I’m invested in Nifty, Nifty Subsequent 50 and Nifty Midcap 150 indices’ ETFs, all of them are in revenue now. I’m actively buying and selling, and I want capital, so I’m considering of promoting the ETFs and utilizing that capital for buying and selling.
Buffett stated to not ask the barber when you want a haircut. However I want to know the views of members as they’ve extra buying and selling expertise than me.
Mathematically, what I need to do is right, I’ve the prospect of getting extra with buying and selling than staying within the ETFs, if the time interval is 1 12 months or extra. Additionally, I’m not considering that my trades will certainly be worthwhile, however as I’m preserving strict cease losses and I’ve had good outcomes to date, due to the market, I need to take the prospect of deploying capital in buying and selling.
The logic behind the thought is that, if the markets go up from right here, I shall be having extra buying and selling alternatives, and I consider I’ll get higher with my methods, so I’ll make revenue greater than what I’ll get staying invested within the ETFs. If the markets fall, I can’t get many buying and selling alternatives, so I’ll cease taking trades, however the earnings in ETFs may also go down.
So what’s your outlook concerning the markets going ahead? What do you recommend?
Effectively 7+ years longer time-frame . Makes no distinction it’s gonna be bullish solely as we print cash extra time. I’m saying about index.
So far as buying and selling when you can beat the index by buying and selling then alright if not higher to speculate
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I’m not taking a look at 7+ years time-frame. I’m taking a look at a lot vendor time frames, simply 1 12 months or so. So what applies to investing doesn’t apply to buying and selling, as I can’t keep put in my positions, regardless of the dimensions of the corporate, if it falls as per cease loss, I’ve to e book the losses, come out, as I want the capital. Investing alternatively is a unique ball recreation, though performed in the identical area.
Sure, that’s the thought, that if I can beat the index in the timeframe that I’ve chosen, why keep invested within the ETFs. That is what made me take into consideration this within the first place.
I at all times thought investing in Nifty 50 and Nifty Subsequent 50 ETF was for very long run the place the compounding impact will kick in. Additionally it will act as a buffer/diversification when you could have invested in particular person inventory and these particular person shares go down in worth. Undecided if it’s a nice thought to promote these ETF. Perhaps you can promote the revenue element and use it for buying and selling and go away the remainder.
Disc: My private views and might be fallacious.
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Effectively ETFs are tradable, so buying and selling, even day buying and selling is permitted I believe however shall be much less rewarding because the unfold is excessive, it turn out to be risky, and patrons ask for much less.
Whereas what you say is right w.r.t to index investing by means of funds or ETFs supplementing or balancing a inventory PF, index investing can be liable to alternative price. Purely from mathematical perspective, if I believe there’s a likelihood of getting some extra returns in investing in one thing else than what I’m already invested in, I need to take that, this is applicable to a upward trending market. And if I the markets are falling, indices are falling, I’ll fortunately spend money on the ETFs once more.
GB26:
So what applies to investing doesn’t apply to buying and selling, as I can’t keep put in my positions,
No I believe you bought wrongly. The distinction is time-frame. Largely weekly time-frame comes beneath investing. I don’t suppose you possibly can go quick in ETF and even In plain shares for such a very long time. I consider you are able to do this solely throughout intra day although unsure as a result of I’ve by no means completed quick in shares. And there’s no such factor as inverse ETF in NSE or BSE.
I do consider you possibly can go quick with futures in weekly timeframe utilizing one thing as they name as calendar spreads. I’ve by no means completed that
Somebody stated investing is long run buying and selling and buying and selling is brief time period investing. So buying and selling to me is just not being investing in longer durations of time, investing to me is having a portfolio of shares, studying, understanding concerning the firm, quarterly outcomes, annual stories, convention calls and so on. I’m not doing something of this right here. I’m simply staying for just a few days or even weeks right here, like in a resort, this isn’t residence, not even my home.
No shorting is just not doable. So solely lengthy for me.
No must promote your holdings. Simply pledge them and commerce
By no means did that, and from what I little know, pledging is just not straight ahead and easy, is it not?
Its easy and easy, search on this discussion board for more information