Hi,
When an investor talks about portfolio, percentages, allocations, etc.
he’s only being a speculator than an investor.
The selling of an enterprise only because of its recent run up, securing the profits/principal is the mindset of a speculator or trying to be a speculator.
When an investor talks about allocating % of his money into each stock. He is talking in crores or lakhs above 20-30.
20lakhs 20x makes a difference to your life.
20thousand 20x will still make you do the 9-5 job.
when you bring in cash you have to have the risk factor to it you will not only have the returns but also get you hooked to it and think like an entrepreneur and not like an employee.
the return percentage is the same on the capital invested, whether in lakhs or thousands.
An investor thinks fundamentally about when to sell. This is a vast subject that can not be explained theoretically but only through experience. When you do not know When to sell you probably did not buy at the right time( It’s not timing here that I am talking about, but the phases of growth. Buying at the consolidation phase, and seeking high returns).
A speculator does not think from the company’s point of view and attributes factors that are not in control of the company like his gratification, perceptions in the near and long term, and short-term exaggerations of policies(fiscal deficit, GDP growth) and events.
When you get advice on selling the principal amount in the stock and letting the profit run.
it is impartial to sell your principal and let the profits be invested in the stock.
Money is Money.
Always think like a businessman.
You have to define what is risk when you are investing.
Be a Fundamental Investor
This is another perception.
Thanks for reading.
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