Hi
I am in equities for the last 10 years..have not been burnt, and not made a ton of money as well.
I found out that despite fundamentals, every stock goes through ups and downs. I have always read and heard that averaging is bad, but I have found it to be useful many times. So I am confused.
My strategy is usually as follows:
- Look out for a decently priced company (low PE, PB ratios)
- Look out for price drops in that company and enter.
- Say I buy 100 shares at 100 Rs so spend 10000
- Wait for the stock to rebound
- Once it does, sell 90 shares at 10000, and recover the principal.
- Keep the 10 shares as long time risk free investment.
- Look out for new decently priced company...
Sometimes this rewards very well, and 25% of the times, the stock declines as well below my original purchase price, but I have atleast recouped my capital.
I am no expert, and am really impressed with the knowledge of folks on these forums, so wanted your thoughts on whether I am doing the right thing..
Thanks in advance.
I am in equities for the last 10 years..have not been burnt, and not made a ton of money as well.
I found out that despite fundamentals, every stock goes through ups and downs. I have always read and heard that averaging is bad, but I have found it to be useful many times. So I am confused.
My strategy is usually as follows:
- Look out for a decently priced company (low PE, PB ratios)
- Look out for price drops in that company and enter.
- Say I buy 100 shares at 100 Rs so spend 10000
- Wait for the stock to rebound
- Once it does, sell 90 shares at 10000, and recover the principal.
- Keep the 10 shares as long time risk free investment.
- Look out for new decently priced company...
Sometimes this rewards very well, and 25% of the times, the stock declines as well below my original purchase price, but I have atleast recouped my capital.
I am no expert, and am really impressed with the knowledge of folks on these forums, so wanted your thoughts on whether I am doing the right thing..
Thanks in advance.