This question assumes that the shares mentioned have good fundamental yet they keep on making new lows for unknown reasons. For e.g Gati and Navkar Corp. Both the shares posted good results last Quarter.
All the indicators suggest they are downtrend. Adx/dx , accumulation and Chaikan money flow . But the question is how do set the stop loss? Second question what chart pattern suggests continuous bearish trend ? How to spot a trend reversal ?
As an investor rather than caring about technicals keep your own stop loss price, based on your risk appetite or exposure to the stock
I would say taking over 30% loss even on long term investment is not good, and it is definitely stupid in an year like 2018
That’s a practical answer. I thought of long term investment and I lost 24% in Navkar , 41% in Gati. So even a long term investor needs to keep stop loss ?
My strategy is that apart from top 10 or 20 stocks, keep stop loss in every stock.
And this strategy becomes all the more important in 2018 type years.
Most of midcaps you dont know where is the bottom, there are lot of midcaps i can see marching towards 5 year low price.
Gati went into loss in quarter ending March 2018.
Is there anything that can justify their downfall, coz many scrips fundamentally strong and clean, are down to the extent of being very underpriced? What follows?
The price we see on marketwatch is the output of strategies of big dolphins