What is your exit strategy if the losses persist? You are better off if you have a pre-defined stop loss and the risk to reward-ratio is 1:2 or better. Profiting from upsides 4-8% is okay if that suits you, but if you don’t cover your downsides you are doomed!
STUPID. no doubt.
you are seeing gains because market is in euphoric uptrend.
music stops and you will cry.
If making money is that easy, anybody would have made money.
By this pace you will be Ambani in a decade or 2.
Just look at rel infra, geetanjali, yes bank, sujlon energy etc etc etc be4 you do this. One fine day they will leave the top forever and keep falling till they become almost zero. I know peolple who bought yes bank at 350 plus and kept buying on every fall leading to total bankruptcy. Atleast don’t add the brilliant idea of averaging to this.
No stupidity or smartness because results are different for everyone. Considering trading risk no expectation is huge.even ome could make 2000% depends upon the timing and strategy on 21 dec there were 600% gains and so on on other day 30%.so practically a single day could provide 80% not a big deal here anything is possible in markets.either way.
Good strategy, but don’t consider this as a long term option. Like others said, please learn some fundamental analysis and go through company’s port folio, even though you expressed, investment is on well-known companies only. None here can guarantee you a fix return , so it is better a strategy in place, and you have one now. keep going. All the best.
see @nithin this is why we need an Indian version of r/wallstreebets. We should be allowed to go full retard . The potential is endless and completely autistic in nature.
Whenever you trade, do it with utmost and extensive research/caution. Research thoroughly and have a risk management system, and trade in small lots/scrips. All the best!
What if the share price drops 50% and stays there for the next six months. Will you keep the money or sell the stock? If it is a large-cap stock and well-managed company then it can rise again (but it might take 6 months or 1 year or even 2). Can you keep your money for that long?
You have a valid point. I assume you are describing the post MAR 2020 scenario. I just hope it does not happen again. I know it is not a good practise to assume. But I am still learning. Since I am new, I have diversified the money into 35 companies and observe how the market moves. Luckily I have made some profit because of the bull-market.
In my question I mentioned “Well-known”, which is generic and confusing… What actually I meant is that I see the following factors.
Trend of each company (>10 years)
Market behaivour of the company during crisis (national and international)
Company’s performance against its peers in the same sector.
Some fundamental and technical analysis (But I am no expert in this, still learning)
You have to keep check the inflation in the USA. If inflation in the USA gets high and then the U.S banks will raise interest rates and the foreign investors will sell their Indian stocks.
The same thing happens if RBI raises interest rates. Then people will sell their shares and prefer keeping their money in Indian bank accounts.
With due respect, I would say, rather than Smart or stupid, this is Ignorace.
Once you dig deeper into market, you will figure out the answer yourself. The market does’nt work as per the points written by you.
I suggest you go through Entire Varsity once or Twice. Make some rules for filtering the stocks you want to trade, entry rules, exit rules and Holding rules. Then do paper trades. If you are getting 80% trades in your paper trades, In real market you will make 25% of it as emotions are real when you bet your own money. Every trader when starting will have ambitions as your have listed, over time, those who are brave enough to stay, humble enough to accept, will ramain. Wish you best of luck
