Your Adarsh™

Letz mint some ‘ka-ching’

CML – WILD TRADES SHAPING.

Its been some hectic days at work and some good volumes of trades in my account. Sorrry for not finding time to give out some of them last week.

Best and first one to go with is – CML The one I posted just before I was about to do. See the posts on CML in google finance.

This has been a wild stock to invest and sit. I know there were lot of cry’s and boos from new investors or traders trying their luck with IPO’s. Yet another example of why you should not buy a stock which is very new and whose sector is HOT.

So, I thought I should find you something here to minimise your losses.

Here is the trick to follow to minimise the losses you acrued.

If you bought it 100% of the position first day, we can’t really help you. may be you should change the structure of your portfolio to make space for more CML. You have to COMPELL and explain yourself why you are doing that, I can’t do it 🙂

Buy exactly the same amount again on a big dip. May be around 16.5 to 17 or lower.

Probably $17 should be a good support. That’s what I got when I talked to a broker, an investment manager and my small experience. Even the company just said the banks which were the underwriters bought the maximum allowed number of shares….that means more than just SOMETHING.

What we did today?

We said sell today on a run to 19. That’s what we did. We sold our position that was started at 17 and change and sold it at 19.

 What we are going to do?

We have another order placed at around $17 and small change. We  are no tyet ready to move the order up. But if we smell something we are ready to pay upto $17.5 but not more than that.

What we will do then?

We’ll probably repeat what we did today again tomorrow or may be the day after. Sell the whole position we bought at $17 level. That turns us a profit of more than 10% every time we do this.

This should minimize your loss if you did that mistake of buying it at $23 ranges or more.

Don’t worry about “What if it keeps going up?” Remember you still have your initial shares.

Good luck swinging,

Your Adarsh.

Don’t Buy HIGH and sell LOW. Buy LOW and Sell HIGH.

You don’t make loss/profit untill you SELL. So don’t CRY/CELEBRATE until you SELL.

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October 16, 2007 - Posted by | Blogroll, Short Term

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