Q. Suppose you have a value pick (stock) which was bought few days back but its price is still dropping. What should you be doing going forward with such notional losses ?
Let's into get fact finding n use our valueguyz techniques to answer it in most simplistic manner.
Why value pick was dropping down in first place ?
Reasons can be many...
Real question is does it matter ?
Dost you got maybe a lifetime opportunity to buy something beautiful & under-valued. That's what matters here.
I am sure you must be thinking that yeh ghaate ka sauda ho gya n I should sell this worthless scrap.
I mean common dost... this is not you thinking but your stockbroker making rounds in mind as Yaar yeh unknown unpopular company ka stock kyon le liya, mera stockbroker hot stocks ki tips sahi deta hai, mujhe woh hi lena chahiye tha.
Stockbrokers works on commissions, it is always beneficial for them to keep idiots like Sattebaaj trading. More you trade more commissions he makes.
Stockbroker will keep giving hot stock tips which are actually zero sum game as end of the day you will lose gains as well as your capital. Guaranteed .
Yes move on...Our approach is always driven by common sense and from the start we bought because there was temporary stress in the business which will be over soon.
Just because you bought the stock don't think for a second it will reverse in direction or stabilize. Remember Mr. Market doesn't know you.
You acted on your conviction with research now let it play out for next 2 years & forget about it.
Agar tum kaam karoge to paisa kya aaram karega ?
You are a confident valueguy who has invested n now let money work.
Ask me anything on finance & Investing. Always happy to help :)
I am passionate about 3 things in my life Financial System, Fitness & Photography
I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike