Regarding timing the markets (using anybody’s theory or teachings) I have found it difficult to get the call consistently right. Sometimes we get certain tell tale chart patterns on Nifty or large caps or such charts and it’s possible to take a sell call. But most of the times, I have seen that it’s difficult to see a major crash coming, atleast for me. Instead, I feel that one has to make the most of bull markets and then if you have to give something back during corrections, it doesn’t feel so bad.
Coming to individual stock exits, waiting for stock to breach 30 WEMA often entails selling at a substantial distance from the top. I sometimes use simple methods of using overbought momentum indicators to plan an exit. Or sometimes a move in a company appears too stretched in response to its underlying fundamentals, or sometimes we see a big stretched move on charts, and that often is an indication to lighten up positions, or plan a major exit.
But all said and done, selling remains a difficult art. The usual mistake with me is selling early in a strongly trending stock. So I have resorted to staggered selling, wherever its possible for me. That too involves discipline and I have to exercise a lot of will power to stick to a selling plan.
@Moiz_Engineer I don’t track UPL.
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