breakdown: Exit after a failed breakout or breakdown, and take the profit or loss. Re-enter if the price exceeds the high of the breakout or low of the breakdown.
Short-term mean reversion strategy: Sell on strength.
Longer trend-following strategy: Exit on weakness, when the trend is changing.
Market heading towards limit: Exit once you’ve confirmed that it is moving too slowly and pocket the current profit.
50% of the max gain: Many studies have shown that 50% of the max gain is a very ideal point to exit.
Stop loss orders: Close positions automatically once a preset level of loss or profit is reached.
Scaling exit: Exit at different price levels instead of sticking to one exit point.
Technical indicators: Use technical indicators to identify entry and exit points, such as moving averages and Bollinger Bands.
Exit strategy by Kunal sarogi
1. Trend reversal, ex ITC
2. reason for buying satisfied ex demerger, bonus
3. major support breakdown ex: indiabusshf
4. Bearish pattern double top
5. Exit indicator true strength index 25 days or week below zero.
Exit strategy by trading lab
volume+trend+ momentum+volatility+EMA= Score bull, bear or consolidated
vivek mashrani exit strategy
monthly candle 6 months consolidation
exit*
9 years in bullrun stickwith , 1 year out of stock in bearish trend.
Parabollic SACR indicator (stoploss indicator)
1 month scan
green to red there is a problem
global cues red ignore.. index
how much to wait
2 quarters 6 months… exit park tracking position (too much waiting compound affected)
reenter 2 years after consolidation
2 quarters wait…
satellite portfolio midcap
Insider news comes first market fall then retailer gets news
fundamentals also lagging quarter or annual result
decmeber result come in jan mid feb
volume breakout signals the Price action volume
screening satellite stocks
price volume actions in sector>> sector fundamentals >>stocks>> then charts every week >> risk reward all Market cap..
zomato 2x in 2 months bse, polycab 4X in 4 months vs why run 1% return for every day.
buy sell exit strategy 1
buy sell exit strategy 2
buy sell exit strategy 3
weekend investing alok jain strategy momentum
Indicator based exit strategy
SAR parabolic
MA, RSI, ADX
Time frame short , long,
long term holding: fundamental strong
Monthly candle 6 months consolidation
mid term: weekly consolidation
Sharp drop: make alert.
Stop loss %, 20% cagr per annum
trading target 48% cagr, weekly 4% (2%).
Market conditions trend global cues
Consolidation:
Downtrend bear;
Uptrend bull:
exist strategy
MACD
RSI 14
RS 55
Price Action
Volume
viviek bajaj exit strategy
- long term investing in business: issue in business
- 5 years time frame chart super trend exit and entry 200 DMA + super trend negative sell
- long swing trader 1-6 months 5 years chart relative strength benchmark index below 0 means weaker than sector and super trend negative exit above zero good continue.
- short term swing 2 days to 30days 2 hourly chart super trend negative and RS below 0 exit.
VWAP and super trend:
anchored vwap: from day above
RSI 50 Exit weekly & daily RSI above 90
RS 55 Exit below 55
normal market
exit 2 hourly basis entry 1 day basis
1 day view 75 mins entry and exit. (risk reward)
1 week chart view entry and exit 1 day chart
monthly weekly (fundamental needed)
fundamental+ swing trader
bull market strategy
investment strategy
life time, 6 months, 6 weeks 6 hours (intra day)
When to exit a trade
Target price or after reaching target price trailing stoploss
after 1 week consolidation or
Breaching support
fundamentals: company valuation; over price or fair price or undervaluation.
stock recovering from sector consolidation.
Wait for bubble burst or not trend.
Moving average below 200DMA for long term
Swing trade for 30-120 days use fundamentals & technical
20& book profit when 20% increase*
short swing upto 1 month
Stop Loss
Overvalued – lack of growth.
investing purposes
Valuation rather than Price.
cheaper opportunities of other stock something dying to buy
portpolio strategy 20% cagr every stock
fundamentals: internal factor poor management,
News is too late until reach you ex: IEX
NO Stoploss strategy
FAQs
external factors not a recommendation for short waves. Investment strategy also applies.
1 week consolidation
1 week or 5 day change 1.6%
Sector change 0.91%
leader in sector 1.7%
sector to gdp index 0.74%.
