Tag Archives: #GTT

Poise

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Hey.

Story’s changed already.

IT has suddenly become a defensive buy, it seems.

Not perceived as oil dependent.

See how fast that happened.

Five weeks ago one was hearing the RIP bugles for IT, or so the spin-doctors were trying to spin it.

Bottom-line : don’t believe the stories being spun. Have your own…

… high conviction.

And, the opportunity is…

…now.

Make up your mind.

Invest where you see stability and growth. Invest in India.

There are a lot of high conviction ideas in India that can be latched on to.

Fear makes good investments fall too. That is happening now. To take advantage of this effect, one needs to be fearless with high conviction.

How does one build high conviction in a stock?

Repeated shareholder-friendliness shown by a management.

Clean balance-sheet.

Abundance of free cashflow.

Debt-free-ness.

Longevity.

Vision.

Margin of safety.

That’s it.

Oh, one more thing.

Don’t force the market.

Let it make you enter.

Be poised with a funded GTT order in place before market open.

Keep doing this throughout the fall, as margin of safety deepens. One can do this if one has created enough liquidity during good times, and if one keeps entering with small entry quanta proportional to one’s networth.

Idea is to enter with and into high conviction multiple times, each time lowering the buying average.

With that, one sets oneself up for a fast multiple when markets recover.

It’s boiling down to…

…poise.

Obviousness

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Knowledge streams…

…at unprecedented speed.

You want it?

You got it.

Lag is negligible.

Everyone has access.

Conclusion? Fazit? Nichor? Bilan?

What seems obvious is likely a trap.

Fundamentals can be fudged, to an extent. A closer look at gaps between fundamentals vs actuals unveils those who fudge. Actuals on the ground will need to match fundamentals, somewhere. For example, if there’s no debt on the balance-sheet, there will well be a surplus which the company in question accumulates, and there will be a path on which this surplus flows. This path should be visible in the annual report. If there’s no surplus, company will show visible signs of stagnation. If something officially declared by a company doesn’t match (visible) actuals, the fudging window opens. We steer clear of companies with even a fudging crack open.

Technicals can be used to set entry and exit traps.

By professionals

For the masses.

Masses act at levels.

Generally, price hovers around an obvious level till the majority has acted. Then, generally, price goes against. When crowds cut entries, institutions enter on their exits. This strategy paves the way for relatively easy and heavy entries.

Moral of the story for us?

We wait for an obvious level.

We don’t act. Yet. However, we are on alert.

We envision an aftermath play in our minds.

Entry pivots are coming quick, nowadays. There’s hardly any time to act, especially if one has an otherwise busy schedule.

Therefore…

…we only deal in GTTs. Period.

Thus we feed in our GTTs, as per mentally outlined situation, and back up these with funding, if entry-trigger is less than 5.2% away. All this we do in a cool moment, after market hours, away from the noise, when we can think clearly.

And, most importantly, …

…we do it away from the obviousness.