Hi, I have 900 shares of IREDA for Rs. 207. Do I continue to HOLD or Sell ?
Thanks,
If you are investing you should forget about the price you paid for initially. If you are trading you got to have stop loss.
Will you buy the same stock today at this price? If answer is yes hold it. You sell when thesis changes.
Are there better opportunities? If yes put new money there or if it’s too attractive opportunity then sell and move proceed in new idea.
Ex: I own HDFC bank and it lost 25% last quarter will i sell it? no. i believe it will perform better and no profit warnings.
Although you haven’t asked use tax loss harvesting through out the year we can carry loses for like 7 years something like that.
Ps: not an advisor
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If you are interested read about endowment effect ( combination of loss aversion and ownership attachment ) there are few experiments conducted on it.
Check out 5 mistakes every investor makes and how to avoid them by Peter mallouk he mentions these in book.
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Just honestly ask yourself, why you bought IREDA shares? If the reason is Long Term Investing then hold it for at least 2-3 years irrespective of price levels. If its short Term swing trade, Hold or Exit based on your Stop Loss.
short term: if you wouldn’t buy more IREDA at today’s price, your capital is better off in a fresh idea with actual momentum.
long term: you must have believed in some strong fundamentals, hold on to it unless you see those fundamentals not holding true anymore.