My 0.001% stock market journey

I started my journey in stock market around 2017-18 and at that time stock market is a liability for me and not an asset.

In the beginning, I did what most newbies do. Trading in the market based on the advice given by some group or by friends or suggested by TV anchors. Finally, my balance sheet was reflecting exactly what I deserved just by following the tips.

Curiosity: - I started getting curious to know how these experts know all the levels like how to select the stocks, when to enter, where to place the stop loss and when to book profit? so I joined some experts who try to explained technical things, who are called finfluencers today. I learned so many things with all of them and found it very fascinating.

By following their methods I started making profits in short term trading. But overall, I made no loss no profit when compared to the time I was devoting.

Realization: Very soon I realized that if I want to stay in the market for a long time, I should not depend on anyone because the specialty of most finfluencers is that they avoid giving any advice during losses.

I started learning about stock market by attending webinars and courses and with this knowledge invested in some good stocks.

Greed: Now I was slowly becoming greedy and I was still thinking market as a liability and not a wealth creator. And prove to myself smart, I started booking profit in my winners and loss in my losers. At the end same thing happened, when I compared it with my time then I was neither in profit nor in loss. If I compare my losers today, they are the biggest winners. Like;

Bajaj Finance 3000, Reliance 1000, HDFC Bank 800, Maruti 4000, ONGC 66, Ashok Leyland 60, Tech Mahindra 550, Indus Bank 365, Tata Elxsi 1000, Tata Power 90, Voltas 500, ATGL 150, KPIT 500, ABB 1800, CDSL 1300, BSE 500, Adani Green 350, Minda 150, HSCL 55 etc.

Realization part-2: I am very grateful to those who taught me technical things, but I wish someone had taught me to overcome greed and it would not be wrong to say that I did not understand the difference between greed and success properly.

One fine day I started comparing my mutual fund and stock portfolio, and I was surprised that my mutual fund portfolio was performing much better than stock and this was because I never tried to predict the performance of mutual funds.

Now I started thinking about how to stay invested for the long term, how to control greed, how to develop an investor mindset and I decided I will do what I am good at and being a bookworm, I started reading about finance, stock market, mindset etc.

As I started learning about the market, many of my doubts were cleared. I had quit social media long back to focus more on my business (which I started at the age of 25,) so it was a plus point for me that my entire focus was on my business and learning about the market and there was no scope for external noise. I had a basic knowledge to read balance sheet, so this was a bonus for me.

Three simple steps to become an investor, rather than a speculator

. focus less on forecasting

. ignore the short-term noise

. focus on the business, and not the stock price

0.001%: Now I realize that I started understanding stock market 0.001% so I created 3 portfolios. One is long-term, second is stock SIP and third is passive income portfolio.

Long term: I started investing in stocks that are suitable as per my fundamental study.

Stock SIP: I invest in growing companies (mid & small cap) that I don’t want to take too much risk on right now. I have covered this topic with some examples in Stock SIP boring yet powerful.

Passive income: In this portfolio, I invest in such stocks that meet my technical setup for positional investing.

Since I am not a SEBI registered or qualified advisor, I don’t find it appropriate to share my portfolio or setup.

Since I have learned only 0.001% about stock market in last 6 years and my constant endeavor is to learn more, I will try to share whatever technical and fundamental study I do.

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Thanks for sharing your story.
BTW; we would love to see your 3 portfolios just to understand your thought process behind your picks.

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You dont have to be SEBI registered to share your portfolio \s here. You are not recomending anything to buy or sell, just sharing your portfolio. Just add that disclaimer, you will be just fine.

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Thankyou sir your journey a loot of thing I learing , I am from west bengal I recenty jion value picker

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My Top 3 holding in each basket.

Long-term
Polycab
KPR Mill
Titan

Stock SIP
PROTEAN
IREDA
JIO

Passive income
ONGC
Engineers India
RAJOO Eng.

Disclaimer: I am not a SEBI registered or a financial advisor. Any of my investment or trades I share on this post are provided for educational purposes only and do not constitute specific financial, trading or investment advice.

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What should be the ideal number of stocks in a long term portfolio?

Everyone must have this thought somewhere that how many stocks should be there in an ideal long term portfolio?

The average answer will be around 15 and maximum 30.

Let us take 20 stocks for example.

Now the second question is, how much allocation should be made according to the market cap?

The ideal allocation ratio; *
Large Cap : 50% | Mid Cap : 30% | Small Cap : 20%

The third question is how much allocation should be there in a stock?
Ideal allocation to one stock should not exceed 15% of total Portfolio Value.

The fourth question is, sector allocation?
Ideal allocation to one sector should not exceed 20% of total Portfolio Value.

Last but not the least, the fifth question is which 20 stocks should we invest in?
I asked many people/experts about this and almost everyone gave different suggestions but the most common 3-6 stock suggestions I got are; Reliance, ITC, TCS, Airtel, HDFC Bank, L&T etc.

