Why APS: Successful Investors
Congratulations for being successful stock market investors! You are in the top 10% (or less) retail investors league who are able to make profit out of stock market. You know your business better and nothing much is left to us to coach. However, our service (APS) still has value for you to make your life comfortable and most likely to improve the overall return on investment by improving MUF(Money Utlization Factor).
Many times long term investors fail to visualize the exact return on their investment. Like a stock whch appreciated Rs.100 to Rs.1000 in 35 years has actually returned less than 7% yearly (CAGR). It is much less than risk free (Fixed Deposit or Bond) average return during the same time.
Another example is, a 10 years investment may have given decent return but closure inspection reveals the stock had returned only in first 5 years and for last 5 years it was stagnant (or may have dipped).
Our core strategy Rule-X suggests to continue in a investment only when it is on upward movement and get out once downward trend is confirmed. Investigation of directional change must be done on weekly basis to avoid surprises. For example, see the following chart
HINDALCO's 5 Years Trading Chart (Green portion depicting when APS had asked investors to stay invested)
It is evident from the above chart, our directional strategy has paid well and while 5 years spot investors have made loss, this strategy has given very good profit. Good news is, apart from good return it has kept our money free for more than 50% of the time where investor has gained at least 4% in the form of saving account interest.
Investors have many other liablities other than monitoring the stock market. So, it is difficult to do periodic review of the portfolio (assuming it has 10-20 stocks). Our APS system does the same on investors' behalf. It tracks investors' selected stocks which is different from most other systems which just give tips independent of investors choice and current holdings. APS subscribers get alerts from both directions. It means if the investor has invested in a stock and it started going downward then it gives sell alert. It also gives buy alert of a stock if the investor has registered that particular stock in the portfolio to track the buy time opportunity.
A Sample APS Enabled Portfolio
In above picture it has been depicted, investor had taken position in WELSPUN which changed the direction and now APS system is suggesting to sell off completely (200 out of 200). TCS which is doing good but due to sharp growth, investment proportion is skewed and system is suggesting to sell of 8 out of 25 to balance the proportion (this is aligning with another school of thought which suggests to book partial profit). LUPIN, BAJAJ, & MULTI COMMODITY was registered by the investor (not taken position) to track the buy opportunity. Now, APS system has noticed change of direction (downward to upward) and it has alerted to buy with exact quantity calculation according to the budget set by the user. On top there is a dash board which tells all financial aspects of the investors money in the portfolio.
Most of the time first question raised by long term investors about our system is tax benefit. APS system advocates buy and sell according to direction of the stock. Here chances are high it will increase number of trade and investors may lose the tax benefit provided by goverment beyond one year of holding. We have captured a typical portfolio 5 year data analysis and found most of the cases winning trades are beyond one year hence there is no or minimal tax impact. Details of the same has been provided at the following link
APS & Tax Impact
For details on how APS works, please visit the following link
How It Works
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Conclusion: APS system cuts down the monitoring time & effort for various stocks in the portfolio. It sends weekly report via email and SMS. Subscribers of APS are always updated about their investment status even if they are busy with their other liabilities. APS system is the only system which takes care of the user's selected stocks and does not impose buy/sell without having knowldege of the user's current holdings and preferences. It gives alert for buy as well as sell. Though, APS funtionality is centered around Rule-X however, we have noticed 90% of the time, decisions taken by Rule-X usually gives good calls at par with any suceesful trader's call.
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