One problem an investor faces is that there are may be 200 stocks which go up in a year on various considerations, good results,cyclical nature etc and we cannot possibly buy all of them...we cannot buy even most of them. We have to buy 10-12 or may be 20 stocks and make our portfolio returns from them. So we have the filters such as quality of management,earnings growth,sector leadership,visibility of growth path in future etc.So based on these we buy say 15 stocks and 5 stocks from future leaders so total 20 stocks.....all 20 stocks dont do well....3-4 go bad.....3-4 give average returns,6-8 give above average returns and 4-6 stocks become multibaggers......that is how the portfolio returns are made.....
The new investor thinks that he should have all winners....not possible as a trader cannot have all winners , he will have few losers too...as long as losers lose less money and winners make much more money than losers, the investor makes a good returns on his investments.
Though the above is common sense, it is not appreciated by most....so posted to bring it out clearly.....
Smart_trade
The new investor thinks that he should have all winners....not possible as a trader cannot have all winners , he will have few losers too...as long as losers lose less money and winners make much more money than losers, the investor makes a good returns on his investments.
Though the above is common sense, it is not appreciated by most....so posted to bring it out clearly.....
Smart_trade