Now I'll maintain a trailing stop loss of about 10% on each position, just to ensure things are ok. I might choose to add more later this week, for the December expiry.
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>Deepak,
Just wanted to know whether you are doing this shorting with real money ?
Isn’t this SOS only virtual as you have mentioned in your blog or is it only Virtual for us ?
Secondly for the sake of shorting is there any stocks in the Auto sector as the entire sector is a downtrend?
Thirdly some power stocks (NTPC et al are also trading at high PE multiples would it be prudent to consider them also for the sake of shorting ?
Thanks
Hari
11.24.08 at 5:37 AM
>Hari,
Nothing with real money (unfortunately!) but yes, I am considering putting on personal positions next time I introduce a short here.
Auto isn’t worth a short right now, and power either – the days will come but not now, I think.
11.24.08 at 11:54 AM
>Deepak,
Do you arrive at the shorts purely by using the technical analysis? Also does the sector outlook have a major impact in your short decisions ? The reason I am asking this question is because there have been a couple of accurate predictions made by you especially in 2 stocks Tata Steel and ICICI Bank.
We maybe used to the fact that ICICI is trading at such low levels but this share is a FII darling, I actually was wonderstuck when it lost almost half since you had recommended it in your SOS (from 685 to 310) also another surprise was TISCO. This share was already quoting at 3 times Earnings. How were you able to accurately get the timing for these 2 and also the reco for Axis was perfect.
What I am really surprised is the timing, I mean all the 3 stocks drifted downwards after you had recommended it for Shorting.
Any secrets for this accuracy.
Regards
Hari
11.24.08 at 12:06 PM
>Hari: The secret for accuracy is plain luck :)
HOnestly I did nto expect these stocks to move down so far – look at HDIL, it’s down nearly 30% now, in less than 10 days since I introduced it. And the same with Axis – I didn’t expect it to move down quite that fast. I think there’s a lot of luck involved here.
ICICI bank and Tata Steel I’ve been historically bearish on, just decided to put them into the strategy.
I’ve done very little technical analysis honestly – most of the picks here are fundamental shorts.
11.24.08 at 12:20 PM