Read your article on the power sector and followed you here. A small time investor, late entry at a late age. I appreciate thought processes. I find that those have helped me far more in my investing journey rather than any recommendations or predictions. I have stopped believing in labels like "blue chips " among other things. For myself I have also learned not to believe in the "long term". It doesn't work in life in general and certainly doesn't appeal as a stock strategy for me. Neither do I trade on a daily basis. Defining an exit strategy for any stock I invest in is my current goal. When the percentage gain is way way over a 25 % return within a short time....how to get the hell out of there is what consumes me!
Why do you want to get out with just 25%? Large money would only be made by buying something and riding the same as long as possible as it grows larger not just by share price but as it grows a large % of your portfolio as well. Obviously by keeping some risk management intact.
The thought of making a large number of 25% kind of bets sounds good & easy than finding a multibagger. But my experience have taught me that making 100% in 5-6 stocks is more easy then doing 25% in 20-25 stocks. And net return in the end would be same for both.
"100% in 5-6 stocks is more easy then doing 25% in 20-25 stocks." Correct...thats the current strategy!! 25% is just peanuts...at the moment. Th problem is gathering the courage to exit at 354% over 10 months!! Have to understand that stocks are not your children. They are only means to an end....an end which every individual has to define for themselves. When is it enough!
I find myself in the dilemma of investing money or not, add to existing positions or new ideas.
Few of my investments say IEX, Tata Power etc. has risen so fast that could not deploy the amount intended or buy quantities. Now since they are in higher valuation territories little skeptical to add more. How do you overcome such situations as these are not 100% pass. Sometime investing the desired allocation at one go would be the best. But there are instances when you do 100% and the movement is south. Any suggestions based on your experience? Thanks
See firstly one needs to make peace with the fact that you can never buy at the lowest price and exit at the highest price.
While making any decision in market whether to buy/sell, increase weight or reduce weight or Hold, always think about risk:reward at current level. Because in the end market is a game of probability, no matter how right your decision was, you might be proven wrong.
But if you balance risk:reward over many decisions, net effect of the same would be positive.
Very Well written. Good wisdom especially from a person of your age. I think Zomato's business can easily be broken by a competitor App because they don't have anything much in assets except a famous App. Apps are getting replaced easily(even big mightly Whatsapp is getting replaced by Telegram). However similar thing cant be said for loss making companies like Indigo who have assets base like Team, Aircraft etc. Hence long-term probability of Indigo doing better in comparison to Zomaro is higher.
Read your article on the power sector and followed you here. A small time investor, late entry at a late age. I appreciate thought processes. I find that those have helped me far more in my investing journey rather than any recommendations or predictions. I have stopped believing in labels like "blue chips " among other things. For myself I have also learned not to believe in the "long term". It doesn't work in life in general and certainly doesn't appeal as a stock strategy for me. Neither do I trade on a daily basis. Defining an exit strategy for any stock I invest in is my current goal. When the percentage gain is way way over a 25 % return within a short time....how to get the hell out of there is what consumes me!
Why do you want to get out with just 25%? Large money would only be made by buying something and riding the same as long as possible as it grows larger not just by share price but as it grows a large % of your portfolio as well. Obviously by keeping some risk management intact.
The thought of making a large number of 25% kind of bets sounds good & easy than finding a multibagger. But my experience have taught me that making 100% in 5-6 stocks is more easy then doing 25% in 20-25 stocks. And net return in the end would be same for both.
"100% in 5-6 stocks is more easy then doing 25% in 20-25 stocks." Correct...thats the current strategy!! 25% is just peanuts...at the moment. Th problem is gathering the courage to exit at 354% over 10 months!! Have to understand that stocks are not your children. They are only means to an end....an end which every individual has to define for themselves. When is it enough!
I find myself in the dilemma of investing money or not, add to existing positions or new ideas.
Few of my investments say IEX, Tata Power etc. has risen so fast that could not deploy the amount intended or buy quantities. Now since they are in higher valuation territories little skeptical to add more. How do you overcome such situations as these are not 100% pass. Sometime investing the desired allocation at one go would be the best. But there are instances when you do 100% and the movement is south. Any suggestions based on your experience? Thanks
See firstly one needs to make peace with the fact that you can never buy at the lowest price and exit at the highest price.
While making any decision in market whether to buy/sell, increase weight or reduce weight or Hold, always think about risk:reward at current level. Because in the end market is a game of probability, no matter how right your decision was, you might be proven wrong.
But if you balance risk:reward over many decisions, net effect of the same would be positive.
Very Well written. Good wisdom especially from a person of your age. I think Zomato's business can easily be broken by a competitor App because they don't have anything much in assets except a famous App. Apps are getting replaced easily(even big mightly Whatsapp is getting replaced by Telegram). However similar thing cant be said for loss making companies like Indigo who have assets base like Team, Aircraft etc. Hence long-term probability of Indigo doing better in comparison to Zomaro is higher.