Let us assume for a moment that we invest in all these 6 stocks, but there are still 14 stocks left to choose.

I started asking again and the names of 3 more stocks turned out to be similar. CDSL, SBIN & Eicher Motor.

So now I had 6 + 3 = 9 stock list. There were still 11 stocks left.

Now when I asked about these the common answer was that it is up to you as the allocation depends on various factors like risk tolerance, investment horizon and goals.

My personal conclusion so far is that whenever we ask for advice on building an ideal portfolio, the answer we get is very conservative and the stock recommendation is not 20 but around 10. This doesn’t mean that the experts are wrong but nobody wants to spoil their image so they give suggestions on the safe side.

The story is not over yet because I want to create a portfolio of 20 stocks, so now I started thinking again and I tried to think about it from a different perspective.

My different approach was, if I assume that SEBI rule is that we can hold maximum 20 shares in our demat account, then which 20 shares will I choose?

This approach solved 80% of my problem because now my job was to select the best 20 stocks that would help me create wealth. I named this long-term portfolio, Wealth Over Money

This reminded me of the Pareto principle, which says that 80% of outcomes results from 20% of causes.

Picking the best 20 stocks is not as easy as it seemed.
We live in an era where there is an abundance of information. We keep getting new news every minute and it keeps distracting us from our goals.

I can say I have identified 7-10 stocks for myself, but honestly, I am still not able to identify the 20 best stocks that I can confidently say I will hold for the next decade.

If I ask you the same question that assume that SEBI has a rule that you can keep a maximum of 20 stocks in your portfolio, then which stocks will you choose in your Wealth Over Money Portfolio?

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My 2 cents on few Renewable Energy Stocks

IREDA
IREDA, is a non banking financing company which provides financial assistance to renewable energy projects like power generation, equipment supply and fuel source projects including wind power, solar power, hydro power, biomass. The Company’s primary sources of funds include domestic and foreign borrowings, internal resources and Government of India support.

NHPC
The company is primarily involved in the generation and sale of bulk power to various Power Utilities. Its other business includes providing project management / construction contracts/ consultancy assignment services and trading of power. The company has 7097 MW installed capacity (6971 MW Hydro & 126 MW Renewable Energy) through 25 power stations across 13 states. Its contribution is 15% of India’s installed Hydro Power on consolidated basis.

TATA POWER
Tata Power Company Ltd is primarily involved in the business of the generation, transmission and distribution of electricity. It aims to produce electricity completely through renewable sources.

Tata Power plans to invest INR 20,000 crore in FY25, with 55-60% allocated to renewables. The company aims to commission over 3 GW of renewable capacity in FY25 and over 4 GW in FY26.

ADANI GREEN
As of FY24, the company is India’s largest renewable power producer with 10.9 GW of operational renewable energy capacity compared to 5.4 GW as of FY22. It has 11 GW of capacity under execution. It is ranked the 2nd largest Solar PV developer in the world with a total solar capacity of 18.1 GW in Mercom Capital Group’s Global Annual Report. It intends to increase its renewable capacity from 10.9 GW to 50 GW by 2030, 10% of India’s renewable capacity target.

Hi-Green Carbon Ltd
Hi-Green Carbon Ltd. (HGCL) core focus is on Renewable Energy with a diversified portfolio varying from castings, consumer goods, corporate farming, packaging, and herbal products. Company is in the renewable energy segment creating wealth from waste (through a patented technology).

IREDA CHAIRMAN Says IREDA will invest around Rs 4-5 lakh crore in the renewable sector by 2030 - ETNOW

IREDA plans to increase its loan book to Rs 3.5 lakh crore from Rs 64,000 crore by 2030

The company aims to achieve Maharatna status by 2029

The domestic market has become more competitive due to hedging costs

We will save 3.5% on hedging costs after opening an office in GIFT City

We are expecting the government to launch a green bond taxonomy dedicated to the green energy sector soon

Monetization of funded projects will be our future strategy

We are expecting final approval from the government in the next 2-3 days to dilute a 10% stake

Disclaimer: Invested & biased. I am not a SEBI registered or a financial advisor. Any of my investment or trades I share on this post are provided for educational purposes only and do not constitute specific financial, trading or investment advice.

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What is a good buying level for :slight_smile:

  1. CDSL
  2. Aavas Financiers
  3. Angel One
  4. Altus Value Housing
  5. Tata Elcos
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Even if you’re just at 0.001% of your stock market journey, @Shaunak, it’s important to keep an eye on the debt levels of these companies. A single change in government policies could have a significant impact on them, so be cautious.

Current D/E ratios:

  • IREDA = 5.8
  • NHPC = 0.84
  • Tata Power = 1.66
  • Adani Green = 8.65
  • Hi-Green Carbon Ltd = 0.32

In my view, a D/E ratio below 0.25 is ideal, 0.5 is good, and I tend to avoid companies with ratios above 0.5.

