Beauty of the market is both buyer and seller thinks they are acting correct. Whenever you want to sell stock because of its price down think like “You don’t have that particular company shares in your demat account, you know the company business very well and you have enough money”.Now what is your decisions? Obviously in most of the cases its BUY.
So the same YOU acts in different ways depends on different circumstances.
There are different reasons for the fall of the stock price. Mostly its based on macro factors. Remember what happened in September 1st week. All shares were down by 20 to 30% because of global cues. If u had followed stop loss obviously u had to sell most of your stocks. But after one month market almost recovered. So you would have lost money if u followed stop loss.
In my opinion instead of following stop loss we must track the factors and if factors belongs to that particular company then we must take decision accordingly.
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