reducing losses and averaging

ccmb420 · #11 3rd May 2008, 09:06 AM

Quote:

Originally Posted by prabhjeetrana

If you are a long term investor in real terms than I think you have not done your home work properly, if you look at all the scrips most of them are way above their book values, there is no sanity in PE ratios and profit/loss sheets of atleast RNRL looks horrible.

Please take some time reading Fundamental analysis books by Benjamin Graham then you will come to know what are the financials of company you should check before investments.

As far as my knowledge goes if you are real long term investor than VALUE should be the most important criteria for you

It is of no use to him to read the BOOKS and gain knowledge NOW!!!!!.He is seeking direction: If you have any inputs on FA or TA basis help the person instead of criticizing him for having taken position in the shares !!!!

sudoku1 · #12 3rd May 2008, 11:56 AM

Quote:

Originally Posted by drpsiva

averaging your losses is one of the dangerous mistakes, atleast in the world of stocks .this is what i have been taught thoeritically and practically by the markets.

so many veiws....phew....i m empty....ah! but one.....averaging can b good...only when u know that the tide of the stock will or has changed for good.....it can b dangerous 2 average blindly @ every new lower levels......imagine the plight of 2001 KP STOCKS......many had followed the blind averaging path in silverline , hfcl , global.....& now they themselves have been averaged from the mkts....

prabhjeetrana · #13 3rd May 2008, 07:50 PM

Quote:

Originally Posted by ccmb420

It is of no use to him to read the BOOKS and gain knowledge NOW!!!!!.He is seeking direction: If you have any inputs on FA or TA basis help the person instead of criticizing him for having taken position in the shares !!!!

Why do you think that it is no use for him to learn now?? has the world ended or NSE BSE does not exist now?

Warren Buffet or even Amitabh Bachhan still think that they are learning then why cant this investor learn at this stage.

As far as I can understand this is his first attempt at investment and experience seems to have gone sore but not learning from his mistakes is an even greater mistake that he would make.

Tomorrow there may be none of us to tell him what to do but with knowledge he wont need anybody and anyways if I even give him a suggestion how would he know that its the right one?

I would sincerely like this investor to do his own studies rather than asking blindly from everyone that would help him get better results. As far as averaging goes I think it is not advisable for any stock on downside

ccmb420 · #14 3rd May 2008, 09:13 PM

Quote:

Originally Posted by prabhjeetrana

Why do you think that it is no use for him to learn now?? has the world ended or NSE BSE does not exist now?

Warren Buffet or even Amitabh Bachhan still think that they are learning then why cant this investor learn at this stage.

As far as I can understand this is his first attempt at investment and experience seems to have gone sore but not learning from his mistakes is an even greater mistake that he would make.

Tomorrow there may be none of us to tell him what to do but with knowledge he wont need anybody and anyways if I even give him a suggestion how would he know that its the right one?

I would sincerely like this investor to do his own studies rather than asking blindly from everyone that would help him get better results. As far as averaging goes I think it is not advisable for any stock on downside

You got it all wrong dear!!! You missed the word NOW which i had used in capital letters!!!!!
When a person not knowing swimming falls in a river you do not preach him the virtues of being careful near the river bank, you either jump in to save him or throw him a life line....... AND
IF and only if he is saved you may teach him, guide him, criticize him for his carelessness!!!!!
Expected much better responce from a senior like you.
Regards !!!!
-Shravan

prabhjeetrana · #15 5th May 2008, 06:29 PM

Quote:

Originally Posted by ccmb420

You got it all wrong dear!!! You missed the word NOW which i had used in capital letters!!!!!
When a person not knowing swimming falls in a river you do not preach him the virtues of being careful near the river bank, you either jump in to save him or throw him a life line....... AND
IF and only if he is saved you may teach him, guide him, criticize him for his carelessness!!!!!
Expected much better responce from a senior like you.
Regards !!!!
-Shravan

Shravan, I am not criticizing him, I just want to insist him on gaining further knowledge through his resources. As for NOW is concerned I have already advised him not to average down losses, instead wait patiently now befre making any new trades.

I have known you Shravan since long time through this forum and believe me I will never try to insult this investor or you or for that matter anyone who is seeking knowledge through this forum coz I myself am a learner in this forum.

Hope there are no hard feelings from your side

Regards