Note: This is just one of many factors to consider when evaluating companies.

Sorry, I am not qualify to share any levels.

Thanks for sharing your expertise. I’ll definitely check it out.

Indian Renewable Energy Development Agency Limited (IREDA) received in-principle approval from the Department of Investment and Public Asset Management (DIPAM), to establish a wholly-owned retail subsidiary for handling the retail business under PM-Suryaghar (Rooftop Solar), PM-KUSUM schemes and B2C segments in RE and Emerging RE sector including EVs, Energy Storage, Green Technologies, Sustainability, Energy Efficiency, etc.

Commenting on this development, Shri Pradip Kumar Das, Chairman & Managing Director, IREDA, stated, "This new retail subsidiary marks a significant milestone in our journey towards fostering sustainable energy solutions at the grassroots level. By extending our expertise in renewable energy finance to the retail market, we will provide innovative financing options for both urban and rural consumers, promoting sustainable practices and reducing carbon footprints.”

This expansion aligns with the Government of India ’s vision to accelerate renewable energy adoption across the nation and create new opportunities in the clean energy sector.

Source: IREDA (Press Release)

Questions:
Hi, what is the difference between Long Term & Stock SIP here. If you keep doing SIP that will also become long term. Is the only difference that for Long term you have fully created the positions and in the SIP ones you are trying to buy at average price?. I say differentiate b/w the two by saying Fully invested + Building position.

Passive Income? Since you are actively trading swings, this is not passive income but active income. Passive income is something where you are holding high dividend paying stocks or getting royalty on a book or a song.

Since you mentioned don’t focus on the stock price, but focus on the business, do you mean that?

  • Don’t focus on volatility in short term
  • Buy at any price ( I think NOT )

Suggestions:

  • It is better segregating by investment strategies or type of stocks. For example, consistent profit growth + Huge profit potential + Special Situations (merger demerger industry boom) + Undervalued Picks (PVT banks atm)

Cheers!

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Thank you for sharing your valuable insights.

I do SIPs in stocks where I don’t want to take too much risk at the moment. So I keep buying in small amounts. When I am confident about a SIP stock, I put it in the long term portfolio and increase the investment.

I do not do swing or short term trading, so whatever stocks are in my passive portfolio, I hold them for at least 1-2 year.

I call it a passive portfolio because from my point of view, any income I earn apart from my main income source is passive income for me. I could be wrong, but I don’t want to create too much confusion about money.

Well in that case isn’t your whole investment a passive income? It is confusing. Since it’s based on technical setup, won’t Positional/Swing portfolio be a better name?

Yes you are right, from my perspective all my investments are passive as I invest in them from my active income. If I were a full-time trader and the stock market became my main source of income (that took care of my needs), I would call it active income.

Yes, you can call it a positional portfolio, but as I said, I don’t want to create more confusion, so I named it a passive portfolio, because it takes care of my wants.

Umm, for a company like IREDA higher debt is a good thing. The debt it has taken has only been given to other companies and IREDA’s profit depends on the margin.

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I agree, a high debt-to-equity ratio is acceptable for banks, NBFCs, and even stock brokerage firms. It doesn’t matter whether the funds are borrowed from the RBI or lent from their own books.

In IREDA’s case, higher debt isn’t a red flag—it’s a strategic tool. As a lender, its profitability depends on the amount of debt it can take on and lend out profitably. The margin between the interest it pays on its debt and the interest it earns from loans to renewable energy companies is how it generates income. Therefore, higher debt, when managed properly, allows IREDA to expand its lending portfolio and grow its profits.

My earlier response was intended as a general statement. Of course, the evaluation of individual stocks is something I leave to the author of this thread.

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Eicher Motors

Royal Enfield, the global leader in the mid-size motorcycle segment (250cc-750cc), announced the commencement of operations of its Manufacturing Unit (Category 2) and flagship showroom in Bangladesh. Set up in collaboration with IFAD Motors, this announcement is a significant boost to the company’s business in the SAARC region, and further reiterates Royal Enfield’s commitment to Bangladesh. Located in Chauddagram, Cumilla District, the new manufacturing facility is
Royal Enfield’s sixth assembly unit outside India - after Nepal, Brazil, Thailand, Colombia, and Argentina - in addition to its state-of-the-art manufacturing and ancillary facilities located in Tamil Nadu, India.

Bangladesh’s auto industry is the one of the largest in South Asia and is an important market for the brand especially since the recent rules and regulations allowed the sales for motorcycles up to 350cc engine capacity. The motorcycling culture has also been growing in the SAARC region and it demonstrates a very high potential for growth in the middle-weight segment. Royal Enfield aims to establish a solid presence in Bangladesh with this market debut.

Disc: Doing Stock SIP