I usually pick my momentum picks on weekly charts and investment horizon is a few months and more… And periodically I tend to check out the story and whether things have played out as per my expectations.
If the allocation at the beginning is high and stock price is not moving much either ways, and i get another idea which appears more attractive comparatively, I would atleast trim some position to make way for the new incumbent. As to time frame, there are no fixed rules on the amount of time needed to be given for the stock to move.
Just to give you an example, Usha was an idea which I bought first at around 65-70, once I saw a rounding bottom breakout and heard the story and the possibilities that were there in the story. Post that stock price went up and I kept adding at higher levels up to 100. Major breakout happened above 100-105 after which stock price quickly crossed previous all time high and went into a triangular consolidation between 100-165, and during that time it felt as if it was stuck in a range ( this range lasted nearly 10 months) , no matter where markets went. But all this time, the fundamental picture kept improving and things were getting clearer. The only thing needed was to give more time to the story to play out. And now it seems to be delivering robust numbers. Something similar is happening with HBL power, where the story seems clear, but big numbers are awaited and maybe a quarter or two away. That is the time we need to give to our company to deliver and then re assess the story as to how it has played out.
@Riddhi_Shah I don’t track FDC or aarti pharmalabs , but aarti features in one of the stock picks discussed at our recent VP meet at goa. Write up is posted on the forum.
@vishal_lehar How to find sectors with strong tailwinds has been discussed before, and I will post link if can locate it. Else I will write about it.
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