Some things which people never think.........
A stock is expensive if its worth 2000 rs..............Isnt it .....But if it has the potential to run 2000 to 4000 it is equivalent to 20 ka 40 isnt it ...........1 lac rs is same if in a 20 re stock or in a 20000 re stock...
Some day traders and short term traders buy a stock at 300 tgt 306 end up holding it even if it goes to 280 ... Hoping for 300 isnt it weird..... ... At the same time same guys who may be gr8 businessmen do sell of their goods say garments in end of season sale or stock out to start afresh and new next season isnt it :) Out here in stocks people end up saying i bought that for long term only only when the stock falls 10-15% and ask how much time should it take to come back to those levels isnt it GR8 BUSIness...
How people get into a fight with a wrong trade and try to make it a profitable trade isnt it ??? ,,,,,How many people end up averaging frm 100 to 60 levels in hope to get an average price to be able to remove it at a price ....................So many keep shorting on rise on expectation of a correction in a flyer .............Grudges dont win money only satisfy the loser in u ....
the simplest thing a business men or a mgmt trainee does is comes out with a feasibility report or risk assesment isnt it ????
I would say STOPLOSS is the risk assesment so if u know that u know if u bought 1000 shares of a Re 100 stock ............If the stoploss is 95 the only money u can lose is 5k .........So if u follow this u would need to get wrong 5 times to loose 30% ...........Well if u read a little or analyze may not go wrong that many times but yes one wrong stock can kill the portfolio ...
The best trader known to the world ........W D gann who was recorded by New York times for 500-900 % returns annually in trading ./.....What does he write the first line in his book .....TRADE WITH STOPLOSSES ....isnt it clear ...
Discipline :
Well every business needs discipline and straight thinking and never get attached to stocks or try fighting them or get on to a grudge ............Discipline is to have a plan........Isnt it people end up selling reliance and other stocks to pay margins in FNO ........Or to buy more of junk stocks in hope of quick money ..........end result nor the reliance is left nor da money ....
Differentiate between in your long term portfolio and trading ........Do u sell of your old business which u have been doing for a fresh thing isnt it ........
Risk , Stoploss , Discipline and patience are simple words with gr8 meanings in the markets................
Regards,
Nooresh
09819225396
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