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Charts & Analysis

The Long Position Update

A commenter recently said I haven’t been talking much about my long positions, presumably because they’ve gone rotten? I certainly am guilty of only mentioning them a few times, so here’s a post on it for good measure.

I’m still long. This is a personal, very discretionary position, which I intend to roll over. This is not because of any other reason that a short term bounce – typical bounce expected is 20-30% over a short term, max three months or so.

I may be wrong – heck, that’s a given every once in a while. And our systems continue to make money on the short side. But given this is a discretionary position that involves Nifty futures and short put options, I am fairly ok with the losses incurred so far, intend to get out only at a stop loss a further 15% below here.

It’s a tough market – and I don’t want to do any bottom calling. Speaking systematically everything is short, and needs to be. But I’m playing a very discretionary game here, it may work or may not – either ways it’s my trade, and I wouldn’t recommend it to anyone else. Still staying long, and still adding to my positions.

  • rajesh says:

    >Thanks. But what is your opinion on the SEBI’s stance on short selling ? Do you think banning short selling is the solution to overcome the crisis here ?

  • Deepak Shenoy says:

    >rajesh: SHort selling isnt’ even being done – the SLBS has literally no activity. ALl the shorting done outside – banning is of little use really, but I would say open up shorting for even locals (i.e. even up the playing field)

    Bans on short selling in general don’t improve markets, they place a cap on their rise.

  • Anonymous says:

    >Tks for update on the Long position..
    if only to see you not only update sucessful tades and get into that habit 🙂

    Secondly *real* trend followers are making a killing..just look at the charts.. never been easier.
    Sure, discretionary trend followers(jump in/out) without a *tested* algo been hung to dry.

  • Deepak Shenoy says:

    >anon: I agree – this market teaches you humility if anything – and I have to be honest!

    I agree – real trend followers are making a killing and rightly so! My system is trend following if only intraday, and it makes money on the short side! Such discrepancies!

    Hey I’ve been stopped out by the way. It sucks to lose, but I’ve lost and admitting it. Will write details on how I plan to recover it all.