I finally my calculations myself.
kindly share how you work after that, as I got your basic strategy but it would be very useful if you told me the whole thing. I can't even imagine what would happen if I could effectively time my trades.
This is where one has to be original. If one follows one single algorithm for so many different companies then performance definitely will suffer. I wonder how Fund Managers survive.
Each company and its sector has a different nature, which is understood after studying long term charts and reliving various crisis scenarios.
For ex. HuL has a very different mood. It does not sharply correct. It behaves like an Index. Which is very different from Bhel, EiL. Therefore, for HuL I have decided I will invest 5 to 10% of my cash in Rs.400 to Rs.450 belt.
Another very good, but oddly behaving company is Graphite India. It is rock solid without any competetion for another century (well!) But, its clients are not profiting and won't profit for another 5 years. So my buy price is Rs.60 and not 2008 Low although it is a small company.
Point being, I like to understand each company individually to decide its tendency to correct.
Another gem is ACC.... its business practice is remarkable. It pays its suppliers in 3 months... but demands payment from its buyers within a 15 days. This I have confirmed with a ACC distributor! You know what this means... RoE of this stock will remain rock solid !!
Therefore, I will buy this stock at each shallow correction starting at Rs.1084
I do not always have cash to make purchase because I am starting out new. So sometimes wishes do not become reality...
At any rate... this process is very very interesting. It has a good mix of academics and the real world which I enjoy best.