I tend to fall in this category especially for companies which I entered without studying properly or lack the conviction and sometimes out of sheer vanity attempting to time my re-entry
Missed many a multibaggers due to the disease of market timing & poor conviction (dodged few bullets too). I lack faith/discipline in Technical Analysis so I try to avoid them.
To mitigate this, I started practicing classic value investing where I’d study and value the companies which I buy conservatively and put the target valuation on a excel sheet, now the irony was I would sell these companies the moment my intrinsic value target hits or slight above/below and these companies would continue rallying and make me laugh.
There have been companies which I have sold prematurely, re-entered and sold again, they still continue to pump…such is the strength of bull market.
Nowadays I simply try to use my valuation models only for entering a stock, and stop looking at them. The goal is to buy quality companies with long runway so that I don’t have to trade frequently and to hold on to them. Not to use price as the criteria to exit a stock but focus on fundamental/business/growth deterioration. Keeping a lean portfolio really helps.
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