Huh...what a week it was. While the severity of the market crash on 22-Jan, did surprise me largely, I used this opportunity to buy more of my long term picks. Yes Bank went down as low as 155 and NTPC was around 170. One of course cannot catch the falling knife. So average purchase worked out at 175/180 for both Yes Bank and NTPC. Good thing is I had a target # of shares to be acquired, keeping in mind my target asset allocation and the crash gave me an opportunity to buy at these attractive prices. I also bought my all time favorite Reliance Industries at average of 2250. I think this is a very good price.
From a momentum trading perspective, I bought just few shares of GMR Infra at 120 and I intend to sell them off at 220 levels or so. I saw the price had come down too low and it was too tempting to buy.
One very crucial observation in this meltdown was that my overall portfolio was still positive, by a decent margin. So as long as one buys regularly in the good companies with good businesses, one that you are able to understand and follow, and has a long term perspective, I think one can survive such crashes. I have been buying Reliance Industries, Yes Bank and NTPC regularly for more than 2 years now and my average buying price is lower than the lows touched in the the recent crash.
My IPO Investing also seems to be working well except for one or two cases. I normally sell upon listing and book gains. Edelweiss, Mundra, Powergrid etc. are now available below the average price at which I have sold. While some of these are great stocks for long term holding, at this stage, I am just focusing on building long term portfolio of very few chosen stocks, which I understand. And I need more capital to invest in these stocks so booking IPO profit is one way, to my mind.
I am stuck with part of Spice Communications and Manaksia allotment, though. Manaksia looks to be good company so I guess I can be patient for a while. I holded on Spice Communications keeping in mind the great telecom story and example of Quarter on Quarter rise and Idea performance is what I had in mind. I went wrong, however, in ignoring that fundamentally Spice is not in good shape with a weak balance sheet, smaller market presence and now they are planning to grow big with licenses received recently. Amidst all the spectrum confusion and changing policies, things look better for Spice. Nevertheless, I may just sell off Spice the moment I recover my cost :)
Another learning. Keep money handy. I have linked my brokerage accounts to my Bank accounts in a way that I can get all my available cash balance, in any bank account, in less than 5 minutes. So getting money to take advantage of such crash is not a problem, assuming of course, I have enough bank balance in my account :)
Regards,
From a momentum trading perspective, I bought just few shares of GMR Infra at 120 and I intend to sell them off at 220 levels or so. I saw the price had come down too low and it was too tempting to buy.
One very crucial observation in this meltdown was that my overall portfolio was still positive, by a decent margin. So as long as one buys regularly in the good companies with good businesses, one that you are able to understand and follow, and has a long term perspective, I think one can survive such crashes. I have been buying Reliance Industries, Yes Bank and NTPC regularly for more than 2 years now and my average buying price is lower than the lows touched in the the recent crash.
My IPO Investing also seems to be working well except for one or two cases. I normally sell upon listing and book gains. Edelweiss, Mundra, Powergrid etc. are now available below the average price at which I have sold. While some of these are great stocks for long term holding, at this stage, I am just focusing on building long term portfolio of very few chosen stocks, which I understand. And I need more capital to invest in these stocks so booking IPO profit is one way, to my mind.
I am stuck with part of Spice Communications and Manaksia allotment, though. Manaksia looks to be good company so I guess I can be patient for a while. I holded on Spice Communications keeping in mind the great telecom story and example of Quarter on Quarter rise and Idea performance is what I had in mind. I went wrong, however, in ignoring that fundamentally Spice is not in good shape with a weak balance sheet, smaller market presence and now they are planning to grow big with licenses received recently. Amidst all the spectrum confusion and changing policies, things look better for Spice. Nevertheless, I may just sell off Spice the moment I recover my cost :)
Another learning. Keep money handy. I have linked my brokerage accounts to my Bank accounts in a way that I can get all my available cash balance, in any bank account, in less than 5 minutes. So getting money to take advantage of such crash is not a problem, assuming of course, I have enough bank balance in my account :)
Regards,
Rohit
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