SmallCap Hunter : Trying to find the dark horses with triggers

I have very limited experience with small cap stocks, and most of such stocks did not give big returns for me, one reason being I invested in them with any knowledge, particularly the ones at the beginning, a few years ago. Invested in many different stocks, with mixed results.

I guess, one question that has to be asked is the expectation from such stocks, the reason why one has invested, was the expectation a multibagger, or small becoming medium and to big, in other words one that can be held for years, or anything else.

What kind of an investor you are, in the sense that, would you feel bad if you sell and see the stock go up by another 100% after you sell, or your focus in on finding on other such bets, along with the fact that you have got some experience now?

The entire process I guess is independent, in the sense that, each stock is different, as it is company with a different business, and the process is also intertwined with other factors like the expectation being met, fear of losing the profit, or cannot let the stock go because of a gut feeling that it will go up after selling.

Until one finds which style suits oneself, what kind of profits or losses are affordable, practically and emotionally, these type of questions will always exist, and they are normal. I would have feel very bad if I see a stock go down by 50% a few years ago, but now even if it falls by 20%, I will look at it and take a decision. My point is that, this is all learning, and the decision of selling even at a good profit may turn out to be wrong in the future, but this will help in understanding and taking better decisions in the future.

For someone who has 93% in small caps, I would say, can you afford a 30% fall in price at PF level, and is time on your side to build such a PF again, with more knowledge than before, and with experience.

I don’t hold any small cap stocks, although I speculate in them for shorter periods, and I try to be agile in booking profits when I get rewarded beyond my expectation, so take my views for what they are worth, with a lot of salt.