Rules of the game ..

Some long long time ago, when I was getting started and was a novice guy in the investor world, I had jotted down some rules or key points around which my strategies would revolve. Here are those for fun reading.

Rules of the game:

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No tensions to be taken. Set up a process like a fund management co.

This is a long term investment plan. This was also have tax benefits.

If the stocks are good then look at them weekly only. am looking at yearly now.

If there are any loses dont panic. There could be gains coming. If continued loses, hang on. dont make quick decisions. Dont put in too much of internet time.

Factors are good returns, dividends, park money(bid time)

Waiting for the opportunity is preferable to the SIP option.

buylosellhi

categorise based on the investment horizons like long term short term and durations ...

Factors in buy are: economy,sector,company(website).

The sites gives u info abt how much the good performing funds have put

in various cos. This also gives u info abt the companies as the amcs must have

done some r&d.

Decision making approaches:

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Top down: bird view.look at the overall economy and try to gauge the market.strong Tech anal of the economy. Very relevant in the case of india.

Bottom up: worm view.good info abt a co. and hold on to it.Look behind the scenes. strong Tech anal of the co. Contra approach. I believe very much in this approach. but not to overkill. very relevant in the case of US

Another sell strategy is to sell in bits. same for buy in bits.but that will also take lots of trade commissions.let us do it a good way and the way it shud be done rather than worry abt rules and commissions. at the same time we will also keep optimise on profits and losses.

Valid perms in buy sell to give +ve returns

Another way to invest in stocks:

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We can also do an outsource of stocks to the broker. good knowledgeable broker. look at the charges and

then plunge into it. Can keep in touch via phone

FINAL STEPS of the Algo:

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Step 1:

R&D:

Info gathering and analysis: Gather the name of many stocks and their recommendations and as much info abt them as possible.

What to buy list

Step 2:

set the buy criteria

When to buy? how much? at what price?

Buy it and put it in Bought list

Step 3:

Tracking, info gathering and analysis

what to sell list

Step 4:

set the sell criteria

When to sell? how much? at what price?

Makes it to sell list and sell it.

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The end result of this was my own software that I created using Java as the backed and Flex as the front end and also some Javascript. It was essentially a step chart which step up and step down views which will take in a data file for each stock. I used to get this data from various sources and then just feed it and it used to give a good view on whether to buy or not. I think such tools are good for short term rather than very long term view. Maybe there is something called medium term view where one just keeps it for some years.