Dear seniors and all investors & traders,
My experience with the market is as follows.....
Last year when markets crashed during August, i picked 2 stocks.....
When Nifty crashed to 200 dma, i picked
RELIANCE @ 1740......Near to its 100 dma....
R.COM @ 496........Almost near its 200 dma.....
When i picked these stocks, my view was to keep it for atleast 2-3 years minimum.....I was so very happy that i picked these stocks at almost near its bottom....I was so very confident that no matter what happens RELIANCE will always respect its support and resistances.... BUT...
Today , after 5 months , i saw RCOM at my price of 496.....And RELIANCE, well it made a low of 2100+.....
Now , i want to know where i went wrong......
1. Did i pick the wrong stocks????...
2. My view was of long term.....Did i make a mistake of keeping a long term view and going to sleep???...
Please do let me know your views.....
(After today's crash, i think that even ""LONG TERM INVESTORS" should take profits or atleast TRIM their portfolio from time to time)
Please comment
Regards,
Aparna
My experience with the market is as follows.....
Last year when markets crashed during August, i picked 2 stocks.....
When Nifty crashed to 200 dma, i picked
RELIANCE @ 1740......Near to its 100 dma....
R.COM @ 496........Almost near its 200 dma.....
When i picked these stocks, my view was to keep it for atleast 2-3 years minimum.....I was so very happy that i picked these stocks at almost near its bottom....I was so very confident that no matter what happens RELIANCE will always respect its support and resistances.... BUT...
Today , after 5 months , i saw RCOM at my price of 496.....And RELIANCE, well it made a low of 2100+.....
Now , i want to know where i went wrong......
1. Did i pick the wrong stocks????...
2. My view was of long term.....Did i make a mistake of keeping a long term view and going to sleep???...
Please do let me know your views.....
(After today's crash, i think that even ""LONG TERM INVESTORS" should take profits or atleast TRIM their portfolio from time to time)
Please comment
Regards,
Aparna
The Answer is a BIG NO
You are quite right on buying these stocks at mentioned prices
You are still in profit.
After this crash these will be some of the stock which would help in sensex upward movement.
Long term is not six month. My portfolio contain stock bought more than two or three years back with one major crash and many minor crashes. Except one all are in sound sound health..
The mistake, if at all you call it on insisting a mistake is not to keep your target price for each leg of uptrend and booking profit. I call it stop Profit Price. For short term Stop Loss concept is good.
moreover when one is a long term investor one does not look for short selling but holding till your timeframe or price is achieved, whichever is earlier.If market drifts down from PP get out if it is more than 10%.
stoploss would protect them also from possible loss or erosion of profit or capital. One can always keep -10% of CMP as stoploss and must get out as you can still get in later if you love your stocks.
Portfolio management does not say you marry your stocks. As and when you reach your target or stop loss , must exit.Re-enter at lower price on breakout with higher vol..
Sectoral rotation is also important that would protect your capital from wild fluctuations as all sectors don't react in similar fashion except during crash. But post crash ,still their behaviour would differ.
When market comes in overbought position or many technical signals would indicate built up of negative factors then you should think of selling off say 30-50% of portfolio and be in cash . Then if market moves up you can always reinvest in stocks showing after a crash. As Harmads say as a long term investors one should see these as opportunity to invest in sound companies.
Had you sold and waited for this opportunity , which came twice to you, your holdings would have increased.
So moral of the lesson is to keep your Portfolio as a live entity struggling always for betterment and avoiding weakness/disease. Mutate grow strengthen, increase conserve.
Personally I think they have huge potential.
Pankaj