A person individually managing his own money in the equity markets typically does not have a system or discipline to trade and invest. He depends on others for ‘tips’ or trades on his ‘feelings’. He ends up buying at the highest levels and selling in despair. They get lured and then stuck in long term stories of so called ‘kachra’ companies.  

 

MF, SIP and PMS companies who manage money with long term investment perspective have good entry strategy but they become biased towards their investments over a period of time and do not exit at the right time to book profits for their investors. A couple of big draw downs are inevitable which reduces the average portfolio returns drastically.  

 

Companies who use technical analysis for doing trades also end up with meager returns since they trade in small time frames and more often. The impact cost of entry, stop loss and exit eats up a good part of the profits. They often fail to ride the winners for a long time duration.  

 

There is practically no player who manages money by a combination of both, fundamental and technical analysis. There is no proper filtration system in place to define one’s universe of stocks based on both, fundamentals and technicals. Time horizon of trade is predefined as short term and long term due to which, many opportunities are missed by both the groups.