Eureka! I discovered my investment portfolio…

The 20 years that I worked relentlessly in a busy (I should say intensely busy!) banking industry, I was full of conceit and reckoned myself as “THE BEST” investor of all times!

My day began and ended with customers, helping them build their portfolios and making them opulent. Hey! did I say making them affluent… well, yes, most of my clients created a healthy portfolio.

Well, while I planned and set the portfolio for my clients, I did try to invest a portion of my personal resource into a few good stocks which have always been fundamentally strong. So that was the beginning of my personal portfolio or investment builder.

Years passed and the portfolio grew, a pendulum effect. But 15 years on… it grew for sure.

Now… post 20 odd years when I decided to enjoy the benefits of my portfolio returns……hmm…. where do I start from?

Should I withdraw my mutual funds which are doing so good? Considering the risks is worth continuing or should I pull out some of my stocks and sell it and take the benefit of the growth… Point worth pondering…. Can anyone of us who have saved investments for over 2 decades decide to sell some and go for a Europe trip or buy a Mercedes new edition or indulge in a magnificent expensive gift for their loved ones?

The answer from anyone or most would be a “BIG NO”

But why…. weren’t we investing it as a surprise for our dear ones? Wasn’t it a concealed a treasure chest?  So you mean to say that your investments were made not to enjoy the benefits during your best moments, not even during your retirement?  As a result of your deep thinking the answer is…..it is a corpus built for your loved ones.

Now…. Looks like I have got most of you thinking….Good time to think and re-learn the art of investing.

How did our goal of investing for an alternate income or better lifestyle move to a long odyssey investment plan? The answer is that most of us don’t know where to cease.

While building a portfolio, some may have been lucky to have caught the bottom and few others would have got it midway or a few unfortunate ones may have joined the journey at the highest level.

While we can say, which is the bottom and the highest level now when we see the historic chart of the stock, we will not be able to predict the market movement when we get into it.

Let me put it simple…..we keep our fingers crossed many a times that this is not the end and the “good move” is yet to come. But when it does strike…..the best is what we are waiting for.

In short we do not want to sell something which we have bought as along term investment.

How are you going to relish the benefits of your stock performance? Let me help you re-design your portfolio to savor the profits of your portfolio.

Here is an example of a senior executive’s portfolio for better understanding….

Portfolio consists of:

Fixed deposits             :           50 lacs

Mutual funds               :           100 lacs

Insurance                    :           150 lacs

Bonds                          :           25 lacs

Equity                          :           25 lacs

What should he draw to enjoy that alternate income on a monthly basis? Is it worth doing? Well, all of us know the answer is NO.

Let us re-design it in a very negligible way and see how the goal to make an alternate income works:

Fixed deposits                                     :           50 lacs

Mutual funds                                       :           100 lacs

Insurance                                            :           150 lacs

Bonds                                                  :           25 lacs

Equity cash market long term             :           15 lacs

Equity –futures swing trading            :           10 lacs

Futures trading swing or positional if done using structured methods can yield a return of 2-10% and more….did you think per annum…..I meant per month.

The calculation goes like this….

Nifty Trading Traded in Swing/ Positional
	Positions	Risk
Entry 25.01.2017	8300
SL 1	8200	-100
SL 2	8300	0
SL 3	8500	200
SL 4	8700	400
SL 5	8850	650
SL 6	9050	750
Exit  23.03.2017	9050
Profit / Loss	750
Margin for 1 lot	35000
Profit @ 1 lot= 75 shares	56250
For 35000 traded in Nifty profit made 56250
Profit %	161
For Equity cash trading 75 shares in nifty bees amount required for trading	622500

 

HDFC Ltd Traded in Swing/ Positional
	Positions	Risk
Entry 25.01.2017	1300
SL 1	1230	-70
SL 2	1350	50
SL 3	1410	110
SL 4	1430	130
Still holding
Profit / Loss	130
Margin for 1 lot	55000
Profit @ 1 lot= 500 shares	65000
For 55000 traded in HDFC profit made is 65000
Profit %	118
For Equity cash trading 500 shares in HDFC amount required for trading	650000

All that is needed to re-design your style of investing is to learn the ART of TRADING.

Embark on your baby steps and enhance your trading knowledge.

Be a Smart Investor. Enjoy the benefits when you need the most.

If you are new to trading and don’t have a solid understanding of various trading concepts, check out our free tutorial Teach A Man To Fish – A Foundation To Technical Trading.

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